Executive Summary
Essential Recommendations
The essential recommendations of this report include:
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Develop long term distribution planning roadmap: Develop a long term roadmap that describes where your utility(ies) are today with respect to grid modernization and integration of DER systems, making sure different territories are identified (urban, suburban, rural, commercial, industrial, etc.). Forecast the expected customer and DER development over the next 10-20 years, taking into account possible regulatory, financial, and technical changes as much as possible through risk assessment. Include metrics on when and where more comprehensive Distribution Resource Plans could be required that include the use of DER systems to be balanced against avoided transmission and distribution costs. Finally identify key milestones for the different efforts needed to meet the forecast requirements. It is critical to include ISOs, RTOs, transmission utilities, distribution utilities, DER integrators, and other stakeholders in the road map efforts.
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Do not re-invent what has already been achieved, but either accept it or build upon it. This approach will also minimize unnecessary investments and technological obsolescence, and will improve interoperability of systems and communications. For instance, the SIWG has developed some basic “smart DER” requirements that are being implemented by most DER vendors and are being used as the basis for updates to the DER interconnection standard, IEEE 1547. The California DRP “More Than Smart” effort has identified many value categories for determining avoided costs and benefits, which should be used as applicable. Communication protocols, including IEC 61850, DNP3, SEP2, and OpenADR, have been developed (and are being expanded) for use in utility operations, particularly for utility interactions with DER systems, DER facilities, and DER aggregators. Use of these existing standards helps ensure interoperability and thus lower overall costs of deployment, operations, and maintenance. Cyber security is becoming increasingly critical for interacting with multiple stakeholders, and the use of existing cyber security standards should be required for any communications interactions.
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Address cost allocations: Although cost allocations can be contentious, regulators, utilities, DER integrators, customers, and other stakeholders should address these issues early in the distribution planning and/or interconnection processes. These discussions and decisions can result in “least regrets” solutions, which enhance market equitability (“fairness”), pricing stability, and cost stability, while minimizing the losses from one-off failures and unnecessary technological obsolescence. One size does not fit all in terms of pricing structures, but lessons can be learned from trials and successes in various locations. Since DER technologies and customer involvement in power delivery are still in early days, flexibility and innovation in pricing solutions should be encouraged.