Abstract for: Saving Costs and Shaving Demand: Batteries and Rooftop Solar as Complements to Grid Investment in Massachusetts

Rising electricity demand necessitates substantial investments in transmission and distribution (T&D) networks, driving electricity price increases that threaten electrification targets. While distributed energy resources (DERs) can reduce peak demand and defer T&D upgrades, existing optimization-based studies examine single-year snapshots. They overlook the dynamic management of infrastructure stocks and critical interactions between demand, DER adoption, and grid investment decisions that unfold over time. A parsimonious system dynamics model will be developed in collaboration with a Massachusetts utility to capture long-run dynamics of DER deployment and grid investment. The model will include stocks of T&D infrastructure, electricity demand, solar/battery adoption, and VPP integration, along with key feedback mechanisms linking peak demand, electricity rates, technology adoption, and infrastructure investment decisions. This is the first system dynamics study of DERs' impact on distribution grids, complementing optimization approaches with system dynamics. By demonstrating value to utilities and policymakers, the work may influence adoption as 34 states mandate VPP development. Presenting at ISDC will elicit feedback to ensure our project is policy relevant and will contribute to this important area. I uploaded the paper to Claude and asked it to fill out this structured abstract.