Energy Changemakers community members describe key changes that could hasten the energy transition
Several years ago, I was in a car with my father when we passed some houses with rooftop solar panels. They were still a novelty then. He leaned over to study the homes and said, “I don’t understand. Why aren’t these everywhere?”
I thought, “Well, where do I begin?”
I had no three-second answer, not even a five-minute answer. Energy is a complex business conducted under the weight of political, regulatory, market, competitive and social pressures.
So I know I wasn’t making it easy for Energy Changemakers’ community members when I recently asked them to respond to this question: “What one obstruction, if fixed, could significantly hasten the energy transition?”
But their answers did not disappoint. As I had hoped, they offered a glimpse into the multiplicity of effort and ideas under the big umbrella we call “the energy transition.”
Here are three responses, one from an executive at a global digital automation and energy management company, another from a consultant working to decarbonize and democratize electricity, and a third from a marketing director at a battery recycling company.
I’m curious how you would answer the question too.
Future proof decision-making
Jana Gerber is the North American president of Schneider Electric’s microgrid division. But she also has worked for Schneider’s building, sustainability and healthcare segments, so she brings a broad perspective to the energy transition. Gerber’s one thing? Gain the ability to future-proof on behalf of customers in an era of rapid technological change. Here she explains how she works toward that.
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Technology is changing very fast. Here’s an example. I recently read that BMW is moving directly into developing hydrogen vehicles. The company is looking past electric vehicles — which is the main focus so many other companies are pursuing — and instead looking to hydrogen as the solution.
With change like this happening so quickly, how do you ensure the best combination of technologies for your customers?
Another aspect of this is often projects include multiple distributed energy resources (DERs). How do they work in harmony — now and in the future?
It becomes very important to pay attention to technological intricacies with system of system architectures.
For example, we worked on a project where we tested how two technologies — lighting controls and real-time locating systems (RTLS) — could work together inside a hospital lab-type setting. We found that the two systems operated on the same frequency which caused conflicts in the patient rooms. We had to determine from a technology perspective how they could operate simultaneously or find another lighting or RTLS system operating on a different frequency which would avoid the issue.
That’s an example of trying to test and standardize systems to harmonize technologies.
So I find myself often thinking about what’s the best technology for the right application. And then who can provide knowledge about this? There is a lot of innovation and technology to be settled — and consolidation likely to happen. Out of these challenges come new opportunities to serve customers better. A crystal ball would help!
Bypass wholesale power markets
Lorenzo Kristov is an independent consultant working to decarbonize and democratize electricity services through the proliferation of distributed energy resources (DER). He leverages 18 years working in market design and infrastructure policy at the California Independent System Operator to design policies, market rules and regulations for creating distribution-level transactive networks that enable local electricity assets to be commercially viable while supporting system reliability, environmental sustainability, community resilience and energy justice. Kristov’s one thing? Enable local, distribution-level energy transactions that don’t use the transmission system and don’t go through the regional transmission operator (RTO) markets.
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According to the laws of physics, energy injected into the distribution system flows to serve nearby electrical load. In contrast to the physical laws, the prevailing industry construct deems the energy to flow up the distribution wires to the transmission grid, which then sends energy back down those wires to serve the load. By disregarding the physics of power flows, this 20th-century convention imposes costs on producers and consumers of distribution-level energy for bulk-system services they neither need nor use. The producers must pay the costs and meet the technical requirements for RTO market participation, while the consumers must pay transmission charges for the locally produced energy they consume.
The practical impact of the legacy rules is to depress the economics of local supply resources, which otherwise could benefit all customers by reducing the need for costly and controversial bulk-system assets while accelerating the deployment of renewable generation to meet climate goals.
The one thing to fix is to adopt statutes and regulations to allow electric service retailers (aka load-serving entities) to contract with distribution-connected, front-of-meter supply resources to serve customer load within the same local distribution area without going through the RTO grid and markets. If the load within the same local area as the resource is sufficient to fully consume the resource’s output (adjusted for losses) during every settlement interval, the resource will not send energy to the bulk system and the load will not require energy from the bulk system. By relieving local supply resources and the load they serve from these unfair bulk-system charges, this one fix can enable a robust competitive arena for distributed generation and unlock the many benefits of locating renewable energy supply close to load.
This approach is successfully in use today by municipal electric distribution utilities embedded within the California ISO system, under a model called “Metered Subsystem” (MSS). These muni utilities depend on the CAISO system to import energy into their local areas, and for that service they pay CAISO market and transmission charges based only on their net imports across their CAISO interfaces.
Revolutionize battery recycling
Matt Roberts has a long history in the battery industry, going back to 2013 when he began serving as the executive director of the Energy Storage Association. He has since assisted energy developers, technology companies, non-profits and publishers on market development and policy to advance distributed energy. Roberts is now the marketing director of Aqua Metals. His one thing? Revolutionize battery recycling technology to ensure it aligns with both economic growth and environmental protection.
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In the wake of recent legislative efforts to stimulate innovation in the electric vehicle (EV) metals supply chain, it’s crucial to recognize that not all solutions being proposed align with our ambitious environmental and sustainability goals. While these initiatives mark a significant step forward, many of the current recycling methodologies for lithium batteries, unfortunately, contribute to further pollution. This paradoxically undermines the very objectives of the legislative measures created by the Inflation Reduction Act (IRA). Our focus must shift to developing and supporting solutions that not only address the supply chain challenges but do so in a manner that is genuinely sustainable and environmentally responsible.
If I could just address one crucial aspect of the clean energy transition, it would be revolutionizing recycling technology to ensure it aligns with both economic growth and environmental protection. The call to ‘Electrify Everything’ must extend to the methods we use to recycle critical minerals vital for electrification and the clean energy economy. Central to this challenge is eliminating the significant environmental impacts of traditional smelting and chemical-intensive processes. Adopting a closed-loop system is key to creating a truly sustainable lithium battery sector. This approach will ensure that our push towards a fully electrified economy does not compromise the health of our planet. The need for a circular solution in lithium battery recycling is more than an environmental imperative; it’s a catalyst for innovation and economic development.
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