As we discuss further in Part V, FERC has more authority than it has yet used to control how distributed energy resources—including storage, microgrids, demand response, and https://otofast.info/the-economics-of-electric-vehicles-cost-savings-explained.html small-scale renewables—interface with wholesale markets and interstate transmission. Less dramatically, Congress might draw from existing strengths and give FERC’s Office of Electric Reliability (OER), which currently serves an oversight and collaborative role with NERC and states, primary authority to propose reliability standards to FERC. Recent public policy discourse has focused on the impact of load growth on grid reliability, particularly from data centers, and some policies go as far as trying to prescribe certain types of generators in the name of meeting reliability needs. The standards, which were developed by the North American Electric Reliability Corporation (NERC), specifically target “inverter-based resources” (IBRs) — technologies such as solar and wind that rely on power electronics rather than traditional spinning technology.
And particularly when they include batteries, DERs can provide the very type of flexible and reactive power necessary to respond to rapid fluctuations in output from large-scale renewable energy generation. Resources that function as part of the distribution system are often http://www.semmms.info/update-on-a6marr-progress/ called “distributed energy resources,” or DERs, and include, among others, rooftop-solar photovoltaic (PV) panels or backyard wind turbines; microgrids; storage; and demand response (each described in more detail below). By offering special compensation to fossil resources that are thought to be needed for reliability, grid operators guarantee the continued operation of certain fossil resources, and, in doing so, undermine state and federal climate policies. Yet rather than improve wholesale market rules, regulators and grid operators seem increasingly inclined to pick and choose the resources that are needed to keep the lights on and then ensure that those resources are able to recover their costs. In response, rather than fix the rules that create insufficient performance incentives, grid operators and regulators often opt to provide side payments to a predefined set of resources that are thought to be needed to keep the lights on. Often, utilities play outsized roles in these regional processes as well—including by reporting reliability conditions that justify their own preferred grid outcomes.46
Different reliability investments affect these components in https://konasaranews.com/uncategorised/how-much-does-it-cost-to-charge-an-electric-car-at-home/ different ways and come with very different costs, ranging from low-cost operational and maintenance measures to capital intensive infrastructure investments. Yet public policy is currently focused on rising energy demand, which does not address distribution system needs and extreme weather risks. Over the past decade, extreme weather and failures on the distribution system — the lower-voltage wires connecting homes and businesses to the bulk electric grid — have been the primary causes of customer outages nationwide. To that end, we decided to take a close look at the numbers to see if the data backs current strategies to enhance reliability. Our work is supported by philanthropy as well as partnerships, including fee-for-service engagements. We publish research like this to inform decision-makers and drive real-world impact.
Essential reliability services
Examples include replacing overhead lines with underground cables, reinforcing poles and towers, and elevating or waterproofing substations in flood-prone areas. Smart grid technologies enhance reliability by integrating advanced communication, sensing, and automation across the power system. Redundant lines, transformers, and backup generators allow the system to reroute power or increase generation when a component fails, significantly improving reliability and operational flexibility. Additionally, technologies like Fault Location, Isolation, and Service Restoration (FLISR) automate the restoration process, significantly reducing outage durations and affected areas. Adaptive protection systems adjust their settings in real-time based on changing grid conditions, maintaining effectiveness across varying operating scenarios. The cost of improvements is also high, so in practice a balance is sought to reach an “adequate level of reliability” at an acceptable cost.
- Adaptive protection systems adjust their settings in real-time based on changing grid conditions, maintaining effectiveness across varying operating scenarios.
- As you might imagine, this has catastrophic consequences – like changing rainfall patterns and increasing droughts and wildfires – all of which affect our power grid at every level.
- Alongside this web of federal actors, states continue to play a vital role in managing the electricity system.
- The economics of clean energy have shifted, the private sector is already building out a carbon-free generation portfolio, and our grid reliability institutions are, perversely, now some of the primary barriers to a reliable grid.
- Given its legal control over interstate transmission and interstate sales of electricity, and its mandate to oversee the reliability of the system, FERC in many ways stands at the helm.19 However, it must coordinate with and oversee numerous entities that each have a role in ensuring a reliable electricity system.
- Microgrids, such as mid-scale solar arrays located in a community area and paired with a battery, can also provide critical peaker power and electricity during a blackout.
Where does your state rank heading into 2026?
Reliability indices characterize the ability of the electrical system to supply customers with electricity as needed by measuring the frequency, duration, and scale of supply interruptions. While we would like to say that fusion energy is the answer to this issue, it is unlikely to have a meaningful impact in time, and it still doesn’t answer the actual issue of grid equipment unreliability. Utilities are exploring new technology and operational strategies to keep the electrical grid stable and dependable as demand grows and more renewable energy is integrated. The current rate at which we’re relying on fossil fuels to power our world is setting off alarm bells across the globe. It’s the job of the utility company to manage electricity supply, demand and transmission in a safe and sufficient way so end users can trust that their lights will turn on when they flip a switch.
Protection System Improvements
As a result, it can take decades to finance, plan, and obtain permits for interstate electric transmission lines since companies must obtain regulatory approval from multiple states applying different regulatory standards and which have varying interests in favor of or against the project in question. States control the construction of most generation resources and dictate whether intra- or interstate transmission lines may be built by controlling the siting (location) of those lines.30 Yet FERC—working through RTOs—controls transmission planning and, in many regions, administers markets to incentivize generation capacity additions. Beyond inadequate jurisdictional authority, the many federal and state actors responsible for reliability are housed within distinct silos, both horizontally (at the same level of government), and vertically (at different levels, such as state and federal authority). As suggested above in the introduction to grid governance, regulatory jurisdiction over the construction, operation, and pricing of the electric grid is significantly fractured—far more so than for other types of energy infrastructure. Altogether, this governance system—the product of accretive statutes, court decisions, and regulatory rulemakings over more than 100 years—has historically been largely successful in keeping the lights on. These include, for example, fuel production facilities (such as natural gas wells) and non-transmission line energy transport infrastructure (primarily railroads for coal and natural gas pipelines for gas).
New Energy Innovation research walks through the basics of grid reliability and explains why clean energy helps keep the lights on. To ensure the highest level of privacy while still allowing central operators to manage the generation of distributed resources to improve grid reliability, Liu’s team will develop and implement cryptology-based and non-cryptology-based privacy-preserving methods. Existing distributed frameworks have yet to address scalability issues resulting from the growing number and diversity of distributed renewable resources like rooftop and community solar panels, electric vehicles, smart thermostats. Now more than ever, a highly scalable, resilient power system that can minimize the operational challenges of renewable generation is needed to meet the nation’s grid decarbonization goals. Ramping traditional power plants up and down to offset renewable energy is costly and inefficient, and grid operators will increasingly have to manage oversupply as renewable generation increases.