Dynamic Carbon Credits’ Post

Rising electric demand is only a threat to climate goals if we continue with business as usual. If increasing demand is paired with making it significantly easier/quicker/cheaper: for transmission lines to get built, for renewables to get permitted, for those same renewables interconnect to the grid AND utility incentives are restructured to promote non-wires alternatives over rate-based investment, then we can both hit our climate obligations and meet rising demand. Add in smart investments in efficiency and conservation, while supporting breakthrough technologies like long duration storage, fusion, and deep geothermal and you have a recipe for energy abundance that solves climate change and builds a stronger economy. #ActOnClimate

A New Surge in Power Use Is Threatening U.S. Climate Goals A boom in data centers and factories is straining electric grids and propping up fossil fuels NYTIMES 3/14/24 https://lnkd.in/e9gFzP_w Something unusual is happening in America. Demand for electricity, which has stayed largely flat for two decades, has begun to surge. Over the past year, electric utilities have nearly doubled their forecasts of how much additional power they’ll need by 2028 as they confront an unexpected explosion in the number of data centers, an abrupt resurgence in manufacturing driven by new federal laws, and millions of electric vehicles being plugged in. Many power companies were already struggling to keep the lights on, especially during extreme weather, and say the strain on grids will only increase. Peak demand in the summer is projected to grow by 38,000 megawatts nationwide in the next five years, according to an analysis by the consulting firm Grid Strategies (https://lnkd.in/enCzHvkz), which is like adding another California to the grid. “The numbers we’re seeing are pretty crazy,” said Daniel Brooks, vice president of integrated grid and energy systems at the Electric Power Research Institute, a nonprofit organization. In an ironic twist, the swelling appetite for more electricity, driven not only by electric cars but also by battery and solar factories and other aspects of the clean-energy transition, could also jeopardize the country’s plans to fight climate change. “I can’t recall the last time I was so alarmed about the country’s energy trajectory,” said Tyler H. Norris, a former solar developer and expert in power systems who is now pursuing a doctorate at Duke University. If a wave of new gas-fired plants gets approved by state regulators, he said, “it is game over for the Biden administration’s 2035 decarbonization goal.” Some utilities say they need additional fossil fuel capacity because cleaner alternatives like wind or solar power aren’t growing fast enough…many regulated utilities also have financial incentives to build new gas plants, since they can recover their costs to build plants, wires and other equipment from ratepayers and pocket an additional percentage as profit. As a result, critics say, utilities often overlook, or even block, ways to make existing power systems more efficient or to integrate more renewable energy into the grid. “It is entirely feasible to meet growing electricity demand without so much gas, but it requires regulators to challenge the utilities and push for less-traditional solutions,” Mr. Norris said. Stakes are high. If more power isn’t brought online relatively soon, large portions of the country could risk blackouts, according to a recent report by the North American Electric Reliability Corporation.

🌟 Embracing innovation is key to addressing the surge in power demand without compromising our climate goals. Let's streamline infrastructure development, incentivize renewables, and invest in breakthrough technologies to pave the way for a sustainable energy future. Great insights, Benjamin Downing! #Sustainability #Innovation #CleanEnergy #ActOnClimate 💡🌱 

How is the Energy Transition really going? I feel like a broken record, but the same items continue to come up regarding the Energy Transition. 1. The Energy Transition is really hard! It is the largest challenge humans have attempted. It will take much longer than advertised and to avoid a chaotic start it will involve a period of both/and investment in both hydrocarbon and low/no carbon energy solutions. We are very much in the both/and stage right now. 2. Permitting impediments and delays may be the single largest factor delaying the pace of the Energy Transition. As this article outlines, the inability to permit and build transmission faster is the main source of delay for low/no carbon energy generation. It is not "if you build it, they will come." It is "if you build it, they are waiting." Let's admit the grand challenge of this endeavor. Let's admit a period of both/and investment in all forms of energy is needed. Let's admit that permitting reform is the highest weed in the yard. https://lnkd.in/eJgwZ7Gu

It's not growing load that imperils progress on climate — it's how we respond. The dominant headlines on load growth in the US right now are very dire, and I've found myself getting pessimistic over the last few months when starting to look at the data coming out of utility plans. It was a helpful reminder to look back on past plans - and see that utilities consistently underestimated their ability to deploy clean energy (thanks Jesse Cohen for this research). As Mark Dyson eloquently stated - we need to take these forecasts seriously, not literally. It's a fabulous time for some innovation and creativity AND we have a set of readily-deployable, low-cost, low-carbon tools to leverage now, so let's use them!

This article reflects “a moment that demands bold vision, innovative solutions, and unprecedented collaboration,” says Director of Energy Innovation Nicole Iseppi. “We must accelerate the deployment of renewable energy, modernize our grid infrastructure, and harness the power of energy efficiency, demand response, and energy storage. We need policies and market designs that incentivize utilities to pursue these cleaner, more flexible alternatives to fossil fuel generation.   At the Bezos Earth Fund, we believe this challenge is also an immense opportunity - to build a cleaner, more resilient, and more equitable grid that powers our economic vitality and our climate progress. It will take all of us working together - utilities, regulators, technology providers, energy consumers, and environmental advocates. The stakes could not be higher, but neither could the potential for transformative impact.” https://nyti.ms/4afhFer

More U.S. utilities are considering decentralized power sources as a way to protect against climate change and decarbonize the grids. Here’s how Pacific Gas and Electric Company is using microgrids to further its sustainability and safety goals. Written by Heather Clancy.

This article is a great reminder that electricity load growth isn't inherently at odds with climate goals. In fact, increased demand is largely driven by the clean energy transition—electrifying vehicles, industry, and homes. The key lies in how utilities respond to this growth. Rather than relying on fossil fuel infrastructure, they should capitalize on advanced clean energy technologies and policies like the IRA to meet this demand efficiently. History shows that utilities can exceed even their own clean energy forecasts when the right solutions are embraced. #ElectricityLoadGrowth #ClimateGoals #CleanEnergy

It's going to be a hot one folks 🔥 🔥 , for July we're expecting record numbers and for Texans, that might leave you wondering about grid challenges. As the U.S. electric grid faces unprecedented challenges, it's crucial to adopt a balanced, sustainable energy strategy. From enhancing grid infrastructure to embracing innovative energy sources, our "wide path" approach can fortify our energy capacity and resilience. Discover how these strategies can inspire action and accelerate our progress toward a net-zero future 🌎 . Dive into our latest blog to learn more about turning climate challenges into opportunities. Read the full blog here 🔗 : https://lnkd.in/gA8Uqdar #ClimateOptimism #SustainableEnergy #CleanEnergy #NetZero #Innovation #EnergyStrategy

This is the paradox of advancing technology (i.e. AI) and (green) energy consumption: we can't keep up with the insatiable demand of energy for our growing economy... "In an ironic twist, the swelling appetite for more electricity, driven not only by electric cars but also by battery and solar factories and other aspects of the clean-energy transition, could also jeopardize the country’s plans to fight climate change. Some utilities say they need additional fossil fuel capacity because cleaner alternatives like wind or solar power aren’t growing fast enough and can be bogged down by delayed permits and snarled supply chains. While a data center can be built in just one year, it can take five years or longer to connect renewable energy projects to the grid and a decade to build some of the long-distance power lines they require. Utilities also note that data centers and factories need power 24 hours a day, something wind and solar can’t do alone." https://lnkd.in/gDmyRSfv