{"id":10913,"date":"2016-12-16T07:29:09","date_gmt":"2016-12-16T07:29:09","guid":{"rendered":"http:\/\/revoscience.com\/en\/?p=10913"},"modified":"2016-12-16T07:29:09","modified_gmt":"2016-12-16T07:29:09","slug":"mit-energy-initiative-report-provides-guidance-evolving-electric-power-sector","status":"publish","type":"post","link":"https:\/\/www.revoscience.com\/en\/mit-energy-initiative-report-provides-guidance-evolving-electric-power-sector\/","title":{"rendered":"MIT Energy Initiative report provides guidance for evolving electric power sector"},"content":{"rendered":"

Experts call for regulatory, policy, and market transformation to realize potential of distributed energy technologies.<\/strong><\/em><\/span><\/p>\n

\"Image:
Image: Christine Daniloff\/MIT<\/figcaption><\/figure>\n

CAMBRIDGE, Mass. —\u00a0Distributed energy resources \u2014 relatively small-scale power technologies such as solar, wind, energy storage, and power electronics and control devices \u2014 are being deployed rapidly in the global shift toward a low-carbon energy future. To ensure that both distributed and centralized energy resources are integrated efficiently, however, electric power systems in the U.S., Europe, and other parts of the world need major regulatory, policy, and market overhauls, says an in-depth report, \u201cUtility of the Future<\/a>,\u201d released today by the MIT Energy Initiative (MITEI). The report was developed in collaboration with the Institute for Research in Technology at Comillas Pontifical University (IIT-Comillas).<\/span><\/p>\n

\u201cThere are great opportunities to deploy distributed energy resources where they will be most cost-effective and impactful, and also to scale up new information and communications technologies that can provide greater flexibility, control, and cost savings for power businesses and consumers alike,\u201d says Robert C. Armstrong, MITEI\u2019s director and the Chevron Professor in Chemical Engineering at MIT. \u201cOur study does not try to predict the future or prescribe which technologies should prevail; instead, it provides a toolkit for businesses, policymakers, and regulators to navigate the unfolding changes in the system and develop a more robust, efficient system for the future.\u201d<\/span><\/p>\n

Today\u2019s electric power systems were designed, built, and regulated well before distributed energy resources \u2014 small- and medium-sized technologies that can provide electricity services and are sited in local distribution networks \u2014 had come onto the horizon as viable options for widespread use. Now, the businesses and regulatory bodies that determine how power is distributed need a path forward to incorporate these rapidly proliferating technologies. They also need to evolve to meet changing consumer preferences and increase efficiency across the system to achieve cost savings and carbon emissions reductions.<\/span><\/p>\n

\u201cThe study\u2019s two overarching recommendations are to establish a comprehensive system of prices and regulated charges that applies to all network users, and to remove inefficient barriers that impede the integration and competition of both distributed resources and centralized resources, such as power sector structures that prevent fair competition and wholesale electricity market design flaws,\u201d says one of the study\u2019s principal investigators, Ignacio P\u00e9rez-Arriaga, who is a visiting professor at MIT and professor of electrical engineering at IIT-Comillas. \u201cOur framework of recommended proactive reforms can enable the efficient evolution of electric power systems into the next decade and beyond.\u201d<\/span><\/p>\n

Among the study\u2019s recommendations is a set of measures to improve tariff and rate structures for electricity services. For example, electricity services should be priced in a \u201ctechnology-agnostic\u201d manner that is based solely on how consumers use these services. Making use of\u00a0\u201cpeak-coincident capacity charges,\u201d which increase prices when electricity networks are under stress or generating capacity is scarce,\u00a0can discourage consumers from drawing on the grid during these times. Prices and charges should also better reflect how the value of services changes at different times of day or at different locations in the grid. Such cost-reflective pricing can open up opportunities for distributed resources \u2014 many of which already exist but are not responding to current economic signals \u2014 and enable significant cost savings.<\/span><\/p>\n

Another finding is that for technologies such as solar photovoltaics and energy storage, which can be connected at different voltage levels and various sizes, understanding tradeoffs between locational value and incremental unit costs due to economies of unit scale can help planners identify the ideal locations and applications for these resources.<\/span><\/p>\n

Additional recommendations include improvements to the way distribution network companies are compensated and incentivized to incorporate distributed resources efficiently, re-evaluation of the structure of the electricity industry to allow the creation of new business models, and implementation of robust cybersecurity standards for interconnected energy resources and appliances. Improvements to wholesale market design could also better integrate distributed resources and reward greater flexibility while creating a level playing field for all technologies.<\/span><\/p>\n

The report emphasizes the urgency of proactive reforms. Electricity users now face unprecedented choices regarding how they get their power and manage their electricity consumption; they need improved economic signals \u2014 prices, charges, and other economic incentives \u2014 in the near term to guide these decisions.<\/span><\/p>\n

\u201cThe risk of continuing business as usual is immense in terms of system reliability and costs associated with inefficiencies \u2014 which many stakeholders in the electric power sector recognize and want to avoid,\u201d adds P\u00e9rez-Arriaga.<\/span><\/p>\n

\u201cThis report is the result of a multiyear, comprehensive, and rigorous research study in which authors conducted extensive primary research, including data gathering and modeling, and interviews with regulators and business leaders in the electric power sector \u2014 including the study consortium members,\u201d says the study\u2019s executive director, Raanan Miller of MITEI. \u201cWe hope that regulators, policymakers, and industry stakeholders find it a useful source of information that helps them weigh decisions and take actions to guide the evolution of the electric power sector.\u201d<\/span><\/p>\n

Research and findings from the \u201cUtility of the Future\u201d study will inform research taking place through MITEI\u2019s new Low-Carbon Energy Center for Electric Power Systems, one of eight MITEI low-carbon energy centers<\/a>, each of which focuses on advancing key technology areas for addressing climate change.<\/span><\/p>\n

This report is the first in a new series of MIT consortium research studies focused at the system level and intended to inform industry stakeholders and regulators. The other report currently under way in this new series is the \u201cMobility of the Future\u201d study on the evolution of the transportation sector. The consortium members of \u201cUtility of the Future\u201d are a diverse set of leading international companies with expertise in various aspects of electric power services and technologies. Members provided support, gave regular feedback, shared insights in a series of workshops, and participated in the external advisory committee.<\/span><\/p>\n

Like MITEI\u2019s \u201cFuture of\u201d studies<\/a>, \u201cUtility of the Future\u201d is written by a multidisciplinary team of MIT researchers, whose research was informed by a faculty advisory committee.<\/span><\/p>\n

The MIT Energy Initiative is MIT\u2019s hub for multidisciplinary energy research, education, and outreach. Through these three pillars, MITEI helps develop the technologies and solutions that will deliver clean, affordable, and plentiful sources of energy. Founded in 2006, MITEI\u2019s mission is to advance low- and no-carbon emissions solutions that will efficiently meet growing global energy needs while minimizing environmental impacts, dramatically reducing greenhouse gas emissions, and mitigating climate change. MITEI engages with industry and government through its Low-Carbon Energy Centers, comprehensive reports to inform decision makers, and other multi-stakeholder research initiatives.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Distributed energy resources \u2014 relatively small-scale power technologies such as solar, wind, energy storage, and power electronics and control devices \u2014 are being deployed rapidly in the global shift toward a low-carbon energy future. To ensure that both distributed and centralized energy resources are integrated efficiently, however, electric power systems in the U.S., Europe, and other parts of the world need major regulatory, policy, and market overhauls, says an in-depth report, \u201cUtility of the Future,\u201d released today by the MIT Energy Initiative (MITEI). <\/p>\n","protected":false},"author":6,"featured_media":10914,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34,22,28],"tags":[],"class_list":["post-10913","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economics","category-other","category-techbiz"],"featured_image_urls":{"full":["https:\/\/www.revoscience.com\/en\/wp-content\/uploads\/2016\/12\/MITei-Utility-Future-01_0.jpg",639,426,false],"thumbnail":["https:\/\/www.revoscience.com\/en\/wp-content\/uploads\/2016\/12\/MITei-Utility-Future-01_0-150x150.jpg",150,150,true],"medium":["https:\/\/www.revoscience.com\/en\/wp-content\/uploads\/2016\/12\/MITei-Utility-Future-01_0-300x200.jpg",300,200,true],"medium_large":["https:\/\/www.revoscience.com\/en\/wp-content\/uploads\/2016\/12\/MITei-Utility-Future-01_0.jpg",639,426,false],"large":["https:\/\/www.revoscience.com\/en\/wp-content\/uploads\/2016\/12\/MITei-Utility-Future-01_0.jpg",639,426,false],"1536x1536":["https:\/\/www.revoscience.com\/en\/wp-content\/uploads\/2016\/12\/MITei-Utility-Future-01_0.jpg",639,426,false],"2048x2048":["https:\/\/www.revoscience.com\/en\/wp-content\/uploads\/2016\/12\/MITei-Utility-Future-01_0.jpg",639,426,false],"ultp_layout_landscape_large":["https:\/\/www.revoscience.com\/en\/wp-content\/uploads\/2016\/12\/MITei-Utility-Future-01_0.jpg",639,426,false],"ultp_layout_landscape":["https:\/\/www.revoscience.com\/en\/wp-content\/uploads\/2016\/12\/MITei-Utility-Future-01_0.jpg",639,426,false],"ultp_layout_portrait":["https:\/\/www.revoscience.com\/en\/wp-content\/uploads\/2016\/12\/MITei-Utility-Future-01_0.jpg",600,400,false],"ultp_layout_square":["https:\/\/www.revoscience.com\/en\/wp-content\/uploads\/2016\/12\/MITei-Utility-Future-01_0.jpg",600,400,false],"newspaper-x-single-post":["https:\/\/www.revoscience.com\/en\/wp-content\/uploads\/2016\/12\/MITei-Utility-Future-01_0.jpg",639,426,false],"newspaper-x-recent-post-big":["https:\/\/www.revoscience.com\/en\/wp-content\/uploads\/2016\/12\/MITei-Utility-Future-01_0.jpg",540,360,false],"newspaper-x-recent-post-list-image":["https:\/\/www.revoscience.com\/en\/wp-content\/uploads\/2016\/12\/MITei-Utility-Future-01_0.jpg",95,63,false],"web-stories-poster-portrait":["https:\/\/www.revoscience.com\/en\/wp-content\/uploads\/2016\/12\/MITei-Utility-Future-01_0.jpg",639,426,false],"web-stories-publisher-logo":["https:\/\/www.revoscience.com\/en\/wp-content\/uploads\/2016\/12\/MITei-Utility-Future-01_0.jpg",96,64,false],"web-stories-thumbnail":["https:\/\/www.revoscience.com\/en\/wp-content\/uploads\/2016\/12\/MITei-Utility-Future-01_0.jpg",150,100,false]},"author_info":{"info":["Amrita Tuladhar"]},"category_info":"Economics<\/a> Other<\/a> Tech<\/a>","tag_info":"Tech","comment_count":"0","_links":{"self":[{"href":"https:\/\/www.revoscience.com\/en\/wp-json\/wp\/v2\/posts\/10913","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.revoscience.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.revoscience.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.revoscience.com\/en\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.revoscience.com\/en\/wp-json\/wp\/v2\/comments?post=10913"}],"version-history":[{"count":0,"href":"https:\/\/www.revoscience.com\/en\/wp-json\/wp\/v2\/posts\/10913\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.revoscience.com\/en\/wp-json\/wp\/v2\/media\/10914"}],"wp:attachment":[{"href":"https:\/\/www.revoscience.com\/en\/wp-json\/wp\/v2\/media?parent=10913"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.revoscience.com\/en\/wp-json\/wp\/v2\/categories?post=10913"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.revoscience.com\/en\/wp-json\/wp\/v2\/tags?post=10913"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}