Bypassing Grid Congestion to Pave the Way for 4x More Renewable Energy.
??The double bind
There is a serious double bind we must face. It affects not just renewable energy production, but modern civilization and our planet as a whole.
The International Renewable Energy Agency (IRENA) estimate that renewable energy capacity globally needs to X4 by 2050 if we are to reach net-zero carbon emissions. *1
?? In a world where ever more energy is needed, in part to power the burgeoning number of new AI projects, data centers and EV manufacturing, this is a difficult enough goal to achieve by itself. What is throwing a giant spanner in the wheels of positive change, is #grid congestion. Put simply, electricity grids cannot cope with the number of renewable energy projects waiting to connect.?
Recent International Energy Agency (IEA) research has found that for us to reach our NetZero targets, we need to refurbish or add 80 million kilometers of grids around the world by 2040 = X2 current total global grid length! Clearly, completing this gargantuan task requires the best minds, immense cooperation and an unprecedented mobilisation of resources. *2
?In the USA alone, according to Berkeley Lab , the waiting list of renewable energy projects wanting to connect to the grid hit 2.6 TW in 2023. This is also 2X the size of the existing US grid.? *3
In May 2024,? Federal Energy Regulatory Commission in the USA
approved Orders 1920 and 1977 that aim to mitigate the congestion.??
Order 1920
Order 1920 addresses electricity transmission providers and how they must engage in long-term planning, and increase the capacity of existing infrastructure. 1920 also addresses how new infrastructure must be paid for, and encourages the use of new technologies such as advanced conductors and Dynamic Line Ratings. *?
Order 1977 gives FERC the authority to permit new transmission lines in the national interest even if a state has denied applications. The order also makes transmission providers wait a year after completing the state permitting process before filing with FERC, to give time for adequate due diligence. Transmission providers now also need to account for the environmental impact of new projects. *?
The question is: are these policy changes going to be adequate to solve the huge problem of America’s aging grid, lack of transmission capacity, and new high-voltage transmission lines being built? It seems not. And this is not just an American problem - the same is the case in most countries.
??What else can be done to help mitigate the congestion?
Private enterprise must respond to the issue of grid congestion more rapidly and effectively than governments. Various steps can be taken to help reduce the stress on existing grids and to produce and manage renewable energy more efficiently.
Smart Energy Management
???Many renewable energy assets are still managed with legacy systems that provide minimum visibility. However, producers are gradually switching to smart energy management solutions that significantly increase productivity, and facilitate dynamic control. enSights is one of our portfolio companies that has created a cutting-edge smart energy management platform that does just that.
??Storage and Dynamic Control
Being able to store electricity is clearly an important factor in reducing grid congestion. For this to be effective, what is needed is dynamic control, which allows energy producers to set automations that dictate the optimal times for energy to be transmitted to the grid, supplied to consumers, or stored.?
领英推荐
?? Microgrids
Microgrids are localized energy systems that operate independently or in conjunction with the electric grids, providing electricity to a specific area or community. They enhance energy resilience by integrating various energy sources and can maintain power during grid outages.
????????Community solar
Community solar projects allow multiple individuals or businesses to either invest in or subscribe to shared solar power projects. Participants receive credits on their electricity bills for the power produced. Community solar enables access to solar energy without the need for investors and subscribers to install panels on their own property.
??Virtual Power Plants
Many renewable energy experts think that Virtual Power Plants or VPPS are the big hope. VPPS aggregate and coordinate distributed renewable energy resources to provide grid services. VPPs are an excellent way to balance the supply and demand for energy, enhancing existing grid stability.
Tonbo and AI energy tech
Smart solutions and cooperation are vital if we are to meet the unprecedented challenges we are facing. At Tonbo, we are proud to say we have our fingers right on the pulse of Israeli AI energy tech.?
If you would like a chat about investing in the most promising early-stage Israel AI energy tech companies, do get in touch.
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