An energy podcast crossover: Energy Gang and Interchange Recharged join forces to discuss flexibility on the power grid: why it is so important, and how to create it
Apr 29, 2025
39:29
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Quick takeaways
Flexibility in the electricity grid is crucial for balancing renewable energy sources with rising demand from data centers and consumers.
The Mercury Consortium aims to enhance operational flexibility by standardizing consumer-level devices for better integration into energy programs.
Deep dives
EPRI's Role and Research Scope
The Electric Power Research Institute (EPRI) operates as a not-for-profit organization providing unbiased, science-based research across the entire electricity value chain. EPRI's extensive research budget of $500 million covers aspects from central generation and grid operations to consumer management, reflecting the organization’s holistic approach to understanding energy systems. With a presence in 45 countries and approximately 450 members, EPRI leverages global insights and experiences to enhance energy transition strategies. This collaborative framework allows for knowledge exchange, promoting best practices and innovations for efficient and affordable energy management.
Introduction of the Mercury Consortium
The Mercury Consortium is an initiative launched by EPRI to enhance operational flexibility within the energy system, focusing particularly on consumer-level devices like electric vehicle (EV) chargers. By addressing challenges related to API interactions among different technology providers, the consortium aims to create a standardized platform for open access and interoperability. This initiative is designed to ensure that devices can seamlessly integrate into utility programs, thereby enhancing consumer experience and maintaining reliability. The Mercury label will signify compliance with these standards, reassuring consumers about their ability to participate in energy programs without disruptions.
Importance of Flexibility for Utilities
Flexibility is increasingly vital for utilities facing the challenge of managing demand peaks, which often account for only 1% of annual operational hours. By adopting a more flexible energy strategy, utilities can improve asset utilization and reduce capital investments required to meet peak demand. The ability to manage flexible loads—such as those from data centers and consumer devices—offers significant opportunities for utilities to maintain affordability while ensuring reliable service. As utilities recognize the coming economic pressures, there is a growing emphasis on adopting flexible solutions to meet both operational and customer affordability goals.
Challenges in Integrating Renewable Energy
The integration of renewable energy sources like solar and wind is creating new challenges for energy grids, which struggle to accommodate large volumes of variable generation. Situations in places like California illustrate this, as prolonged interconnection queue times and rising project costs hinder the deployment of renewable projects. The complexities require not only robust infrastructure but also advancements in storage and flexibility technologies. As market conditions evolve, stakeholders need to find innovative solutions, including potential reforms and advancements in technology to ensure successful integration of renewables into the energy landscape.
They called the film Avengers: Infinity War the most ambitious crossover event in history. We can’t quite make the same claim, but at Wood Mackenzie’s 2025 Solar and Energy Storage Summit, we did record a crossover episode. Ed Crooks, host of Energy Gang, is joined by Sylvia Leyva Martinez, Wood Mackenz’s principal analyst for solar power and host of Interchange Recharged, to discuss the future of energy, and of the electricity grid in particular.
They are joined by Rob Chapman, Senior Vice President of Energy Delivery and Customer Solutions at the non-profit research group EPRI, the Electric Power Research Institute, which aims to help power society toward a reliable, affordable, and resilient energy future.
Rob talks about a key theme in his work: the importance of flexibility on the electricity grid. Increased reliance on solar and wind power has created challenges in keeping the grid balanced and the lights on. Surging demand for electricity for new data centres to train and run AI models is giving rise to a whole new set of issues. More flexible demand and supply on the grid is increasingly valuable. But where can it come from?
Data centres don’t usually offer a lot of flexibility in their operations. People want to use ChatGPT and watch Netflix even at night and when the wind is low. So what can the hyperscalers do to create flexibility? Are virtual power plants an effective option? And how can the energy industry improve collaboration to find solutions that promote the clean energy transition while keeping prices down?
You can find Energy Gang wherever you get your podcasts, and follow Interchange Recharged with Sylvia Leyva Martinez for deep dives into the innovations that are accelerating the energy transition.