Non-Wires Alternative (NWA)
A non-wires alternative bundles distributed energy resources, demand response, and operational measures to defer or avoid traditional transmission and distribution upgrades. Utilities evaluate NWAs when projected load growth would overload circuits but alternative solutions could deliver equivalent reliability at lower cost or faster timelines.
NWA portfolios may include storage, DERMS-enabled flexible loads, energy efficiency, and targeted microgrids. Utilities assess locational value, contract duration, and measurement requirements before substituting NWAs for capital projects. Regulators often require cost comparisons and benefit sharing mechanisms to ensure ratepayer value.
Developers compete in NWA solicitations by demonstrating proven dispatch, telemetry, and customer acquisition strategies. Successful programs demand tight coordination between DSOs, DER aggregators, and financing partners who can manage multi-party contracts.
Data transparency is critical, as stakeholders need to understand baseline loading, risk tolerances, and contingency plans should NWA resources underperform.
Technical Details
- •Targets specific circuits or substations with deferred upgrades
- •Combines storage, DERs, demand response, and efficiency programs
- •Requires robust measurement and verification plans
- •Often compensated through performance-based tariffs or contracts
- •Subject to regulatory oversight and benefit-cost analysis
Why It Matters
NWAs create a structured market for DER developers to deliver grid services. Tera catalogues NWA solicitations, winning portfolios, and performance metrics so investors can align offerings with utility needs.
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