Grid Services and Technologies Valuation Framework: The Long-Term Vision for Development and Implementation

The US electric grid is a vast complex of equipment, processes, and controls to deliver clean, reliable, and economical electricity to consumers. Every grid service and technology bring a variety of values and costs to the system. The values are often expressed as reliability, flexibility, resilience, affordability, sustainability, and/or security. The values are often difficult to measure, not directly comparable, and subject to various stakeholders’ different perspectives. Nonetheless, it is difficult to overstate the importance of producing credible, analytically sound information about the comparative value of the products and services available through existing and emerging grid-related technologies. The valuation framework devloped in this project is  a specific application of valuation theory for grid activities. It will guide future valuation studies to enable electricity-sector stakeholders to conduct, interpret, and most importantly, compare valuation studies with high levels of consistency, transparency, repeatability, and extensibility. This vision is intended to enable two broad outcomes: a generic decision process to aid stakeholders in determining the valuation methodologies and tools most appropriate for their needs, and a common language to enhance transparency and comparability between valuation studies while giving room for stakeholder perspectives to affect the assumptions, methods, and conclusions.