The Future of Electricity: Clean and Bright
Katherine Hamilton
Chair at 38 North Solutions, LLC, focused on clean energy and innovation public policy
What happens when you bring together nearly two dozen
energy leaders from across the globe into a room for several days of uninterrupted discussion on the Future of Electricity? Throw in jet lag for anyone not from United Arab Emirates, add a cocktail of fossil fuel interests along with renewable energy advocates, shake well in nearly 100 degree F heat, and one could not imagine consensus coalescing around almost anything. Surprisingly, perhaps, this group, convened by the World Economic Forum, agreed on a set of trends that indicate change is nigh in the electricity sector:
- The world is increasingly electrified.
- Renewable energy has the greatest capacity growth.
- Clean energy enables growing universal access to electricity.
- Energy security increases as a result of more indigenous clean electrification.
- Distributed energy resource deployment is significantly increased.
- Energy storage provides critical grid services.
- Consumer engagement and choice shape future electric growth.
- The price of electricity may increase briefly, then decrease, over time.
- Regulation supports and accommodates these changes.
This transformation will not happen organically, however. The group also identified requirements to realize this transformation in our electric system:
- Politic targets must be clear, transparent, and consistent.
- Regulation should anticipate trends and create a climate for investment.
- Power markets and platforms must be open for all participants.
- Financing mechanisms should be clear and risk factors understood.
- Business and monetization models must evolve.
- Consumers must be allowed to participate.
- Special provisions should be made for universal access.
It was affirming as a participant in this process to hear from others about the same policy hurdles I deal with every day in Congress, state legislatures, and regulatory bodies. My firm's public policy work, while mostly centered in the U.S., can be informed by policies that have been tried elsewhere with varying degrees of success. That the Global Agenda Council on the Future of Electricity could arrive at these principles and requirements should give us all a cogent road map to this transition. Read the full report here.
Consultant|Developer: Renewable Energy | Power Generation | Project Implementation
8yKatherine – The World Agenda Council on the Future of Energy article points to two of the three components (think of a three legged stool) necessary to move beyond developing public policies that just have varying degrees of success. First, the trends offer direction to clean and bright changes for the electricity sector. Second, the identified requirements shape the path and clear the way for those clean and bright changes to start. The third and missing piece is to provide a picture that motivates all stakeholders to participate in clean and bright changes. People (stakeholders) have to feel positive, see that it is doable, and identify with their part to get where they are going. Transformation and transition are actions. “For anything to change, somebody somewhere has to start acting differently.”(1) It will take bold and willing leaders to recognize and use all three “legs” for clean and bright changes to occur in the electricity sector. (1) SWITCH How to Change Things When Change is Hard, Chip Heath & Dan Heath, 2010 Broadway Books
Managing Director at Accenture Consulting
8yAn interesting compilation of perspectives Katherine, thank you for sharing them. I am curious to what these energy leaders attribute their confidence in electricity prices eventually falling. To date, this phenomenon has only been experienced when expanding the user base as was done during the broad US and European electrification periods. With trillions in new infrastructure expectations, and the inevitable limitations on all types of commodities required for both fossil and renewable generation, is this expectation realistic?
Founder and CEO of Optiphase Drive Systems | Breaking the boundaries of today’s EV power limitations through next-generation proprietary motor and controller designs.
8yHaving worked in the energy business developing advanced technologies...I disagree with several points. Specifically, grid integration standards for distributed energy are not "open" for new technologies are extremely time-consuming and expensive to gain certification. Regulation DOES not support new distributed energy technology.
Clean Energy Transition Advisor | Climate Tech Startup Ecosystem Catalyst | Justice40 Expert |Entrepreneur | Utilities and Renewables | Transportation Electrification | Podcast Host
8yGood insight Katherine Hamilton. It has been a while since we have last spoken. I hope to connect soon.
Deputy Director at U.S. Department of Energy (DOE) | Driving $10B+ Clean Energy Investments | Electricity Market Transformation Expert | Senior Executive Leadership
8yVery insightful report. Thanks for sharing Katherine Hamilton