Advanced Energy Perspectives

There are lot of hot topics in energy these days, but perhaps none more so than net energy metering (NEM). This simple rate design allows customers with onsite generation (usually rooftop solar, but also other technologies, like fuel cells and small wind systems) to send excess electricity onto the grid and spin their meters backwards. At the end of the month, the customer receives either a bill or a credit, depending on whether there was net excess generation in that month. This makes owners of distributed generation happy - and makes utilities nervous.

Although NEM clearly sets out what distributed generation (DG) customers get paid for their electricity, it does not fully answer the question of what that DG is worth, not only to that customer but to all the other customers who depend on the grid. That’s exactly what New York’s Public Service Commission asked for comment on in the latest round of filings under its “Reforming the Energy Vision” proceeding. In response, AEE Institute, and its state and regional partners engaged in that proceeding, submitted a proposal for setting the balance between deploying distributed energy resources (DER) and maintaining the grid for all. What’s the not-so-secret formula? LMP+D. For what that means, read on.  

Article originally posted on Bloomberg Gov. 

The electricity industry is entering a period of fundamental change, driven by strong technology and policy forces, as well as changing consumer demands and expectations. Business-as-usual is no longer sustainable in a future with increasing distributed energy resources and a smarter, cleaner, more interactive electric grid. Why? Traditionally, utilities collected revenues to cover their costs, plus profit, through the electricity sold to consumers. However, as more rooftop solar and energy efficiency come online due to customer preference, the amount of electricity sold by the utility declines, reducing revenues and cutting their profitability.

This post is one in a series of feature stories on trends shaping advanced energy markets in the U.S. and around the world, drawn from Advanced Energy Now 2016 Market Report, which was prepared for AEE by Navigant Research.

While popular media highlights the controversy around unmanned aerial vehicles (UAVs, or drones) in public airspace, the drive toward commercial uses for drone technology is proceeding at a rapid pace. Private companies, grid operators, and public utilities across the globe are beginning to look toward drones to reduce costs, improve safety, increase reliability, and decrease response times across their systems.