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Economic Evaluation of Modernization Expenditures for Electric Utility Distribution Systems: A Guide for Utility Regulators

Cost-effectiveness evaluation of potential grid modernization solutions is integral to integrated distribution system planning (IDSP). This report synthesizes and updates prior cost-effectiveness approaches identified by the U.S. Department of Energy for grid modernization investments, incorporating multi-objective decision-making. The structure of the report follows the IDSP process, from identifying objectives and priorities to prioritizing grid solutions. The report details two methods for conducting initial cost-effectiveness screening of individual and interdependent grid components: (1) Lowest Reasonable Cost and (2) Benefit-Cost Analysis. Drawing on solutions that passed the initial cost-effectiveness screen, the utility prioritizes grid solutions based on policy objectives and priorities, regulatory compliance, operational efficiencies, and other factors to develop a portfolio of distribution solutions. The utility uses multi-objective decision-making to assess each proposed expenditure against each objective and respective metric. The utility applies a weighting factor, reflecting the priority ranking of the objective, to the total numerical “score” based on the contribution of the proposed solution to addressing each objective. Ultimately, the utility ranks each expenditure from highest to lowest priority using the final score for each solution as well as its cost. The report includes examples of emerging best practices for states and utilities and a cost-effectiveness process checklist.

24 POWER TRANSMISSION AND DISTRIBUTION

Direct Air Capture and Utilization System (DACUS): FEED Study of CarbonCapture Inc. DAC and CarbonCure Utilization Technologies Using United States Steel’s Gary Works Plant Waste Heat

The effects of climate change are drastically perceived through the alarming rates of severe events such as flooding, hurricanes, wildfires, global temperature rise, sea-level rise, and ocean acidification etc., which has prompted the nations across the globe to control & reduce greenhouse gas (GHG) emissions, by massive adoption of electric vehicles, switching to renewal energy sources and promoting sustainable green products. However, recent climate studies have shown that such efforts will not be enough to keep the global temperature rising under 1.5° Celsius by the year 2050, which lead to the development of multiple Direct Air Capture (DAC) technologies. A DAC system extracts CO2 directly from the atmosphere, which is either stored underground for long term or utilized in other processes. The DACUS proposed at U.S. Steel Corporation’s Gary Works Plant in Gary, Indiana, will include an innovative DAC technology from CarbonCapture Inc. (CCI), which will be collocated and powered by waste heat from the steel plant to capture CO2 from ambient air, and CarbonCure CO2 utilization technology- which is a commercial technology that is already installed and in use by early adopters in more than 150 concrete mixing plants across North America and Asia. The University of Illinois at Urbana Champaign spearheaded this Front-End Engineering Design (FEED) study project, which was funded by US Department of Energy (DOE), aimed at designing a state-of-the art DACU system that can remove minimum of 5,000 tonne/year net CO2 from air (based on cradle-to-gate LCA) and converting the captured CO2 into low carbon intensity products. The off takers of the low Carbon product produced by the DACUS have also been identified near the steel plant in the Indiana, Illinois & Wisconsin Region. This creates a full CO2 value chain and provides a means to assess the impact of this holistic approach on job creation, regional economic impact, and environmental justice. DACUS is a promising new technology for reducing greenhouse gas in the atmosphere. Operation costs are minimized by locating CCI’s innovative DAC collector at United States Steel's Gary Works site where waste heat is utilized. Carbon emissions are minimized in CO2 transportation. The captured CO2 will be permanently sequestered in concrete used as construction material. This DOE funded FEED study demonstrates a full CO2 value chain for a DACU system, supported by an industrial facility. If this project were constructed, it would have a very positive and lasting impact on both the environment and the community.

42 ENGINEERING

Distribution System Plan Template and Guide for Electric Utilities for Adaptation by States and Utilities [Slides]

LBNL researchers developed a template and companion guide for structuring distribution system plans. The template covers 10 key sections in utility distribution system plans and underlying topics: -Executive Summary -Planning Objectives -Current Distribution System -Planning Approach -Asst Management, Reliability and Resilience -O&M Expenses -Capacity Expansion Planning -Solution Identification -Cost-effectiveness -Implementation For each section in the template, the companion guide provides: a description of the topics covered and their importance; the type of content to include in the plan; an example utility approach; and references to other utility plans that serve as models for the topic.

24 POWER TRANSMISSION AND DISTRIBUTION

National Laboratory of the Rockies: Pennsylvania Public Utility Commission/ Technical Utility Services Bureau Distribution System Resilience Deep Dive 2025

The following is a summary of the National Laboratory of the Rockies (NLR) - Pennsylvania PUC/ Technical Utility Services Bureau (TUS) Distribution System Resiliency Deep-Dive project. This is work that NLR performed to provide the support that the TUS requested under the Resources and Support for State Energy Offices & Regulators (RASOR) program.

29 ENERGY PLANNING, POLICY, AND ECONOMY

No Quantum Utility from Hadron Masses? No, Quantum Utility from Hadron Masses!

Is there a quantum utility in establishing the masses of hadrons? Here we show that the best response is that of Farrés, Capó, and Davis: perhaps, perhaps, perhaps. This is interesting given the general case that particle physics demands quantum computers. For stable hadrons, classical LQCD has achieved sub-percent precision with no sign problem, and quantum computers offer no advantage. For resonances, the Maiani-Testa theorem is an obstruction that quantum simulation is immune to. For nuclei, Wick contractions and signal-to-noise are genuine classical barriers. Underlying these cases is a unified picture connecting the sign problem to Wigner negativity and T gate cost. This manuscript was drafted from extensive interaction with \textsc{Claude}.

Lamm, Henry [Fermilab] (ORCID:0000000330330791)

Catabolism of lignin-related methoxylated compounds in white-rot fungi utilizes non-canonical oxidoreductases

White-rot fungi (WRF) are the most effective lignin-degrading organisms in nature, making them essential to Earth’s carbon cycle. Lignin is a highly methoxylated, heterogeneous biopolymer derived from plants. However, the pathways WRF use to metabolize methoxylated aromatic monomericcompounds as carbon sources remain unidentified. Here, we employ a systems biology approach to elucidate the intracellular catabolism of vanillate – a monomethoxylated aromatic compound – in two white-rot fungi (WRF), Gelatoporia subvermispora and Trametes versicolor. We identified and biochemically validated a four-enzyme pathway that converts vanillate into ß-ketoadipate – a metabolite that enters central carbon metabolism. This pathway deviates from typical bacterial pathways, where vanillate is initially demethylated and ring-cleaved by intradiol dioxygenases; instead, oxidative decarboxylation occurs prior to ring cleavage by extradiol dioxygenases. Thus, we conducted an in-depth investigation of ring cleavage and further downstream catabolism by the identified fungal enzymes using biochemical and structural approaches. This revealed non-canonical enzymes, including a highly substrate-specific extradiol dioxygenase and a metal-free, promiscuous reductase, the latter capable of acting on catabolic intermediates derived from both methoxylated and non-methoxylated aromatic compounds. This work emphasizes the potential of WRF and their enzymes to advance lignin valorization and enhance our understanding of their role during wood decay.

dioxygenase

Data for Filling the Cellulosic Bio-economy Gap by Utilizing a Wedge Approach Combined with Stakeholder Collaboration

The price gap between the market and breakeven prices of cellulosic biomass for farmers represents a significant barrier to the development of a low-carbon cellulosic bioeconomy. Using a bottom-up, agent-based modeling tool that replicates the behaviors and interactions of key stakeholders, this study analyzes the emergence of a cellulosic bioeconomy at the local scale through a wedge approach that examines an integrated portfolio of multiple policy options, including subsidies for small-scale bioproducts and environmental credits. The role of collaboration among multiple stakeholders, such as biomass producers (farmers), bio-refinery industry, government, and society, is assessed for filling the price gap. Using the Sangamon River Basin as a case study site, we evaluate the effectiveness of the wedge approach by comparing simulation results from multiple scenarios, each incorporating different combinations of bioeconomy wedges, with and without stakeholder collaboration. Results underscore that active collaboration among stakeholders acts as a catalyst enlarging the effectiveness of bioeconomy wedges. Including the carbon credits and environmental value in the policy portfolio is found to bridge the price gap through collective contributions from diverse stakeholders, where the cellulosic biofuel and bioproduct industry plays a pivotal role. Although this study is conducted at the local watershed scale, the methodology and findings offer valuable insights for market development in other watersheds and the potential scaling of local markets to regional and national levels.

Economics

Performance Assurance Planning Guide for Utility Energy Service Contracts: 2025 Edition

Administered by the U.S. Department of Energy's (DOE) Federal Energy Management Program (FEMP), the Utility Program has fostered collaboration among federal agencies and their serving utilities for more than 25 years. The Utility Program supports agencies using Utility Energy Service Contracts (UESCs), a well-developed, effective contracting vehicle that enable the latest approaches to cost-effective energy management at federal sites. Federal agencies have successfully used UESCs to award over 2,000 energy and water efficiency and renewable energy projects, investing approximately $\$$2.8 billion in furthering the Federal Government's efforts to reduce energy intensity. Authorized by 42 U.S. Code section 8256 (10 U.S. Code section 2913 for the Department of Defense), a UESC is a limited-source acquisition between a federal agency and an eligible serving utility for energy management services that generate savings from the implementation of energy- and water -conservation measures (collectively referred to as ECMs), with 42 U.S. Code section 8287 (Defense Federal Acquisition Regulation Supplement, Part 241), providing the term of a UESC, which may extend up to 25 years. Through a UESC, the utility partner assesses designs, and implements the desired ECMs - which can range from lighting retrofits and renewable energy systems, to combined heat and power plants or other technologies and strategies, and may provide financing for the project. The agency may use any combination of appropriations and third-party financing to pay for the project, providing useful flexibility. There is no limit to the project size, big or small, that can be implemented using a UESC. To assist agencies implementing a UESC, FEMP has developed a Utility Energy Service Contract Guide and this companion guidance document to help agencies and their utility partners better understand the best practices for to ensure UESCs continue to perform and generate savings throughout their performance period. These best practices utilize a combination of effective project management, communication, documentation, and a detailed Performance Assurance Plan. This plan is a project specific set of actionable protocols that define important tasks and responsibilities throughout the contract term and reflects the site conditions, complexities, agency capabilities, and operating and maintaining planned ECMs.

29 ENERGY PLANNING, POLICY, AND ECONOMY

Bridging the Gap on Data, Metrics, and Analyses for Grid Resilience to Weather Events: Information that utilities can provide regulators, state energy offices, and other stakeholders

A growing number of states require regulated utilities to file resilience plans to improve the electric grid’s ability to anticipate, withstand, adapt to and recover from increasingly severe weather events. This report aims to help state regulators identify and request data, metrics, and analyses from utilities and use it in decisions on utility resilience plans and investments. The report reviews state requirements and utility plans focused on overall grid resilience, climate change resilience and vulnerabilities, infrastructure modernization, storm protection, and wildfire mitigation. It details types of data, metrics, and analyses across five categories--and provides examples of each from the utility plans. The first category is vulnerability assessments, or evaluations of the susceptibility of systems, communities, or assets to potential harm from identified hazards. The second is data on hazards and the exposure of utility assets and customers to these hazards. The third is attribute metrics, or system characteristics that contribute to or describe the resilience of a system. The fourth is performance metrics, which are impacts of resilience investments on system performance--typically a reduction of negative impacts from hazard events. Finally, evaluation and prioritization are analyses that utilities conduct to estimate impacts from resilience measures (evaluation) and prioritize measures based on costs and estimated impacts (prioritization). The report concludes with examples of key trends and emerging best practices for states and utilities, and identifies areas for further research.

24 POWER TRANSMISSION AND DISTRIBUTION

Bridging the Gap on Data and Analysis for Distribution System Planning: Information That Utilities Can Provide Regulators, State Energy Offices and Other Stakeholders

Electric utilities conduct planning annually to ensure their distribution system meets technical standards, policies, and regulations; addresses forecasted grid conditions; satisfies customer needs; and advances utility priorities. The plan identifies grid deficiencies, analyzes potential solutions, and prioritizes capital investments and other expenditures. About 20 U.S. states and jurisdictions require regulated utilities to file some type of distribution system plan with the public utility commission for review. Requirements for sharing distribution system data and analyses vary widely, from few specific requirements to a detailed list of information that must be provided. While utilities conduct extensive analysis to develop distribution system plans, in most jurisdictions regulators and stakeholders do not know what data are available and how the utility uses the data in planning and investing. This report aims to bridge the gap by increasing understanding of the types of data and analyses utilities employ to develop distribution system plans and how the information affects their decision-making. The report describes information that states and stakeholders can ask for related to 11 data categories: -Forecasting loads and distributed energy resources (DERs) -Scenario analysis -Worst-performing circuits -Asset management strategy -Hosting capacity analysis -Value of DERs -Grid needs assessment -Cost-effectiveness framework for investments -Distribution system investment strategy and implementation -Geotargeted programs -Non-wires alternatives procurements.

24 POWER TRANSMISSION AND DISTRIBUTION

Electric Utility Distribution Costs: Scoping Study on Trends, Drivers, and Possible Response Strategies [Slides]

This scoping study synthesizes information that will help stakeholders understand the scope, scale, and drivers of recent increases in investor-owned utility (IOU) expenditures on local distribution power grids, while providing regulators and other decision-makers with potential strategies to keep electricity bills down. The study includes five distinct components. Drawing first on data from FERC Form 1, it summarizes key trends in past and recent IOU distribution costs. Next, through a review of a sample of distribution-system plans, it characterizes material drivers of planned distribution expenditures. Ultimately, regulators must approve cost recovery for IOU expenditures, including those for the distribution system. The study therefore also: examines trends in utility requests and regulatory approvals related to changes in retail rates and return on equity; identifies areas where utility shareholder and customer incentives may be misaligned; and develops a menu of options that state regulators might consider to optimize distribution system expenditures. Some of the key findings include: - IOU distribution spending at a national level has grown by 6%/yr since 2014 in real dollar terms, 4x faster than in the prior 20 years and consisting mostly of capital (not operating) expenditure. - On a per-kWh basis, increases in IOU distribution costs since 2014 represent over 30% of the overall national-average increase in retail electricity rates. - Regional spending growth has ranged from 2-8%/yr, with larger estimated rate impacts in CAISO, then NYISO & ISO-NE, and then the Southeast, MISO & PJM (see figure). - Some utilities are planning for significantly increased distribution system spending. Planned spending on managing the existing system (asset replacement, safety & reliability, and resilience are all important drivers) exceeds that for capacity expansion. - IOU rate increase requests ($18 billion in 2025) and public utility commission (PUC) approval levels (average of 64% of requested amounts from 2021-2025) have recently hit multi-decadal highs. - PUCs in New England and the Southeast have recently approved a greater fraction of rate requests (>75%, on average) than in ther regions, while PUCs in California and the Southeast have generally authorized higher equity returns than in other regions. - Regulators have many tools to tackle potential misalignments between utility and customer interests and, more specifically, to optimize and reduce distribution costs. Shorter-term options include those related to return on equity, capital structure, depreciation, trackers, construction work in progress, and securitization. Longer-term options include performance-based regulation and a wide variety of planning-related requirements. All options embed important tradeoffs.

24 POWER TRANSMISSION AND DISTRIBUTION

Laboratory Evaluation of Commercial Utility Microgrid Controller Test Results

The functional requirements of many microgrid controllers (MGCs) are expanding and evolving to meet growing utility and community needs. At a high level, the utility microgrid controller serves resilience and reliability use cases by coordinating transitions between grid-connected and islanded states and by managing the system during island operations. This includes control scenarios that require the microgrid controller to use flexible microgrid boundaries, maintain energy balance, coordinate with peer systems, and manage grid-forming (GFM) and grid-following (GFL) distributed energy resources (DER). In order to evaluate these functional enhancements, microgrid controller test plans must also be developed to ensure that the implemented controllers provide adequate performance. This report provides MGC test plans for both island operation and transition functions. The functions covered in this report include feeder level energy management, island constraint management, secondary voltage and frequency control, black start, and synchronized reconnection. This second edition update also includes results from applying the tests to a commercial utility microgrid controller. These results evaluate the performance and reliability of the controller under various operational scenarios. It identifies specific areas where the controller excels and highlights gaps that need to be addressed for future enhancements. The application of these test plans on real-world system behavior provides insights on commercial equipment readiness for field deployment. These test cases can be applied to utility-managed microgrid controllers that exclusively manage utility-owned equipment; the tests also apply to third-party managed microgrid controllers that coordinate with utility- and customer-owned equipment. The report can also be used by technology developers and project developers in industry to evaluate control strategies and performance characteristics for community microgrid controllers.

24 POWER TRANSMISSION AND DISTRIBUTION

FEED Study of CarbonCapture Inc DAC and CarbonCure Utilization Technologies Using United States Steel’s Gary Works Plant Waste Heat (Final Report)

The University of Illinois at Urbana-Champaign (UIUC) led this project to produce a front-end engineering design (FEED) study of an advanced Direct Air Capture and Utilization System (DACUS) system that can remove a minimum of 5,000 tonnes/yr net of carbon dioxide from air (based on cradle-to-gate LCA) and utilizing the CO 2 to produce low carbon intensity ready mix concrete. The designed system, if built, would be larger than any currently existing Direct Air Capture (DAC) collector in the U.S. Such carbon capture technologies are critical to meeting the goals of the DOE’s program to accelerate climate-critical technology. In addition to the power sector, industrial facilities for the manufacture of steel and cement/concrete are among the major sources of anthropogenic CO 2 . DAC is a promising new technology for reducing CO 2 , a potent greenhouse gas, in the atmosphere but is expensive, in part due to the energy required to adsorb and desorb captured CO 2 during cycles. By integrating CarbonCapture Inc. (CCI) DAC modules at United States Steel's Gary Works (USS) and utilizing the site's waste heat, energy, and location this project evaluates the feasibility of utilizing the captured CO 2 and the logistics of transportation. CarbonCapture Inc. has developed an innovative DAC system using novel adsorbents to cost-effectively capture CO 2 . The captured, liquified gas will be trucked to ready-mix concrete plants within the region, the closest of which is approximately 3.5 miles away, where CarbonCure will inject it into concrete during the mixing process at the facilities. The carbon dioxide reacts with concrete, mineralizing into calcium carbonate (CaCO 3 ), permanently locking the greenhouse gas into the matrix of the building material. This FEED study demonstrated a full CO 2 value chain for DACUS from industrial facilities. It also provided a means for Visage Energy Corp. (Visage) to assess the impact of this holistic approach on job creation, regional economic impact, and environmental justice. The project team also included Sargent & Lundy (S&L) to provide the constructability review and costing of the integration of the DAC with the steel plant. Ecotek Engineering USA, LLC designed the outside battery limit (OSBL) infrastructure to connect the DAC and the plant. Activities performed during the project included: (1) Project Management Plan; (2) Technology Maturation Plan (TMP); (3) Initial Workforce Readiness Plan; (4) Workforce Readiness Plan; (5) Front-End Engineering Design (FEED) Study; (6) Project Design Basis; (7) Hazards and Operability (HAZOP) Study; (8) Constructability Review; (9) Project Cost Assessment; (10) Logistics Analysis of CO 2 Transportation to the Utilization Site; (11) Business Case Analysis; (12) Life Cycle Analysis (LCA); (13) Environmental Health and Safety (EH&S) Analysis; (14) Environmental Justice Analysis; and (15) Economic Revitalization and Job Creation Outcomes Analysis. This report provides a summary of the outcomes and results of the project, which was performed between Oct. 1, 2022, through Sept. 30, 2024.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI

Strategies for Flood Resilience and Grid Investment Among Iowa's Electric Distribution Utilities

Flooding poses a growing threat to Iowa's electric distribution system, yet utilities face significant data and modeling challenges in planning effective resilience investments. This report provides a foundational assessment of how distribution utilities in Iowa, investor-owned, municipal, and cooperative, approach resilience planning, with a focus on flood risk. It combines hazard characterization, review of state and utility practices, and application of NLR's Energy Resilience Analysis for Distribution Systems (ERAD) and Capacity Expansion Decision Support for Distribution Networks (CADET) tools. Using FEMA floodplains, Iowa Flood Center depth grids, and utility infrastructure data, the analysis quantifies asset exposure, simulates outage risks, and evaluates resilience strategies such as pole hardening, undergrounding, and substation protection. Results indicate that while feeder-level upgrades provide incremental benefits, the most significant reductions in outage risk are achieved through targeted substation interventions. The report highlights key data gaps, such as limited elevation data and fragility functions, and underscores the need for probability-weighted investment frameworks to address both frequent and catastrophic flood events. These insights aim to support utilities, state agencies, and federal partners in prioritizing resilience investments that safeguard Iowa's electric grid against future flooding.

24 POWER TRANSMISSION AND DISTRIBUTION

Examples of State and Utility Actions on Proactive Planning and Investments

As states across the U.S. confront rising electricity demand, clean energy deployment, grid modernization imperatives, and the integration of large new loads, some regulators and utilities are shifting away from reactive, “just-in-time” investment approaches toward more proactive planning and investment frameworks. This report compiles examples of jurisdictional and utility actions that reshape planning processes, cost recovery mechanisms, and performance oversight to anticipate—rather than simply respond to—future grid needs. Several themes emerge from state actions examined in this report. First, legislatures and commissions are increasingly directing utilities to proactively upgrade their distribution and transmission systems, reflecting a shift toward a forward-looking system that aligns planning with state policy goals. Second, states are establishing long-term, iterative planning frameworks that often feature multi-year horizons, biannual or annual compliance reporting, structured opportunities for stakeholder engagement, and emphasis on collaboration among utilities, regulators, and stakeholders. Third, states are actively investigating innovative cost recovery mechanisms designed to support accelerated electrification and grid modernization, while balancing consumer advocates’ concerns regarding the ratepayer financial risks of premature investments. Fourth, performance metrics and reporting requirements are being developed to ensure transparency and accountability for proactive investments. Fifth, methodological improvements in planning—such as aligning load forecasting assumptions, incorporating sensitivities, and considering load management potential across building, vehicles, storage, and demand response—are recurring areas of stakeholder focus across jurisdictions. Overall, these developments signify a growing recognition among state regulators, utilities, and stakeholders that proactive planning—supported by clear definitions, consistent and transparent methodologies, robust performance metrics, and innovative cost recovery mechanisms—is a tool that can be used to address the scale and urgency of contemporary grid needs.

electricity market

Utilities Perspective on Protection Challenges with High IBR Penetration

Utilities have seen rapid increase in Solar, Wind, and Battery Energy Storage Resources that interconnect to their electric system through Inverters. Inverter-Based Resources (IBRs) have fault current characteristics that are unlike the fault current response of traditional rotating-machine-based generators, which is well known and repeatable. IBR’s non-traditional fault current behavior is due to the IBR control scheme, which is configured to provide a clean AC output but also protect the inverter’s sensitive power electronics devices from damage, one source of which is overcurrent. This results in low fault current magnitude, low or no negative sequence current injection, the variability of sequence component currents, the variability of voltage with respect to current angles, and the lack of inertia. The control scheme also results in a fault current response that can vary between manufactures and between models of the same manufacturer. High penetration of IBRs can adversely affect the protection schemes applied in areas with high penetration of IBRs. With the proliferation of IBRs, utilities are finding out that conventional protection schemes are not adequately equipped to protect the electric systems. This is mainly because the existing protection elements and practices have been designed based on the fault current response of conventional rotating machines. In several cases, the available literature does not provide any clear solution for the issues when the protection scheme does not operate properly near IBRs. This presentation identifies various protection challenges due to IBRs that industry is facing, from the utility perspective. Instead of facing on one issue, we are looking broadly on all the challenges that system protection has experienced with high penetration of IBRs. Based on the IBR response from various utilities during real fault events and gathering perspective from different utility SMEs via questionnaire, the presentation summarizes on gathered data and internal experiences.

24 POWER TRANSMISSION AND DISTRIBUTION

Climate Adaptation Approaches for Water and Electric Utilities: A compendium of existing strategies in a changing climate

Report analyzes plans developed by water and electric utilities to address the impacts of changes in the climate within their service territories. The analysis identifies the main types of changes that utilities address, such as sea level rise, extreme heat, and compound events such as freezing rain/show and extreme wind events. It then identifies adaptation approaches utilities have proposed or adopted to address the changes that are anticipated in their service territories. The report also identifies the mechanisms utilities (and in some cases the governments which the utilities are part of) use to ensure that energy or environmental equity is increased as a result of the resilience program. In summary, the report provides a compendium of adaptation strategies that can be used by others as they review their own need to increase climate resilience.

29 ENERGY PLANNING, POLICY, AND ECONOMY

Utility Perspective on Protection Challenges with High Penetration of IBRs

Utilities have seen rapid increase in Solar, Wind, and Battery Energy Storage Resources that interconnect to their electric system through Inverters. Inverter-Based Resources (IBRs) have fault current characteristics that are unlike the fault current response of traditional rotating-machine-based generators, which is well known and repeatable. IBR’s non-traditional fault current behavior is due to the IBR control scheme, which is configured to provide a clean AC output but also protect the inverter’s sensitive power electronics devices from damage, one source of which is overcurrent. This results in low fault current magnitude, low or no negative sequence current injection, the variability of sequence component currents, the variability of voltage with respect to current angles, and the lack of inertia. The control scheme also results in a fault current response that can vary between manufactures and between models of the same manufacturer. High penetration of IBRs can adversely affect the protection schemes applied in areas with high penetration of IBRs. With the proliferation of IBRs, utilities are finding out that conventional protection schemes are not adequately equipped to protect the electric systems. This is mainly because the existing protection elements and practices have been designed based on the fault current response of conventional rotating machines. In several cases, the available literature does not provide any clear solution for the issues when the protection scheme does not operate properly near IBRs. This report / presentation identifies various protection challenges due to IBRs that industry is facing, from the utility perspective. Instead of facing on one issue, this report looks broadly on all the challenges that system protection has experienced with high penetration of IBRs. Based on the IBR response from various utilities during real fault events and gathering perspective from different utility SMEs via questionnaire, the report summarizes on gathered data and internal experiences.

14 SOLAR ENERGY