The 50 States of Grid Modernization Q3 2024: States Consider Cost Allocation for Grid Upgrades and Use of Grid-Enhancing Technologies in Q3 2024
Raleigh, NC – (October 23, 2024) The NC Clean Energy Technology Center (NCCETC) released its Q3 2024 edition of The 50 States of Grid Modernization. The quarterly series provides insights on state regulatory and legislative discussions and actions on grid modernization, utility business model and rate reforms, energy storage, microgrids, and demand response.
The report finds that 45 states, as well as the District of Columbia and Puerto Rico, took actions related to grid modernization during Q3 2024 (see figure below), with the greatest number of actions relating to energy storage deployment (60), overall utility business model reforms (44), smart grid technology deployment (29), interconnection rules (28), performance-based regulation (24), and distribution system planning rules (23).
A total of 462 grid modernization actions were taken during Q3 2024. Michigan, New York, Massachusetts, New Jersey, and California saw the most action during the quarter, followed by Ohio, Minnesota, Colorado, New Hampshire, Connecticut, and Texas.
Q3 2024 Legislative and Regulatory Action on Grid Modernization
The report discusses three trends in grid modernization actions taken in Q3 2024: (1) states considering siting and end-of-life processes for battery storage, (2) regulators evaluating cost allocation for grid upgrades needed to interconnect distributed energy resources, and (3) states incorporating grid-enhancing technologies into planning processes.
“State regulators and legislators are considering measures to regulate siting and end of life concerns for battery storage,” observed David Sarkisian, Principal Policy Analyst at NCCETC. “For example, Michigan has an ongoing proceeding to establish statewide permitting rules for energy storage as well as large renewable projects.”
The report notes the top five policy developments of Q3 2024 were:
- Massachusetts regulators approving utilities’ first electric sector modernization plans;
- The New Jersey Board of Public Utilities releasing proposed data access rules;
- The Wisconsin Public Service Commission opening a virtual power plant investigation;
- California lawmakers enacting legislation requiring evaluation of grid-enhancing technologies; and
- Xcel Energy proposing a distributed capacity procurement process in Minnesota.
“As more DERs, including battery energy storage systems (BESS), enter the interconnection queue, several states have begun to reevaluate the cost sharing methodologies for grid upgrades prompted by new interconnections,” noted Emily Apadula, Policy Analyst at NCCETC.
View the 50 States of Grid Modernization Q3 2024 Quarterly Report Executive Summary
View and Purchase the 50 States of Grid Modernization Q3 2024 Quarterly Report
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The NC Clean Energy Technology Center, as part of the College of Engineering at North Carolina State University, advances a sustainable energy economy by educating, demonstrating and providing support for clean energy technologies, practices and policies. It serves as a resource for innovative, sustainable energy technologies through technology demonstration, technical assistance, outreach and training. For more information about the Center, visit: http://www.nccleantech.
Media Contact: Shannon Helm, NCCETC, shannon_helm@ncsu.edu