Consulting firm KPMG has published a report outlining key challenges likely to be faced by electric utilities in the years ahead and some of the solutions they expect utilities to adopt. Titled, "The Agile Utility," the report addresses the "evolution of the utility as a network integrator" and sketches out the firm's view of the "Future-state industry model."
KPMG foresees the rise of a new function of "Network Integrator" evolving from today's distribution utilities. It says the integrator will be the “transformed” distribution utility that "will serve as the integrator of the diverse mix of generation entities, transmission entities, and retail and customer demand with the primary responsibility to provide reliable, resilient, and safe energy delivery.” It notes that “the Network Integrator function of a utility is comparable to that of a low-voltage Independent System Operator (ISO) or Regional Transmission Organization (RTO), overseeing the flow of energy resources on its grid." The concept resembles the “Distributed System Platform Provider” function mandated by the “Renewed Energy Vision” announced by New York State in 2014.
Large scale transmission operators play a role in the scenario envisioned by KPMG. The report anticipates that Network Integrators will interact with "cross-jurisdictional organizations around transmission planning and interconnection, outage management, and the purchase or sale of generation when the Network Integrator is operating under a deficit or surplus."
Core functions of the Network Integrator are expected to include energy delivery management, distribution grid maintenance, storage management and data management. (See diagram 1.)
These projections are based on an assessment of several "Transformational forces at work," KPMG explains. Although the timing and adoption are uncertain, underlying developments that are expected to drive this kind of change include grid-parity PV solar, grid parity storage, micro nuclear reactors, smart electrical outlets, portable storage and others. (See diagram 2.)
For more information, see the full report online here.