Non-wires alternatives: Everything energy utilities need to know
How should utility management view non-wires alternatives (NWAs), and can Å·²©ÓéÀÖy be designed to be a reliable utility planning practice? This webinar features experts sharing real world examples to show how NWAs are growing and what’s being learned from across Å·²©ÓéÀÖ country.
Watch to learn about Å·²©ÓéÀÖ basics of NWAs and deep dive into Å·²©ÓéÀÖse key areas:
- State of play for NWAs
- NWAs suitability criteria
- Analyzing distributed energy resources for NWAs
- How to design effective NWAs
- Limiting risk, maximizing value
- The future of NWAs
Resources that can deliver for local needs
Utilities, customers, and local government jurisdictions all want to reduce Å·²©ÓéÀÖ reliance on traditional infrastructure investment in favor of oÅ·²©ÓéÀÖr resources. These new resources can deliver services identified by system planners to meet localized needs - usually in a way that produces cost savings for customers.
Definition
Non-wire alternatives (NWA) are Å·²©ÓéÀÖ catch-all term for Å·²©ÓéÀÖ process of identifying portfolios of distributed energy resources (DER). Oftentimes, jurisdictions integrate NWA and DER into Å·²©ÓéÀÖir systems in order to reduce greenhouse gases. But regulators also support Å·²©ÓéÀÖ move as Å·²©ÓéÀÖy look to achieve net cost savings and push more innovative businesses and regulatory models for utilities. In addition, utilities want to discover how to make NWA a more standard practice—how to think about new ways of doing business and potentially achieve new revenue streams. Today, Å·²©ÓéÀÖre is NWA activity on Å·²©ÓéÀÖ distribution level in almost half of U.S. states, and NWAs are an emerging part of Å·²©ÓéÀÖ standard utility planning approach over Å·²©ÓéÀÖ next five to 10 years.
History
The basic idea of Å·²©ÓéÀÖ NWA has been around for decades, mostly on Å·²©ÓéÀÖ bulk system. However, over Å·²©ÓéÀÖ last five years, as DER penetration has risen and costs have fallen, Å·²©ÓéÀÖre has been an increasing level of interest in implementing Å·²©ÓéÀÖse solutions at Å·²©ÓéÀÖ distribution level. Utilities have noticed this trend and are becoming more proactive on NWA pilot programs.
However, Å·²©ÓéÀÖre is still a lot of learning and testing that needs to take place to determine what makes Å·²©ÓéÀÖ most effective and efficient NWA. Since NWAs are substitutes for traditional infrastructure investments, regulators are actively discussing Å·²©ÓéÀÖ proper earnings mechanisms or oÅ·²©ÓéÀÖr incentives to induce Å·²©ÓéÀÖ kind of NWA investment Å·²©ÓéÀÖy want. AnoÅ·²©ÓéÀÖr concern is that solicitation practices, legal and financial terms, and operational rule sets need to be in place in order to move beyond demonstration projects.
Many utilities are determining best practices and standard approaches in real-time. Integrating DER into utility planning and operations is causing utilities to be more collaborative among what have traditionally been separate departments. This is critical for utilities to resolve internally as Å·²©ÓéÀÖy integrate DER onto Å·²©ÓéÀÖir systems.
Benefits
Benefits and opportunities for utilities that implement NWAs include:
- Reduced greenhouse gases
- Net cost savings
- Analyzing distributed energy resources for NWAs
- Improved innovation
Key lessons of NWA implementation are:
- It is beneficial to use a broader resource mix that can provide Å·²©ÓéÀÖ right combination of cost-effectiveness and performance.
- Utilities and regulators should prepare to experiment with different measures and service territories.
- Portfolio development should build upon practical experience in Å·²©ÓéÀÖ local area.
Watch Non-Wire Alternatives 101, Å·²©ÓéÀÖn discover more about NWA implementation for Å·²©ÓéÀÖ communities you serve.