The Diagnosis: A one-way grid built for the industrial age can no longer power the digital one. The shift to a decentralised, adaptive network is already underway. by Sharmila Chavaly, BasisPointInsig...

A group of 21 Democratic lawmakers from the House of Representatives have expressed concern over escalating electricity costs for consumers in certain areas served by PJM Interconnection, citing a significant increase in rates of over 20% due to data center growth and increasing transmission costs, prompting calls for reforms to address these issues and prevent future rate hikes.

Recent analysis has revealed challenges within PJM, the regional grid operator for multiple Mid-Atlantic states including Maryland, impacting electricity costs and renewable energy integration. Current infrastructure and regulations are creating delays and inflating consumer expenses. A new study indicates that reforming PJM’s operations could lead to substantial savings for Maryland residents, potentially hundreds of dollars annually. The core issue is that PJM's existing system is struggling to manage rising electricity demand and the increasing output from renewable sources like solar and wind power. This is resulting in bottlenecks and delays in connecting new power generation sources, ultimately driving up costs for consumers. To address these problems, PJM is currently implementing a series of reforms. These include expedited approval processes for new energy sources, streamlined interconnection procedures to ease the connection of renewable projects, and a system that prioritizes renewable energy projects in the interconnection queue. However, the proposed reforms aren’t without criticism. Some argue that the accelerated approval pathways disproportionately favor natural gas projects, potentially hindering the complete transition to renewable energy. There are also concerns about potential cost shifting, where the expenses of these reforms could ultimately be passed on to consumers. The emphasis on faster approvals has drawn scrutiny due to the perceived prioritization of natural gas, which critics believe could delay the full integration of renewable sources. A simplified interconnection process aims to alleviate this by making grid connections easier for renewable energy developers. The implementation of these reforms will likely involve upfront costs, despite the anticipated long-term savings for consumers. Key figures involved in advocating for these changes include Maryland Governor Wes Moore and Senator Van Hollen, who are actively engaged in political discussions surrounding grid modernization. Senator Van Hollen’s involvement also includes a visit with detained woman Kilmar Abrego Garcia, linking grid reform discussions to broader migration policy considerations. Specific areas of reform include the interconnection queue, which is undergoing simplification and acceleration to reduce the lengthy and complex process for connecting power plants to the grid. A re-evaluation of cost allocation is also underway to ensure fairness and incentivize the adoption of renewable energy sources. The overall goal is to modernize PJM’s grid, reduce expenses, improve operational efficiency, and accelerate the shift towards renewable energy, while navigating the inherent complexities and potential drawbacks of the process.

The American Clean Power Association (ACP) has released a comprehensive roadmap for energy storage market reform, aiming to unlock the industry's full potential while promoting grid reliability and cost savings. According to the report, integrating energy storage into the grid is crucial for ensuring its safety and efficiency. This involves developing standards for charging and discharging rates, as well as establishing protocols to guarantee grid stability. To encourage innovation and investment in energy storage technology, tax credits and other incentives are recommended. Additionally, deregulating the energy storage market could allow for increased competition and innovation, with streamlined permitting processes and reduced regulatory barriers. The roadmap also proposes a new financing mechanism that would provide low-interest loans or grants to project developers for large-scale energy storage projects. Furthermore, ongoing research and development in energy storage technology is emphasized, including funding for initiatives focused on improving battery efficiency and reducing costs. By integrating energy storage into the grid, utilities can better manage peak demand and ensure a stable supply of electricity. This would result in cost savings for businesses and homes, particularly through reduced peak demand charges. Energy storage also enables the widespread adoption of renewable energy sources by providing a means to store excess energy generated during periods of high solar or wind production. The development and deployment of energy storage technologies could create new job opportunities in manufacturing, installation, and maintenance. To implement these reforms, policymakers are urged to take immediate action, introducing legislation to deregulate the energy storage market and establish a new financing mechanism. Ongoing engagement with industry stakeholders, regulatory agencies, and lawmakers is also necessary to ensure the roadmap's successful implementation.

US Energy Storage Market Needs Reform The US energy storage market is at a critical juncture, with the increasing adoption of renewable energy sources placing significant pressure on existing grid infrastructure. A recent report from Brattle Group and American Clean Power Association (ACP) has highlighted the need for market reforms in the sector, specifically targeting three major grid operators: PJM, MISO, and NYISO. PJM, a high-demand state, is particularly ripe for reform due to its substantial energy storage requirements during peak summer afternoons. MISO's existing Direct Loss of Load methodology falls short in accurately capturing the reliability contributions of energy storage systems, necessitating an update. Conversely, NYISO's day-ahead uncertainty product design can be improved by adjusting operating reserve demand curve maximum values and procuring additional reserves. The proposed reforms aim to foster flexibility in energy storage systems, mitigate out-of-market payment risks, and enhance overall grid resilience. The report underscores the importance of adopting innovative market mechanisms to facilitate the integration of variable renewable energy sources into the grid. Key Findings and Recommendations 1. PJM, MISO, and NYISO must implement reforms to accommodate increasing energy storage needs. 2. Energy storage systems can significantly improve grid reliability by reducing out-of-market payment risks. 3. New market structures are required to incentivize flexibility in energy storage systems. The report emphasizes the need for updated regulatory frameworks that balance the integration of renewable energy sources with reliable and efficient grid operation, ensuring a sustainable future for the US energy sector.

Advocates fear more cuts to the state's battered rooftop-solar incentives as regulators consider “cost-shift” arguments in their bid to lower utility…

California officials, from Gov. Gavin Newsom on down, are blaming solar panel incentive programs for a large chunk of others' electricity bills.

Pennsylvania Residents Set to Reap Benefits from Grid Reform Agreement A groundbreaking deal has been reached between Governor Tom Wolf and PJM Interconnection, LLC, a non-profit corporation responsible for managing the high-voltage electricity grid in several states including Pennsylvania. The agreement's primary goal is to provide consumers with substantial savings on their utility bills. According

If we want to expand renewable energy throughout the country, the United States needs to improve its electric grid.