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

2. 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

3. 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

4. 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: http://www.energy.gov/doe-grid-modernization- laboratory-consortium-gmlc-awards

5. Office of Electricity Delivery and Energy Reliability State and Regional Engagement

6. 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 2015 2.Distribution Systems in a High DER Future: Planning, Market Design, Operation and Oversight – De Martini and Kristov; Oct 2015 3.Performance-Based Regulation in a High DER Future – Woolf and Lowry; Jan 2016 4.Distribution System Pricing for Distributed Energy Resources – Hledik and Lazar; est Mar 2016 5.Recovery of Utility Fixed Costs: Utility, Consumer, Environmental and Economist Perspectives – Wood, Hemphill, Howat, Cavanagh, and Borenstein; est Mar 2016 6.Future of Resource Planning – Olsen, Ryan, Mills and Barbose; est Apr 2016 https://emp.lbl.gov/future-electric-utility-regulation-series Early Adopters Early/Late Majority Approach:

7. Office of Electricity Delivery and Energy Reliability Contact Information 7 Joe Paladino 202-586-6916 joseph.paladino@hq.doe.gov