Distributed energy resources are one of the paths toward greater energy independence in California. One of the significant issues facing anyone planning to install a DER technology is the interconnection of the device to the electric utility system. In the United States, common standards for interconnecting DER devices into the utility system do not presently exist. The lack of common standards is considered a barrier to the wide acceptance and installation of DER technologies.

The California Energy Commission seeks to encourage DER by streamlining complicated regulations and the processes involving interconnection, standardization, certification, environmental review, and permits. The idea is for developers and consumers to build more of these small plants, thereby lessening the strain on the state power grid and easing the need for larger power plants.

The California Energy Commission is dedicated to gathering public input, researching testing and certification processes, and creating practical solutions in DER. Each step forward is closely examined and if viable, is then considered for expansion. The gains achieved with the Investor-Owned Utilities (IOUs) should now be extended to include municipalities, co-operatives, irrigation districts, and others. Researchers have identified future research and development opportunities that could expand the applications for Rule 21. In these efforts, the Energy Commission continues to work with the CPUC to make appropriate changes and refinements to Rule 21. As technology and the market demands, the Energy Commission continues to explore the world of distributed energy.