This op-ed piece discusses the successes and failures that Germany has encountered during its Energiewende, or energy transition. Despite the country’s many achievements in renewable energy policy and practices, energy customers remain concerned with the increase in variable energy sources creating an unreliable supply of electricity or raising energy bills. As Germany’s electric power system continues to evolve, policymakers will need to consider how existing programs, market structures, and utility business models will need to change in order to remain effective and relevant.
This paper provides an overview of America’s Power Plan (APP), a series of papers on how policymakers, market operators, and utilities can address changing market conditions head-on. The papers cover wholesale market design, utility business models, finance policy, transmission policy, distributed energy resources, distributed generation, and siting. Energy Innovation’s Director of Strategy, Sonia Aggarwal, directed research for APP’s development.
This report discusses the future for electric utility companies as ‘disruptive’ technologies, flattening energy load, and environmental regulations all potentially threaten their traditional business model. It proposes new business opportunities for utilities, giving special attention to performance-based ratemaking. Several case studies are included to demonstrate various elements of performance-based ratemaking, followed by best practice principles and recommendations. A version of this paper was published in the July 2014 issue of the Electricity Journal.