In this episode, Jesse Jenkins discusses his DERs journey, rooftop solar costs in the US versus Australia, unfair advantages and disadvantages of DERs, rate design complexities, and strategies to tackle load growth and transmission buildout.
Optimizing DER placement can aid in achieving net-zero targets through grid expansion.
Challenges in infrastructure readiness necessitate improved preparedness for growing electricity demand.
Balancing cost-effective renewable energy sources like rooftop solar with bulk power generation poses significant challenges in achieving a carbon-free grid.
Deep dives
The Anomaly of Flat Demand Growth: A Historical Perspective
Demand for electricity in the United States remained flat for about 20 years, a deviation from the historical trend of increasing demand. This anomaly was influenced by factors such as accelerated globalization of trade, a shift towards less energy-intensive economic activities, and increased emphasis on energy efficiency programs.
Addressing Load Growth Readiness: Transmission and Distribution Challenges
Despite the anticipated growth in electricity demand due to factors like reindustrialization and electrification, there are concerns about the readiness of the infrastructure to meet this demand. Issues such as long interconnection queues, deceleration in transmission construction, growing distribution spending, and challenges in building essential equipment like transformers and switch gear highlight the need for improved infrastructure development and preparedness.
Transitioning to Unprecedented Wind and Solar Deployment
To achieve climate goals, there is a necessity for unprecedented wind and solar deployment. By optimizing the placement of Distributed Energy Resources (DERS) and storage, the pace of grid expansion required to meet net-zero targets can be achieved. The historical precedents of grid expansion rates indicate the feasibility of scaling infrastructure growth to match the anticipated increase in renewable energy sources.
Navigating Local Opposition and Societal Changes
Dealing with local opposition to infrastructure expansion poses a significant challenge. Changes in societal attitudes towards construction projects, combined with factors like environmental concerns and political complexities, contribute to delays in infrastructure development. Overcoming these obstacles necessitates a comprehensive approach that addresses community engagement, regulatory frameworks, and strategic planning to navigate through local opposition and societal changes.
Challenges and Imperatives in Infrastructure Development
There is a societal muscle memory around infrastructure that seems to be missing in modern times, despite the imperative to build more for economic competitiveness and climate needs. While regulations have been tightened due to past environmental and social issues from infrastructure expansion, there is a growing need to revamp supply chains to meet the pace of demand and advancement in technology. The conversation on balancing growth with societal engagement and rethinking supply chain capabilities emerges as key for infrastructure development.
Cost Concerns and Policy Decisions in Renewable Energy
A discussion around the economics of renewable energy reveals concerns about the cost-effectiveness of various options like rooftop solar and offshore wind contracts. The existing subsidy structures for rooftop solar, especially in states like New Jersey, raise questions about affordability and efficiency in achieving a carbon-free grid. Balancing the need for bulk carbon-free power sources like wind farms and nuclear with the distributed energy resources (DERs) presents challenges in determining the optimal mix for cost-effective and sustainable energy transitions.
We’re back, this time joined by Jesse Jenkins - professor at Princeton and lead of the Zero Lab. We cover a ton of ground in this one, including:
* Jesse’s DERs journey, including skepticism at times and optimism at others.
* A ton of discussion on rate design.
* Jesse’s recent pod on rooftop solar.
* How the hell is rooftop solar so expensive here versus Australia?
* Where DERs are unfairly advantaged and disadvantaged.
* How we’re going to deal with load growth, transmission buildout, interconnection queues, etc.
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