Advanced Energy Perspectives

As 2021 comes to a close, it’s time to reflect on the progress—and setbacks—that advanced energy experienced in state legislatures across the country this past year. For the most part, momentum around the clean energy and transportation transformation has continued to grow, with major wins that will drive unprecedented market growth for the industry. Still, some states dug in their heels to delay or block progress toward a 100% clean energy economy. 

In most parts of the country, how utilities plan their distribution systems – the network of poles, wires and other equipment designed to support electricity delivery at the local level – is something of a “black box.” But now, with the continued proliferation of distributed energy resources (DERs) – ranging from rooftop solar to onsite battery storage and demand response – available to help manage electric supply and demand at the distribution level, that black box needs to be opened. Colorado is doing just that by joining a growing number of states that are implementing distribution system planning (DSP) rules for the first time.

With so much of the advanced energy industry’s focus on issues before FERC directed at the expanded Minimum Offer Price Rule (MOPR) in PJM over the past few years, there has been relatively little attention placed on similar tension brewing in ISO New England (ISO-NE). But that tension was on full display at a FERC technical conference earlier this summer, and in comments filed in July. The list of big-ticket items up for debate in ISO-NE is long: reforming ISO-NE’s version of the MOPR, revising how capacity value is determined, pursuing long-term market reform and transmission planning reform, developing a plan for Order No. 2222 compliance, and exploring potential governance reforms are all top of mind for ISO-NE, the New England states, and stakeholders. For those who haven’t been following along at home, there’s a lot to catch up on, and the stakes are high: New England is poised to model what an RTO should look like in a 100% advanced energy future, but the decisions made in the next few years will determine whether that vision is realized.

Although 2021 is only halfway through, state utility regulators and regional grid operators have had their hands full considering issues at the cutting edge of the energy transition. How can utilities develop resource plans that align with state policy goals? How do all those mobile batteries in the growing fleet of electric vehicles (EVs) get integrated with the grid? How can customers be helped to make smarter energy decisions? These questions and more are on the docket in 2021, and Advanced Energy Economy has been tracking how regulators are tackling these complex issues. Even just halfway in, the regulatory trends from across the country suggest that 2021 will be another transformational year for advanced energy.