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Grid technology could save billions but for a policy vacuum

Neil Chatterjee writes in UtilityDive about a policy that would consumers billions of dollars in lower energy costs.

The C3 Take
  • Grid Enhancing Technologies (GETs) are are sensors, controls and software that maximize the value of the existing grid by as much as 40%, which translates to significant cost savings for consumers.
  • GETs are not widely deployed in the U.S because the current utility business model only compensates utilities for additional capacity built, not existing capacity improved.
  • In the 2005 Energy Act Congress directed the Federal Energy Regulatory Commission (FERC) to develop a framework to bring GETs on the grid, but FERC has yet to establish such a framework.
  • Lawmakers have introduced legislation to have FERC create ways to bring more GETs online, which would save consumers money and improve the viability of our power grid.

“FERC’s proposed transmission planning rule requires regional plans to study Dynamic Line Ratings and Advanced Power Flow Control. This would be a leap forward for America’s grid, but FERC can’t stop there. Further, specific requirements will be needed, and incentive reform will drive utilities toward an optimized transmission grid. As more generation and storage plug in at the distribution level, we’ll also have to apply these tools on the lower voltage grid. This is another reason utilities must put GETs in their toolboxes today.”

Read the full article here.

The views and opinions expressed are those of the author’s and do not necessarily reflect the official policy or position of C3.

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