Is now the time for DERs to scale? [re-published]

Distributed energy resources (DERs) have reached a critical inflection point where their integration into the power grid is no longer a theoretical aspiration but a functional necessity. Historically, DERs failed to scale because the grid lacked significant load growth, and these resources functioned as optional "vitamins" rather than essential "painkillers." Today, however, the power system faces severe capacity bottlenecks, forcing grid operators to move beyond traditional, centralized infrastructure. While regulatory friction and high installation costs remain, the rise of virtual power plants (VPPs) and the increasing cost of conventional capacity are driving a shift toward decentralized solutions. Andy Lubershane, head of research at Energy Impact Partners, emphasizes that current market desperation is finally aligning economic incentives with the need for flexible, dispatchable capacity, positioning DERs to play a meaningful role in grid stability over the next five years.