Regulatory Sandboxes and Other Processes to Expedite Utility Adoption of Advanced Grid Technologies – CleanTechnica

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Last Updated on: 26th July 2025, 12:45 am

Electricity grids are facing significant pressure from load growth, aging infrastructure, increasingly dynamic operational needs, and severe weather events. Advanced grid technologies can help meet these challenges, but traditional regulatory frameworks may limit utility pathways to innovation. Regulatory sandboxes offer a potential solution by establishing a structured environment for piloting innovative approaches under modified rules to test and quickly scale new technologies. They also explore new business models and programs to increase the speed of adoption.

Lawrence Berkeley National Laboratory’s new report, Regulatory Sandboxes and Other Processes to Expedite Utility Adoption of Advanced Grid Technologies, documents examples of regulatory sandboxes and similar approaches, provides lessons on fostering an ecosystem of innovation in the utility sector, identifies emerging best practices, and assesses the value that utilities have delivered to customers through these innovation vehicles. The U.S. Department of Energy’s Office of Electricity supported the study.

The authors will be joined by experts from states that have deployed sandboxes to discuss their findings and on-the-ground experiences in a public webinar on August 13, 2025, from 11 a.m. to 12 p.m. Pacific. Register here: https://naruc-org.zoom.us/webinar/register/WN_aFs3EoNbRzKaRk4cXMFNVg

The report features jurisdictions across the United States (see map), including a dozen that have successfully used sandbox-type mechanisms to test advanced grid technologies—such as targeted deployment of energy storage, smart distribution circuits, and dynamic line rating—to reduce peak demand and increase grid flexibility. Jurisdictions also have used sandboxes to trial new customer programs, workforce development approaches, and resilience and cybersecurity strategies.

The report identifies traditional utility regulation and industry characteristics that can hinder innovation. It also illustrates how regulatory sandboxes can serve as an important tool in the toolkit, alongside other innovation vehicles, to overcome these barriers (see figure).

Researchers found that the benefits of sandboxes go beyond simple changes to electricity technologies and services. Sandboxes also provide significant value through relationship-building, dialogue, and increased openness to experimentation at utilities and regulatory bodies.

Regulatory Sandboxes and Other Processes to Expedite Utility Adoption of Advanced Grid Technologies can be downloaded here. Report authors are Grace Relf, Matia Whiting, Lisa Schwartz, and Evan Cappers.

News from Lawrence Berkeley National Laboratory.