Distributed Energy Poised for ‘Explosive Growth’ on the US Grid

With distributed resources set to double by 2023, GTM Research lays out the challenges facing U.S. utilities in managing integration.

Distributed energy resources are poised for “explosive growth” across the United States over the next five years. U.S. utilities “need to change, and are slowly changing,” how they plan, operate and maintain their distribution grids to adapt. 

A Regional Grid Helps, Not Hurts Distributed Renewable Energy

NRDC, Vote Solar, a former Colorado Commissioner and others make the case for a regional transmission grid.

We have been hearing concerns that moving to a regional transmission operator to connect the Western U.S. somehow harms the prospects for greater development of distributed energy resources, especially local solar and storage, and could lead to an increase in the use of fossil fuels elsewhere in the region. A careful analysis of the facts shows these concerns are unfounded and that in fact, the opposite is true. A regional grid operator will be beneficial for renewable energy development, including distributed generation, for multiple reasons.

Replacing a highly balkanized and inefficient group of grid operators (see the WECC balancing area map below), many of which rely on outdated and highly polluting power plants, with a fully coordinated regional system operator will make better use of the existing interconnected grid, more efficiently share electricity reserves allowing for the accelerated retirement of unneeded facilities, and give more value to cleaner, renewable power sources. 

An Update on State-Level Clean Energy News From Around the Country

In the last few weeks, state-level stakeholders around the country have been busy reforming renewable portfolio standards, proposing changes to net metering policies, and studying the potential effects of the EPA’s Clean Power Plan. Also, in an unprecedented move, the Hawaii state legislature voted to make electricity generation 100 percent renewable by 2045.

More on these developments in our state dispatch below.

As action unfolds in the states, there’s also been some meaningful activity on clean energy at the federal level in recent weeks. Sen. Angus King, an Independent from Maine, introduced a bold piece of legislation last week designed to promote personal energy independence through advanced technologies. The bill would ensure that distributed energy resources are able to be connected to the grid in a reasonable timeframe for a reasonable price, and with reasonable compensation for the benefits they offer utilities. Also last week, Sen. Ron Wyden (D-Ore.) introduced legislation that would boost funding for smart grid technology.

In other federal news, the Supreme Court announced that it would hear the Federal Energy Regulatory Commission's Order 745 demand response case. Also in the courts, judges on the U.S. Court of Appeals of the District of Columbia Circuit appear likely to dismiss the first legal challenge to the Clean Power Plan.

And now to the states.