The 50 States of Grid Modernization Q1 2024: States Examine Grid-Enhancing Technologies, Virtual Power Plants, and Microgrids in Q1 2024

The N.C. Clean Energy Technology Center (NCCETC) released its Q1 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 49 states, as well as the District of Columbia and Puerto Rico, took actions related to grid modernization during Q1 2024 (see figure below), with the greatest number of actions relating to energy storage deployment (52), overall utility business model reforms (49), performance-based regulation (26), interconnection rules (24), distribution system planning (23), and time-varying rates (23).

A total of 567 grid modernization actions were taken during Q1 2024. New York, Massachusetts, Michigan, California, Connecticut, and New Jersey took the greatest number of actions during the quarter, followed by Hawaii, Minnesota, Illinois, Missouri, Maine, New Hampshire, and Ohio.

Q1 2024 Legislative and Regulatory Action on Grid Modernization

The report discusses three trends in grid modernization actions taken in Q1 2024: (1) states considering the use of grid-enhancing technologies, (2) states establishing frameworks to develop virtual power plants, and (3) states evaluating microgrid potential and program design.

"This quarter there continued to be a lot of activity focusing on distribution system enhancement,” noted Vincent Potter, Senior Policy Analyst at NCCETC. “Deployment of advanced management systems, microgrid systems, and smart grid enhancements were proposed or underway in several states, as well as investigations into customer and grid benefits of these technologies.”

The report notes the top five policy developments of Q1 2024 were:

• Maryland lawmakers passing legislation advancing virtual power plants;
• Massachusetts utilities filing final electric sector modernization plans;
• Connecticut regulators moving forward on AMI and performance incentive mechanisms;
• The Colorado Public Utilities Commission approving guidelines for a virtual power plant pilot; and
• Maine releasing studies on long-duration energy storage and utility ownership of storage.

“More and more states are researching virtual power plants, aggregated distributed energy resources, and distributed energy resource management systems for alternative sources of generation and load control, and a few have even reached the program deployment,” observed Rebekah de la Mora, Senior Policy Analyst at NCCETC. “Progress varies across states, from supporting legislation and initial investigations, to stakeholder engagement and tariff development.”

View the 50 States of Grid Modernization Q1 2024 Quarterly Report Executive Summary

View and Purchase the 50 States of Grid Modernization Q1 2024 Quarterly Report

View other 50 States Reports – Solar, Grid Modernization,  Electric Vehicles and Decarbonization

NC Clean Energy Technology Center | http://www.nccleantech.ncsu.edu