Topic: VPPs

A tsunami of distributed energy resources (DERs) is starting to arrive on the grid. Customers are adopting millions of EVs, rooftop solar systems, battery backup units, and other devices that can dynamically respond to grid conditions. But most utilities are not engaging with this wave proactively. Instead, they’re being reactive, slow, and even resistant to allowing these devices to connect to the grid or participate in transactions.

As we rebuild and transform the grid in the course of the energy transition, we really need to think about how to accommodate DERs. There are manifold reasons to build a decentralized grid from the bottom-up, instead of keeping the conventional, top-down, hub-and-spoke architecture based on the large centralized power plants that we have relied upon in the past. So how do we do it?

Lorenzo Kristov has been agitating for this new architecture for years, frequently issuing white papers and expert testimony to get regulators and others thinking about what the future grid should look like. And his ideas are being taken seriously, because he was a lead designer of the locational marginal pricing (LMP) market on which California’s wholesale power system operates. He has deep expertise in wholesale market design, DER participation in wholesale markets, coordination of transmission-distribution system operations, distribution system operator (DSO) models, distribution-level markets, microgrids, energy resilience strategies, and whole-system grid architecture, among other things. And he has been walking us through his vision for the decentralized grid in previous episodes of our show: #10, #94, and #150.

In today’s episode, Lorenzo rejoins us to build on our previous conversations and share his latest thinking about how to make the new energy transition grid architecture happen. We discuss market design, architecture, procurement, regulatory issues, and related topics, making this episode deserving of a Geek Rating of 10.