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Delivery Presentation_Feb2014

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Acadia Center

on 30 June 2014

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Transcript of Delivery Presentation_Feb2014

Advancing a Clean Energy Future in New England:
Reforming the Incentives Governing Utilities and the Power Grid



Outline
1. Outdated electric grid.

11. Planning and financing barriers.

111. Reforms needed to achieve climate & energy goals.
New England's Power Grid is Outdated
Non-Wires Alternatives & Grid Modernization
Non-Wires Alternatives
Distributed Resources
Reforming the Transmission & Distribution Planning Process
Incentives & Payment Mechanisms Create Unlevel Playing Field
Increasing Costs Threaten Clean Energy Progress
ENE Principles for Grid Policy Reform

Comprehensive and inclusive T&D planning process.
Comparable consideration to all grid resources.
Reform utility business model:
Consistent financial incentives for all grid resources.
Clear incentives to prioritize lower cost, clean energy grid resources.
Reward utilities for deploying non-wires alternatives to avoiding T&D upgrades
Support two-way power flow.
Recognize value of distributed resources.
Delivers electricity from power plants to homes & businesses.
Over-built & inefficient
Expensive
Expanded Toolbox
Non-wires alternatives
Locked out of planning process.
Full cost burden on individual states.
No cost recovery certainty.
High rate of return on T&D projects
Skewed Planning:
T&D planning only identifies T&D solutions
Socialized payment structure for T&D projects
Utilities are risk averse
Unlevel Playing Field
T&D projects earn high returns and are paid for by all New England ratepayers.
Skewed incentives & planning driving sky-rocketing expenditure on transmission
Current policies miss opportunities for consumer savings: Example from Maine
High regional T&D expenditure puts pressure on clean energy goals.
Need T&D to integrate renewables and EVs.
State and regional evidence shows that distributed clean energy resources can be deployed to address grid reliability
Energy efficiency investments have deferred $416 Million of transmission investment in Vermont and New Hampshire
Widespread, deep energy efficiency
Clean DG, electric vehicles, energy storage, new technologies.
Using information, data, and tools to reduce energy consumption in buildings.
Improved grid utilization, efficiency, reliability.
Connect renewable power projects
Opportunities and Potential: Cleaner Energy Supply, Lower Emissions, Embrace New Technology
Barriers to Change
Contact Information
Abigail Anthony
Director, Utility Reform and Grid Modernization
Phone: 401-276-0600
Email: aanthony@env-ne.org


ENE is a non-profit organization that researches and advocates innovative policies that tackle environmental challenges while promoting sustainable economies.
Rockport, ME/ Boston, MA/ Hartford, CT/ Providence, RI/ Ottawa, ON

www.env-ne.org
Photo source: GridSolar, LLP.
Current ENE Activities
Raising awareness and building networks, participating in on-going forums.
Developing state-level regulatory proposals and positions.
Preparing methodology and MOU for state collaboration on NWAs.
Assessing legislative & regulatory policy vehicles to promote change.
Advancing principles for electric vehicle-grid integration.
Developing best practices for utility planning.
Current T&D Toolbox
Reshaping the Power Grid to Achieve Environmental and Consumer Goals:
Grid modernization is key to:
Electrifying buildings and transportation
Integrating clean energy resources
Deep energy efficiency and optimizing energy demand

Barriers to Modernizing the Grid
:

Regional Transmission
Skewed planning process
High returns on investment
"Socialized" transmission expenditure
Modernizing the grid will enable GHG emissions reductions: Electric Vehicles vs. Conventional Vehicles
Photo: National Grid
Reforming distribution grid planning: Example from Rhode Island
Distribution planning must include "non-wires alternatives"
Pilot program to reduce summer peak demand:
Geographically targeted energy efficiency
Demand response
Photovoltaics
On track to defer a $2M feeder upgrade

Source: LG Ductless minisplit
Goal: Fully-integrated, flexible, low carbon energy network
State-level Distribution
Outdated regulatory model
Risk averse utilities
Uncertain cost recovery
Full transcript