Generac Grid Services Blog

What’s the difference – and why should you care?

There are a lot of acronyms floating around the energy world these days. It’s a veritable alphabet soup of evolving terms that are often hard to distinguish from one another.  This is especially true when it comes to distributed energy – it’s a relatively new concept in and of itself, and when the terms that define this evolving move to the grid edge aren’t inherently self-defining, the ensuing confusion complicates the equation. What’s the difference between DERs and a DERMS?  And what’s the definition of a DERMS versus a VPP?  Just as important what difference does it make? 

I have posted several blogs in the past few weeks, focused on the potential to improve the operation of the electric power grid, reducing losses, and driving the overall efficiency up. Some of the thoughtful comments that have been posted by readers have provided food for thought. One comment was particularly important to this discussion…

“What’s best for players individually is not what’s best for the public and for the system as a whole.”

This comment reveals an issue that may soon be a problem.

For most of the 130-year history of the electric grid, utilities have charged residential customers for energy used and have NOT charged for peak power demand, as they do for commercial and industrial accounts.