The past few years have kicked off a flurry of activity in the US energy sector with federal funding accelerating the pace of the energy transition. Initiatives such as the Infrastructure Investment and Jobs Act (IIJA), the Inflation Reduction Act (IRA), and the CHIPS and Science Act have ignited new discussions about the future of energy. The federal government may have helped ignite the fire, but, the conversations shaping our energy future are happening at the state level. Many states are exploring how to cultivate new clean methods of energy generation, storage, and flexibility, and critically examining how we foster a more modern grid that leads the charge into the future (pun intended).
In much of the country, the grid is over a century old, and designed for a one-way energy system that is no longer relevant. Without comprehensive grid modernization, the US cannot meet the growing demand for renewable Distributed Energy Resources (DERs) needed to meet the federal government’s goal of achieving 100% carbon pollution-free electricity by 2035. The Department of Energy estimates that the electric grid must more than double by 2035 to achieve the federal government’s goal of 100% clean energy – and a study from the National Renewable Energy Laboratory suggests grid capacity may need to triple. The findings are staggering, considering the cost, siting challenges, and construction time required for such a prolific grid buildout. The magnitude of the challenge highlights the urgency of grid modernization and expansion of clean energy production capacity.
We are in the age of smart technologies and artificial intelligence, there is no reason these innovations shouldn’t bleed into how we operate our grid – it is the spirit of grid modernization. Grid modernization is the process of making our networks “smarter” and more resilient through the use of cutting-edge technologies, equipment, and controls that communicate and work together to deliver electricity more reliably and efficiently. This can mean integrating Advanced Metering Infrastructure, installing smart devices at the customer level, or utilizing software solutions like Piclo to enable grid flexibility through the use of DERs.
The United Kingdom (UK) is a leader in the evolution of flexible energy because of the government’s commitment to the cause. Regulators, grid operators, and utilities are working together to map out a future with a modern flexible grid. Together they have produced research supporting grid modernization and flexibility, establishing progressive regulations, and creating incentives that support grid innovation and performance. In 2021 the UK’s government and the system operator jointly published the Transitioning to a Net Zero Energy System report, finding that the transition to a smarter, more flexible grid could reduce system costs by up to $12.6 billion a year by 2050.
As a flexibility procurement platform, Piclo is observing as the US launches its own grid revolution. This tracking has evolved into a policy heatmap that quantifies state and utility policies and programs to measure who is leading grid modernization. We see states like Massachusetts, Colorado, New York, and California adopting innovative policies and programs that are planting the seeds for energy flexibility.
These efforts are quantified by measuring the ambition of a state’s renewable energy goals, a state’s DER hosting capacity models, utilities’ grid plan filings, and where non-wire solutions are considered to resolve grid challenges. Beyond their broader energy policies, these states are thoughtfully implementing pilots and regulatory frameworks to design their future grid:
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- Massachusetts is restructuring how utilities plan for the future through their Grid Modernization Advisory Council’s (GMAC) process. At the end of January, utilities in the state submitted their final Electric Sector Modernization Plans to the Department of Public Utilities, as the state is pushing forward with transformative initiatives.
- Colorado is in the process of launching a Virtual Power Plant (VPP) Pilot, exploring new avenues for grid flexibility and efficiency.
- New York has had their head in the grid game since it launched its Reforming the Energy Vision in 2014. The state’s efforts have evolved into a number of programs like the Future Grid Challenge and the Distributed System Implementation Plans which showcase the state’s commitment to modernizing the grid.
- Never one to be a laggard, in California , the state set a load flexibility goal of 7,000 megawatts by 2030 . The state’s largest utility, PG&E, seeks to catalyze grid modernization through its Innovation Summit and Pitch Fest launched in 2023.
Inspired by the benefits of innovation, other states are focusing on grid modernization too. Non-regulatory examples include states like Maine where a DSO feasibility study is underway, Illinois analyzing the value of DER assets on its grid, and Texas, where pilots testing grid-edge technology like battery storage are underway. These efforts will help them leverage the next wave of technology like Virtual Power Plants (VPPs) and DER marketplaces, creating a potential pathway to a distribution system operator framework.These states will be in the driver’s seat as we race to build the grid of the future. As cultivators of our future grid, they will be best equipped to reap the benefits of innovation through partnership with federal programs that will aid with energy costs, increase grid reliability, and spur economic development in their states.
Grid modernization is not set in the futuristic world of Tron–and it cannot wait. In our effort to meet ambitious climate goals, our success depends on the construction of a modern grid today.
John Greene
US Policy and Regulatory Affairs Manager at Piclo
John is the US Policy and Regulatory Affairs Manager for Piclo, the leading independent marketplace for flexibility services, where he manages policy advocacy and engagement with local, state, and federal regulators. John is an accomplished energy and policy professional with 14 years of experience spanning government, utilities, and research institutions. Most recently John was a member of the external relations team at the Electric Power Research Institute (EPRI) focusing on support and forging partnerships with the U.S. Congress. Prior to that, John managed engagement with local governments Eversource focusing on projects related to grid modernization, energy effi ciency, capital improvement, and emergency management. Began his career on the other side of the regulatory process helping to elect U.S. Representative Ann McLane Kuster (NH) and serving as Representative Kuster’s lead for energy outreach and strategy when she was elected to the U.S. Congress. John has a proven track record in navigating regulatory complexities, crafting impactful strategies, and passionately advocating for energy issues. John is dedicated to shaping a sustainable future for the energy sector through innovation, creative problem-solving, and collaboration.