SCE study highlights locational value of clean local energy - Clean Coalition

SCE study highlights locational value of clean local energy

The study makes the importance of locational planning abundantly clear in implementing Governor Brown’s goal of 12,000 MW of DG.

Craig Lewis


As one of the largest utilities in the state, Southern California Edison (SCE) must incorporate significant penetrations of DG into the grid to meet Governor Brown’s goal of deploying 12,000 MW of DG in California. According to a recent report by SCE, directing these DG projects to key areas on SCE’s grid could save consumers up to $2.4 billion, largely by avoiding expensive transmission upgrades.

SCE-renewable-energy-generation-solar-thermal-magazineThis study by SCE found that a project’s location affects grid upgrade costs dramatically and that well-planned placement of new DG facilities would avoid billions of dollars in system upgrades, when compared to the historic approach in which the vast majority of energy is generated far from where it is consumed.

This study makes the importance of locational planning abundantly clear in implementing Governor Brown’s goal of 12,000 MW of DG. It is critical for any DG procurement process to account for the significant benefits of well-sited projects and ensure that ratepayers gain from cost-effective projects, which eliminate the exorbitant costs associated with transmission. These findings align with long-held Clean Coalition recommendations, including that well-placed projects should be incentivized through compensation for locational value, and that state regulators implement thoughtful and efficient distribution system planning processes.

Craig Lewis

Founder and Executive Director

Craig founded the Clean Coalition in 2009 and has over 30 years of experience in policy and technology innovation, including the proliferation of Solar Microgrids and Community Microgrids. Prior to founding the Clean Coalition, Craig held numerous positions in the wireless, semiconductor, banking, and renewable energy industries. Previously VP of Government Relations at GreenVolts, he was the first to successfully navigate a solar project through California’s Renewable Portfolio Standard solicitation process. Craig was energy policy lead on Steve Westly’s 2006 California gubernatorial campaign. His resume includes senior government relations, corporate development, and marketing positions at leading wireless, semiconductor, and banking companies such as Qualcomm, Ericsson, and Barclays Bank. Craig received an MBA and MSEE from the University of Southern California and a BSEE from the University of California, Berkeley.