What can be a consequence of outdated grid regulations?

Outdated grid regulations can create significant obstacles in accommodating distributed generation, which refers to smaller-scale energy generation that is often located close to where the energy will be used, such as solar panels on homes or small wind turbines. These regulations may not support the integration of new technologies or the growing number of decentralized energy resources, leading to challenges in managing grid stability, interconnection processes, and the allocation of responsibilities between utility providers and independent energy generators.

When regulations do not evolve with technological advancements or changing energy landscapes, they can hinder the effective deployment of distributed energy resources. This manifests in various ways, such as complicated permitting processes, uncertain financial incentives, or insufficient infrastructure to connect these resources to the grid. Therefore, the consequence of outdated grid regulations is a system that struggles to accommodate the surge of distributed generation, potentially stifling innovation and limiting the benefits such energy sources can provide to both consumers and the grid overall.