In an Energy Post article, Guidehouse discusses key findings for Europe from the US experience with non-wires alternatives for grid expansion
The need for grid expansion is growing in many network areas; however, classic expansion through additional poles and wires is not always the most feasible or economical solution. Alternatives to grid expansion are therefore increasingly promoted, with the U.S. leading globally in the use of non-wires alternatives (NWAs).
In an article for Energy Post, Karoline Steinbacher, managing consultant, and Tim Stanton, associate director at Guidehouse, explore NWAs from a regulatory point of view and discuss which insights European utilities and policymakers can derive from the U.S. experience.
“An innovative regulatory framework is needed to incentivize the use of alternatives to grid expansion and is already in place in several U.S. states,” explained Karoline Steinbacher.
The authors equally highlight that utility processes need to be adapted to make NWAs work, and that NWA design should consider implementation risks.
“Carefully designing the procurement mechanism for resources within NWAs is crucial to avoid risks of non-availability of resources, non-realization of awarded projects, and local market power,” said Tim Stanton.