Office of Electricity Delivery & Energy Reliability DOE Efforts in Grid Transformation Joseph Paladino California Distributed Energy Future 2016 San Francisco.

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Office of Electricity Delivery & Energy Reliability DOE Efforts in Grid Transformation Joseph Paladino California Distributed Energy Future 2016 San Francisco March 17, 2016

Office of Electricity Delivery and Energy Reliability Policy, Institutional and Technological Considerations 2 Policy/Institutional Considerations: Integrated Planning Determining Value Rate Design Industry/Business Models and Markets Regulatory Models Policy Objectives Technological Considerations: SensingCommunications Control Data/Info Management Network Convergence Security (physical/cyber) Highly Coupled Design Considerations Facing Policymakers and Regulators due to:  ICT/Grid/Other Network convergence  Advent and mixture of VERs and DERs  Emergence of new market participants and shared ownership  Policies encouraging efficiency, resilience, decarbonization and innovation

Office of Electricity Delivery and Energy Reliability Emerging Grid Complexity The potential of high penetrations of mixed DERs presents an entirely new problem in control, coordination and value- determination within distribution systems Considerations: Structures: electric infrastructure, ICT, control, industry, regulatory Optimization: local & system, centralized & distributed control Convergence: grid/ICT/buildings/transportation/city infrastructure Markets: open access networks, platforms EV Decisions Building Decisions Grid Decisions INFO ENERGY $ Storage Decisions

Office of Electricity Delivery and Energy Reliability DOE Grid Modernization Laboratory Consortium Clean Distribution Feeder Low Reserve Margin Demo Grid Analytics Platform Regional Demonstrations Multi-Year Program Plan Sensing and Measurement Devices and Integrated Systems System Operations and Control Design and Planning Tools Security and Resilience Institutional Support Awards: laboratory-consortium-gmlc-awards

Office of Electricity Delivery and Energy Reliability State and Regional Engagement

Office of Electricity Delivery and Energy Reliability Technical Assistance 6 Future Electricity Utility Regulation Series: 1.Electric Industry Structure and Regulatory Responses in a Distributed Energy Resources Future – Corneli and Kihm; Nov Distribution Systems in a High DER Future: Planning, Market Design, Operation and Oversight – De Martini and Kristov; Oct Performance-Based Regulation in a High DER Future – Woolf and Lowry; Jan Distribution System Pricing for Distributed Energy Resources – Hledik and Lazar; est Mar Recovery of Utility Fixed Costs: Utility, Consumer, Environmental and Economist Perspectives – Wood, Hemphill, Howat, Cavanagh, and Borenstein; est Mar Future of Resource Planning – Olsen, Ryan, Mills and Barbose; est Apr Early Adopters Early/Late Majority Approach:

Office of Electricity Delivery and Energy Reliability Contact Information 7 Joe Paladino