GETTING THE MOST OUT OF GRID MODERNIZATION

The document outlines a structured approach to grid modernization, emphasizing integrated distribution planning and the use of outcome-oriented metrics for affordability, resilience, and environmental performance. It suggests tying utility revenue to these performance targets through conditional rates of return or budget caps with shared savings to align utility incentives with public benefits.

• Effective grid modernization begins with "integrated distribution planning" (IDP), which considers demand-side and distribution-level investments alongside bulk-system resources to optimize the system and understand the value of distributed energy resources.
• The authors identify three primary goals for grid modernization investments: affordability, resilience, and environmental performance.
• To measure affordability, the paper suggests using outcome-oriented metrics such as overall program cost or bill savings per customer, as well as peak demand reduction or system load factor to reduce the need for additional infrastructure investment.
• Resilience should be measured through real-world reductions in outage frequency (SAIFI) and duration (SAIDI) compared to a baseline, with a potential specific focus on the recovery of service for critical first responders like hospitals and fire departments.
• Environmental performance can be tracked via the growth in emissions-free distributed generation hosting capacity, interconnection speed, or the use of emissions intensity metrics (lbs/kWh) to identify the dirtiest hours of the day.
• To align utility incentives with customer benefits, regulators can use a "conditional rate of return" where returns on equity are linked to achieving performance targets, or a "budget cap with shared savings" that allows utilities to capture operational savings if quantitative outcomes are met.

APA

AGGARWAL, S., & O’BOYLE, M. (2017). GETTING THE MOST OUT OF GRID MODERNIZATION. Energy Innovation. https://energyinnovation.org/wp-content/uploads/GridModernizationMetricsOutcomes_Feb2017.pdf

Chicago

AGGARWAL, SONIA, and MIKE O’BOYLE. GETTING THE MOST OUT OF GRID MODERNIZATION. Energy Innovation, 2017. https://energyinnovation.org/wp-content/uploads/GridModernizationMetricsOutcomes_Feb2017.pdf.

Wikipedia

{{cite report |last1=AGGARWAL |first1=SONIA |last2=O’BOYLE |first2=MIKE |title=GETTING THE MOST OUT OF GRID MODERNIZATION |publisher=Energy Innovation |date=February 2017 |url=https://energyinnovation.org/wp-content/uploads/GridModernizationMetricsOutcomes_Feb2017.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{aggarwal2017getting, author = {AGGARWAL, SONIA and O’BOYLE, MIKE}, title = {{GETTING THE MOST OUT OF GRID MODERNIZATION}}, institution = {Energy Innovation}, year = {2017}, month = feb, url = {https://energyinnovation.org/wp-content/uploads/GridModernizationMetricsOutcomes_Feb2017.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }