Technological change is outpacing both infrastructure capabilities and policy development while states look for ways to sync policy with a rapidly changing energy market. The explosion of new technologies-from smart water heaters and thermostats to electric vehicles, rooftop solar panels, energy storage and advanced metering infrastructure-promise a more efficient, reliable and resilient energy future. The degree to which states have moved toward a more advanced and distributed grid varies greatly, however. Several states are finding that that these technologies and practices are outpacing regulatory policy and that changes are needed to appropriately value their contributions, or costs, to the grid. While the changes are significant and rapid, most electricity is still provided by large central power plants and the ultimate balance of centralized and distributed energy resources is yet to be determined.
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