August 12, 2014 PRESS RELEASE Rebooting California’s System for How Customers Use and Supply Energy Services like Solar Power, Battery Storage and Smart Thermostats to the Grid Will Result in Cheaper, Cleaner and More Reliable Energy San Francisco — The electricity sector is going through a dramatic transformation. Customer adoption of distributed energy resources (DER) such as solar power, smart thermostats and battery storage hold the promise of enhancing the operational, environmental, and affordability of California’s electric system. Much of this innovation is happening at the distribution grid—the last part of the electricity supply chain going from electric substations linking directly to customers’ homes and businesses. Unfortunately, California’s distribution grid (like every state) was built nearly 50 years ago for one directional power flows. Now, this system will need a reboot to scale DER levels to meet California’s clean energy goals. Today, the Green Technology Leadership Group (GTLG) released a report in partnership with the California Institute of Technology’s Resnick Institute (Resnick) outlining a comprehensive pathway for rebuilding California’s distribution grid. The report, titled “More than Smart: A Framework to Make the Distribution Grid More Open, Efficient and Resilient”, outlines a clear path and framework to move from today’s centralized transmission planning infrastructure to a “network” system that allows more entities to help expedite California’s grid to become cleaner, cheaper and more reliable. Most importantly, the framework was developed to assist California Investor Owned Utilities comply with a regulatory mandate passed in 2013 (Assembly Bill 327, Section SEC. 8. Section 769) requiring such plans be developed and submitted by July 2015. “California has a history of pushing innovation in the energy sector,” said Tony Brunello, GTLG Executive Director. “Now is no different—transforming the distribution grid to act more like a telecommunications network is a natural evolution that will drive innovations here and across the country.” The More than Smart report, developed through a series of workshops with energy experts, outlines four steps related to integrating DER into distribution planning, design and operations. By following a comprehensive framework with guiding principles, California will have a better opportunity to reach the over 15 GWs1 of distributed resources it is currently planning. The key principles outlined in the report include the following: 1. Distribution planning should start with a comprehensive, scenario driven, multi stakeholder planning process that standardizes data and methodologies to address locational benefits and costs of distributed resources. 1 15 GWs: 12 GWs of distributed generation, over 2 GWs of demand response, about 1 GW of energy storage 2. California’s distribution system planning, design and investments should move towards an open, flexible, and node-friendly network system (rather than a centralized, linear, closed one) that enables seamless DER integration. 3. California’s electric distribution service operators (DSO) should have an expanded role in utility distribution operations (with CAISO) and should coordinate a technology-neutral energy marketplace and information exchange facilitator for situational awareness and operational information while avoiding any operational conflicts of interest. 4. Flexible DER can provide value today to optimize markets, grid operations and investments. California should expedite DER participation in wholesale markets and resource adequacy, unbundle distribution grid operations services, create a transparent process to monetize DER services and reduce unnecessary barriers for DER integration. “The electricity system has been called the most complex machine developed by humans,” said Paul de Martini of the Resnick Institute and lead author of the paper. “Developing a distribution grid requires some understanding of this complex system, but also a sense of what the art of the possible is with realworld utility constraints. The More than Smart effort is the first step in long process to develop a robust and operational distribution grid for California.” The distribution plans that each of the California IOUs will need to file to comply with AB 327 represent the first step towards starting to re-shape the distribution grid. These plans will also help shape the current annual utility distribution investment of nearly $6 billion that is effectively a 25+ year bet on a future, which will likely be quite different than we can imagine today. GTLG also announced today it will hold a More than Smart Conference October 15th in Sacramento to discuss plans with multiple government, nonprofit and industry stakeholders on how to update California’s distribution grid. For more information on this report or the upcoming conference, contact GTLG at (916) 718-8292 or at [email protected]. ******************** GTLG is a 501(c)(3) nonprofit organization committed to providing policy leadership by connecting innovators with policymakers. Participants in the organization are leading companies, clean technology business organizations and policy experts in the areas of the distribution grid, energy data, consumer electronic energy efficiency, carbon management and renewable energy. GTLG has led a number of new initiatives including Mission Data (www.missiondata.org), Smart Electronics Initiative (www.howtokillavampire.org) and other efforts found on the GTLG website.