This paper examines the influence of DER location within a distribution system on benefits, such as avoided infrastructure costs, primarily using solar PV generation as an example. This paper draws upon an earlier paper, DER Interconnection Timelines and Advanced Inverter Deployment, particularly its emphasis on deployment of advanced inverters, but extends its examination of Western U.S. policies influencing DER deployment to hosting capacity and locational value of DERs. These two topics are highly related because hosting capacity, a measure of a distribution feeder’s capacity to accommodate DERs, is a key determinant of locational value of a given DER. Regulatory activities in the states of California and New York related to hosting capacity and locational value are also covered. Both states are now requiring IOUs to factor hosting capacity and locational value into distribution system planning. Finally, policy options for Western states are provided. These options will be of value to states already deploying DERs and to those considering DER deployment.
This work was accomplished through a Idaho-WIEB State Energy Planning (SEP) project funded by the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, to foster regional and state energy planning in the West and identify opportunities for multi-state or region-wide collaborations to address emerging energy issues.