The Distributed Capacity Procurement (DCP) Framework whitepaper comes as state energy leaders and regulators around the country grapple with the challenges of rising electricity demand, high energy prices, and aging infrastructure. The whitepaper outlines three procurement pathways that can bolster available resources, respond to growing loads, and provide a faster, more cost-effective response to infrastructure needs.
“We need more electricity on the grid added fast, and traditional approaches that rely on utilities alone to meet that demand are no longer going to cut it” said Samantha Weaver, SEIA’s senior director of state regulatory affairs. “Distributed energy resources can provide much-needed capacity at the speed and scale required to meet the moment. The Distributed Capacity Procurement Framework outlined in this whitepaper provides a practical roadmap for regulators and policy leaders working to build a 21st-century grid that can meet the needs of the 21st-century economy.”
The whitepaper draws on the expertise and policy work of SEIA's Distributed Power Project team, following the combination of the Coalition for Community Solar Access (CCSA) with SEIA.
“Distributed energy resources are well-positioned to address load growth, aging infrastructure, and rising energy bills” added Matthew McDonnell, Managing Partner of Current Energy Group. “Unlocking their full potential requires pragmatic frameworks that enable customers and competitive, transparent, and fair market-based solutions to help meet that demand. This body of work provides regulators with a comprehensive set of strategies for procuring DERs and maximizing their cost-saving and grid-strengthening benefits.”
The paper outlines 10 key principles and accompanying policy tools to turn the DCP Framework into practical action using implementation tools that regulators already have.
Two principles guide the proposed procurement pathways: 1) use the least restrictive pathway that meets the need, and 2) make third-party-owned or customer-owned DERs the default, with utility-owned resources considered only in limited cases.
Competitive procurement of third-party-owned DERs can lower electricity bills in many ways, including by reducing utilities’ reliance on higher-cost wholesale market purchases to meet capacity needs.
Numerous states have recently passed laws to expand DERs, such as community solar and battery storage, and to maximise the value of these resources by aggregating them through programs like virtual power plants.
For additional information:
Distributed Capacity Procurement (DCP) Framework white paper
