Ensure market design accounts for the integration of new demand and supply sources
- Power and Grids
- Financials
- Consumers
- Companies
Ensuring that the grid remains in constant balance between generation and demand requires new technologies that can react to rapid changes in renewable energy generation. Therefore, to maximize the use of existing grid infrastructure, regulators can incentivize network operators to embrace and support emerging grid technologies. They can do this by introducing new regulatory frameworks that incentivize investment on total costs or operational costs, not just upfront capital costs, to enable the adoption of grid-enhancing technologies. Supporting information-sharing through disclosure of completed projects and equipment standards can also help with adoption.
Transmission grids can use dynamic line-rating tools to help reduce congestion, or advanced conductor materials to increase transmission capacity. In cold and windy conditions, these tools also give power lines an improved ability to safely transmit power without the risk of overheating. Distribution utilities can overhaul their management of the network, as many already are, moving from a static seasonal approach to active operations. This has been achieved by modernizing grid equipment, deploying advanced software and sensors, and using distributed energy resources as part of the solution to the challenges they pose.
Transmission and distribution grid operators must continually extend and upgrade their infrastructure. Transmission utilities need to ensure their networks continue to transport electrons from centralized power plants to load centers, while expanding capacity to do so in new locations. Distribution utilities regularly upgrade their grids for two main reasons: as infrastructure ages or as demand in certain locations increases. They must also adapt to higher levels of distributed energy resources and shifting demand patterns.