A growing number of states are gearing up to leverage distributed energy resources (DER) to support grid operations amid clean energy and climate goals that require investments in and incentives for renewables and customer-sited generation.
As the retail energy marketplace evolves, state lawmakers and regulators are expanding their focus on the impacts to clean energy and long-term reliability, in addition to consumer protections and operational efficiencies.
Extreme cold weather conditions were a major factor in multiple grid events that occurred over the last decade, most notably the recent mid-February Winter Storm Uri that affected the south-central U.S., causing widespread outages and forcing natural gas processing plants to shut down. The impacts of these events on electric and gas systems that were unprepared for the challenge has emphasized the need to address cold weather reliability.
Extreme cold weather conditions were a major factor in multiple grid events that occurred over the last decade, most notably the recent mid-February Winter Storm Uri that affected the south-central U.S., causing widespread outages and forcing natural gas processing plants to shut down. The impacts of these events on electric and gas systems that were unprepared for the challenge has emphasized the need to address cold weather reliability.
The U.S. offshore wind industry is making strides with significant milestones including approval of the first large-scale project in federal waters, federal efforts to advance permitting processes, and actions towards potential development in the Pacific.
Oregon has embarked on a clean energy transition with the enactment of sweeping legislation that mandates carbon-free power by 2040, setting one of the most ambitious decarbonization timelines in the nation. The state’s carbon reduction efforts range from legislative measures to study renewable hydrogen and expand transportation electrification, to rulemaking for a climate protection plan, and investigation into resource adequacy.
Emission trading is coming to prominence as a key market-based tool in state efforts to reduce greenhouse gases, including decarbonization of the electricity sector. Among recent actions Washington has enacted legislation to implement an economy-wide cap-and-invest system, becoming the second state to have a comprehensive carbon-pricing program, and Pennsylvania has adopted rulemaking for a carbon trading program covering the power sector.
Demand response (DR) portfolios of electric utilities across the U.S. continue to expand as they refine their programs and explore new options to support grid reliability in response to the changing resource mix. The role of DR in planning and operations is expected to increase as the resource mix continues to evolve with increasing generation from natural gas, wind, solar, battery storage, and other emerging distributed energy technologies.
Measures to expand electric vehicle (EV) charging infrastructure are moving expeditiously driven by state zero-emission vehicle (ZEV) goals and decarbonization mandates. Among recent actions, Washington has adopted legislation requiring a mapping tool to plan charging infrastructure investments, while New Jersey is exploring an EV charging ecosystem for medium- and heavy-duty vehicles. A handful of states have adopted measures to exempt charging station operators from regulatory oversight.
States are exploring ways to utilize the multiple benefits that energy storage provides to the grid, from enabling the increased penetration of renewable resources and reducing dependence on emitting generation, to bolstering reliability.
Clean energy mandates and goals adopted by U.S. states and utilities are driving efforts to plan and build out the transmission infrastructure needed to accommodate the exponential growth of wind and solar to facilitate power sector decarbonization.
Performance-based regulation (PBR) continues to evolve in the face of transformational changes brought about by new technologies, changing customer preferences, and state policy mandates. Recent actions range from Hawaii’s approval of performance incentive mechanisms to accelerate clean energy goals, the District of Columbia’s ratemaking pilot that contains climate goals-driven tracking mechanisms, and Washington’s law to move towards PBR to help utilities adapt to rapidly changing societal expectations and public policy objectives.