Abstract
Sustaining, maintaining, and upgrading the electricity grid, while meeting decarbonization goals is a challenge facing policymakers, regulators, grid operators, and investors. Simultaneously meeting demands for future capacity, retiring older inefficient technologies, and addressing externalities from energy production and use requires more diverse and inclusive technologies to avoid constraints and shortfalls in grid capability. Changing the energy production paradigm by encouraging alternative technologies was a key driver for FERC Order 2222. This stimulus for developing new small-scale generation will complement and supplement the existing fleet only if it attracts new investment. This investment must reflect technology that goes beyond the energy-only characteristics of traditional generation, creating systems where suites of energy-equivalent outputs are enhanced by environmental quality benefits and offsets. We use energy system designs to highlight the contribution that measuring and accounting for equivalency values provides net increases in capacity, electricity, and alternative fuels while simultaneously reducing carbon waste impacts.