Eight Areas of Electricity Innovation to Watch in 2017

This briefing from RMI outlines eight priority areas for electricity innovation in 2017, based on a survey of the Electricity Innovation Lab (eLab) network. The document focuses on the integration of distributed energy resources (DERs), the evolution of utility business models, and the need for improved customer engagement to transform the U.S. electricity system.

• There is an increasing focus on the valuation and rate design of Distributed Energy Resources (DERs), driven by the adoption of technologies beyond rooftop solar, such as electric vehicles, batteries, and grid-interactive water heaters. As of the report's writing, 15 states were formally examining or had resolved to examine the value of distributed generation, with specific movements toward time-of-use rates in Arizona and California, and a "value of DERs" tariff in New York.
• Electric vehicles (EVs) are being explored as grid assets, though a conflict exists between the needs of utilities and automakers. Utilities require predictable charging patterns, typically via Level 2 charging, while automakers and charging network operators prioritize the convenience of DC fast charging.
• Utilities and regulators are pursuing 'non-wires alternatives' (NWA) to use DERs to displace traditional infrastructure investments. In California, the Public Utility Commission has directed investor-owned utilities to conduct between one and four pilots using DERs to defer or displace traditional grid investments.
• The shift toward DERs challenges the traditional cost-of-service regulation model for vertically integrated utilities, particularly when third parties deploy the resources. In Hawaii and Minnesota, stakeholders are exploring alternative models, such as performance-based regulation or the utility acting as a service provider, finance provider, or distribution system operator (DSO).
• There is a growing consensus on the need for distribution system operators (DSOs) to manage markets at the distribution-system level and integrate DERs with wholesale markets. New York has initiated this process through the Reforming the Energy Vision (REV) proceeding.
• Customer participation in traditional utility demand-side management (DSM) programs, as well as the adoption of EVs and rooftop solar, remains in the single digits in most of the country, necessitating a shift toward more sophisticated customer engagement and marketing analytics.
• Regulators and utilities are evaluating whether low- and moderate-income (LMI) customers can be better served by DERs rather than traditional subsidies, aided by falling DER costs and smartphone-enabled engagement tools like electronic billing and pre-pay.

APA

RMI (2017). Eight Areas of Electricity Innovation to Watch in 2017. https://rmi.org/resources/eight-areas-electricity-innovation-watch-2017/

Chicago

RMI. Eight Areas of Electricity Innovation to Watch in 2017. 2017. https://rmi.org/resources/eight-areas-electricity-innovation-watch-2017/.

Wikipedia

{{cite report |author=RMI |title=Eight Areas of Electricity Innovation to Watch in 2017 |date=31 January 2017 |url=https://rmi.org/resources/eight-areas-electricity-innovation-watch-2017/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2017eight, author = {{RMI}}, title = {{Eight Areas of Electricity Innovation to Watch in 2017}}, institution = {RMI}, year = {2017}, month = jan, url = {https://rmi.org/resources/eight-areas-electricity-innovation-watch-2017/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }