Martin Szczepanik’s Post

Virtual Power Plants can lower energy bills for consumers, create grid resilience, and reduce emissions. However, understanding how they work, how to unlock their potential, and how to integrate them into the grid can be challenging. We worked with Kevala to provide in depth insights into this growing part of the market. #DigitalEnergyTransition #VirtualPowerPlants #PoweringTheEdge Martin Szczepanik Michael Levy Margot Everett https://ow.ly/kBWW50SJ619

As the energy transition accelerates, virtual power plants (VPPs) are set to become a $70 billion market in the US by 2030. But what are VPPs and how do they contribute to a cleaner, more efficient energy supply? Baringa and Kevala collaborated on in-depth research to answer these questions and more. Download our report to explore the services and value propositions that VPPs bring, understand the driving forces behind their growth, and discover how utilities can effectively integrate them into the grid. https://ow.ly/T7H450SuAA9 Michael Levy Martin Szczepanik Margot Everett #DigitalEnergyTransition #VirtualPowerPlants #PoweringTheEdge

TODAY: GDO announced a $4.6 million investment for six projects to conduct grid resilience analysis and modeling to strengthen and modernize the grid against extreme weather. 💪⚡ With funding made available through the Grid Resilience and Climate Change Impacts Analysis (GRACI) partnerships, the selected projects will use risk assessments and modeling to support recipients of Grid Resilience State and Tribal Formula Grants with rapid decision-making to prioritize investments for impactful community benefits. Read the full announcement: https://lnkd.in/eCpc9Zh8

Recently, my teammates and I toured ConEd's East River Generating Station in Manhattan which is a thermal power station with both combined cycle and steam turbines that also generates the majority of the city's steam. The New York City steam system is becoming increasingly important as buildings look to decarbonize their heating to comply with Local Law 97 (reduce emissions from large buildings by 40% by 2030, net zero by 2050). Excited to see how the steam system evolves as ConEd looks to simultaneously add new steam customers and decarbonize steam generation. Thanks Maura Yates and Ryan Gleeson for the insightful tour and Martin Szczepanik for setting it up! Xinyue(Della) Song James Arvan Sindhu Iyer

I had the pleasure of attending the event "The Role of Private Equity and Infrastructure Funds in the Clean Energy Transition," organized by Baringa and University of California, Berkeley, Haas School of Business and hosted by my colleagues Liam Torppey, MBA, Martin Szczepanik, and Tom Harper, along with panelists Priyanka Shome, Ryan Bell, Jennifer Sullo, and Elliot Johnstone. Here are my five key takeaways:   Financing Gaps in Clean Energy: Addressing the supply chain gap is crucial. Equity capital is flowing into domestic supply chains and manufacturing to support the US clean energy transition. 🌱💰   ESG and Value Creation: ESG considerations can significantly drive growth and value creation, showing strong synergy with financial performance. Examples such as fleet optimization and energy reduction are ways to increase exit multiples while decreasing emissions. 📈🌍   Innovative Infrastructure Financing: Infrastructure funds are exploring different premise-level clean energy technologies. Energy efficiency innovations, like controllable radiators, are becoming fair game for traditional renewable infra funds. 🔋📉   Global Political Risks: The clean energy transition is happening, and political changes are unlikely to stop it. We may see slowdowns depending on election outcomes, but the economics continue to favor sustainable tech. 🌐⚖️   ESG Integration in Due Diligence: ESG is now integral from screening to exit. Tools like SASB and SBTI track progress, and executive compensation tied to ESG metrics is becoming more and more common. 📊🔍

Join us on June 13th at the The Penn Club of New York for "The Role of Private Equity & Infrastructure Funds in the Clean Energy Transition." This collaboration between Baringa and the University of California, Berkeley, Haas School of Business NYC Alumni Network will feature distinguished panelists from Private Equity, Infrastructure, ESG, and Consulting. Our discussion will focus on the evolving roles of these sectors in response to the proliferation of clean energy, along with the macroeconomic impacts of policy changes, interest rates, and supply chain dynamics on the clean energy transition. Don't miss this chance to engage with industry experts and gain valuable insights into the future of clean energy finance. Secure your tickets at https://ow.ly/cffz50S7KvU We look forward to seeing you there! Tom Harper Jennifer Sullo Priyanka Shome Ryan Bell Elliot Johnstone Ryan Bohn Liam Torppey, MBA Martin Szczepanik Louise Golding Chetan Chhatwal

🚨 FERC Order 1920: A Turning Point for US Transmission Planning 🚨 The Federal Energy Regulatory Commission's (FERC) Order 1920 marks a significant shift in how interregional transmission infrastructure is planned, built, and financed in the US. Here are four key insights: ⚡ Future-Proofing the Grid: Transmission providers must create 20-year regional plans with regular refreshes. This requires accurate long-term demand forecasts, potentially through partnerships with local entities or specialized firms. 🌎 Climate Resilience: FERC emphasizes the role of transmission in mitigating extreme weather events. Transmission entities will collaborate with climate data providers to model future scenarios, considering factors like Value of Lost Load (VOLL), production costs/Locational Marginal Prices (LMPs). This complements FERC's previous rulings (896 & 897) on grid reliability standards. ⚙ Grid Tech Gets a Boost: FERC 1920 explicitly encourages considering Grid Enhancing Technologies (GETs) and non-transmission alternatives alongside traditional infrastructure expansion. This, coupled with the Department of Energy's recent "Commercial Liftoff Report," could accelerate widespread GETs deployment for a more flexible and efficient grid. 🏛 Increased Federal Oversight: A key change is the limitation of states' veto power over interregional projects based solely on cost allocation. If an initial agreement can't be reached, negotiations reopen, or a default method is applied, preventing projects from stalling due to state disagreements. This shift strengthens federal jurisdiction in siting crucial interregional lines. Some final thoughts on winners and losers: Winners: wind/solar developers in less populated states, transmission developers, customers in more populous states with high energy costs, states with clean energy policy goals Losers: IPPs located in more populous states that have to compete with cheap imported power, states that traditionally exercise veto for cost allocation FERC Order 1920 represents a major step towards a more reliable, resilient, and climate-ready US power grid. #FERC #EnergyTransition #GridModernization