IEEE Power & Energy Magazine - March/April 2022 - 20

utilities are required to consider NWAs to defer transmission
and distribution investments in their annual system
reliability procurement plan. In addition, according to
updated Rhode Island Public Utility Commission " Least
Cost Procurement Standards, " the utilities must evaluate
NWAs based on the following criteria:
✔ The need is based on asset conditions.
✔ The cost for the gr id solut ion is mo re tha n
US$1 mil lion.
✔ If load reduction is necessary, it must be less than 20%
of the relevant peak in an area.
✔ The start date for a traditional grid project is at least
30 months in the future.
The procurement standards also encourage the utilities
to consider hybrid solutions if NWAs can defer
only part of traditional grid investments. Thus, costeffective
combined NWAs and grid bundles would
be studied.
Virginia
The Grid Transformation and Security Act (2018) allowed
Dominion Energy Virginia to invest in up to 30 MW of
battery storage pilot projects. In August 2019, the utility
signed off on four projects with a combined capacity of
16 MW to expand opportunities for additional energy
storage to support its boost in renewables and improve
grid reliability. These pilots were to help Dominion analyze
the use of energy storage for grid stability support
instead of traditional system upgrades. There is also
an administrative code in Virginia (56-585.5 D 4) that
requires utilities to address NWA programs and file for
approval of NWA initiatives related to energy storage
every year.
NWA Implementation in Utility
Distribution Planning and Operations
Integrated distribution planning offers an opportunity
for increased transparency and an improved ability to
inform and obtain input from stakeholders. The main
method of achieving greater transparency is stakeholder
engagement, which has been a component of integrated
distribution planning processes in Hawaii, California,
and other states. Increased transparency can lead to
greater investment support, innovative solutions to grid
constraints, and additional benefits. Key to the success
of NWA implementation is the clear definition of responsibilities
for various actors (commissions, utilities, market
operators, independent third-parties/evaluators, DER
developers, and stakeholders) and effective coordination
among them.
Figure 2 illustrates the main steps of an NWA implementation
life cycle along with actors involved in each
stage. The process starts with load, DER, and electrification
forecasts. As shown, a utility is engaged in
almost every stage and often plays the lead role except
20
ieee power & energy magazine
march/april 2022
Forecast
Need
Assessment
Assess
Load Forecast
DER Adoption
Forecast
Electrification
Forecast
UC
Operational
Problems
Plan for
Conventional
Solution
NWA
Evaluation
NWA
Requirements
Location and
Configuration
Feasibility
UC UC
Legend:
C: Commission U: Utility
MO: Market Operator
IE: Independent
Evaluator (Third Party)
DD: DER Developer/Stakeholder
figure 2. The role of different actors in NWA implementation.
DD
DD
NWA
Procurement
Review and Issue
Requests for
Proposals
Evaluate
Proposals
NWA/
Grid Investment
Benefit-Cost Analysis
UU U
C
IE
DD
DD
NWA
Development
Award NWA
Build NWA and
Interconnection
Certify
Installations
NWA
Operations
Communications,
Control, and
Monitoring
Operate NWA for
Grid Reliability
Operate NWA for
Market Applications
M
NWA
Performance
Measurement
and Verification
Performance
Noncompliance
UIE
IEEE Power & Energy Magazine - March/April 2022

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