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Interconnection Cost-Causer-Pays Model: Is It Fair or Antiquated in the Era of Grid Modernization

February 1, 2024

The transition to green energy is often seen through two different lenses: a burden or an opportunity. Grid modernization refers to a comprehensive transformation of the traditional power grid to upgrade aging infrastructure to enhance reliability, resilience, efficiency, and sustainability of electricity generation, transmission, distribution, and consumption. A key element of grid modernization is designing the grid to allow greater deployment of distributed energy resources (DERs). The push for sustainability throughout the U.S. has resulted in many states setting renewable portfolio standards or goals. Green energy will require substantial investments from private individuals, entities, states, and the federal government. These energy targets or standards are aspirational when analyzing the investment required for the grid compared to the investments made.

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