The California Public Utilities Commission (CPUC) has directed a trio of the state’s utilities to propose a fully coordinated framework for statewide integration and management of distributed energy resources (DER).

Announced Oct. 29, the directive comes partially as a response to the consistent levels of grid strain in the Golden State, especially during peak hours and peak months. Electrical utility companies Pacific Gas and Electric Company, Southern California Edison, and San Diego Gas & Electric will make up the collaborative framework, CPUC officials say, drawing on DERs from across the state to bolster California’s energy grid going forward.

Commissioner Darcie L. Houck says the state’s grid is evolving rapidly, thanks to resources like battery storage, electric vehicles, and distributed solar generation. Combining all of those advantages can help get California’s grid strain issues and spiking utility bills under control, she adds.

“When coordinated effectively, these resources can help support the electric system’s needs, support grid reliability, advance our climate goals, and reduce electric system costs for ratepayers,” Houck says. “Our decision moves the state toward a common framework for the utilities to manage and forecast DERs on our system, and create visibility for the California Independent System Operator. This integrated approach prioritizes interoperability, and will enable the grid of the 21st century.”

Alongside orchestration of a combined DER platform, the CPUC directive also requires utilities to strengthen distribution planning, the commission says. Evaluating how flexible energy demand can support the state’s continuing electrification will further serve as a platform for bill savings, according to officials.

Meeting modern needs

When properly orchestrated by utility firms, DERs can generate, store, or adjust electricity close to where it is needed most. Using a distribution system operator (DSO), in this case Californian utilities, resources can heavily cut down on rate spikes during peak demand, and also support outage mitigation.

“Making better use of the grid we already have can help us connect customers sooner and keep costs down,” says Commissioner Christine Harada. “Our decision gives families and businesses more options to charge a car, electrify a home, or expand operations while reducing the need for costly upgrades.

“Those options need to be easy to understand and easy to use, people shouldn’t need an engineering degree to benefit. Our responsibility is to make sure they deliver real savings for ratepayers.”

With the groundwork already set in terms of need, the resulting framework from the three utility companies must meet a variety of requirements, according to CPUC. It must foremost address open and interoperable communications, as well as data sharing and cybersecurity. Additionally, the plan must take stakeholder input into consideration, and address how customers and energy providers can participate without unnecessary barriers or red tape.

CPUC will address the utilities’ proposals after the fact, and will allow for a common set of rules and policies to establish itself across California beforehand.

“I’m pleased to be laying the groundwork for DER orchestration today,” says CPUC president John Reynolds. “There’s more work ahead as we build a future grid that works for everyone, and I will be particularly interested in proposals regarding affordability and competitive neutrality when it comes time to review utility applications.”

— Solar Builder magazine