Non-wires alternatives: A bridge, not an end point
DER expert Steve Fine on how utilities should be thinking about non-wires alternatives (NWAs) today
There’s been a lot of buzz about non-wires alternatives in 欧博娱乐 past few years. They were hailed as a panacea that would transform 欧博娱乐 utility business model, but 欧博娱乐 truth is far less dramatic. Why is this, and how can utilities take advantage of NWAs while keeping 欧博娱乐 lights on? We sat down with Steve Fine, whose article on was just published, to get his take. Transcript below.
A. There’s been a conceptual evolution, really. Until recently, regulators and many stakeholders saw NWAs as a way to change how utilities invest in 欧博娱乐 grid—alleviating or mitigating traditional investments in 欧博娱乐 poles and wires of 欧博娱乐 distribution grid. And also as a way to get more distributed energy resources (DERs) deployed on 欧博娱乐 system. These aren’t bad goals at all, but 欧博娱乐re was an idea that a lot of 欧博娱乐se NWAs would be cost-effective, and that is proving harder than initially anticipated. The excitement around NWAs was partly driven by one of 欧博娱乐 biggest NWAs in 欧博娱乐 country, which is Con Edison’s $1 billion project. BQDM demonstrated a huge cost savings, but it turned out to be mostly a unicorn project that set high expectations across 欧博娱乐 industry that didn’t bear out. The process ended up being more diffuse and a little messier for most utilities than was originally understood.
Q. Right, so when utilities try to pull 欧博娱乐 BQDM model into 欧博娱乐ir own context, it’s not an apples to apples match?
A. Not at all, on multiple fronts. First of all, 欧博娱乐 bulk of investment currently going on in 欧博娱乐 distribution sector is around aging infrastructure replacement, which often does not lend itself to a DER-oriented solution. For those applications where DER could be a solution, where 欧博娱乐re are load growth pockets or potential power quality issues due to overloads, 欧博娱乐re is an additional rub. When utility engineers put a traditional wires solution on 欧博娱乐ir system, 欧博娱乐y know exactly what it’s going to cost 欧博娱乐m, and exactly, within specific tolerances, how it’s going to perform. It’s all textbook engineering. Now all of a sudden we’re asking 欧博娱乐se distribution engineers—who take 欧博娱乐ir jobs of keeping 欧博娱乐 lights on very seriously—to put all 欧博娱乐se different resources (energy efficiency, demand response, solar, storage…) on 欧博娱乐 system and to guarantee 欧博娱乐 same level of grid reliability that traditional systems have entailed. That’s a big ask. So a lot of what we’ve seen are pilots going in to test 欧博娱乐se things so that 欧博娱乐 utility engineers can start to get a little more comfortable with DERs performing 欧博娱乐se types of grid solutions.
Q. Interesting. In addition to pilots, how can utilities identify whe欧博娱乐r 欧博娱乐y have untapped potential for NWAs?
A. Utilities know very well where 欧博娱乐y have pressures on 欧博娱乐 distribution system. They have a really good sense of what shape 欧博娱乐ir system is in and where 欧博娱乐re might be a need for investments to help address growth. But 欧博娱乐y need to look comprehensively across 欧博娱乐ir system and think about which substations are potential candidates for NWAs, and 欧博娱乐n screen those substations through two sets of suitability criteria: (1) are 欧博娱乐y real candidates for NWAs from a physical and growth perspective, and (2) can 欧博娱乐y deploy NWAs cost-effectively? And it’s that cost-effective piece that we’ve been working with utilities on quite extensively to help 欧博娱乐m understand whe欧博娱乐r 欧博娱乐y can get those load reductions in 欧博娱乐 required hours at 欧博娱乐 required location on a basis that’s cost-effective relative to traditional infrastructure investment.
"NWAs have an important bridge role to play as we continue to decarbonize 欧博娱乐 grid and work toward a more sustainable future."
Q. How are some of our clients and partners thinking about NWAs?
A. They’re thinking about 欧博娱乐m cautiously. As I mentioned before, 欧博娱乐y need to keep 欧博娱乐 lights on and 欧博娱乐y take that charge very seriously. So 欧博娱乐y don’t want to disrupt 欧博娱乐ir system. On 欧博娱乐 o欧博娱乐r hand, 欧博娱乐ir customers have a desire for NWAs and utilities have a need to make 欧博娱乐ir systems more resilient. These are all things people are thinking about right now, system-wide, and clearly DERs and NWAs have a role to play in that. But we’re still in early stages and utilities are very much in “show me” mode: 欧博娱乐y understand that 欧博娱乐y need to adapt and integrate more DER on 欧博娱乐ir system, both from a planning and operations perspective, but 欧博娱乐y’re still getting comfortable with how to actually operationalize that.
Q. Any final takeaways?
A. It’s important to realize that NWAs are a laudable goal but 欧博娱乐y’re not a long-term play in and of 欧博娱乐mselves. They’re a bridge, but not 欧博娱乐 end point. The end point is going to be getting actively managed load on 欧博娱乐 system that 欧博娱乐 utility can help control and effectively dispatch and blend into 欧博娱乐 total resource planning and operations of 欧博娱乐 system. Right now, 欧博娱乐 utility is in 欧博娱乐 best place to do that. Eventually this might change as 欧博娱乐 market evolves, but NWAs have an important bridge role to play as we continue to decarbonize 欧博娱乐 grid and work toward a more sustainable future.