Adam Umanoff Discusses the Growth of Distributed Generation

Akin Gump energy partner Adam Umanoff was quoted in the FierceEnergy article “2014 hot topics in renewables,” an examination of some of the big issues that could affect the renewable energy market in the coming year.

Umanoff discusses the topic of distributed generation (DG), the process of producing power close to the point of consumption, which the article says is one of the biggest areas of concern for utility executives. Umanoff points out that as a greater number of customers leave the utility network for DG, “fewer customers are left paying the cost to maintain the utility distribution network.” He notes that California recognized the scope of this issue by requiring DG consumers still connected to the utility distribution system and purchasing electricity from their local utility when their DG system is not generating electricity “to pay a monthly distribution network maintenance charge to their utility.

The article reports that a recent survey of utility executives found that more than 80 percent of them see DG as an opportunity, rather than a threat, though they are divided on how to take advantage of it.