IEEE Power & Energy Magazine - May/June 2017 - 29

such methods will be used by utilities to consider and provide the most cost-effective and timely interconnection
solutions for new DERs across the state. It is clear from the
early work in the FICS project and the lessons learned from
Europe (in the United Kingdom and Germany) that these
kinds of interconnection approaches can provide real value
for DER developers and society at large.
The broader business as usual adoption of the FICS
principles faces organizational and regulatory challenges.
New commercial models will require increased coordination between the DER developer and the utility and
also possibly among DER developers. These issues have
the potential to create a time lag to full adoption and
rollout to all customers. Regulatory issues such as those
being addressed by REV (cost and benefit allocation
through revenue/tariff models) and also policies and
codes that prevent or enable the rollout of flexible interconnection (e.g., the 3% curtailment rule in Germany)
must be addressed before all customers can benefit. New
York, California, the United Kingdom, and Germany are
all approaching these issues in different ways but with
the same objective in mind. New York's approach is for
ANM functionality to become a core part of the DSP
and the realization of REV objectives, requiring coordination with the broader development and implementation of the DSIP.
The commercial models that underpin the FICS project
include hosting-capacity access rights and principles, costs
(up front and over time), and curtailment compensation measures. These are live topics in other service territories that
have flexible interconnections being offered through ANM
deployment. If not handled proactively and with stakeholder
input, these issues can create perceived and real barriers to
customers accessing the many benefits of flexible interconnection. In addition, the size and location of DERs can be
heavily influenced by policies and incentives, which can
increase the complexity of the situation and limit the commercial solutions available to the developer and the utility.
ANM provides the opportunity to maximize installations
where they make the most sense. New installations can be
sited to help meet capacity targets for DERs without having to go to places that might be sensitive to communities
simply because hosting capacity exists. Using the United
Kingdom as an example, nearly 300 MW of DERs have been
connected in five years, and the approach is now becoming
business as usual.
A very real and near-term potential exists to enable significant regional and national DER adoption using the FICS
approach. The next steps are a broader rollout and adoption of the approach by regulators, utilities, and developers,
which is ultimately required to bring this innovative form of
DER interconnection into the mainstream. This will lower
costs and reduce the connection time for the DERs that will
make up our future energy system.

may/june 2017

Acknowledgments
The authors would like to recognize the contributions of
Emily T. Wheeler (Smarter Grid Solutions, United States)
and Jeremiah Miller (U.S. Department of Energy, formerly
with Smarter Grid Solutions, United States) to this work.

For Further Reading
Electric Power Research Institute. (2016). Defining a roadmap for successful implementation of a hosting capacity
method for New York State. [Online]. Available: http://www
.epri.com/abstracts/Pages/ProductAbstract.aspx?Product
Id=000000003002008848
MIT Energy Initiative. (2016). Utility of the future. [Online]. Available: http://energy.mit.edu/wp-content/uploads/
2016/12/Utility-of-the-Future-Full-Report.pdf
Energy Networks Association, Baringa, and TNEI. (2015).
Active network management good practice guide [Online].
Available: http://www.energynetworks.org/assets/files/
news/publications/1500205_ENA_ANM_report_AW_
online.pdf
International Energy Agency. (2016). Re-powering markets: Market design and regulation during the transition to
low-carbon power systems [Online]. Available: https://www
.iea.org/publications/freepublications/publication/REPOWER
INGMARKETS.PDF
Joint Utilities of New York. (2016, Nov. 1). Supplemental distributed system implementation plan case 16-M-0411
[Online]. Available: http://documents.dps.ny.gov/public/
Common/ViewDoc.aspx?DocRefId={3A80BFC9-CBD44DFD-AE62-831271013816
State of New York Public Service Commission. (2016).
Order adopting distributed system implementation plan guidance. Proceeding on Motion of the Commission in Regard to
Reforming the Energy Vision, CASE 14-M-0101 [Online].
Available: http://documents.dps.ny.gov/public/Common/
ViewDoc.aspx?DocRef Id=%7bB1C7035C-B447-459A8957-20BF3BDB6D0F%7d

Biographies
Bob Currie is with Smarter Grid Solutions, Brooklyn,
New York.
Chad Abbey is with Smarter Grid Solutions, Calgary, Alberta, Canada.
Graham Ault is with Smarter Grid Solutions, Glasgow,
United Kingdom.
Jeff Ballard is with AVANGRID Networks, Rochester,
New York.
Brian Conroy is with AVANGRID Networks, Portland,
Maine.
Ryan Sims is with Smarter Grid Solutions, Brooklyn,
New York.
Chris Williams is with Smarter Grid Solutions, Calgary,
Alberta, Canada.
p&e

ieee power & energy magazine

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http://www http://www.epri.com/abstracts/Pages/ProductAbstract.aspx?Product http://energy.mit.edu/wp-content/uploads/ http://www.energynetworks.org/assets/files/ https://www http://www.iea.org/publications/freepublications/publication/REPOWER http://documents.dps.ny.gov/public/ http://documents.dps.ny.gov/public/Common/

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