Phil Carson, columnist for Intelligent Utility Daily, interviews a David O'Brien from Bridge Energy Group on regulatory changes to support grid modernization.
Via Duane Tilden
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Phil Carson, columnist for Intelligent Utility Daily, interviews a David O'Brien from Bridge Energy Group on regulatory changes to support grid modernization.
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POLITIQUE ENERGETIQUE - Le salut des énergies renouvelables et du climat viendra-t-il du terrain ? « La gouvernance mondiale est bloquée, il existe des volontés locales d'avancer et la décentralisation reste une tendance de fond en France », réagit Benoît Leclair, vice-président énergie climat du Conseil régional Rhône-Alpes. Cet élu EELV a poussé en juillet sa région à voter un programme de soutien aux territoires à énergie positive. Via EELV Rhône-Alpes, Grd Lyon-millenaire3, EnergyNews, Ursula Sola de Hinestrosa Delete the scoop?
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The knottiest issue is how to balance risk between ratepayers and shareholders when you look at smart grid investments. [...] We're not going to let ratepayers bear this risk.
It's a conundrum for the industry as a whole. Traditional rate-making methodology is a cost-plus exercise in which the utility gets its investment back plus a rate of return set by regulators. It was established many decades ago and premised on investment in largely stable, known commodities (poles & wires as compared to digital switches and advanced IT).[...]
IU: Which stakeholders could or should drive these sorts of changes?
O'Brien: That is the question, the heart of the matter. [...] I've given this some thought and the best I can come up is that industry—the smart grid industry—could probably do more, along with the investor-owned utilities, to find some way to be more constructively engaged with the regulatory community.