The United States electric grid is increasingly vulnerable, facing challenges from extreme weather events to aging infrastructure. Research from the University of Pennsylvania delves into these challenges, arguing that the solution lies not in the energy sources we rely on but in the governance structures that oversee the grid’s reliability, outlining critical insights and arguing for a reformed approach to managing the future of the U.S. electric grid.
At the heart of the grid’s reliability crisis is a governance system fraught with jurisdictional silos, insufficient public oversight, and a narrow understanding of modern reliability challenges. The paper identifies these governance flaws as primary contributors to the grid’s diminishing reliability, exacerbated by more frequent storms, heat waves, and other natural disasters.
The current grid governance model is characterized by fragmented authority and a need for coordination among various regulatory bodies. This structure hinders effective oversight and response to reliability threats. The authors recommend a series of reforms to consolidate authority and improve coordination, notably empowering the Federal Energy Regulatory Commission (FERC) to set more proactive and comprehensive reliability standards.
There are issues with the grid’s overly privatized governance structure, particularly the roles of the North American Electric Reliability Corporation (NERC) and Regional Transmission Organizations (RTOs). These bodies are dominated by industry incumbents, leading to decision-making processes that often sideline public stakeholders. To rectify this, the paper suggests enhancing FERC’s oversight capabilities and advocating for a more public-centric approach to grid reliability governance.
Much of the research is devoted to broadening the perspective on potential reliability solutions. Traditional approaches often prioritize building new fossil fuel resources or sustaining outdated ones, neglecting the role of distributed energy resources (DERs) like battery storage, small-scale renewables, and demand response initiatives. The authors argue for a more inclusive view of reliability measures, emphasizing the importance of incorporating DERs into the grid’s future planning and operation.
UPenn's paper presents a compelling case for modernizing the governance of the U.S. electric grid. By addressing the critical flaws in the current system, enhancing public oversight, and embracing a broader spectrum of reliability solutions, the U.S. can ensure a more resilient grid capable of meeting the challenges of the 21st century.
