Rising electricity demand requires new gas plants? Not so fast.
Apr 24, 2024
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Eric Gimon and Michelle Solomon discuss alternatives to building new gas plants for rising electricity demand in the US. They explore challenges in transitioning to clean energy, tech companies advocating for clean power, and the importance of maximizing existing grid capacity through innovative technologies.
Long-term solution: Expand high-voltage transmission network, invest in clean-firm technologies like geothermal energy.
Utility companies should align decarbonization goals with actions by shifting focus towards nuclear energy for economic benefits.
Promote societal shift towards nuclear energy as source of prosperity, align state policies to attract investments in clean energy technologies.
Deep dives
Long-Term Solutions: Expansion of High-Voltage Transmission and Clean-Firm Technologies
In the long term, expanding the high-voltage transmission network to accommodate the growing demand for electricity is crucial. Additionally, investing in clean-firm technologies such as geothermal energy, long-duration energy storage, and advanced nuclear power is essential to transition away from fossil fuels and decarbonize the energy sector.
Incentive Alignment: Fostering Panic and Decoupling Growth from Fossil Fuels
Utility companies need to align their decarbonization goals with their actions. Building new gas plants with long lifetimes contradicts decarbonization objectives. To overcome this, a shift towards associating nuclear energy with prosperity is necessary, encouraging states to attract investments in clean energy technologies for economic growth.
Nuclear Energy and Economic Prosperity
A shift in societal mentality towards nuclear energy as a source of prosperity and economic development is essential. States that can attract investments in clean energy technologies like wind and solar will have a competitive advantage. Aligning state policies to promote clean energy growth will drive economic benefits and technological advancements.
Utility Regulatory Reforms: Incentivizing Flexibility and Efficiency
Long-term solutions entail significant utility regulatory reforms. Incentivizing flexibility and efficiency in electricity demand through rate adjustments and incentivizing industries to implement demand response measures can contribute to a more resilient and sustainable energy system. Regulators play a critical role in fostering energy efficiency and demand-side management initiatives.
Shift to Renewable Energy: Transitioning Away from Fossil Fuels
A fundamental shift towards renewable energy sources and away from fossil fuels is imperative for long-term sustainability. Investing in renewable energy infrastructure, implementing demand response strategies, and encouraging industries to adopt clean energy practices are essential steps in mitigating the impact of rising electricity demand on the grid.
Climate Goals and Modernization: Embracing Technological Innovations
Aligning climate goals with grid modernization efforts and technological innovations is crucial for long-term success. Embracing advancements in clean energy technologies, grid modernization, and demand flexibility can enable a more efficient, resilient, and sustainable electricity system to meet the challenges of future demand growth.
What’s the best way to handle rising US electricity demand? Contrary to what some large utilities and regulators think, it’s not building new fossil gas plants. In this episode, Eric Gimon and Michelle Solomon, coauthors of a new report from policy shop Energy Innovation, make the case that utilities have more effective options to address both short- and long-term demand.
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