How The U.S. Can Build A 100% Clean Grid
CNBC・16 minutes read
The U.S. electric grid, designed for a fossil fuel-based world, needs to transition to a more distributed system to support renewable energy sources, requiring major investments and modernization. Companies like OhmConnect are incentivizing energy savings, while utility companies face challenges in upgrading the grid to incorporate renewables, with a push from individuals, corporate customers, and investors towards carbon-free electricity.
Insights
- The U.S. electric grid, established in the 1880s, is outdated and designed for a fossil fuel-based world, hindering the transition to renewables and necessitating significant investments to modernize for a more distributed system that allows for individual and company power generation through solar panels and electric vehicle batteries.
- Utility companies in the U.S. face challenges in coordinating massive grid upgrades due to diverse ownership structures and regulations, but pressure from various stakeholders is driving them towards incorporating more renewables. Companies like Southern Company, Dominion Energy, Duke Energy, and Xcel Energy are working towards achieving net zero emissions by 2050, aligning with President Biden's goal of a carbon-free electricity sector by 2035, with policy tools like carbon pricing and investments in grid-scale energy storage and technological advancements playing a crucial role in accelerating this transition.
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Recent questions
What is the current state of the U.S. electric grid?
The modern U.S. electric grid connects to 7,300 major power plants through 160,000 miles of high voltage transmission lines and millions of miles of low voltage lines, serving over 150 million customers. It was designed for a fossil fuel-based world, with power flowing one-way from large power plants to consumers, hindering the transition to renewables.
Why is a more distributed grid necessary?
A more distributed grid is needed to allow individuals and companies to generate, store, and sell electricity through solar panels and electric vehicle batteries. This shift would enable a more efficient balance of supply and demand, moving away from the traditional one-way flow of power from large plants to consumers.
What are the challenges posed by distributed generation like solar panels?
Distributed generation, such as solar panels, poses challenges like the need for upgraded transformers to handle reverse electricity flow and managing peak demand efficiently. These challenges must be addressed to ensure the effective integration of renewable energy sources into the grid.
How can consumers save money and enhance grid efficiency?
Demand response programs and time-variable pricing can help consumers save money by adjusting energy usage during peak demand times, enhancing grid efficiency. These initiatives encourage more efficient energy consumption and contribute to a more sustainable grid system.
What are utility companies doing to achieve net zero emissions?
Utility companies like Southern Company, Dominion Energy, Duke Energy, and Xcel Energy are working towards achieving net zero emissions by 2050. Despite facing logistical challenges, these companies are making efforts to incorporate more renewables into the grid, aligning with the goal of a carbon-free electricity sector by 2035 set by President Biden. Policy tools such as carbon pricing and investments in grid-scale energy storage and technological advancements are key components of this transition.
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Summary
00:00
"Modernizing the U.S. Electric Grid for Renewables"
- The modern U.S. electric grid connects to 7,300 major power plants through 160,000 miles of high voltage transmission lines and millions of miles of low voltage lines, serving over 150 million customers.
- The current grid was designed for a fossil fuel-based world, with power flowing one-way from large power plants to consumers, hindering the transition to renewables.
- A more distributed grid is needed, allowing individuals and companies to generate, store, and sell electricity through solar panels and electric vehicle batteries.
- To achieve this, internet-connected smart meters, sensors, and appliances controlled by smartphones are required to balance supply and demand efficiently.
- Transitioning to 100% renewable power could cost $4.5 trillion over 10-20 years, necessitating significant investments in modernizing the grid.
- The current grid, established in the 1880s, is outdated, primarily relying on natural gas, coal, nuclear, and limited renewables for electricity generation.
- Distributed generation, like solar panels, poses challenges such as the need for upgraded transformers to handle reverse electricity flow and managing peak demand efficiently.
- A modern grid could utilize renewable energy storage like lithium-ion batteries, reducing the reliance on expensive peaker plants for peak demand.
- Demand response programs and time-variable pricing can help consumers save money by adjusting energy usage during peak demand times, enhancing grid efficiency.
- Companies like OhmConnect are gamifying energy savings, paying customers to reduce energy usage, creating a virtual power plant to balance grid demand and supply effectively.
15:51
"US Utility Companies Navigate Grid Upgrades"
- Utility companies in the United States face challenges in coordinating massive grid upgrades due to the diverse mix of investor-owned, cooperatively owned, and publicly owned utilities, along with federal and state regulations. Pressure from individuals, corporate customers, and investors is driving these companies towards making necessary upgrades for incorporating more renewables into the grid, with major customers like Google and Apple basing location decisions on the availability of carbon-free electricity.
- Despite facing logistical challenges, utility companies like Southern Company, Dominion Energy, Duke Energy, and Xcel Energy are working towards achieving net zero emissions by 2050, although President Biden aims for a carbon-free electricity sector by 2035. Policy tools such as carbon pricing could accelerate this transition, with Biden's clean energy and infrastructure plan focusing on grid-scale energy storage, transmission system retrofitting, and technological advancements, taking advantage of the current cost-effectiveness of solar, wind, battery storage, and electric vehicles.
