Tariffs, management, and markets for Distributed Energy Resources: A comprehensive review and industry insights

The integration of Distributed Energy Resources (DERs) is reshaping modern energy systems, necessitating adaptive mechanisms across regulatory, operational, and market domains. This paper provides a comprehensive review of key theoretical and applied frameworks designed to facilitate the adoption of DERs. The purpose is to synthesise current academic discourse with practical, policy-driven, and market-oriented developments related to DER tariffs, management strategies, and market mechanisms. First, it analyses energy tariff mechanisms, focusing on their design principles, evaluation methodologies, jurisdictional comparisons, regulatory complexities, and their economic and behavioural impacts on end-users. Second, it explores comparative management approaches for DERs, addressing modern systems, coordination strategies, functional services, and performance metrics that support network-aware and cost-effective integration. Third, this paper investigates evolving energy market structures and trading mechanisms, highlighting distributed market access, secure trading platforms, pricing strategies, and distribution network impact assessments, supported by evidence from real-world trial projects. Finally, several directions for future research are outlined to guide continued academic and practical advancements in addressing potential challenges of DER integration. The insights of this review would offer a foundation for researchers, industry stakeholders, and policymakers seeking to navigate the evolving energy system. • Energy tariff structures for DERs: principles, evaluation, and user impacts. • DER management approaches: systems, roles, coordination, and metrics. • Energy markets for DERs: structures, trading, pricing, and impacts. • Future research directions to advance DER integration in distribution grids.

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Publication Details

Journal
Energy
Published
2025-12-01
DOI
https://doi.org/10.1016/j.energy.2025.139574
Citations
2
Primary Topic
Integrated Energy Systems Optimization
Type
article
Field-Weighted Citation Impact
1.46
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article

Tariffs, management, and markets for Distributed Energy Resources: A comprehensive review and industry insights

Reza Razzaghi, Mohsen Khorasany, Nameer Al Khafaf, Mahdi Jalili et al.
2 citations
Energy
Integrated Energy Systems Optimization
1.46
article

Tariffs, management, and markets for Distributed Energy Resources: A comprehensive review and industry insights

Reza Razzaghi, Mohsen Khorasany, Nameer Al Khafaf, Mahdi Jalili, M. Imran Azim
article en
2 citations

Abstract

The integration of Distributed Energy Resources (DERs) is reshaping modern energy systems, necessitating adaptive mechanisms across regulatory, operational, and market domains. This paper provides a comprehensive review of key theoretical and applied frameworks designed to facilitate the adoption of DERs. The purpose is to synthesise current academic discourse with practical, policy-driven, and market-oriented developments related to DER tariffs, management strategies, and market mechanisms. First, it analyses energy tariff mechanisms, focusing on their design principles, evaluation methodologies, jurisdictional comparisons, regulatory complexities, and their economic and behavioural impacts on end-users. Second, it explores comparative management approaches for DERs, addressing modern systems, coordination strategies, functional services, and performance metrics that support network-aware and cost-effective integration. Third, this paper investigates evolving energy market structures and trading mechanisms, highlighting distributed market access, secure trading platforms, pricing strategies, and distribution network impact assessments, supported by evidence from real-world trial projects. Finally, several directions for future research are outlined to guide continued academic and practical advancements in addressing potential challenges of DER integration. The insights of this review would offer a foundation for researchers, industry stakeholders, and policymakers seeking to navigate the evolving energy system. • Energy tariff structures for DERs: principles, evaluation, and user impacts. • DER management approaches: systems, roles, coordination, and metrics. • Energy markets for DERs: structures, trading, pricing, and impacts. • Future research directions to advance DER integration in distribution grids.

EnergyVol. 341
Monash University (AU), RMIT University (AU)
Openalex Percentile: Top 14%
Integrated Energy Systems Optimization
1.46
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