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Topic: Microgrids

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[Episode #205] – Rebuilding the Grid from the Bottom-up

Aug 23 2023

A tsunami of distributed energy resources (DERs) is starting to arrive on the grid. Customers are adopting millions of EVs, rooftop solar systems, battery backup units, and other devices that can dynamically respond to grid conditions. But most utilities are not engaging with this wave proactively. Instead, they’re being reactive, slow, and even resistant to allowing these devices to connect to the grid or participate in transactions.

As we rebuild and transform the grid in the course of the energy transition, we really need to think about how to accommodate DERs. There are manifold reasons to build a decentralized grid from the bottom-up, instead of keeping the conventional, top-down, hub-and-spoke architecture based on the large centralized power plants that we have relied upon in the past. So how do we do it?

Lorenzo Kristov has been agitating for this new architecture for years, frequently issuing white papers and expert testimony to get regulators and others thinking about what the future grid should look like. And his ideas are being taken seriously, because he was a lead designer of the locational marginal pricing (LMP) market on which California’s wholesale power system operates. He has deep expertise in wholesale market design, DER participation in wholesale markets, coordination of transmission-distribution system operations, distribution system operator (DSO) models, distribution-level markets, microgrids, energy resilience strategies, and whole-system grid architecture, among other things. And he has been walking us through his vision for the decentralized grid in previous episodes of our show: #10, #94, and #150.

In today’s episode, Lorenzo rejoins us to build on our previous conversations and share his latest thinking about how to make the new energy transition grid architecture happen. We discuss market design, architecture, procurement, regulatory issues, and related topics, making this episode deserving of a Geek Rating of 10.

Geek rating: 10

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[Episode #161] – Expanding Transmission

Dec 8 2021

Mini Episode

It has been nearly impossible to get new transmission built across the US in recent years, thanks to a combination of local opposition from host communities, jurisdictional issues, and the resistance of major utilities, alongside other factors. But with the Infrastructure Investment and Jobs Act (previously known as the Bipartisan Infrastructure Bill) now committed to law, there are fresh hopes that new transmission lines can be built in the US to unlock the truly massive renewable resources that are currently unable to get to market… resources that are critical to helping the US decarbonize its economy. There are also new techniques for building transmission, and potentially new regulations that can overcome resistance to new lines.

In this episode, we revisit the topic of transmission and see what needs to happen to get new transmission projects moving in the US. We also ask whether a macro grid based on big transmission lines is still really the cheapest and best solution, or if more distributed solutions might be worth reevaluating in light of updated cost data and some contemporary grid modeling.

Our guest in this episode is Liza Reed, the research manager for low carbon technology policy at the Niskanen Center in Washington, D.C., an expert in High Voltage Direct Current, electricity transmission, and technology innovation. She shares with us the latest thinking about transmission, and helps us tie together some of the threads we have discussed in previous episodes, to paint a picture of how more transmission can bring hundreds of gigawatts of renewable power to market in the US.

Geek rating: 8

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[Episode #150] – Resilient and Reliable Power

Jun 23 2021

Mini Episode

As areas like California and Texas struggle amid wildfires, extreme freezes, high winds and other challenges, and take measures to keep the lights on, it’s worth pausing to consider what “resilient” and “reliable” grid power means from the perspective of grid planning. What, specifically, should the operators of the bulk power system do to make their grids more reliable? Do wholesale power markets need to be reformed, to internalize the costs of power shutoffs and send price signals that project developers can respond to? How can new technologies, like demand response systems and microgrids, play new roles in making grids more resilient? And at an even more fundamental level… who is the grid for, anyway? Does the grid exist to serve people, or do people exist to serve the grid?

Energy Transition Show regular Lorenzo Kristov, a grid architect of over 20 years’ experience, has been thinking deeply about these questions and shares his thoughts with us in this episode. Inverting the usual logic of grid planning, he suggests that more active participation by customers and distributed energy resources can help improve both grid resilience and reliability, while democratizing grid power and grid governance. This thoughtful, heady interview will leave even veteran grid experts with more than a few new ideas to consider!

Geek rating: 9

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[Episode #134] – Storage Grows Up

Nov 11 2020

Mini Episode

Battery storage in the US has grown ten-fold in just five years, and its growth is only accelerating. Just a single utility procurement announced in May of this year was for four times as much utility battery capacity as existed in the entire US five years ago.

But battery storage isn’t just getting bigger. It’s also stretching well beyond utility-scale frequency control into new applications and market segments. In fact, fully one-third of the installed battery capacity in the US now is actually on the customer side of the meter, where it is being used to do things like mitigate demand charges and provide resilience—for example, allowing a microgrid to keep functioning when grid power is shut off in a wildfire event.

And then there are all the other kinds of non-battery storage, which are finding new momentum as well. It’s an exciting time of rapid evolution in the storage sector. To help us understand it all, Jason Burwen, the Vice President of Policy at the Energy Storage Association who last joined us back in Episode #8, returns to the show for this very wonky but highly informative look at the changing market, policy environment, and technologies of storage.

Geek rating: 9

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[Episode #115] – Wildfire and Transition in Australia

Feb 19 2020

Mini Episode

Australia’s out-of-control wildfires in recent months have captured the world’s attention and raised serious questions about how climate change is affecting the continent, whether the country’s leadership is taking appropriate action to address climate risk, and what the future holds for its unique weather patterns and ecosystem.

But Australia is one of the most fossil-fuel dependent countries in the world, which makes it politically difficult to face the reality of its climate risk, and how its own activities are increasing that risk. So in this episode we invited a longtime journalist and researcher, based in Sydney, who works in research, strategy, and communications around climate change and finance, to help us understand the political, economic, and climate context of Australia at this moment, and to understand how the wildfires are influencing the trajectory of energy transition there. She reveals a country delicately balanced somewhere between hope and despair, with political leadership in thrall to the fossil fuel industry, and a populace eager to pursue energy transition and reduce its exposure to climate risk.

Geek rating: 1

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[Episode #113] – Coal Plant Self-Scheduling

Jan 22 2020

Mini Episode

Owners of uneconomic coal plants in the US have tried many ways to keep operating, even when it is not profitable to do so, such as out-of-market subsidies and re-regulation (as we discussed in Episode #41), bailouts and wholesale market controls (as we discussed in Episode #70), and seeking capacity payments or other novel payments for alleged reliability (as we discussed in our trilogy of shows on decarbonizing power markets, Episodes #90, #97, and #105).

But there’s another tactic, variously known as “self-committing” or “self-scheduling,” and it happens when a utility that owns a coal-fired power plant elects to operate the plant no matter what the going rate for power is, even if that price is below its operating costs. Fully regulated utilities oftentimes can pass the costs of operation onto their customers even when they’re electing to run at a loss, without having to go to the trouble of asking for additional cost recovery from a regulator, or getting a legislator or wholesale market operator to give them a handout in one form or another. And it all happens more or less invisibly to customers and regulators. Only a researcher with a sharp eye and expert knowledge of what to look for would even detect these uneconomic operations, such as our guest in this episode.

Geek rating: 8

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[Episode #102] – Transition as Wildfire Adaptation in California

Aug 21 2019

Mini Episode

California’s largest utility is bankrupt as a result of its liability for starting some of California’s largest and deadliest wildfires. Now the utility, its shareholders and investors, and the state itself are trying to figure out how to reorganize the company, manage its wildfire risk, and the pay for its future liabilities in an era of a warming climate and enduring droughts. But that’s just where this story starts, not where it ends. In reality, all of the state’s utilities need a backstop for their wildfire liabilities, and de-energizing transmission lines isn’t the only solution. In fact, these questions go beyond the borders of a single state, and touch on a host of deeper issues, including insurance underwriting rules, building and planning and zoning rules, and even how the grid itself will be operated. And it turns out that many of the same solutions that help us in the energy transition can also help us mitigate the risks of wildfires, and adapt to our new climate reality. We are fortunate to have Michael Wara as our guest in this episode—a bona fide expert on the subject who is a member of the state-appointed wildfire commission in California—to help us think through this complex web of issues and understand how to start plotting a new path into the future.

Geek rating: 2

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[Episode #85] – Foreign Aid for Microgrids

Dec 26 2018

Mini Episode

If you wanted to build a standalone microgrid in Africa, powered by local renewable resources, and make it reliable enough to run a neonatal intensive care clinic, how would you do it? Work through a development bank like the World Bank to get funding? Work with the government in the host country to manage the funds and the project? Build it around lithium-ion batteries? Use Western contractors to do the installation?

In this episode, we learn how Michael Liebreich, the founder of Bloomberg New Energy Finance, helped create a successful project in Sierra Leone by doing none of those things. His experience is full of useful and surprising lessons, and offers a very interesting model for other aspiring renewable microgrid project developers. We’ll also talk with him about his insights on energy transition as one of its veterans, including his experience in trying to transition London to use more electric transportation, as well as his views on career direction and diversity in the energy industry.

Geek rating: 4

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[Episode #21] – The Role of Development Banks in Energy Transition

Jul 13 2016

Full Episode

Multilateral Development Banks (MDBs) like the World Bank, the African Development Bank and the Asian Development Bank are publicly committed to ending energy poverty and enabling energy access to the developing world. But their conventional processes and approaches to risk management make it difficult for them to invest in the decentralized renewable energy solutions that have the best chance of lifting people out of energy poverty. So what can be done about it? To find out, we talk with a pioneer in the energy investment and energy access space and ask her some pointed questions about how development bank funding works, and how it needs to be changed.

Geek rating: 5

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