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Utilities Business Review | Monday, July 18, 2022
The great news is that with some regulative changes, both big and small, renewable energy capacity at the distribution level may appease demand without needing the expansive lead time for bigger, utility-scale resources.
FREMONT, CA: With legislation instituting open access to the transmittal level of the energy grid, the way the United States regulates power transformed over 40 years ago. Usually referred to as PURPA, it established independent system operators (ISOs) nationally to control supply and demand fairly. Still, the Inflation Reduction Act gets expected to bring a quick flood of renewable energy systems to the grid, so even though the law had a considerable impact, they now immediately need to study how electricity markets are set up to agree on them.
By positioning renewable resources at the distribution level of the grid, which is nearer to where they are required, they may significantly reduce this demand. Still, they will be required to take numerous necessary measures to tackle significant system hurdles before users can extend the use of renewable energy on the grid. However, the great news is that with some regulatory changes, both big and small, renewable energy capacity at the distribution level may meet demand without needing the extensive lead time for greater utility-scale resources.
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• Increase exposure by unlocking grid blockage data.
Renewable energy developers in the majority of the United States are uncertain about how the grid can manage the surge of new power generation in a specific system region. As a result, developers face cost variability and delays as proposals get assessed for their potential influence on the grid and expenses.
• Incorporate dispersed generation in grid planning.
The regular method of utility grid design solely takes into account the transmission level of the grid, contrary to prevailing wisdom that massive, centralized power plants would offer economies of scale benefits. Moreover, it disregards the advantages and disadvantages of energy resources used in distribution, like community solar and energy storage.
Promoting and rewarding utilities for contributing to expanding distributed energy resources is essential. For case, private developers and Xcel Energy, the state's major utility, have participated in Colorado's community solar schemes. Regrettably, this strategy may limit the possibility for non-utility investors. Yet, it does provide a more eco-friendly process that won't conflict with the continued existence of the electric utility as they presently know it.
• Enact laws and regulations that encourage the development of scattered generations on a long-term, proactive basis.
Some governments are already encouraging the development of distributed generation through state policy and regulation. Distributed generation, placed close to end customers, offers special resilience and dependability advantages. Furthermore, projects represent a reduced interconnection strain on the grid and have a minor environmental impact.
State legislation is essential to establish programs that allow renewable energy providers to build projects to serve local communities because the distribution level of the grid does not have open access. States with solid program incentives to promote additional capacity include Illinois. Although the incentives are appreciated, the fundamental advantage of these programs is that they establish a procedure for expanding the grid's distribution level capacity.
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