Development of a Valuation Framework for Grid Services and Technologies

Across the electric power sector, stakeholders ranging from individuals to power producers, grid operators, regulators, and policy makers use different methodologies to value—estimate and catalog the impacts of—grid services and technologies. These valuations can be assimple as basic purchasing decisions to complex analyses supporting multi-million and billion-dollar capital investment or R&D portfolios. However, despite the importance of valuation, current approaches are difficult to directly compare and reconcile—because they rely upon differing, often opaque assumptions concerning economic and engineering inputs as well as time, geographic, and power system scales. This diversity and lack of transparency hampers informed decision making because the approaches to quantifying and monetizing costs and benefits—if quantification and monetization are even considered possible—can produce highly divergent results.