Distributed Energy Resource (DER) Siting

Interesting article in the new SolarPro about how states (California) are pushing utilities to use their capacity and capital planning information to optimize the siting of PV and storage projects.  As many of us know, the interconnection process for large commercial and utility projects can be a game of chance.  What the line capacity is (and therefore how big the system can be) and whether there are required upgrades is determined after a lengthy review.  The initial responses generally include hefty cost estimates to proceed with what amounts to a nameplate size significantly less than what was proposed.

The CPUC (California Public Utility Commission) created two working groups to address the issue: the Integration Capacity Analysis (ICA) and the Locational Net Benefits Analysis (LNBA).  Above is the heat map for the LNBA demo.  Per CPUC, "the goal is to ensure DERs are deployed at optimal locations, times, and quantities so that their benefits to the grid are maximized and utility customer costs are reduced."

Why is this important?  Consider the $2.6 billion planned transmission project upgrades in California that were recently revised down, accounting for higher forecasts of PV and energy efficiency projects.  And besides the avoided costs, don't forget all the grid upgrades DER developers are paying for that benefit all consumers.  This is a key factor in the debate over whether PV owners pay their fair share, or rather whether non-DER owners are subsidizing DER projects.  With the federal investment tax credit decreasing to 26% in 2020, 21% in 2021, and 10% in 2022, the models generated in the CPUC exercise can be used to reduce development costs, defer distribution and transmission capital improvements, and lay the groundwork for incentivizing grid-beneficial siting.