Grid Modernization, DER Integration & Utility Business Models - Trends & Challenges

The modernization of the distribution grid addresses the need to build an intelligent, reliable, resilient and secure grid that enables consumers to actively participate and benefit from greater and more diverse market opportunities and services. Building this intelligent grid requires not only a robust foundational grid but also pervasive monitoring, protection, automation and control capabilities (including at grid edge), which are beyond the functionalities traditionally available in distribution grids. Examples of grid modernization technologies include Distribution Automation (DA) [1], Advanced Metering Infrastructure (AMI), Distribution and Outage Management Systems (DMS /OMS), and grid analytics. Successful grid modernization comprises not only the deployment of new infrastructure and technologies, but also the implementation of updated distribution planning, operations, and engineering processes, and the approval of new regulations, policies and business models. In this regard, the capabilities resulting from grid modernization initiatives are also vital for the efficient, seamless, and successful adoption of Distributed Energy Resources (DER), as shown in Figure 1.