In this talk, we consider problems concerning the role of future utilities. Innovative operations and financial mechanisms are needed to transform utilities into future enablers of sustainable and resilient electric energy service providers. Both technical and financial issues on the road to modernizing today’s utilities.
First, we illustrate on real-world operating problems limiting the penetration and utilization of distributed energy resources (DERs) and how these problems can be systematically solved using advanced automation and control. Automation represents a fundamental opportunity to overcome today’s worst-case approach to electric energy services and offer more sustainable and resilient services. Mechanisms for better voltage support, power-electronics-based automation for stable operations systems and fast storage systems during abnormal conditions must be introduced. Although utilities should consider this approach as an alternative to building strong grids, some of these solutions are too complex for end users. Fortunately, there exists a win-win range of technological solutions by both utilities and end users. This is particularly the case when solutions are needed to operate these grids during natural disasters and cyber-attacks.
Second, we discuss financial roadblocks to deploy these promising technological innovations. We assess electricity markets in terms of their ability to enable DER integration at value. We also show how DERs can participate in electricity markets for energy and regulation during normal operations, but stress that there are no good mechanisms to value automation and storage. Utilities should move forward as providers of the last resort at value and be paid for taking the financial risks. If end users require uninterrupted clean services, market mechanisms must be put in place to give incentives to utilities to deploy effective technological solutions.
