Achieving Climate Neutrality with Energy Management Solutions

Sustained greenhouse gas (GHG) emissions have caused, and are continuing to cause catastrophic damage to the environment, economy, and human health all over the world. In response, all customer segments are increasing their efforts to achieve climate neutrality in their operations. With more renewable energy capacity coming online and distributed energy resource (DER) installations increasing behind-the-meter, supply side volatility is worsening and a more complicated power flow structure on the grid is forming. Energy management solutions like virtual power plants (VPPs) and distributed energy resource management systems (DERMSs) create an opportunity to firm up renewable generation output and enable a transition entirely away from fossil fuels.

To maintain reliable power grid operations in a climate neutral world, utilities and grid operators will require new technologies, strategies, and solutions. Energy management solutions can make use of both clean supply and demand side resources connected to a territory's grid. In addition to maximizing the value of these resources, energy management solutions can use them to displace traditional power generation technologies. By optimizing renewable generation output, energy storage resource operation, and flexible load control, energy management solutions can drastically reduce operating costs while simultaneously eliminating emissions.

This Guidehouse Insights report discusses the role that energy management solutions like VPPs, DERMSs, and demand response can play in the transition from fossil fuels. It provides recommendations to key stakeholders to increase the opportunities for, and the effectiveness of energy management solutions as the world seeks to achieve climate neutrality in the coming decades.

KEY QUESTIONS ADDRESSED:

• What are energy management solutions?

• What is driving the need for new energy technologies in grid management?

• How do energy management solutions function on the power grid?

• How can energy management solutions support a path to climate neutrality?

• What role does beneficial electrification play in the energy transition?

• What can various stakeholders do to drive the adoption of energy management solutions?

WHO NEEDS THIS REPORT:

• Regulators and policymakers
• Utilities
• Grid operators
• DER vendors
• VPP software providers
• DERMS vendors
• DER aggregators
• Commercial, industrial, and institutional energy consumers