From: MIT Energy Initiative via Science Daily
A new report recommends proactive regulatory, policy, and market reforms that can help guide the evolution of electric power systems in the US, Europe, and other parts of the world. Distributed energy resources like wind, solar, and energy storage should be integrated with centralized resources, which can be achieved by creating a level playing field in terms of pricing and regulated charges, and removal of inefficient barriers that impede competition.
Distributed energy resources — relatively small-scale power technologies such as solar, wind, energy storage, and power electronics and control devices — are being deployed rapidly in the global shift toward a low-carbon energy future. To ensure that both distributed and centralized energy resources are integrated efficiently, however, electric power systems in the U.S., Europe, and other parts of the world need major regulatory, policy, and market overhauls, says an in-depth report, “Utility of the Future,” released by the MIT Energy Initiative (MITEI). The report (available at http://energy.mit.edu/uof) was developed in collaboration with the Institute for Research in Technology at Comillas Pontifical University (IIT-Comillas).
“There are great opportunities to deploy distributed energy resources where they will be most cost-effective and impactful, and also to scale up new information and communications technologies that can provide greater flexibility, control, and cost savings for power businesses and consumers alike,” says Robert C. Armstrong, MITEI’s director and the Chevron Professor in Chemical Engineering at MIT. “Our study does not try to predict the future or prescribe which technologies should prevail; instead, it provides a toolkit for businesses, policymakers, and regulators to navigate the unfolding changes in the system and develop a more robust, efficient system for the future.”
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