Federal incentive payment of 1.8 cents/kWh for the generation of renewable energy—part of The Energy Policy Act of 2005—increases the economic attractiveness of many potential hydro sites,...
DER (or active, demand-side management options as well), new grid designs that maximize the value of DER (and especially energy storage) need to be developed. This will require more robust and sophisticated communication and protocols to enable control and dispatch of DER devices. Energy Supply. Development is needed of advanced, hybrid DER systems that are low-cost, efficient, and capable of being quickly deployed; standardization of products and pre-certification of systems are needed to verify the reliability of DER technologies; and vendors need to develop DER options that have the flexibility to burn alternative fuels. Policy. Utility rate structures, including standby charges, should be evaluated to determine if redesigned rates might provide win-win opportunities; incentives should be explored to encourage efficient DER- CHP systems; and encouragement should be given to market-based regional planning that recognizes the diversity of DER options and the need for a more flexible and dynamic grid. Such regional market-based integrated resource planning should be explored to enable the optimization of new supply-side resources, renewables, DER, T&D investments, energy efficiency, and the environmental trade-offs. -D.R.
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