The National Standard Practice Manual for Distributed Energy Resources (NSPM for DERs)

Development of the National Standard Practice Manual for Benefit-Cost Analysis of Distributed Energy Resources (NSPM for DERs) formally began in June 2019. The NESP intends release in June 2020. This project will expand upon the 2017 NSPM for EE to include guidance on a range of DERs, including energy efficiency (EE), demand response (DR), distributed storage, and electric vehicles (EVs). The forthcoming NSPM for DERs will build on the principles and concepts of the NSPM for EE and address issues that vary among DERs.

See this overview presentation about the NSPM for DERs. It describes the project scope and its consulting team.

The NSPM for DERs is intended to serve as a universal benefit-cost analysis (BCA) guidebook to support the needs of regulators, utility, and other key industry stakeholders as investments in DERs expand and evolve. States vary in their approaches to where and how DERs are valued — whether as a single or multiple-DER assessment, or a non-wires solution. The NSPM for DERs will provide a common framework to help jurisdictions better understand the range of potential benefit-cost impacts and associated key challenges.

While the document will note current considerations and practices, it will address future valuation issues relevant to integrated, fuel-neutral DER investments. The NSPM for DERs will provide guidance on prioritizing a range of DER investments. This will include the role of EE as building technologies evolve in the form of advanced controls, sensors, and data analytics that can provide new ways to optimize building energy savings and energy use to support efficient and flexible building loads. These considerations will help states address issues and investment decisions around electricity system reliability, energy affordability, and grid modernization.