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• Unlocking the contribution of resources that alrea- tional value associated with deploying distributed
dy exist — such as flexible demand, electric vehicles, resources on a smaller scale must be considered in
power electronics, or distributed generation that is each context.
already deployed — can be an efficient alternative
to investing in electricity generation and network ca- • For resources that exhibit significantly higher unit
pacity. costs at smaller scales, such as solar PV and battery
energy storage, distributed deployment is likely to be
• Economies of scale still matter, even for distribu- inefficient in many locations. Exceptions may include
ted energy resources. For resources that can be areas that have heavily congested networks or that
deployed at multiple scales, such as solar PV and are experiencing rapid growth in electricity demand.
battery energy storage, incremental costs associa- In these areas, locational value may be significant.
ted with failing to exhaust economies of unit scale
can outweigh locational value. This can result in a • New innovations may transform economies of unit
“distributed opportunity cost,” making distributed scale for solar energy or storage technologies, ena-
deployment of these resources inefficient. Trade-offs bling more ubiquitous distributed deployment of the-
between the incremental costs and additional loca- se resources.

Excerpted from Utility of the Future, Massachusetts Institute of Technology, 2016. Read the whole study
at http://energy.mit.edu/research/utility-future-study/

Utility of the Future

The MIT Energy Initiative’s Utility of the Future

Important changes in the provision and consumption of electricity services are now underway, driven to
a significant degree by a confluence of factors affecting the distribution side of power systems. A variety
of emerging distributed technologies - including flexible demand, distributed generation, energy storage,
and advanced power electronics and control devices - are creating new options for the provision and
consumption of electricity services. At the same time, information and communications technologies are
rapidly decreasing in cost and becoming ubiquitous, enabling more flexible and efficient consumption of
electricity, improved visibility of network use, and enhanced control of power systems.
The MIT Energy Initiative’s Utility of the Future study presents a framework for proactive regulatory, policy,
and market reforms designed to enable the efficient evolution of power systems over the next decade
and beyond. The goal is to facilitate the integration of all resources, be they distributed or centralized, that
contribute to the efficient provision of electricity services and other public objectives.

48 Impiantistica Italiana - Gennaio- Febbraio 2018