Learning from Operators

Recently, the Australian Energy Market Operator (AEMO) released its draft 2024 Integrated System Plan (PDF). It got me thinking about how innovators in energy can learn from, and work with, operators.

Energy systems are complex and critical, and the organizations who operate them are similarly large and complex. This is the kind of environment that innovators sometimes like to disrupt. But the energy transition is already hugely disruptive for grids that were built with a completely different energy mix in mind. And it's the job of operators to provide stable, reliable power. Integrated Systems/Resource Plans are a great way to get a view into how operators are thinking, what their challenges and risks are, and by extension, what they need. In the case of AEMO, the plan is laser focused on achieving net zero outcomes as defined in government policy. So even if Australia isn't your market, digging into this report can give you insight into what it might take for other market operators to decarbonize.

I made some quick graphics of how you might get from climate priorities in energy to areas for innovation, using the risks laid out in the AEMO plan. Whether you're an investor or a founder or looking for a high-impact role in climate, this can help you think about what makes a difference in the energy transition right now.

First, the priorities. Prioritizing the decarbonization of electricity must happen first, because that process directly reduces emissions, and allows us to decarbonize elsewhere through increased electrification.

The combination of decarbonizing and electrification will be achieved with the addition of more renewable energy resources on the grid. This will include more Consumer (Distributed) Energy Resources. This is a big chunk of the risk AEMO identifies.

As a startup product leader, I love seeing risks in a big, established industry. Risk = opportunity. The fact that AEMO calls these out so clearly, in the context of an outcomes-focused plan, is an absolute gift. These are problems that need to be solved.

I've outlined some of the opportunity areas that come to mind to address each of these risks.

I know of at least one startup working on every single one of these opportunities. But we're going to need so much innovation in this space, there's room for more. Which problems did I miss? Which ones are most important in your local energy landscape? Which ones will you solve? I'd love to hear your stories.