New Whitepaper Shows How Grid Operators and Energy Regulators Can Use Solar and Storage to Secure the Grid, Boost Reliability and Reduce Energy Costs

WASHINGTON D.C. — A new report released today by the Solar Energy Industries Association (SEIA) and Current Energy Group outlines how grid operators and regulators can deploy distributed energy resources (DERs) like solar and battery storage to boost reliability and affordability of the electric grid.

The Distributed Capacity Procurement (DCP) Framework whitepaper comes as state energy leaders and regulators around the country grapple with the challenges of rising electricity demand, high energy prices, and aging infrastructure. The whitepaper outlines three procurement pathways that can bolster available resources, respond to growing loads, and provide a faster, more cost-effective response to infrastructure needs.

“We need more electricity on the grid added fast, and traditional approaches that rely on utilities alone to meet that demand are no longer going to cut it,” said Samantha Weaver, SEIA’s senior director of state regulatory affairs. “Distributed energy resources can provide much-needed capacity at the speed and scale required to meet the moment. The Distributed Capacity Procurement Framework outlined in this whitepaper provides a practical roadmap for regulators and policy leaders working to build a 21st-century grid that can meet the needs of the 21st-century economy.”

The whitepaper draws on the expertise and policy work of SEIA’s Distributed Power Project team, following the combination of the Coalition for Community Solar Access (CCSA) with SEIA.

“Distributed energy resources are well-positioned to address load growth, aging infrastructure, and rising energy bills,” said Matthew McDonnell, Managing Partner of Current Energy Group. “Unlocking their full potential requires pragmatic frameworks that enable customers and competitive, transparent, and fair market-based solutions to help meet that demand. This body of work provides regulators with a comprehensive set of strategies for procuring DERs and maximizing their cost-saving and grid-strengthening benefits.”

The paper outlines 10 key principles and accompanying policy tools to turn the DCP Framework into practical action using implementation tools that regulators already have.

Two principles guide the proposed procurement pathways:

1) use the least restrictive pathway that meets the need, and 2) make third-party-owned or customer-owned DERs the default, with utility-owned resources considered only in limited cases.

Competitive procurement of third-party-owned DERs can lower electricity bills in many ways, including by reducing utilities’ reliance on higher-cost wholesale market purchases to meet capacity needs.

Numerous states have recently passed laws to expand DERs, such as community solar and battery storage, and to maximize the value of these resources by aggregating them through programs like virtual power plants.

Read and download the report here.

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Media Contact:

Jacob Weinberg, SEIA’s Director of State Communications, [email protected], (703) 350-3774

About SEIA®: 

The Solar Energy Industries Association® (SEIA) is leading the transformation to a clean energy economy. SEIA works with its 1,200 member companies and other strategic partners to fight for policies that create jobs in every community and shape fair market rules that promote competition and the growth of reliable, low-cost solar power. Founded in 1974, SEIA is the national trade association for the solar and solar + storage industries, building a comprehensive vision for the Solar+ Decade through research, education and advocacy. Visit SEIA online at www.seia.org and follow @SEIA on Twitter, LinkedIn, and Instagram.