Eight Areas of Electricity Innovation to Watch in 2017

The document outlines eight key areas for electricity innovation in 2017, focusing heavily on the integration, valuation, and management of distributed energy resources (DERs). It highlights the shift toward technology-agnostic DER valuation, the potential for electric vehicles to serve as grid assets, and the need for alternative capital planning to displace traditional infrastructure. The text also addresses the necessity of evolving utility business models, establishing distribution system operators (DSOs), improving customer engagement, and expanding DER access to low- and moderate-income customers.

• There is a shift toward a more holistic and technology-agnostic approach to Distributed Energy Resource (DER) valuation, driven by the adoption of electric vehicles, batteries, and smart appliances beyond just rooftop solar. As of the report, 15 states were formally examining or had resolved to examine the value of distributed generation.
• Electric vehicles (EVs) are being viewed as potential grid assets, though a conflict exists between the utility need for predictable Level 2 charging patterns and the consumer/automaker preference for high-voltage DC fast charging.
• Utilities and regulators are exploring non-wires alternatives (NWA) to use DERs to displace or defer traditional infrastructure investments. For example, the California Public Utility Commission has directed investor-owned utilities in California to conduct between one and four such pilots.
• The rise of third-party DERs challenges the traditional cost-of-service regulation model for vertically integrated utilities. In states like Hawaii and Minnesota, stakeholders are considering performance-based regulation or new revenue models where utilities act as service providers, finance providers, or distribution system operators.
• There is growing consensus on the need for distribution system operators (DSOs) to integrate DERs with utility-scale resources and wholesale markets, with New York already initiating 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 U.S., necessitating a shift toward customer-centric engagement and marketing analytics.
• Regulators and utilities are investigating whether low- and moderate-income (LMI) customers can be better served through DERs rather than traditional subsidies, aided by falling DER costs and smartphone-enabled engagement.

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} }