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The U.S. Grid Isn’t Ready For A Major Shift To Renewables Irina Slav

Summary:
This [US electrical grid] is one massive system, and the sources that feed it electricity have become increasingly diversified. And while the shortage of natural gas was a big reason for the power outages in Texas, it was certainly not a shortage of gas that caused the blackouts in California last summer during a heatwave. Grid reliability has come to the fore because the decarbonization of electricity generation is not all fun, games, and zero-emission power.The U.S. grid, as it is now, cannot support the massive shift to low-carbon power generation, Westhaven Power says. Operators need better control of regional grids to be able to anticipate dangerous situations like the ones in Texas and California, but obtaining it would become trickier with more intermittent wind and solar feeding

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This [US electrical grid] is one massive system, and the sources that feed it electricity have become increasingly diversified. And while the shortage of natural gas was a big reason for the power outages in Texas, it was certainly not a shortage of gas that caused the blackouts in California last summer during a heatwave. Grid reliability has come to the fore because the decarbonization of electricity generation is not all fun, games, and zero-emission power.

The U.S. grid, as it is now, cannot support the massive shift to low-carbon power generation, Westhaven Power says. Operators need better control of regional grids to be able to anticipate dangerous situations like the ones in Texas and California, but obtaining it would become trickier with more intermittent wind and solar feeding the grid, the utility explains.

"What events in Texas and California demonstrate is the shortcomings of having highly-centralised power systems and the true value of resilience and flexibility in our energy grids, a value that is going to become even more vital as we continue to transition to renewable energy," says Dr. Toby Gill, the chief executive of UK-based climate tech startup Intelligent Power Generation....

Resiliency is back in vogue.
"Reliability and resilience – even in the face of extreme events – is achieved through diversity, redundancy, and modularization. Co-locating energy supply with demand through microgrids and other DERs [distributed energy resources] is an important step in preventing widespread crises like this in the future," according to Mark Feasel, Smart Grid president, Schneider Electric North America.

"In both cases [Texas and California], the strain could have been reduced with distributed resources, such as batteries and solar, as well as demand response tools, like smart thermostats with utility control," says K.C. Boyce, vice president of human insights firm Escalent's energy division. "However, Texas has limited distributed resources and demand response, and while California has lots of distributed resources, it doesn't have a good way of coordinating those resources, nor does it really have demand response tools to call on."...

Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

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