Enabling Distributed System Platform Functionality
Under REV, the utilities will become Distributed System Platform (DSP) providers. The grid of the DSP will encourage and accommodate improved DER integration, resiliency, and visibility and control. To foster this transition, the utilities and DER providers will also have to transform their infrastructure, systems, people, process, and tools to fit this vision. Do you have an idea on ways that the utilities can build grid operations and planning functionality as a DSP?
Designing Pricing, Rates and Energy Markets
As grid needs, customer demands, and technology evolves, DER and customers will increasingly receive and act upon price signals. As part of this transition, utilities are asked to undertake new rate designs, such as time-of-use rates and smart home rates, to test engagement and effectiveness of these concepts. Over time, wholesale (NYISO) and retail (DSP) markets will evolve to where DER are monetized based on the locational and time-dependent value they provide to the grid. Do you have an idea on ways the DSP can support price signals and response?
Offering Value-Added Services
As the utility business model evolves, the utilities are increasingly looking to diversify their earnings opportunities. Under REV, the utilities are encouraged to pursue revenue from new value-added services they offer to the market in their role as the Distributed System Platform (DSP) – these are called Platform Service Revenues, or PSRs. Do you have an idea for a service that a utility could offer based on their current or future DSP capabilities that would be of value to the market and customers?
Connecting DER to the Grid
Consumers are seeking more choice in and control over the source and use of energy. To respond to that demand, utilities are increasingly interconnecting distributed resources across their systems, and, to continue to do that effectively, they are looking for ways to improve their interconnection processes to be faster, to provide better cost estimates, and to encourage increased applications. Do you have an idea for how the utilities could improve the interconnection process, improve the ability for DER to interconnect, or manage existing applications?
Value to customers and customer engagement is cross-cutting across all REV programs and initiatives. Customers should be empowered and enabled to make informed choices about their energy source, usage, spend, and/or carbon footprint. Utilities and third-parties can empower customers through education, information access and improved ease of partaking in programs and offerings. Do you have an idea for innovative ways to engage customers?
Improving Affordability of Energy and DER
REV envisions achieving the grid of the future while maintaining or improving affordability. Affordability can be thought of in terms of reducing total energy burden as well as reducing terminations and arrearages. It can also be thought of in terms of the accessibility of and engagement in DER to all, but in particular low-to-moderate income (LMI), customers. Do you have an idea for how to improve affordability of REV and the DER solutions it is meant to promote?
Reducing Carbon Emissions
Globally efforts are being made to reduce the impact of carbon on the environment and New York State has ambitious targets to reduce greenhouse gas emissions: 40% reduction by 2030 and 80% by 2050. Also, New York State’s Clean Energy Standard (CES) seeks to achieve 50% renewable energy generation by 2030. Utilities and third parties are encouraged to find ways to decarbonize the entire energy system, with a particular focus on end-use such as transportation and buildings. Do you have an idea for how to decarbonize the grid, in particular end-uses, in a cost-effective manner?
Improving Capacity Utilization
Improving the overall system efficiency creates value to customers by helping utilities make the most of their capital investments. System efficiency can be improved by reducing the amount of energy used at peak times thus minimizing the need for transmission and distribution investments that must standby ready to serve. System efficiency can also be improved by increasing load factor through making use of under-utilized infrastructure during non-peak times. Do you have an idea for peak reduction or load factor improvement?
Reducing Energy Usage
Energy efficiency (or the reduction in overall energy use) helps to meet clean energy goals by customer-driven actions that also help to reduce their energy bills. Also, energy can saved at the system level with grid solutions. While the utilities have existing programs for energy efficiency (see Utility Profiles), REV encourages innovative approaches as well as longer term and more expansive energy efficiency targets that help to garner market-based solutions and reduced usage across the State territory. Do you have an idea for an innovative approach to energy efficiency?
Embracing Market-Based Business Models
To transform the utilities to DSPs, the utility business model will need to change, and the activities and earnings for all parties will become increasingly market-driven. The utilities are encouraged to pursue new earnings opportunities (such as those described in Track 2) and partnerships that differ from the utility-vendor paradigm of the past. To you have an idea for how to foster market-based business and partnership models?