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Ten Major Trends In The Market Rules Of Public Utilities In The United States
- Aug 09, 2018 -


In July, GTM released a report summarizing ten major trends in the market rules of public utilities in the United States.


1, transition to clean power grid


More utility companies announced plans for decommissioning thermal power plants and investing in renewable energy. In the first quarter alone, investment in the renewable energy sector exceeded US $10 billion. The driving force of large-scale investment is mainly from cost reduction, the strengthening of state government energy and environmental policies, and more and more users want to use 100% of their electricity from renewable energy.


2. Development plan of electric vehicle


With the rapid maturity of electric vehicle technology and more and more state governments supporting electric vehicles to achieve carbon emission reduction targets, public utilities are also exploring new ways to increase electricity sales, including the development of electric vehicle charging rules and incentives in the whole state, a wide range of electrified transformation projects and Demonstration project of charging infrastructure.


3, energy storage accelerated deployment


Energy storage is considered to be a valuable and essential part of the power grid in twenty-first Century, driven by factors such as economic improvement, power grid transformation, business model and electricity tariff structure adjustment. Some state governments have already begun policy making. At the end of 2017, the Massachusetts public utility Commission started a survey and published a draft in June to study the possibility of integrating energy storage into distributed generation for net measurement, and whether it could participate in the Forward Capability Market bidding of the new England.

In January, California revised its energy storage policy framework to increase the provision of multiple energy storage applications. In January, Texas PUC began to study how utilities used non-traditional power generation technology to solve the distribution network, and its impact on the competitive retail market and the Dezhou wholesale electricity market.

In June, the New York Department of Public Services and the New York Energy Research and Development Agency (NYSERDA) developed a roadmap for New York's energy storage to promote the 1.5 GW target by 2025. The roadmap lists the supporting policies needed by market development, the measures to be taken to achieve the energy storage installation goals in the near future, and the suggestions for DPS to design energy storage projects.


4, change the business model of public utilities


The power systems in many states are changing to adapt to new market conditions, allowing utilities to adapt to the era of service economy, to optimize funds and service expenditures, to build new business models, to establish Performance-Based Regulation based on actual performance in the market, to meet the expectations of consumers and society. The change.


5. Equal treatment of funds and operating costs


One of the bottlenecks in the business model of traditional utility companies is that utilities are unable to obtain investment returns from operating costs (such as fuel, labor, maintenance, service expenses, usually non-wires alternatives), impeding the enthusiasm of utility companies to purchase third party based solutions. And the ability to apply new technologies through professional contracts by third party companies. The state government is facing these problems and developing new ways to overcome them.


6. Distributed system planning


Affected by the rapid development of advanced energy technology and the rapid influx of distributed energy, the state government has begun to consider how it should formulate distributed resource planning, assess the cost and benefits of distributed resources, influence the investment of traditional grid infrastructure, and increase the flexibility, stability, cleanliness and flexibility of the power grid. Use.


7. Transition to real time electricity fee structure


The large-scale application of user-side power generation technology and the increasing difference between peak and valley load impel utility companies to design new electricity tariff structure. Some state governments are designing more complex electricity tariff structures, trying to match consumer behavior with public policy goals through price signals.


8. Pay attention to the formulation of net measurement


In areas with large scale applications of distributed photovoltaics, net metering has been widely applied. With the increase of net measurement users, the local government is also considering the modification of the electricity bill and the tax on net metering users, including reducing the net metering fee of power output, and developing a more sound method to evaluate the value of distributed generation to the grid.


9. Further increase in energy efficiency targets


With the development of technology, market and public policy, the value of energy efficiency is further valued. The traditional energy efficiency is to reduce energy use by using certain equipment. Now energy efficiency has been brought into a larger category, including the use of complex energy management systems, network temperature control systems, data analysis, and so on.


10, increase the access of renewable energy


As the cost of renewable energy is more competitive, more and more power generation companies have developed a sustainable development goal. In the vertically integrated electricity market, public utilities are developing new renewable energy access projects and electricity bills.