DERVOS: Central Planning, Public Ownership, and DERs?
Jan 10, 2024
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The podcast discusses the benefits and drawbacks of central planning and public ownership in managing the grid and distributed energy resources. Panelists explore contrasting perspectives on off-grid living and central planning. The speaker highlights the challenges faced by a small cooperative in integrating DERs and the importance of doubling the grid. The chapter also explores the role of government in public power and proposes regional regulatory commissions.
Central planning and public ownership may be necessary for the efficient deployment of distributed energy resources (DERs) in the grid.
Expanding the grid to incorporate DERs requires centralized planning and socialized capital infrastructure models for cost-effective and efficient implementation.
Deep dives
Central Planning and Public Ownership: Efficient Deployment of DERs
The panel discussion focuses on the question of whether central planning and public ownership are necessary for the efficient deployment of distributed energy resources (DERs) in the grid. While DERs are often associated with decentralization and localism, the panelists explore whether strong institutions and better state capacity are needed to deploy DERs effectively. Cyril Brunner, from Vermont Electric Cooperative, highlights the limitations of small, rural co-ops in accommodating additional DERs due to infrastructure and load constraints. On the other hand, Matt Huber, a professor at Syracuse University, argues that the grid needs to be doubled or tripled to accommodate DERs, and centralized planning and socialized capital infrastructure models are the most cost-effective and efficient ways to achieve this. Despite differing perspectives, the consensus is that the grid needs significant expansion, and the discussion revolves around finding the most optimal mechanisms for achieving this.
The Role of Centralization in Doubling the Grid
The main theme of the discussion centers around the challenge of doubling the grid to incorporate DERs. The panel agrees that expanding the grid is a substantial technical and societal undertaking that cannot be handled by existing infrastructure. The panelists acknowledge the value that DERs bring to the grid and the need for a societal approach to tackling this challenge. While decentralization often leads to more value and benefits, the panel argues that this is not the case in the context of expanding the grid. They assert that centralized planning and socialized capital infrastructure models offer the most effective and cost-efficient strategy for doubling the grid to meet climate goals and foster economic development.
Exploring Policy Solutions for Centralization
The panel delves into potential policy solutions for achieving centralization in grid expansion. The conversation revolves around finding the appropriate level of centralization, considering the shortcomings of both utilities and governments. While recognizing the government's slower and sometimes regressive nature, the panelists propose the involvement of regional public regulatory commissions to charge utilities with new authority to plan, specify, and rate base distributed energy resources. This approach aims to make utilities the biggest wholesale customer for the DER industry. By leveraging this model, utilities can engage in large-scale procurements, benefiting their bottom line, and expediting the deployment of DERs. The panel acknowledges some disagreement but emphasizes the need to explore policy solutions that ensure efficient and timely grid expansion.
This is a free preview of a paid episode. To hear more, visit www.dertaskforce.com
Back in November we threw DERVOS, our annual distributed energy summit. It turned out awesome. We really couldn’t be happier or more grateful for how it went. The panels and speakers were great, the crowd that turned up was amazing, and the vehicle to rave afterparty was super fun.
Because the talks and panels went so well, we’ve decided to release the r…
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