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  • Episode 07: Interconnection Policies—The Electric Grid’s “Rules of the Road”

    Episode 07: Interconnection Policies—The Electric Grid’s “Rules of the Road”
    2024/12/17
    This episode of The Energy Optimist explores a topic that is a central focus of much of IREC’s regulatory work: interconnection. Interconnection policies can be thought of as the “rules of the road” for the electric grid. They govern how systems that produce electricity are permitted to connect to the grid. These policies are a critical factor in how efficiently and affordably clean energy can be developed, though they remain relatively behind the scenes in terms of public awareness of them. We dig into what happens in the interconnection process, some of the common pitfalls, and what defines effective interconnection policies. Key Takeaways: Interconnection rules govern how energy-generating and electrification projects connect to the electric grid. State-level interconnection rules define these processes for local clean energy projects—like community solar, rooftop solar, and home batteries (also known as distributed energy resources or DERs). Interconnection is something of a “hidden issue” in the delivery of climate change solutions. Few Americans are aware of the process, but it determines how efficiently clean energy technologies can access the grid to deliver climate (and other) benefits. The steps in the interconnection process vary depending on the type and size of project. The process always starts with the customer submitting an interconnection application that provides key details to the utility about the project they are seeking to connect to the grid, regardless of the project size and type. The interconnection process exists to ensure that the safety and reliability of the electric grid will not be negatively impacted by projects that are seeking to connect to it; if such impacts may result, the electric utility determines what is needed to prevent them (such as making infrastructure upgrades). Smaller projects, which are less likely to cause adverse impacts to the grid, go through a simpler screening process by the utility. Larger projects on the other hand, typically go through a detailed “study process” in which the utility seeks to identify potential grid impacts. If the utility identifies potential negative impacts, it then identifies needed grid upgrades and how much they will cost. Common challenges in the interconnection process include: Delays: Currently, many states have significant interconnection backlogs, which can add months or years to development timelines. Delays have a variety of causes, including: inefficient processes that are not suited to the current volume of projects, construction timelines, supply chain issues and delays in acquiring needed equipment. Lack of clarity: Interconnection rules that can be interpreted differently by different parties result in uncertainty and disputes. Misalignment with new technologies: Interconnection rules need to be updated as new technologies like energy storage become more prevalent. New technologies may operate differently from technologies the rules were originally written for and thus changes may be needed to ensure the rules enable the full use of those technologies' capabilities and don’t create unnecessary barriers. Grid upgrade costs: When grid upgrades are needed, costs can be another challenge. Currently, most states have policies that require the developer of the project that “triggers” the upgrades to cover the full cost of the infrastructure improvements. Since these costs can be very high (sometimes exceeding the cost of the project itself), they can result in projects being canceled. This in turn can result in sections of the grid remaining inaccessible to new clean energy projects for long periods. Some states are beginning to explore alternative approaches to distribute the costs of grid upgrades. There is also a growing effort to proactively make grid investments to ensure that the grid can accommodate projects that align with policy goals. Effective interconnection rules must include: Transparency: Interconnection rules should provide customers with visibility into timelines, costs, and grid conditions so they can make informed decisions. Visibility into grid conditions enables customers to understand optimal locations to site projects and the constraints on how much energy those projects can send to the grid without upgrades. This benefits all parties by reducing time spent on projects with a low likelihood of success. Hosting capacity analyses, which are essentially a map of grid conditions are one tool for enabling this visibility. Timelines and accountability: Interconnection rules should specify exactly how long each step of the process takes and include deadlines for the relevant party, whether that is the utility or the customer. Systems for holding parties accountable for delays must be built in; this includes mechanisms for tracking key data—such as how long certain steps actually take, as well as consequences when timelines or ...
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    35 分
  • Episode 06: Career Reflections & Reasons for Hope from an Incoming Utility Regulator

    Episode 06: Career Reflections & Reasons for Hope from an Incoming Utility Regulator
    2024/09/25
    When this podcast launched last year, it was led by my former colleague Radina Valova, IREC’s Regulatory Vice President. A couple of months ago, Radina got some very exciting career news which is part of why this podcast has been on a bit of a hiatus. In June, Radina was appointed as a Commissioner on the New York Public Service Commission, the utility regulatory body for New York. In this role, she will work to deliver on the Commission's mandate of ensuring electricity safety, reliability, affordability, and achieving New York's energy and climate goals. Her last day at IREC was June 18.This was of course a bittersweet moment for our team. We were sad to lose Radina as a colleague, but also very heartened to know that the people of New York will get to benefit from her commitment to advancing the public interest through sound energy regulatory policy. And we’re proud to see Radina’s electricity and clean energy regulatory expertise recognized in this way.Although Radina is no longer with IREC, we are excited to continue to host the Energy Optimist podcast and strive to build her vision for this show to demystify energy policy issues, with a focus on reasons for optimism.Before Radina’s last day, she and I took some time to sit down for a transition episode. This episode that you’ll be listening to today is a bit different from our normal policy-based interviews, focusing more on how Radina got to this point in her career, and what makes her optimistic about our energy policy trajectory. I hope you enjoy the discussion! Key Takeaways: Long-time Energy Optimist podcast host and former IREC Regulatory Vice President was appointed as a Commissioner on the New York Public Service Commission, the utility regulatory body for the state, earlier this year. Her last day with IREC was June 18, 2024. As a New York Public Service Commissioner, Valova will have significant authority in shaping New York’s utility and clean energy markets and its ability to meet its ambitious climate change and clean energy targets as one of seven members of the Commission. This interview, recorded prior to her first day as a utility Commissioner, explores Radina’s career to date and her advice for others interested in following a similar path. We also discuss her strategies for maintaining a hopeful and constructive perspective in the face of sometimes challenging energy and climate news, and her personal reasons for optimism. Highlights: “…my first piece of advice… from a career perspective for lawyers in particular is if you have the opportunity to work with a smaller firm, go for it. I know larger firms can come with a bigger paycheck and can come with other advantages, but you're much less likely to get the breadth and depth of experience immediately after being admitted to the bar the way that you would with smaller firms.” “the biggest takeaway for me from [my career so far] has been that very few of us know, the moment we enter college or when we graduate, where we're going to land in our careers and there is very little sense in worrying about it because life has a way of offering opportunities and sending you in different directions that you could never have expected. And as long as you put in the work, and you're open to learning new skills, and then transferring those skills to wherever you go in the future, you can build a really solid career that way.” “my favorite quote to keep me optimistic is ‘Just because you can't do everything, doesn't mean you shouldn't do anything.’ No one can solve every single ill in the world, but we can all do something to make the world a better place, whatever issue you're working on.” “I think what gives me hope the most is knowing how far we've already come…. within the energy space. You have laws like New York's Climate Leadership and Community Protection Act, like in Illinois, the Clean Energy Jobs Act. You have these very forward-thinking legislative actions that are shaping the way that we operate the energy system for the benefit of ratepayers, for the benefit of the environment, and energy equity—in a way that I don't think any of us could have imagined, you know, 10, 15, 20 years ago. I think if you had asked advocates back then, do you think you're likely to see many states across the country adopting ambitious laws like the CLCPA or like CEJA, they probably would have said, ‘No, it doesn't, it doesn't seem possible.’ But now here we are, and more and more states are doing that. So I think for me, I have hope because I see what we've already managed to accomplish.” Resources and Further Readings: This 2016 white paper from the New York State government provides an overview of the state’s Reforming the Energy Vision (REV) process, an effort to transform energy regulation in the state, with stated goals that included achieving the following by 2030: a 40% reduction in greenhouse gas emissions from 1990 levels;...
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    27 分
  • Episode 05: A Tale of Two Grids (Distribution vs. Transmission System)

    Episode 05: A Tale of Two Grids (Distribution vs. Transmission System)
    2023/11/21
    Today’s guest, Lorraine Akiba, is President/CEO of LHA Ventures. Lorraine is a recognized thought leader with technical expertise and knowledge in the development of Hawaii’s renewable and clean energy policy and regulatory framework. Previously, she was Commissioner at the Hawaii Public Utilities Commission, which presides over all regulated public utility matters in the state. Prior to this appointment, she was a partner at McCorriston Miller Mukai MacKinnon LLP and at Cades Schutte LLP, and led the environmental practice teams at both firms. Lorraine co-chairs the Low Income Consumer Solar Working Group of the Low Income Energy Issues Forum, a diverse national consortium focused on innovations that make utility service more affordable. Specifically, the solar working group is addressing actions and recommendations for successful integration of community solar. She is also a member of the Resiliency Strategy Steering Committee for the City and County of Honolulu and is a member of the U.S.-Japan Council. Lorraine holds a JD from the University of California, Hastings College of the Law and graduated with honors from the University of California at Berkeley with a BA in political science. For a more in-depth background on how the traditional U.S. electric grid works, see the Energy Information Administration’s Electricity Explained: How Electricity is Delivered to Consumers. For more on how the system is changing with grid modernization and the integration of distributed energy resources, see the Interstate Renewable Energy Council’s A Playbook for Modernizing the Distribution Grid. For an in-depth primer on how the energy system is regulated in the U.S., read the Regulatory Assistance Project’s Electricity Regulation in the United States. The episode touches on microgrids, which are “a group of interconnected loads and distributed energy resources that acts as a single controllable entity with respect to the grid. It can connect and disconnect from the grid to operate in grid-connected or island mode” (from the National Renewable Energy Laboratory). Put simply, a microgrid connects one or more customers to a local energy resource (which could be renewable, like solar or storage, or fossil-fired) and can be operated independently from the grid. The episode walks broadly through:  what the electric distribution system is;what the electric transmission system is; and how they intersect and why it's important to operate them in coordination with one another. Key Takeaways: We need closer coordination between the transmission and distribution systems “Both the transmission and the distribution system have to work in concert with each other in order to ensure a safe and reliable energy system. That synergy is becoming increasingly complex as distributed energy resources, like local solar and storage, grow. But this is also one of the most exciting areas of policy and technical innovation…” Climate change and extreme weather events make it even more imperative to have better coordination between the distribution and transmission systems: “As we can see, just this month across our country, extreme weather climate change impacts are wreaking havoc on the energy system. From a management perspective, to be able to deal with outages or to be able to bring power back up again, there needs to be that integration. There needs to be some redundancy and to be able to have resilience to address these challenges.That's why I'm a firm believer that it is important to really be able to utilize the distributed energy resources, the distribution system, which is closer to where the demand is, so the supply actually can meet the demand. But with more climate impacts—whether it's wildfires, or hurricanes, or typhoons, or what have you, floods—it is more important to be able to keep communities and smaller areas energized. We have the technology to do it, if we can make sure to coordinate between the two systems of delivery of energy.” DERs and microgrids can serve as resilience and reliability resources: “There has to be enough reliability, resilience, should something like a hurricane occur, an earthquake occur that disrupts that system. You can make better usage of the distributed energy resources. And in fact, they can actually be the means to have resilience. If something's happening climate-wise or a storm comes in, you could maybe power stuff locally through a microgrid and isolate off pockets of a larger transmission system so that the whole system doesn't go down. That's kind of the concept in Hawaii.”  
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    28 分
  • Episode 04: Teaching an Old Grid New Tricks

    Episode 04: Teaching an Old Grid New Tricks
    2023/10/19

    Today’s guest, Dr. Julieta Giraldez, is Director of Grid Planning at Kevala, where she focuses on solving integrated grid planning challenges and the way distributed energy resources (DERs) interact with the grid. Prior to joining Kevala, Dr. Giraldez worked for the National Renewable Energy Laboratory (NREL) where she led DER grid integration related projects. She brings a holistic view of grid integration related issues, acknowledging the importance of including multiple perspectives in the evaluation of new emerging technologies, from developers and customers to technology providers, regulators and utilities.

    Dr. Giraldez holds a P.h.D. in Systems Engineering from Colorado State University, an M.S. in Electrical Engineering from the Colorado School of Mines, and a B.S in Technical Mining and Energy Resources from the Polytechnic University of Madrid, Spain.

    The episode walks through: 

    • How large-scale renewables and DERs intersect to manage the energy system;
    • What regulators and utilities need to be aware of to effectively manage large-scale and distributed resources;
    • How DERs can help shape electrical demand and make the energy system more efficient.

    Highlights: 

    • Distributed energy resources, such as rooftop solar and battery storage, are changing the way we think about electricity demand and managing the electric grid. Historically, power has always been generated at large-scale power plants and delivered one-directionally to consumers. Now, individuals and businesses who adopt solar, for example, can export power back to the grid, and we are moving toward more complex grid management, involving more control points and the need to balance more intermittent resources. We can shape electricity demand in a way that maximizes both large-scale and distributed energy resources and allows us to tap into renewables when they are available.
    • We are making major strides in the level of granularity with which we can conduct distribution system planning (see, for example, the California Electrification Impacts Study referenced below).
    • We don’t have to make an “either-or” choice between large-scale and distributed energy resources—we need an all of the above approach to support energy sector decarbonization.

    Resources and Further Readings:

    • Kevala, on behalf of the California Public Utilities Commission, completed the California Electrification Impacts Study in 2023, in order to “determine the distribution grid requirements of state transportation electrification targets. Kevala analyzed over 100 terabytes of data from Pacific Gas and Electric (PG&E), Southern California Edison (SCE), and San Diego Gas & Electric (SDG&E) to explain when, where, and how much utilities will need to invest in grid upgrades.” 
    • A 2021 report by Vibrant Clean Energy showed that deploying optimized DERs can save $515 billion by 2050 compared to using utility-scale only resources, and that a mix of DERs and utility-scale energy (rather than utility-scale alone) can provide greater greenhouse gas reductions. 
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    28 分
  • Episode 03: Centering Energy Equity in Utility Regulation

    Episode 03: Centering Energy Equity in Utility Regulation
    2023/10/02
    Today’s guest, Melanie Santiago-Mosier, is an attorney whose career has centered on clean energy policy and regulation. Over the past seven years, she has focused on the field of energy equity and justice. She enjoys working with teams to embed equity principles into their work, with the goal of advancing a just transition to a clean energy future. Currently, she fills that role as the Equitable Energy Transition Advisor for The Nature Conservancy. She has led similar work at organizations like Green & Healthy Homes Initiative, Vote Solar, and others. The episode walks through: What is energy equity and a just transition;How the existing energy system leads to chronically unjust processes and impacts;And key considerations, policies, and principles for supporting an equitable and just clean energy transition, including both procedural and energy regulation solutions. Highlights: “Understanding how to support an equitable and just clean energy transition should involve learning and understanding the impacts of our current system, which are deeply inequitable, and then, from there, learning and understanding the principles for how to change course.”“Allies should approach this work with humility and authenticity. Allies, regulators, and policymakers should make it a practice to ask community leaders what their needs are and what their vision is for an equitable energy future. They should seek out the voices and perspectives of energy justice leaders on the front lines and be in listening mode.”“Energy equity is about hope. It’s about the opportunity to make our clean energy future just and inclusive. We have the opportunity right now to get this right, to not replicate the mistakes of the past.”“Just transition is a way to think about how a lot of different systems work together, and how to transition away from a system that supports an extractive economy and disinvestment in frontline, environmental justice, and communities of color, and toward a system that supports a regenerative economy—it’s about economic justice, environmental justice, energy justice, climate justice.” Resources and Further Readings: The Justice40 Initiative is the first-of-its-kind federal program that requires “that 40 percent of the overall benefits of certain Federal investments flow to disadvantaged communities that are marginalized, underserved, and overburdened by pollution.” As part of Voices from the West, “The Nature Conservancy interviewed leaders from Tribal and Indigenous communities to learn about their experiences with energy development. The report provides a perspective on the importance of including Tribal voices in planning for energy and infrastructure.” The Initiative for Energy Justice has a suite of resources on energy equity and justice, from foundational definitions of key principles to scorecards, briefs, and toolkits. The University of Michigan School for Environment and Sustainability hosts the Energy Equity Project, which offers a “framework for measuring equity across energy efficiency and clean energy programs among utilities, state regulatory agencies, and other practitioners, while engaging and centering BIPOC and frontline communities.” The NAACP’s Environmental and Climate Justice Program offers a number of resources for advocates, regulators, and other stakeholders. Just Solutions Collective partners with communities disproportionately impacted by climate change to turn their priorities and ideas into policies and laws, and has many useful resources.  The Just Transition PowerForce, launched by Emerald Cities Collaborative and the NAACP Environmental and Climate Justice Program collaborates in pursuit of a just transition from an extractive economy to a regenerative economy, and has a number of related resources.   
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    46 分
  • Episode 02: Out With the Old, In With the New: The Future of Energy

    Episode 02: Out With the Old, In With the New: The Future of Energy
    2023/05/15

    Today’s guest, Priya Sreedharan, is a thought leader in the clean energy transition, from DER integration with the electric grid, to resource adequacy and power system modeling. Priya holds a PhD and MS in mechanical engineering from the University of California, Berkeley, where she developed “data science” (Bayesian statistics and optimization) techniques for environmental sensing and energy efficiency diagnostics applications. She brings her insights on electric sector transformation to today’s episode.

    The episode walks through: 

    • Why we regulate the energy sector the way we do, starting with a walk through history, all the way back to 1890s Chicago;
    • Key decisions public service commissions—the regulators of the electricity sector—have to make in transitioning to clean and renewable energy;
    • How the future of energy is being shaped by distributed energy resources and electric distribution system planning.

    Highlights:

    • “Regulators should adopt a crawl, walk, run approach, recognizing that you don’t need to solve every problem today, but you need to start making progress.”
    • “As we see billions of dollars in distribution system investments being proposed, regulators need to be able to sort through these proposals and decide what investments should be approved. We need to make sure that these investments are aligned with the policy goals that have been laid out by the state. Has the grid plan taken into account other incentives and programs for energy efficiency, electric vehicles? Does the grid modernization plan empower rather than hinder customers from adopting clean energy? Has the plan included backing with credible cost-effectiveness analysis?”
    • “We’re seeing more and more sophisticated ways of modeling decarbonized power systems. This means the old way of doing things, where you could more or less plan with a spreadsheet and a planning reserve margin, is over. The design space now is far more complex. We need modeling tools that take into account the complexities of renewable energy and storage and have better linkages between the different kinds of modeling that are conducted, like capacity expansion modeling and resource adequacy analysis.”

    Resources and Further Readings

    • For a deeper dive into how California avoided power outages during a major heat wave using demand flexibility along with imports and storage, see Utility Dive.
    • In 2022, Advanced Energy United and GridLab published FERC Order 2222 Implementation: Preparing the Distribution System for DER Participation in Wholesale Markets. The report provides recommendations to support DER participation in wholesale markets and Federal Energy Regulatory Commission Order 2222 implementation. 
    • Priya notes the following report, an initiative led by the Energy Systems Integration Group, with participation from GridLab, and other stakeholders: The Transition to a High-DER Electricity System: Creating a National Initiative on DER Integration for the United States. The report “proposes a national initiative to develop greater consistency and consensus around DER [distributed energy resource] integration in the United States” (at p. 2).
    • 2035 Report (GridLab 2035 Part Two Transportation Study). The report shows that transitioning to having all new car and truck sales be electric by 2035 is technically and economically feasible.
    • In 2020, GridLab and IREC published the Grid Mod Playbook, a tool to help regulatory stakeholders evaluate and make more informed decisions about grid modernization proposals, distribution plans, and grid investments.
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    31 分
  • Episode 01: What Is Energy Regulation, and Why Should I Care?

    Episode 01: What Is Energy Regulation, and Why Should I Care?
    2023/03/23

    Today’s guest, Karl Rábago, is a leading innovator and expert in the clean energy field with more than 30 years of experience that spans all sides of energy regulation, from serving as commissioner on the Texas Public Utilities Commission, to Vice President of the utility Austin Energy; Deputy Assistant Secretary at the US Department of Energy; and expert consultant in support of nonprofit and public interest organizations advocating for an equitable clean energy transition.

    The episode walks through: 

    • What is energy regulation, and why it’s important to our daily lives;
    • Who regulates the energy sector at the federal and state level; 
    • How the energy system has traditionally been regulated and how our priorities are changing to prioritize energy equity, greenhouse gas emissions reductions, and other major policy goals.

    Transforming the energy sector from the old way of doing things (with a focus on large-scale power plants and long-distance transmission lines) to a more distributed, renewable, and equitable system has a lot of challenges, but there are also many reasons for hope, including the leaders stepping up to the challenge.

    Highlights:

    • “Public regulatory commissions are some of the most important and least known regulatory bodies in our everyday lives, but they impact everything about the way we live.”
    • “This is the most exciting time in energy regulation I’ve known and I’ve only been doing it for 32 years.”
    • “What gives me hope is that I do an awful lot of utility regulatory proceedings, legislative proceedings and things related to energy. And what really gives me hope is leadership. I see leaders emerging to meet the challenge.”

    Resources and Further Readings

    • For a more in-depth primer on how the energy system is regulated (with a focus on electricity), see “Electricity Regulatory in the U.S.” by the Regulatory Assistance Project.
    • Munn v. Illinois is a foundational case that recognized government’s right to regulate private enterprise for public good.
    • In October 2022, Karl Rábago and several other experts submitted expert witness testimony on behalf of the Just Solar coalition in Minnesota, on issues including energy equity, rate design, integrating distributed energy resources, and many other topics relevant to how we regulate the energy system now and how that needs to change.
    • In 1921, Albert Einstein was awarded the Nobel Prize "for his services to Theoretical Physics, and especially for his discovery of the law of the photoelectric effect." The photoelectric effect is an integral part of solar photovoltaic power.
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    27 分
  • Introducing The Energy Optimist by IREC

    Introducing The Energy Optimist by IREC
    2023/03/08

    Welcome to The Energy Optimist, a monthly podcast highlighting solutions to energy policy challenges through bite-sized interviews with leading experts, brought to you by the Interstate Renewable Energy Council (IREC). Each episode, we’ll explore a challenge with how we regulate the electric distribution system that powers our homes, devices, and, increasingly, our cars. And, we’ll end with solutions and reasons for optimism. Tune in to this trailer episode to get to know your host, Radina Valova, IREC Regulatory Vice President, and learn what to expect from The Energy Optimist.
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    3 分