Continuing its in-depth look at state-level efforts to modernize the electric utility grid, the Solar Energy Industries Association (SEIA) has released the latest installment in its “Improving Opportunities for Solar Through Grid Modernization” white paper series.
The fourth paper, titled “Getting More Granular: How Value of Location and Time May Change Compensation for Distributed Energy Resources,” focuses on the ways in which utilities can more effectively operate on the grid.
“When states develop fair compensation mechanisms for distributed energy resources (DER), the result is a modern electric grid that better serves the needs of all its customers,” says Sean Gallagher, SEIA’s vice president of state affairs. “The case studies highlighted in our report can serve as a model for other states interested in grid modernization and the economic benefits that result.”
In this new white paper, SEIA staff members apply their experience in two leading states, California and New York, to develop framing principles for how to use locational values to guide DER, like solar, to where they will have the most impact.
“As more states tackle the complexities of ‘grid modernization,’ SEIA’s white paper series offers approachable and digestible insights on some of the most critical regulatory issues shaping the future of distributed energy resources, including solar,” says Sara Baldwin Auck, regulatory director of the Interstate Renewable Energy Council (IREC). “Drawing from the experiences in New York and California, this paper provides novel principles for state regulators to consider as they develop and deploy locational value analyses and new compensation mechanisms for solar and other distributed resources.”
“The white paper examines important issues to consider in designing rules to compensate on-site solar generation, energy storage, and other clean energy technologies powering our homes and businesses,” adds Miles Farmer, staff attorney for the Climate & Clean Energy Program at the Natural Resources Defense Council. “As these projects become increasingly prevalent, it will become even more important to design rules that ease the ability of developers to obtain financing while at the same time maximizing their benefits for the utility system.”
To read the new paper and see the rest of the white paper series, check out SEIA’s website here. According to the organization, the series will continue in the spring with a white paper on the key things a utility needs to do to efficiently upgrade and modernize.