Term

Definition

Distributed Energy Resources (DER)

Small-scale energy resources usually situated near centers of energy use, such as rooftop solar panels, battery storage systems, and electric vehicles.

Electricity Grid

The interconnected network for delivering electricity from producers to consumers, encompassing generating stations, transmission lines, and distribution networks.

Microgrid

A localized electrical grid with its own control capability that can operate connected to the main grid or autonomously in island mode.

Distributed Generation (DG)

Electrical generation and storage performed by a variety of small, grid-connected devices, rather than a centralized power plant.

Energy Storage Systems (ESS)

Technologies (primarily advanced batteries) that capture electricity produced at one time for use at a later time.

Inverter

A device that converts direct current (DC) electricity into alternating current (AC) electricity, which is required by the grid and most appliances.

Grid Edge

The physical and organizational boundary where the traditional utility grid meets the consumer's property and where DERs are deployed.

Term

Definition

Demand Flexibility (Demand Response)

The ability of consumers to change their electricity usage patterns during peak periods, often in response to financial incentives or signals.

Net Metering

A billing mechanism that credits solar energy system owners for the excess electricity they add back to the grid.

Peak Demand

The specific time of day when the collective demand for electricity on the grid is at its absolute highest.

Base Load

The minimum baseline level of electricity demand on a grid over a continuous period of time.

Load Shedding

An intentional, controlled electrical power shutdown across specific areas to prevent a total grid failure when demand exceeds supply.

Interconnection

The physical connection and technical safety requirements allowing a localized DER system to link to the utility grid.

Islanding

A condition where a distributed generator continues to power a localized area even when power from the central grid is interrupted.

Curtailment

The deliberate reduction in power output below what could have been produced, often to maintain grid balance when supply exceeds demand.

Term

Definition

Smart Devices

Wi-Fi-enabled appliances that can communicate with energy management systems to automatically optimize power usage.

Smart Meter

An advanced digital electrical meter recording power consumption in real-time and enabling two-way communication with the utility provider.

Advanced Metering Infrastructure (AMI)

The integrated system of smart meters, communications networks, and data management software supporting real-time utility monitoring.

Electric Vehicle (EV)

A vehicle powered partially or entirely by electrical power from battery storage, increasingly acting as a mobile DER asset.

Vehicle-to-Grid (V2G)

A bidirectional system where EVs communicate with the power grid to provide demand response services by returning stored electricity or throttling charge rates.

Home Energy Management System (HEMS)

A centralized technology platform that monitors, analyzes, and autonomously controls the energy consumption of smart devices within a household.

Smart Inverter

An advanced inverter that not only converts DC to AC but also provides grid support functions like voltage regulation and two-way communication.

Photovoltaic (PV)

The conversion of light into electricity using semiconducting materials that exhibit the photovoltaic effect (standard solar panels).

Term

Definition

Time-of-Use (TOU) Tariffs

A utility rate structure where electricity prices vary by time of day, typically higher during peak hours to encourage load shifting.

Virtual Power Plant (VPP)

A cloud-based network aggregating the capacities of decentralized DERs to operate as a single dispatchable power plant.

Feed-in Tariff (FiT)

A policy mechanism offering guaranteed, long-term contracts and above-market rates to renewable energy producers.

Power Purchase Agreement (PPA)

A long-term contract where a third party owns and operates a renewable energy system, and a customer buys the generated electricity at a set rate.

Energy Arbitrage

The practice of storing energy when prices are low and discharging or selling it back to the grid when prices are high.

Levelized Cost of Energy (LCOE)

A metric comparing the relative cost of energy generated by different sources, representing the average net present cost over a plant's lifetime.

Demand Charge

A commercial/industrial charge based on the highest spike in power drawn from the grid during a billing cycle, rather than total volume.

Prosumer

An individual or entity that both consumes and produces electricity, fundamentally altering the traditional one-way utility model.

Term

Definition

Distributed Energy Resource Management System (DERMS)

A highly complex software platform used by grid operators to monitor, control, and optimize the dispatch of diverse DERs.

Supervisory Control and Data Acquisition (SCADA)

A system of software and hardware elements that allows industrial organizations to control grid processes locally or at remote locations.

Frequency Regulation

A service that helps maintain the grid's electrical frequency at a stable level by rapidly injecting or absorbing power.

Renewable Energy Certificate (REC)

A tradable, market-based instrument representing the property rights to the environmental and social attributes of renewable electricity generation.

Decarbonization

The process of reducing carbon dioxide emissions through the use of low-carbon power sources.

Capacity Factor

The ratio of the actual electrical energy output of a generating plant over a given period to the maximum possible output.