Distributed Generation and Decentralized Grids
The rise of distributed generation and grid decentralization has created both challenges and opportunities for regulators, utilities, and customers alike. In the second of a series of presentations given at the Renewable Energy Training Week in Abu Dhabi, RAP senior associate David Farnsworth offers best practices and models for regulators to consider.Mr. Farnsworth outlines the advantages of microgrids in bringing electrification to rural areas of the developing world, and notes that the success (or “virtuous cycle”) of these depends on sufficient revenue and reliability. He provides an overview of RAP’s “Designing Distributed Generation Tariffs Well,” discussing a variety of policies that ensure fair compensation for generation and grid services, while charging non-participating consumers fairly for the value of the services they receive. He also explores “Teaching the Duck to Fly,” which looks at strategies for addressing the duck-shaped load curve created by increasing penetrations of variable energy resources. Finally, he discusses renewable portfolio standards, renewable energy certificates, and the aspects of a robust tracking system.