Grid Equity

NREL is exploring grid equity as a dynamic force driving positive change in the energy sector, allowing for an accessible, sustainable, and equitable future for all.

Equity in the context of the power grid can mean access to clean energy jobs, access to solar photovoltaics (PV) and other distributed energy resources (DERs), equitable reliability, and affordable rates. NREL studies many aspects of equity related to the power grid including:

• Workforce development: Who has access to clean energy jobs?
• Electricity bills: Are electricity and gas bills affordable and 'fair'?
• DER access: Do low-income households and renters have access to clean technologies like solar PV, storage, and electric vehicles (EVs)?
• DER funding: Are DER incentives causing unfair bill increases for customers who do not have equitable access to those technologies?
• Reliability and grid investments: Is the distribution grid being built in an equitable way, including do low- and high-income households have the same number of service interruptions and do they have the same amount of capacity on their lines to interconnect DERs?
• Building stock: Are low-income households more likely to be in poorly insulated homes with asbestos and lead that prevent upgrades?
• Transportation: Do low-income residents have access to EVs and EV charging? Do they have clean alternatives to internal combustion engine cars like bike lanes and buses?

Advanced Load Forecasting

Advanced load forecasting leverages sector-specific data and simulations to estimate how energy consumption patterns might change as end-uses become more electrified and energy efficient. NREL's Demand-Side Grid (dsgrid) Toolkit uses detailed sectoral energy models to provide hourly load data for a full year. The data is suitable for detailed power sector and other energy system modeling and enables comprehensive analyses of current patterns and future projections of end-use loads.

The dsgrid toolkit incorporates high-resolution load data from other NREL-developed sector-specific forecasting models, like ResStock™ that focuses on buildings and EVI-X that focuses on electric vehicle (EV) charging infrastructure needs. Together, the models enable researchers to track energy load impacts and trends by income and improve the modeling and analysis of grid equity.

NREL used dsgrid to forecast electricity loads for the city of Los Angeles as part of The Los Angeles 100% Renewable Energy Study (LA100). With dsgrid, NREL was able to understand the city’s evolving energy demands and the impacts of switching fuel types for some end uses.

Demand Response Impacts

Demand response programs incentivize customers to adjust their energy usage in response to grid conditions. These programs can help reduce grid stress and costs during peak periods, also increasing reliability and affordability.

NREL models the potential value and adoption of demand response strategies. NREL created the Object-oriented Controllable High-resolution Residential Energy (OCHRE™) model to quantify the grid and customer impacts of emerging technologies in residential buildings. OCHRE simulates a variety of device control methods, in individual homes and at scale. NREL also conducts detailed modeling of electric vehicle (EV) charging based on travel needs, electricity supply, and grid conditions to understand the potential value to the grid.

While demand flexibility offers valuable benefits for grid management and energy efficiency, it may not equally serve all segments of the population. For example, aligning EV charging with renewable energy supply might not be possible for low-income EV owners who do not have the flexibility to charge during those times. NREL is also studying many questions related to equity in demand response programs. For example, NREL studied the untapped potential of demand response to the grid edge in South Africa, including the equity impact of dispatchable and non-dispatchable demand response technologies.

Customer Adoption Simulations

Understanding how consumers adopt and interact with new technologies is central to achieving grid equity. Customer adoption models shed light on the factors influencing individuals' decisions to embrace sustainable energy solutions. By tailoring outreach strategies to diverse consumer preferences, we can accelerate the adoption of clean energy technologies and propel our communities toward a more sustainable future.

Distribution Grid Upgrades Analysis

As jurisdictions transition toward clean energy, existing distribution grid infrastructure will need to be updated and expanded to support reliable service during routine operations, enable interconnection with DERs and electrified loads, and provide access to energy-related services during disasters.

NREL performs distribution grid upgrade and resilience analyses using NREL's Distribution Integration Solution Cost Options (DISCO) model and income-differentiated household load profiles. This approach answers two key questions: Where can distribution system upgrades be prioritized to enable equitable access to, and adoption of, clean energy technologies? And, how can jurisdictions provide equitable, resilient access to electricity-related services (e.g., health care, food) during disaster events like earthquakes and flooding? This type of distribution grid analysis was a key part of the LA100 Equity Strategies project.

Rate Design Strategy

By effectively capturing how rates are structured and how customers respond to those rates through changing load patterns and DER adoption, NREL researchers estimate the impacts of policy, regulation, and power system conditions on all customers.

NREL researchers developed an integrated methodology for combining the features of multi-stakeholder systems with diverse objectives into a flexible Holistic Electricity Model. This integrative approach allows decision makers to compare electricity systems in different environments, supporting more strategic and equitable rate design.

NREL researchers also developed the Customer Affordability, Incentives, and Rates Optimization model to estimate the impact of rate design decisions, bill assistance programs, and DER incentives and compensation policies on customers. The model was developed for the LA100 Equity Strategies project and enables decision makers to evaluate how their choices and future power system conditions will impact the most vulnerable customers on the grid.

Publications

Nova Analysis: Holistically Valuing the Contributions of Residential Efficiency, Solar and Storage, NREL Technical Report (2024)

Virtual Power Plants and Energy Justice, NREL Technical Report (2023)

LA100 Equity Strategies. Chapter 5: Low-Income Energy Bill Equity and Affordability, NREL Technical Report (2023)

LA100 Equity Strategies. Chapter 12: Distribution Grid Upgrades for Equitable Resilience and Solar, Storage, and Electric Vehicle Access, NREL Technical Report (2023)

Distributed PV Hosting Capacity Evaluation Considering Equitable PV Accommodation, IEEE Kansas Power and Energy Conference (2023)

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