THIS QUARTER’S TREND: An Increasing Focus on Resilience Alongside Reliability

For some time, there has been a shift from purely focusing policy on grid reliability to reflecting the importance of grid resilience. This includes the increased threat of climate change as well as cyber and other physical attacks. It is also the result of our increased reliance on electricity grids, which play a central role in the path to decarbonization.

This trend has been more evident this quarter in the U.S., with a range of measures being rolled out. It can be seen in the focus of federal funding initiatives, where resilience is an overarching theme. It can also be clearly seen in the number of states requiring utilities to report on grid-resilience planning and where mechanisms are being considered to provide scope for increased resilience funding.

These trends are echoed internationally, with the latest announcement on Britain’s utility revenue-setting framework and Ontario’s annual planning announcement both highlighting the importance of resilience.

This does not mean the focus on reliability has diminished. Indeed, another clear trend is the number of jurisdictions looking at additional customer-centric metrics for measuring reliability, with a focus on better understanding the challenges more granularly for customers instead of broad averages. Both reliability and resilience are likely to be dominant trends in the electricity sector in 2024.

United States

The Department of Energy (DOE) launched the application process for Round 2 of funding under the Grid Resilience State and Tribal Formula Grant program...

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The Electrification and Energy Transition Panel published its Final Report in December 2023...

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Great Britain

In December 2023, Ofgem published details of the methodologies it would apply for the electricity, gas-transmission, and gas-distribution sectors for the RIIO-3 price control, which will run from April 1, 2026, to March 31, 2031...

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Three distribution network service providers serving Queensland and South Australia have submitted plans to build, operate, and maintain their distribution networks...

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