Guidehouse Insights Finds Value and Opportunity in Deregulated Electricity Markets

Power generation is transitioning to decentralized model with distributed networks that provide more reliable, affordable, and sustainable electricity

Jun 01, 2022

A new report from Guidehouse Insights reviews opportunities for distributed energy resources (DER)-based customer solutions in deregulated electricity markets as well as enabling technologies and business models that encourage regional deregulated markets.

Power generation is undergoing a transition from a centralized, top down, and regulated model to a decentralized one with distributed networks that provide more reliable, affordable, and sustainable electricity. According to a new report from Guidehouse Insights, DER deployments offer stakeholders new revenue streams and are opportunities for bringing more localized solutions to grid stability, reliability, and resiliency.

“The increased integration of variable energy resources, such as renewable energy-based resources, into the grid may fundamentally affect how it functions,” says Rohith Unni, research analyst with Guidehouse Insights. “Deregulated energy markets have new value streams in a distributed, digital, and decarbonized energy system.”

DER also offer multiple new revenue streams to stakeholders. As noted in the report, introducing competition into electricity markets removes centralized control and allows the entry of independent power producers. In these markets, players no longer have responsibility for supplying power to all consumers, but can decide how to maximize their profit potential, according to the report.

The report, Generating Value from Deregulated Electricity Markets, provides an overview of DER opportunities in deregulated energy markets. It explores the changing role of system operators and various DER services to the grid. Additionally, it examines how DER owners can create multiple value streams using various business models and by participating in different markets. It also covers the enabling digitalized platforms that encourage stakeholder participation in the market. An executive summary of the report is available for free download on the Guidehouse Insights website.


Cecile Fradkin

*The information contained in this press release concerning the report, Generating Value from Deregulated Electricity Markets, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.