Volts Should we put utilities in charge of distributed energy?
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Dec 18, 2024 Pier LaFarge, CEO of Sparkfund, shares his insights on the evolving role of utilities in managing distributed energy resources. He argues that rather than being obstacles, utilities are crucial for scaling clean energy solutions amid rising electricity demand. LaFarge discusses the economic advantages of updated energy infrastructure, the potential of virtual power plants, and the necessity for collaboration between utilities and DER providers. He also highlights the need for community engagement and regulatory frameworks in fostering innovation and addressing energy equity.
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Clean Energy Transition Phase Two
- The clean energy transition is entering a new phase driven by surging electricity demand.
- This demand stems from manufacturing, data centers, and AI, marking a shift from consumer-driven growth.
DER Procurement Proposal
- Distributed energy resources (DERs) currently operate outside the electricity system, causing utilities to react to their sporadic effects.
- Pierre LaFarge proposes that utilities procure DER capacity like any other energy resource.
Benefits of DERs with Growing Demand
- Growing demand makes DERs more suitable for utility charters because they can be built faster than large projects and address specific grid needs.
- This reduces the need for costly upgrades to distribution networks.