Locational value of DER is essential to grid planning. So why hasn’t anyone found it?
Initially, there was an incentive for customers to build DER at locations where congestion was anticipated, LeBel added. But setting that locational value “has proved to be more administratively complicated than expected and commission staff has proposed eliminating it.”
The utilities did “guesstimates and concluded congested locations should get 50% more than other locations,” he said. “They are not coming to terms with the details.”
Lebel agreed. Getting to that vision “would be a massive change for the utilities,” he said. “But it has happened. It took decades to get from PURPA to restructuring. Maybe, in the 2030s, we will look back at the 2014 start of the New York REV and see a similar transformation. And maybe things will still be changing.”
Read the full article from Utility Dive here.