The grid is smarter. Why aren't we smarter about the grid?

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Jun 20, 2025

Arushi Sharma Frank, founder of Luminary Strategies and former Tesla policy lead, dives into why the grid is smarter but we're lagging behind. She highlights the vast potential of underutilized smart devices and advanced meters. Discussing the need for cohesive collaboration among utilities, regulators, and tech companies, Sharma Frank argues for unlocking the resources we've already invested in. With insights on virtual power plants and the challenges of integrating flexible load management, she emphasizes the urgency of smarter utility practices for enhanced grid efficiency.

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ANECDOTE

Grid as Orchestra Analogy

Catherine Hamilton compares the grid to an orchestra needing all instruments in harmony. - She says current DERs are like isolated instruments that utilities must coordinate to play smoothly.

INSIGHT

Planning Models Underestimate DERs

Planners don't trust DERs because current models focus on worst-case failure scenarios. - Valuing DERs requires changing planning to account for diverse, reliable DER contributions.

INSIGHT

Utility Business Model Limits VPPs

Utilities see VPPs as conflicting with their traditional capital recovery business model. - Regulators hesitate due to rate pressure, and software/operational costs are under-reimbursed.

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The grid faces a mismatch: the system is getting smarter, but we're not getting smarter about how we use it.

Utilities have installed 130 million advanced meters. Millions of homes have smart thermostats, water heaters, and batteries that could work in concert. Data centers could unlock over 100 gigawatts of new capacity without major infrastructure expansion.

Yet most smart devices aren't coordinated, advanced meter data sits unused, and there's no standard way to plan for or pay flexible loads.

In this episode of Open Circuit, we examine what is holding back grid flexibility — and what it would take to unlock the resources we've already paid for.

We’re joined by Arushi Sharma Frank, the founder of Luminary Strategies, and former markets policy lead for Tesla, who explains the imperative for flexibility: "We have a massive opportunity to leverage this for the whole grid. Why would you not want to leverage the opportunity that is staring at you in the face?"

Sharma Frank, who is also a senior associate at the Center for Strategic and International Studies, has long been on the front lines of DER policy. We examine the barriers to deploying VPPs, AMI, and flexible data centers. Utilities want these services, but why don’t planners and regulators trust them?

The fix isn't complicated: align state agencies with regulators, make sure all customers benefit from flexibility programs, and bring tech companies into the grid planning process. As Sharma Frank puts it: "If we're going to procure a grid asset, it needs to be in a procurement process for a grid asset, period."

Open Circuit is brought to you by Natural Power. Natural Power specializes in renewable energy consulting and engineering, supporting wind, solar, and battery storage projects from concept through financing. Discover how we're creating a world powered by renewable energy at naturalpower.com.

Open Circuit is brought to you by Sungrow, the trusted provider of PV inverters and battery storage. With over 605 GW installed worldwide and a BloombergNEF ranking of “most bankable” in power conversion and energy storage, Sungrow provides solar tech you can count on. Learn more at sungrowpower.com.

Credits: Co-hosted by Stephen Lacey, Jigar Shah, and Katherine Hamilton. Produced and edited by Stephen Lacey. Original music and engineering by Sean Marquand.