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As a result of dramatic growth in local generation, the nature of the distribution grid is changing. Distribution systems now need to be planned and built not just to serve load but also to manage a variety of distributed resources. Hear Sky Stanfield, Keyes, Fox & Wiedman LLP discuss efforts to re-envision the distribution system planning process while ensuring safe, reliable power, and about taking full advantage of new technologies and innovations in generation and energy management.
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Sky StanfieldKeyes, Fox & Wiedman LLP
October 23, 2014www.irecusa.org
@IRECUSA#3iForum
Envisioning an Integrated Grid: Transforming
Distribution Planning
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Traditional and Utility-Scale Generating Plants
Source: EIA’s Electric Power Annual
Aggr
egat
e N
umbe
r of F
acili
ties
…Contrasted with Distributed Solar Facility Growth
Source: IREC data and EIA’s Electric Power Annual
Aggr
egat
e N
umbe
r of F
acili
ties
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
Traditional and Utility-Scale Generating Plants
Distributed Solar
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
UtilityNon-ResidentialResidential
Number of Grid-Connected Solar Installations by Sector
Source: IREC’s 2013 Solar Market Trends Report
Annu
al N
ew In
stal
latio
ns
Coal-fired power plant Residential solarPumped Hydro Storage Residential Energy Storage
The Evolution of Energy Use and Supply
Energy efficient appliance Net-zero homeGas station fill-up EV charging station
Prosumers: A Change from Passive to Active Customers
What is the function of the grid?
Who does it serve?
How has this changed?
To deliver safe and reliable power to energy customers
Customers
The customers have become more active contributors
What does a customer-driven grid look like?
1. Allows consumers to manage their energy use and is planned accordingly
2. Does not favor utility-owned assets
3. Accommodates two-way power flow
4. Maintains safe and reliable operation of the electrical grid
Key policy areas
Interconnection
Utility cost recovery
Procurement Programs
Transparency
Valuation of DER
• Owners and operators of the distribution system
• Rate of return tied to capital investments
• Utilities lack incentives to allow DER solutions in place of traditional wires solutions
Utility cost recovery
• System transparency
• Customer data
• Generator data/control
Transparency
• Full valuation
• Accommodates full range of DERs
• Enables determination of location-specific value
Valuation of DER
• Maintain customer choice
• Location-driven
• Identifies low-cost locations, and
• Locations where DER add value or defer other investments
Procurement Programs
• Serial interconnection process transformation
• Evolution of the cost-causer principle
• Proactive vs. reactive
Interconnection
How are states tackling these issues now?
For more information
www.irecusa.org
