Research & Publications

Measuring the Locational Value of Avoided Costs on the Distribution Grid

September 2, 2026

by Doug Presley and Abhinav Ganesh 

On September 2, 2026, the Flex Coalition published a new whitepaper by the AnnDyl Policy Group to highlight best practices for compensating flexible demand and energy efficiency benefits to the distribution grid. The whitepaper, Measuring the Locational Value of Avoided Costs on the Distribution Grid, highlights how traditional virtual power plant and demand response programs often undervalue energy efficiency and flexible demand, focusing only on generation capacity while ignoring the distribution system benefits.
 
AnnDyl worked with Flex Coalition members, policymakers, regulators, and industry stakeholders to identify best practices for how states and utilities are currently evaluating distribution system benefits — both system-wide and at the local level — and developed a simplified framework to help quantify and evaluate peak demand reduction benefits to the distribution grid.

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