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Current DER coordination schemes, such as demand-response and VPPs, aim toreduce electricity costs during peak demand events with no consideration ofdistribution grid reliability. We show that coordinating DERs for gridreliability can significantly reduce both the infrastructure upgrades needed tosupport future increases in DER and electrification penetrations and peak load.Specifically, using a power flow driven simulation-optimization methodology, wecompare the potential reliability improvements with a perfect-foresightcentralized DER controller that minimizes reliability violations to a localcontroller that minimizes consumer electricity cost. We find, for example, thatby 2050 with local control, on average 81% of the transformers in adistribution grid experience violations, compared to 28% with centralizedcontrol, which simultaneously reduces peak load by 17%. These reductions areachieved with only 5.1% increase in electricity cost. These findings suggestthat future incentives for DER adoption should include reliabilitycoordination.

Coordinating Distributed Energy Resources for Reliability can Significantly Reduce Future Distribution Grid Upgrades and Peak Load