CUB at Rocky Mountain Institute E-Lab Conference
Posted on July 21, 2020 by Sudeshna Pal
Tags, Energy
The need for Distribution System Planning (DSP) stems from the rapid changes that the electric grid is currently experiencing. The electric system is evolving quickly, including a move away from the traditional one-way power flow toward a two-way flow enabled by the integration of distributed energy resources (DERs) like rooftop solar, battery storage, and electric vehicles, into the electric system.
As part of an ongoing effort by Oregon Public Utility Commission (PUC) to initiate DSP for electric utilities in Oregon, Portland General Electric Company (PGE) proposed that an Oregon team participate in a DSP training developed by the Rocky Mountain Institute (RMI). This training, called E-lab, included representatives from PGE, Pacific Power, PUC, Pacific Northwest National Laboratory) Verde, and CUB. The goal of these training workshops is to equip utilities, regulators, and stakeholders with the necessary tools and processes to conduct a successful distribution system plan.
CUB participated in the first of the online conference series organized by RMI E-lab. It was a great learning opportunity for CUB as experts from various parts of the country shared their visions on clean and distributed energy and the associated need for new utility business models.
The morning panel on ambitious clean energy goals identified the need to clean the grid as a stepping stone toward decarbonizing the entire economy. The panel discussed a recent study at the University of California Berkeley on strategies to achieve a 90 percent clean generation sector by 2035. That study identified the plummeting costs of wind, solar, and battery storage as the major driving force enabling this transition to a clean energy system. The panelists also provided several policy guidelines beyond just tax and investment credits. These include adoption of national standards for increasing the proportion of clean energy in the system and supporting coal dependent communities through stop gap payments, trainings, and other programs. Creative use of old power plants in clean energy generation, flexible utility business models, integration of demand side resources and embracing a performance based regulatory model are also on the list of suggested policies. The good news is that despite the complexity of the process, coal dependent communities in Towanda, New York and Centralia, Washington are successfully transitioning away from coal.
The afternoon panel focused on utility innovation. A recurring theme in the session was the need for a change in the regulatory framework to incentivize innovation in the utility sector. Panelists touched on various barriers that inhibit utility innovation, such as uncertainty around regulators’ approval for new technological or investment risks, and the length and complexity of regulatory processes.
These issues aside, however, utilities are finding ways to innovate. A panelist discussed Sacramento Utility Municipal District’s (SMUD) new Energy StorageShare Program: “Instead of installing behind-the-meter storage that would lower a customer’s demand charge, but not particularly benefit SMUD’s distribution system, the customer can buy a ‘share’ of a battery system installed in a location with a distribution feeder system that is maxed out and is in line to be upgraded” (see report). This program saves customers money while allowing SMUD to site energy storage facilities where they will provide the most value.
CUB appreciates the opportunity to participate in the RMI E-lab program. We hope to use this learning experience in our state’s DSP process, with a goal of maximizing value for Oregon ratepayers.
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07/20/20 | 0 Comments | CUB at Rocky Mountain Institute E-Lab Conference