The Grid-Edge: NASEO-NARUC Grid-Interactive Efficient Buildings Working Group

In states across the nation, the electricity system is changing, presenting challenges and opportunities for the delivery of reliable, clean, and affordable power to America’s homes, businesses, and institutions. As variable renewable generation and distributed energy resources (DERs)—including energy efficiency, demand response, onsite generation, energy storage, and electric vehicles—grow, the management of electricity is becoming more complex.

Fortunately, advancing technologies open the prospect for more flexible management of building and facility energy loads to benefit occupants, owners, and the grid. The purpose of advancing Grid-interactive Efficient Buildings (GEBs) and, more broadly, demand flexibility (DF) is to optimize energy management by utilizing sensors, analytics, and smart controls to best serve the needs of occupants while considering the grid and external conditions (such as peak loads and weather). Greater optimization of the significant energy demand and supply functions that buildings offer – on an automated basis – has far reaching electricity policy and regulatory implications for State Energy Offices, Public Utility Commissions, utilities, building owners and occupants, technology and service providers, and and investors. Flexible load management can:

• Lower costs, enhance resilience, and reduce emissions
• Reduce peak loads, moderate the ramping of demand, and provide grid services
• Enhance energy efficiency and integrate distributed and renewable energy resources.

The fundamental question that arise from this opportunity are:

• How can we optimize facility interactions with the grid?
• How can states fashion policies, programs, and regulations to advance such optimization through GEBs?
• What are the roles for states, facility owners and operators, utilities, product and service providers, and others?

To help states approach these questions, the National Association of State Energy Officials (NASEO) and the National Association of Regulatory Utility Commissioners (NARUC) established the NASEO-NARUC Grid-interactive Efficient Building Working Group, with the support of the U.S. Department of Energy (DOE) Building Technologies Office.

Through the GEB Working Group, State Energy Officials and state utility regulators can explore GEB/DF technologies and applications; identify opportunities and impediments (technical and non-technical); identify and express state priorities and interests; inform policy, planning, programs and regulation; consider unregulated electric sector investments and implications; and advance GEB/DF road map and pilot options.

GEB Working Group activities include state interviews, webinars, and exchanges. Private sector and non-governmental organizations are also being engaged. A state GEB briefing paper and other resources have been and are being developed developed. The resources page also includes links to other NASEO, NARUC, and external papers, presentations, webinars, and other items. NASEO and NARUC are partnered with DOE and the National Laboratories to provide demand flexibility/GEB-related technical assistance (TA) to Working Group states. TA focus areas have included state and public buildings, pilot projects, state and regional GEB/DF potential, and valuation of GEB/DF grid services. Please contact geb@naseo.org with questions.

National GEB Roadmap: U.S. DOE, A National Roadmap for Grid-interactive Efficient Buildings (May 2021)

U.S. DOE, Connected Communities (overview presentation)

NASEO, "Demand Flexibility and Grid-interactive Efficient Buildings 101" (September 2022) and "Grid-interactive Efficient Buildings: State Briefing Paper" (October 2019)

Calendar:

Webinars are open to all. Working Group forums are limited to states and territories. Please contact geb@naseo.org with questions.

• Please check back later.

Recent:

• Hledik, et al. (LBNL and the Brattle Group), Distributed Energy, Utility Scale: 30 Proven Strategies to Increase VPP Enrollment (December 2024) - This study provides 30 proven strategies for scaling VPPs through increased enrollment based on in-depth interviews with utilities and VPP solutions providers that have achieved considerable scale or rapid growth in program deployment. The study includes specific actions for regulators, utilities, and VPP solutions providers to increase VPP enrollment and deliver important customer and utility benefits.

• The CalFlexHub Symposium 2024 was held on September 24, 2024, featuring updates on CalFlexHub’s portfolio of projects, information on the latest policies, research, and developments in load flexibility as well as presentations from leaders in the space and keynotes from the California Energy Commission and U.S. Department of Energy. Slides and recordings are available here.

• NASEO-NARUC Grid-interactive Efficient Buildings (GEB) Working Groups Forum: RMI Virtual Power Plant (VPP) Flipbook - September 4, 2024: Mary Tobin, RMI discussed the recent RMI VPP Flipbook that highlights key design elements and lessons to help utilities and states to implement effective VPPs. The Flipbook showcases various technologies, utility participation models, compensation approaches, and third-party partnership roles. The Forum also had presentations from Yoh Kawanami from Hawaiian Electric and Amy Findlay from Eversource on their relevant utility programs and approaches. A recording is available here.

•  NARUC-NASEO DER Integration and Compensation Initiative: Resources and Activities (webinars, workshops)

• Murphy, et al. (LBNL), The State of Demand Flexibility Programs and Rates (August 2024) - This report provides foundational data on programs and rates that promote demand flexibility in residential and commercial buildings in the United States. Drawing on data from 148 programs and 93 rates, the report describes the structure of demand flexibility events, types and level of incentives, and offers additional detail and outcomes for some programs. The report also reports on dynamic, technology, and related rates features.

•   RMI Virtual Power Plant Partnership (VP3)

  • VPP policy principles; April 9, 2024 webinar recording and slides are available on RMI’s website.

  • RMI VPP Flipbook is a collection of VPP case studies highlighting key program design elements and takeaways to help utilities and other stakeholders implement efficient and impactful VPP programs.  The VPPs included in the flipbook showcase a variety of technologies, utility participation models, compensation frameworks, and third-party partnership roles to demonstrate the versatility of existing VPPs. The supporting VPP Comparison Matrix consolidates information from the Flipbook to allow the user to filter for VPPs most applicable to their needs.

• Midwest Energy Efficiency Alliance (MEEA) Webinar: VPPs in the Heartland: How VPPs are Impacting the Midwest – July 30, 2024: This webinar discusses VPP drivers and barriers in the Midwest, scalability and replicability in the region, and lessons offered from other parts of the country. Recording available via here.

• NARUC, NASEO, RMI: Aggregated Distributed Energy Resources in 2024: The Fundamentals, July 2024 - This report builds upon existing literature and leading examples of ADER pricing and programs in practice to equip commissioners and staff at Public Utilities Commissions and State Energy Offices with the fundamentals of ADER grid services, valuation options, and approaches to compensation.

• NASEO-NARUC Grid-interactive Efficient Buildings (GEB) and NASEO Industrial Working Groups Joint Forum: Industrial Demand Flexibility - June 11, 2024: This Forum focused on industrial demand flexibility and load management to save money, lower emissions, and reduce grid stresses from industrial operations. Dr. Kody Powell (Intermountain Industrial Assessment Center and University of Utah) and Dr. Blake Billings (Oak Ridge National Lab) presented Working Smarter, Not Harder: Opportunities and Challenges for Industrial Demand Response to Support the Grid and Ilia Krupenich and Akruti Gupta of the California Energy Commission (CEC) presented Industrial Energy Innovation in California highlighting industrial load flexibility opportunities and programs in California.
• NASEO-NARUC Microgrids and NASEO Rural Working Groups Joint Webinar: Improving Energy Resilience with Rural and Remote Microgrids (May 7, 2024) (Recording, Slides)
• Resources and Assistance for State Energy Offices and Regulators Program is funded DOE’s Office of Energy Efficiency & Renewable Energy and Office of Electricity to provide high-impact technical assistance and resources at scales and intervals that are responsive to State Energy Office and Public Utility Commission needs through multi-modal support options. It is designed to be responsive to a rapidly changing regulatory and policy landscape that seeks to match the timing and depth of questions with National Laboratory subject matter experts (SME) on key topical areas. This program augments and complements current technical assistance activities undertaken by various DOE program offices.
• March 14 U.S. DOE Deep Dive Webinar on the Pathways to Commercial Liftoff VPP report recording is posted.
• NASEO-NARUC Grid-interactive Efficient Buildings (GEB) and Microgrids State Working Groups Joint Webinar: Demand Flexibility and Electrified Transportation - February 1, 2024: This joint webinar of the NASEO-NARUC GEB and Microgrids State Working Groups explored opportunities for electrified transportation integrated with other distributed energy resources (DERs) to provide grid services and support resilience through demand flexibility and vehicle-to-grid (V2G)/vehicle-to-everything (V2X) functionality. Amy McGuire of Highland Electric Fleets (presentation) discussed school bus electrification, including work with Montgomery Co. (MD) on what will be the nation’s largest EV school bus fleet and its piloting of V2G applications. Jeremy Berke of the Washington State Department of Commerce (presentation) discussed the state’s Clean Energy Fund and Grid Modernization Program. Scott Gibson of the Snohomish County Public Utility District (PUD) (presentation) discussed the utility’s Arlington Microgrid V2G Demonstration Project that incorporates solar generation, battery storage, and V2G charging for the PUD’s EV fleet. (Recording)   
• American Council of an Energy-Efficient Economy (ACEEE): Johnson, A., A. Fraser, and D. York (2024) Enabling Industrial Demand Flexibility: Aligning Industrial Consumer and Grid Benefits calls on industry, utilities, and states to prepare for increasing loads by investing in strategies and technologies that enable demand flexibility, the ability of industrial facilities to adjust their energy consumption in response to grid conditions. 
• Guidehouse, Alternative Aggregated DER Participation Methods for US Grids Are Still Needed: FERC Order 2222 Is a Good First Step, but Additional Work Remains (4Q 2023) - This report discusses DER adoption and grid service potential of aggregated DER portfolios in the United States. It also outlines FERC Order 2222 goals, barriers to aggregated DER wholesale market participation, and discusses and offers recommendations on alternative grid participation methods for aggregated DERs.
• Illinois Commerce Commission: Investigation Into The Value Of, And Compensation For, Distributed Energy Resources (illinois.gov) - Workshop Series 1 presentations and recordings, Workshop Series 2 upcoming.
• Liu, et al. (Lawrence Berkeley National Laboratory), Factors Influencing Building Demand Flexibility (December 2023)
• Connecticut Innovative Energy Solutions (IES) Program: On December 13, 2023 PURA announced selection of seven Cycle 1 projects focused on demand flexibility. The application period for Cycle 2 Empowering Electrification in Connecticut opened on January 1. 2024. See the IES online portal for more information and direct questions to info@ct-ies.com.
• ASHRAE Grid-Interactive Buildings for Decarbonization: Design and Operation Resource Guide  (November 2023) released (link to the presentation slides from September 20, 2023 NASEO-NARUC GEB Working Group Forum on this can be found here).
• DOE Releases New Report on Pathways to Commercial Liftoff for Virtual Power Plants (VPPs)
• LBNL and the Brattle Group, U.S. Building Sector Decarbonization Scenarios to 2050 includes extensive consideration of demand flexibility as well as efficiency and electrification measures.
• From the NASEO-NARUC Microgrids Working Group: State Microgrid Policy, Programmatic, and Regulatory Framework and view an online interactive version (and news release)