Disruptive Challenges Energy Conference White Paper
the U.S. However, pricing DG right is critical to success. Going further, resilience has become a huge national security issue. Groups like the National Security Agency and Department of Defense want to make sure that they understand the impacts that they need to manage going forward. This is leading to greater understanding of load forecasting — where will the load be located in the future? It’s changing the way power is distributed. We are also planning for intermittent resources — how do you manage that, given a duck-shaped load curve? We are also working on system upgrades — we want to maintain reliability while not overbuilding, but not underbuilding either. Looking forward, another challenge is the business models used by regulated electric utilities, and the policies by which they operate. Finding a way for innovation and regulation to work together is key. On the wholesale level, the deregulated wholesale markets (independent system operators or regional transmission organizations such as PJM and MISO) are working well and integrating both demand response and energy efficiency into the market. As part of an ISO, MIchigan can take advantage of that. However, on the retail level, what’s the new policy? The power industry isn’t rewarded for innovation. Decoupling levels the playing field for utilities to invest in energy efficiency. Now, if our goal is to create an environment that rewards utilities for innovation, we need to think more about incentive- and performance-based regulation.
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tu Bresler, PJM
Stu Bresler, vice president of Market Operations and Demand Resources at PJM Interconnection, is responsible for Forward and Real-Time Market Operations, the FinancialTransmission Rights Markets, Market Settlements, the development and support of the technical systems utilized in markets and operations, and the coordination of Demand Response implementation across Planning, Operations and Markets.
The future likely is a power system with a mix of large supply resources, small distributed supply resources, and flexible demand resources. What the President said in his Climate Change speech was a call for reliable, low-cost, and increasingly clean electricity. For decades, the power sector has focused on reliable, low-cost and safe electricity. And more recently, the fourth pillar — increasingly clean energy — has been added. In the absence of a national carbon price or cap-and-trade policy, the states are leading the way toward cleaner energy primarily though renewable portfolio standards and energy efficiency goals and standards. So far, it’s a grassroots movement on the state level.
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isa Wood, Edison Foundation
Lisa Wood is Executive Director of the Institute for Electric Efficiency (IEE), a program established by the Edison Foundation to accelerate the industry’s energy efficiency efforts and increase the industry’s energy efficiency investments. IEE serves electric utilities, electricity customers, and energy policymakers across the country as a clearinghouse and resource for information, best practices, and innovation.