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The document argues that as variable clean energy sources become a larger part of the electricity mix, grid operators must transition from simply dispatching supply to meet uncontrollable demand toward a flexible system that dynamically matches supply and demand. It identifies a hierarchy of flexibility resources, noting that improved operations (such as sub-hourly dispatch and better weather forecasting) are the lowest-cost options, followed by demand response, grid infrastructure upgrades, flexible generation (e.g., fast-ramping gas plants), and energy storage.

The report analyzes the Eastern Interconnection Planning Collaborative (EIPC) study to demonstrate that aggressive carbon reductions in the U.S. electric sector are achievable with minimal additional cost. By re-evaluating EIPC data, Synapse Energy Economics found that a 'Carbon Reduction' scenario—featuring massive wind build-out and coal retirements—costs approximately the same as a 'Business as Usual' scenario when carbon revenues are recycled. The analysis shows that this path would allow the MISO and PJM regions to significantly over-comply with the Clean Power Plan's emissions targets while maintaining grid reliability.

The report outlines a three-step approach for improving the performance of publicly-owned utilities (POUs). The first step involves 'no regrets' actions, such as engaging diverse stakeholders to define goals and using Integrated Resource Plans (IRPs) to balance reliability, cost, and environmental targets. The second step focuses on governance evolutions, specifically delineating the roles of boards and management and implementing board self-evaluations. The third step suggests more drastic measures for lagging performance, including revenue decoupling to support energy efficiency, performance-based employee compensation, and the use of third-party non-profit entities for specific utility functions.

The document examines the transition of isolated communities from a total dependence on imported oil to renewable microgrids. It identifies high electricity costs, environmental concerns, and abundant local resources as primary drivers for this shift. Through ten detailed case studies—including locations such as Kodiak, Alaska, and El Hierro, Spain—the report highlights the critical role of energy storage (batteries, flywheels, and pumped hydro) and energy efficiency in maintaining grid stability. Key findings indicate that renewable integration can significantly reduce retail electricity rates and improve system resiliency, though it often requires a phased technical approach to overcome stability and logistical challenges.

The analysis finds that California can reach a 50 percent renewable electricity mix by 2024 using existing technology. While increasing the Renewables Portfolio Standard to 50 percent would reduce greenhouse gas emissions by 22 percent without further grid investment, implementing advanced grid management tools like storage and demand response could increase that reduction to 27 percent and significantly decrease renewable energy curtailment.

The paper examines how different DER ownership models can be used to integrate cost-effective technologies into outdated regulatory frameworks. It argues that no single model is universal, but each can work if the value proposition aligns with the public interest and utilizes an adaptive approach prioritizing fair compensation and transparency. Utility-owned models are effective for early adoption and public goals but risk cost overruns and market power issues. Third-party and customer-owned models excel when they have transparent access to the full value of DERs through dynamic rate design or competitive markets.

The report analyzes eight case studies—seven federal and one municipal—that utilized Energy Savings Performance Contracts (ESPCs) to achieve deep energy retrofits. These projects cumulatively exceeded 600 billion BTUs in energy savings with an average energy use reduction of 58%. The document identifies six overarching best practices: setting aggressive long-term goals, engaging diverse stakeholders, establishing strong support systems, adopting a 'clean sheet' design mindset, using iterative and holistic design processes, and incorporating ongoing feedback and occupant involvement.

The report analyzes 'demand flexibility' (DF)—the use of technology to shift electricity loads like air conditioning and EV charging to lower-cost times. It finds that widespread residential DF could avoid $13 billion annually in U.S. grid costs and reduce customer bills by 10–40%. Through four case studies (ComEd, SRP, HECO, and Alabama Power), the report demonstrates how DF can mitigate peak demand, integrate rooftop solar PV, and provide a lower-cost alternative to traditional grid infrastructure investments.

The report identifies the California water sector as a major electricity consumer, accounting for nearly 20 percent of the state's demand. It argues that while growing needs for groundwater pumping, desalination, and water recycling increase energy intensity, utilities can mitigate this by investing in on-site renewables, power purchase agreements, and demand response services. Key barriers include a lack of standardized electricity source data, regulatory misalignment, and financial constraints like Proposition 218.

The document proposes replacing the Renewable Portfolio Standard (RPS) and the Efficiency Savings and Performance Incentive (ESPI) with a system-wide carbon intensity standard and per capita energy sales standards. It argues that these reforms will align utility incentives with state climate goals, encourage low-carbon grid flexibility, and remove the conservative goal-setting and contentious evaluation processes currently hindering energy efficiency in existing buildings.

The document proposes replacing California's current electricity sector policies with a system-wide carbon standard and per capita energy intensity standards for electricity and natural gas. It argues that the existing Renewable Portfolio Standard (RPS) and Efficiency Savings and Performance Incentive (ESPI) are insufficient for long-term goals due to siloed procurement and overly conservative efficiency targets. Key recommendations include a 2030 carbon standard of 393lb. CO2e/MWh, a 50 percent renewable energy procurement "backbone," and a performance-based energy standard targeting a 1.2 percent annual reduction in kWh/capita. The report also suggests expanding the Energy Imbalance Market (EIM) to a West-wide scale and expediting the implementation of AB 758 for existing buildings.

The report introduces the electricity system value chain, a non-linear framework designed to map the flow of energy, information, and money across the grid. It breaks the system into three fundamental layers—organizational, electrical, and communications—and defines essential functions (input, process, output) within each. By applying this framework, stakeholders can identify the specific technical and regulatory connections required to realize and monetize system values, such as frequency regulation or renewable energy integration. The document provides step-by-step examples of applying the framework to solar PV and battery systems in both behind-the-meter and distribution-scale environments.

California is working toward supplying 33 percent of its electricity from renewables by 2020 and considering a 50 percent target by 2030. To maintain grid reliability without relying on carbon-emitting natural gas plants for ancillary services, the state must address 'overgeneration'—where renewable supply exceeds demand—which currently leads to the curtailment of clean energy. The document proposes several grid integration solutions: targeting energy efficiency during evening hours, diversifying the renewable fleet (wind, solar, bioenergy, and geothermal), increasing coordination between regional grid operators, deploying energy storage (pumped hydro, compressed air, and batteries), and using demand response technologies to shift electricity consumption to peak renewable output periods.

The report argues that current U.S. distributed solar (DPV) business models are overly customer-centric and fail to capture operational grid benefits, leading to conflict between utilities and solar companies. It proposes three 'bridge' business model building blocks: increasing access via subscription models, optimizing deployment for capacity and grid services, and bundling solar with other distributed energy resources (DERs). The authors emphasize that maximizing DPV value requires collaboration to reduce 'soft costs' and a shift toward standardized valuation methodologies and transparent data sharing between stakeholders.

The report outlines a new business model for Fort Collins Utilities that bundles energy efficiency and solar PV services into integrated packages. It recommends a hybrid approach using auto-enrollment (opt-out) for a basic package, financed via on-bill repayment mechanisms such as on-bill tariffs and energy service charges. RMI's analysis suggests the model could support 90% of residential building emissions reductions and generate net income for the utility. The document details a pilot project for 200–300 homes to test customer demand, financial viability, and operational infrastructure before a city-wide rollout.

The author argues that Dr. Charles R. Frank, Jr.'s analysis incorrectly concludes that nuclear and gas combined-cycle plants are more beneficial than wind and solar. By replacing Frank's data with empirical figures from the EIA and DOE, the author asserts that the priority for carbon savings actually shifts to hydro, wind, gas combined-cycle, nuclear, and solar. The critique highlights significant underestimations of renewable productivity and overestimations of gas and nuclear costs and reliability.

The report argues that traditional bundled, volumetric block rates are obsolete for a grid with increasing distributed energy resources (DERs) because they fail to reflect the temporal and locational value of electricity. It proposes evolving rate design along three continuums: attribute unbundling (separating energy and capacity), temporal granularity (moving toward real-time pricing), and locational granularity (addressing distribution 'hot spots'). The authors suggest a transition strategy using a combination of evolving default rates and opt-in alternatives, supported by third-party technologies to maintain a simple customer experience. Recommendations for regulators include increasing data transparency, enhancing valuation methodologies for DER attributes, and establishing clear timelines for rate transitions.

The document outlines the systemic shifts required to integrate low-carbon energy, arguing that traditional power plant financing and grid structures are ill-suited for renewables. It proposes new financing models like YieldCos and Muni Finance to lower costs, emphasizes the need for regionally integrated transmission and updated balancing markets to manage variability, and discusses the disruptive impact of distributed generation and demand-side flexibility on traditional utility models.

The report identifies that current investor-owned utility and independent power producer models are ill-suited for the low-carbon transition, potentially raising renewable energy costs by up to 20%. It proposes a systemic evolution across five segments: generation (matching financing to risk profiles), transmission (improving renewable integration), market operation (valuing flexibility), distribution (adapting to distributed generation), and customer management (integrating demand response and electric vehicles). The document highlights the emergence of new financing models like YieldCos as a way to provide secure cash flows and lower costs.

The U.S. electricity grid is increasingly vulnerable to extreme weather events, with the average annual cost of severe weather rising from $20 billion in the 1980s to $85 billion in the 2010s. Aging infrastructure, graded D+ by the American Society of Civil Engineers in 2013, is susceptible to sea level rise, wildfires, droughts, and heat waves. The report highlights that thermal power plants are particularly at risk due to their heavy reliance on water for cooling, which can lead to production cutbacks or shutdowns when water is too warm or scarce. To improve resilience, the document recommends 'hardening' measures, such as sea walls and burying power lines, alongside the adoption of distributed renewable energy and energy efficiency to reduce overall demand and carbon emissions.