Page 45 - 60

mportant changes in the provision and con- identifi es unnecessary barriers and distortionary
sumption of electricity services are now un- incentives that presently impede the effi cient evolu-
derway, driven to a signifi cant degree by a tion of the power sector and provides a framework
confl uence of factors affecting the distribution that will enable an effi cient outcome regardless of
side of power systems. A variety of emerging how technologies or policy objectives develop in
Idistributed technologies — including fl exible de- the future. In addition, we recognize that regulatory
mand, distributed generation, energy storage, and and policy reform often proceeds incrementally and
advanced power electronics and control devices that each jurisdiction faces unique challenges and
— are creating new options for the provision and contexts. As such, we offer this framework along
consumption of electricity services. At the same with guidance on the key trade-offs regulators and
time, information and communications technolo- policy makers confront as they pursue opportuni-
gies are rapidly decreasing in cost and becoming ties for progressive improvements.
ubiquitous, enabling more fl exible and effi cient The measures identifi ed in this study could produ-
consumption of electricity, improved visibility of net- ce signifi cant cost savings. Low-cost information
work use, and enhanced control of power systems. and communications technologies and advanced
These technologies are being deployed amidst se- metering enable more cost-refl ective prices and
veral broad drivers of change in power systems, charges for electricity services that can fi nally ani-
including growth in the use of variable renewable mate the “demand side” of the
power system and align myriad
energy sources such as wind power system and align myriad
and solar energy; efforts to decisions with the optimization of
decisions with the optimization of
decarbonize the energy net social welfare. Effi cient prices
net social welfare. Effi cient prices
and charges will unlock fl exibility
system as part of global and charges will unlock fl exibility
in electricity consumption and
climate change mitigation in electricity consumption and
efforts; and the increasing appropriately value the servi-
appropriately value the servi-
interconnectedness of elec- ces that distributed energy re-
ces that distributed energy re-
sources provide. To date, power
tricity grids and other critical sources provide. To date, power
infrastructure, such as com- systems have been designed to
systems have been designed to
meet infrequent peaks in de-
munications, transportation, meet infrequent peaks in de-
and natural gas networks. mand and to comply with engi-
mand and to comply with engi-
neering safety margins establi-
The MIT Energy Initiative’s neering safety margins establi-
Utility of the Future study pre- UTILITY OF THE FUTURE shed in an era when electricity
shed in an era when electricity
customers were largely infl exi-
sents a framework for pro- EXECUTIVE SUMMARY customers were largely infl exi-
active regulatory, policy, and An MIT Energy Initiative response ble and blind to the true costs
ble and blind to the true costs
market reforms designed to to an industry in transition and potential benefi ts of
and potential benefi ts of
enable the effi cient evolution of In collaboration with IIT-Comillas their electricity consumption
their electricity consumption
power systems over the next
power systems over the next or production decisions. In
or production decisions. In
decade and beyond. The goal
decade and beyond. The goal many cases, this has resulted
many cases, this has resulted
is to facilitate the integration of in costly and signifi cantly underutilized infra-
in costly and signifi cantly underutilized infra-
is to facilitate the integration of
all resources, be they distributed or centralized, structure. Smarter consumption of electricity and,
that contribute to the effi cient provision of electri- where cost-effective, the deployment of distributed
MIT – Massachusetts Institute city services and other public objectives. This fra- energy resources, could deliver billions of dollars
Technology, Cambridge (MA) mework includes a comprehensive and effi cient in savings by improving the utilization of electricity
(Photo credit: Christopher system of market-determined prices and regulated infrastructure.
Harting)
charges for electricity services that refl ect, as accu- At the same time, the need for proactive reform is
rately as possible, the marginal or incremental cost clear. Customers now face unprecedented choice
of providing these services; improved incentives regarding how they get their power and how they
for distribution utilities that reward cost savings, manage their electricity consumption — regardless
performance improvements, and long-term inno- of whether they are aware of those choices or are
vation; reevaluation of the power sector’s structure acting on them today. New opportunities include
to minimize confl icts of interest; and recommenda- the ability to invest in distributed generation, smart
tions for the improvement of wholesale electricity appliances, and energy effi ciency improvements.
markets. This study also offers a set of insights At present, the vast majority of power systems
about the roles of distributed energy resources, the lack a comprehensive system of effi cient prices
value of the services these resources deliver, and and regulated charges for electricity services. As
the factors most likely to determine the portfolio of a result, some customers are making ineffi cient in-
cost-effective resources, both centralized and di- vestments and are overcompensated for the servi-
stributed, in different power systems. We consider ces that they provide to the power system. At the
a diverse set of contexts and regulatory regimes, same time, many more opportunities that could
but focus mainly on North America and Europe. deliver greater value are being left untapped be-
This study does not try to forecast the future or cause of inadequate compensation. For example,
predict which technologies will prevail. Instead, it the combination of simple volumetric tariffs and
Impiantistica Italiana - Gennaio- Febbraio 2018 43