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

Author

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  • Azim, M. Imran
  • Al Khafaf, Nameer
  • Khorasany, Mohsen
  • Razzaghi, Reza
  • Jalili, Mahdi

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.

Suggested Citation

  • Azim, M. Imran & Al Khafaf, Nameer & Khorasany, Mohsen & Razzaghi, Reza & Jalili, Mahdi, 2025. "Tariffs, management, and markets for Distributed Energy Resources: A comprehensive review and industry insights," Energy, Elsevier, vol. 341(C).
    • Handle: RePEc:eee:energy:v:341:y:2025:i:c:s0360544225052168
    DOI: 10.1016/j.energy.2025.139574
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