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Fraying Wires: The Decentralization of the Electric Grid

a16z Podcast

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Challenges and Future of Power Grid Infrastructure

The Federal Energy Regulatory Commission (FERC) is implementing measures to deter fake projects and financial risks. Building projects involve long lead times and increased prices, particularly for items like transformers. Securing substations poses challenges related to cybersecurity and physical safety. Aging power lines, some from the early 1900s, require upgrades to prevent fires. The grid modernization must address decentralization due to intermittent renewable power sources like solar and battery storage. With energy generation becoming more distributed, the traditional grid infrastructure needs rethinking and redesign to accommodate bidirectional power flow and diverse energy sources.

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