The Perils of Wholesale Distributed Generation: Can California Live Up to Its Promise?

By Tam Hunt (Community Renewable Solutions LLC), Greentech Media

There has been a lot of excitement about the promise of wholesale distributed generation in California in recent years. But the state still hasn’t lived up to its promise.

Wholesale distributed generation (DG) refers to front-of-meter systems (typically sized between 1 megawatt and 20 megawatts) that sell power directly to the utility or a third-party offtaker. This is an important market niche that remains underdeveloped. But there are some reasons to be optimistic about the future of wholesale DG in California — if some key policy changes can be made.

I’ve written various columns over the years for GTM highlighting the opportunities, innovations and issues facing distributed generation. Last year, I wrote a very optimistic piece that reflected my excitement over the California Public Utilities Commission’s push for more DG. In particular, I highlighted the new Distribution Resource Plan proceeding and the new interconnection maps that utilities were required to produce as part of their DRPs.

GTM’s Stephen Lacey recently wrote a piece kicking off a series of articles on the utility of the future. In it, he said: “Today, experts across the energy industry are predicting a…shift toward a decentralized, digital and dynamic grid system.” I agree with his appraisal of this trend. But California — long considered the leader on these issues — has yet to address a number of hurdles that stand in the way of realizing that future. In fact, the obstacles now facing solar DG in PG&E’s territory threaten to kill this niche entirely…

Read full op-ed from Greentech Media

 

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