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Future of Utilities - Utilities of the Future

Book Description

Future of Utilities - Utilities of the Future: How technological innovations in distributed generation will reshape the electric power sector relates the latest information on the electric power sector its rapid transformation, particularly on the distribution network and customer side. Trends like the rapid rise of self-generation and distributed generation, microgrids, demand response, the dissemination of electric vehicles and zero-net energy buildings that promise to turn many consumers into prosumers are discussed.

The book brings together authors from industry and academic backgrounds to present their original, cutting-edge and thought-provoking ideas on the challenges currently faced by electric utilities around the globe, the opportunities they present, and what the future might hold for both traditional players and new entrants to the sector.

The book's first part lays out the present scenario, with concepts such as an integrated grid, microgrids, self-generation, customer-centric service, and pricing, while the second part focuses on how innovation, policy, regulation, and pricing models may come together to form a new electrical sector, exploring the reconfiguring of the current institutions, new rates design in light of changes to retail electricity markets and energy efficiency, and the cost and benefits of integration of distributed or intermittent generation, including coupling local renewable energy generation with electric vehicle fleets.

The final section projects the future function and role of existing electrical utilities and newcomers to this sector, looking at new pathways for business and pricing models, consumer relations, technology, and innovation.

  • Contains discussions that help readers understand the underlying causes and drivers of change in the electrical sector, and what these changes mean in financial, operational, and regulatory terms
  • Provides thought-provoking ideas on the challenges currently faced by electric utilities around the globe, the opportunities they present, and what the future might hold for both traditional players and new entrants to the sector
  • Helps readers anticipate what developments are likely to define the function and role of the utility of the future

Table of Contents

  1. Cover
  2. Title page
  3. Table of Contents
  4. Copyright
  5. Dedication
  6. Author Biographies
  7. Foreword
  8. Preface
  9. Introduction
  10. Part I: What is Changing, What are the Implications
    1. Chapter 1: What is the Future of the Electric Power Sector?
      1. Abstract
      2. 1. Introduction
      3. 2. Double whammy: falling demand, rising tariffs
      4. 3. Rise of distributed energy resources: new roles, new rules
      5. 4. What is the future?
      6. 5. Conclusions
    2. Chapter 2: Value of an Integrated Grid
      1. Abstract
      2. 1. Introduction
      3. 2. The benefits of grid connectivity to consumers
      4. 3. The added value of integration
      5. 4. Enabling connectivity
      6. 5. Enabling higher penetration of DER
      7. 6. The future of distribution utilities
      8. 7. Overall attributes and value of an integrated grid
      9. 8. Conclusions
    3. Chapter 3: Microgrids: Finally Finding their Place
      1. Abstract
      2. 1. Introduction
      3. 2. Evolution of microgrids
      4. 3. Power quality and reliability
      5. 4. What is a microgrid?
      6. 5. Microgrid examples
      7. 6. The emergence of microgrids calls for new thinking on regulation and policy
      8. 7. Conclusions
      9. Glossary
      10. Acknowledgments
    4. Chapter 4: Customer-Centric View of Electricity Service
      1. Abstract
      2. 1. Introduction
      3. 2. The traditional model
      4. 3. The promise of a new world
      5. 4. Putting it all together
      6. 5. Pricing it all: how does this all play out?
      7. 6. Conclusions
    5. Chapter 5: The Innovation Platform Enables the Internet of Things
      1. Abstract
      2. 1. Introduction
      3. 2. Accelerating change, disintermediation, and disruption
      4. 3. The innovation platform
      5. 4. New business models: telecom and electric utility transformation
      6. 5. Conclusions
    6. Chapter 6: Role of Utility and Pricing in the Transition
      1. Abstract
      2. 1. Introduction
      3. 2. Some context: recent australian energy market developments
      4. 3. Coexistence rather than complete substitution
      5. 4. Development of alternative pricing models
      6. 5. Conclusions
    7. Chapter 7: Intermittency: It’s the Short-Term That Matters
      1. Abstract
      2. 1. Introduction
      3. 2. Intermittency and utilities
      4. 3. Framing intermittency and potential power system impacts
      5. 4. Why does renewable energy intermittency matter?
      6. 5. Evidence of negative solar intermittency impacts on grid operations
      7. 6. Intermittency considerations for stakeholders
      8. 7. Operations impacts
      9. 8. Intermittency countermeasures
      10. 9. Conclusions
  11. Part II: Competition, Innovation, Regulation, and Pricing
    1. Chapter 8: Retail Competition, Advanced Metering Investments, and Product Differentiation: Evidence From Texas
      1. Abstract
      2. 1. Introduction
      3. 2. Background on retail customer choice in texas
      4. 3. Pricing
      5. 4. Product differentiation as a competitive strategy
      6. 5. Product and service differentiation in the competitive ERCOT retail market
      7. 6. Competitive pressures and the response by the retail sector
      8. 7. Conclusions
    2. Chapter 9: Rehabilitating Retail Electricity Markets: Pitfalls and Opportunities
      1. Abstract
      2. 1. Introduction
      3. 2. What has retail electricity competition revealed?
      4. 3. Is retail competition the answer?
      5. 4. A better model: utilities as clean energy partners
      6. 5. Conclusions
    3. Chapter 10: Residential Rate Design and Death Spiral for Electric Utilities: Efficiency and Equity Considerations
      1. Abstract
      2. 1. Introduction
      3. 2. Cost recoveries via fixed and variable components
      4. 3. Winners and losers: a case of new jersey
      5. 4. Conclusions
    4. Chapter 11: Modeling the Impacts of Disruptive Technologies and Pricing on Electricity Consumption
      1. Abstract
      2. 1. Introduction
      3. 2. Modeling approach
      4. 3. Tariff description and anticipated customer response
      5. 4. Battery Charging Rules
      6. 5. Results
      7. 6. Conclusions
      8. Acknowledgments
    5. Chapter 12: Decentralized Reliability Options: Market Based Capacity Arrangements
      1. Abstract
      2. 1. Introduction
      3. 2. Background
      4. 3. Decentralized reliability options—how do they work?
      5. 4. Decentralized reliability options—what are the advantages?
      6. 5. Decentralized reliability options—the way forward
      7. 6. Conclusions
    6. Chapter 13: Network Pricing for the Prosumer Future: Demand-Based Tariffs or Locational Marginal Pricing?
      1. Abstract
      2. 1. Introduction
      3. 2. Efficiency in retail contracts
      4. 3. Retail competition and retail tariffs
      5. 4. Hedging temporal and locational pricing risk
      6. 5. Efficient network pricing
      7. 6. The network pricing debate in Australia
      8. 7. Conclusions
      9. Acknowledgment
    7. Chapter 14: The Evolution of Smart Grids Begs Disaggregated Nodal Pricing
      1. Abstract
      2. 1. Introduction
      3. 2. Smart grids from the perspective of transactive energy frameworks
      4. 3. The change of electricity systems architecture and its impact on disaggregated nodal pricing
      5. 4. Microgrids necessitate real-time nodal pricing within distribution networks
      6. 5. Conclusions
  12. Part III: Utilities of the Future: Future of Utilities
    1. Chapter 15: New Business Models for Utilities to Meet the Challenge of the Energy Transition
      1. Abstract
      2. 1. Introduction
      3. 2. Areas of disruption
      4. 3. Future utility business models
      5. 4. Conclusions
    2. Chapter 16: European Utilities: Strategic Choices and Cultural Prerequisites for the Future
      1. Abstract
      2. 1. Introduction
      3. 2. Internationalization strategies
      4. 3. Strategies toward Utility 2.0
      5. 4. A categorization of strategies of European energy utilities
      6. 5. Cultural prerequisites: lessons from new entrants
      7. 6. Conclusions
    3. Chapter 17: Thriving Despite Disruptive Technologies: A German Utilities’ Case Study
      1. Abstract
      2. 1. Introduction
      3. 2. The environment
      4. 3. Building blocks for strategic choices
      5. 4. Success factors for strategy development and realization
      6. 5. Conclusions
    4. Chapter 18: The Future of Utility Customers and the Utility Customer of the Future
      1. Abstract
      2. 1. Introduction
      3. 2. Where next for the grid—fate and its drivers
      4. 3. Preferences—Maslow’s basement, coopetition, and energy ecosystems
      5. 4. Grid parity in prices and product
      6. 5. S-curves, S-bends, and can EV’s save the grid?
      7. 6. Conclusions
    5. Chapter 19: Business Models for Power System Flexibility: New Actors, New Roles, New Rules
      1. Abstract
      2. 1. Introduction
      3. 2. Flexibility in the power system
      4. 3. Trading flexibility services
      5. 4. New business models
      6. 5. Conclusions
    6. Chapter 20: The Repurposed Distribution Utility: Roadmaps to Getting There
      1. Abstract
      2. 1. Introduction
      3. 2. The current situation
      4. 3. Framing the RDU transition
      5. 4. Planning the RDU transition
      6. 5. RDU transition operational practice reforms
      7. 6. Conclusions
    7. Chapter 21: Distributed Utility: Conflicts and Opportunities Between Incumbent Utilities, Suppliers, and Emerging New Entrants
      1. Abstract
      2. 1. Introduction
      3. 2. Overview of new york’s rev
      4. 3. California’s plans for reforming the distributed utility
      5. 4. Current DER reform in massachusetts
      6. 5. DER boom in hawaii
      7. 6. Conclusions
    8. Chapter 22: The Fully Integrated Grid: Wholesale and Retail, Transmission and Distribution
      1. Abstract
      2. 1. Introduction
      3. 2. Vision for the fully integrated grid
      4. 3. Role of the DSO
      5. 4. Communicating prices from the RTO/TSO level to DER
      6. 5. Conclusions
      7. Acknowledgments
  13. Subject Index