Conceptually, the curve from the NARUC report identifies three stages of activity: grid modernization, DER integration, and distributed markets.
Each stage is identified with two characteristics: adoption of DER and installation of technology to support DER development.
Most jurisdictions, according to the report, are still located in stage 1, where there is a low amount of DER adoption and utility investments in grid modernization are still underway.
According to experts cited in the report, the move into stage 2 occurs when DER adoption “reaches beyond about 5 percent of distribution grid peak loading system-wide.” Then, stage 3 occurs when “a high amount of DER adoption occurs and regulators construct a system to allow for multi-sided transactions to occur between DER and the distribution utility, but also to and from customers.”
NARUC’s announcement is available at this link, and the full report at this link.