Experts: Storage is key to electric grid of the future
WASHINGTON – A group of energy experts agreed Monday the electric grid of the future will require a broad level of cooperation between residential and business; cities and rural areas; customers and utilities in order to provide sustainable and affordable electricity through 2050.
A key facet of the future grid will be the spread of storage facilities that will provide adequate energy in times when alternative sources like solar and wind are not available or productive, the experts agreed during Monday’s forum, the fourth in the Energizing the Future Series sponsored by Pepco and Asian Americans in Energy, the Environment and Commerce (AE2C). Access to energy through expanded transmission resources is another critical question to be addressed by the grid of the future, they stated.
Along the way, there will be pain for existing non-sustainable energy sources, especially coal, that will be unable to cope with market conditions, Richard Glick, a commissioner at the Federal Energy Regulatory Commission (FERC), said during opening remarks. “Instead of fighting yesterday’s problems we should deal with today’s issues,” said Glick, who joined the other four FERC commissioners in rejecting the Trump administration’s proposed coal and nuclear power bailout in what he called a “notable” vote because of its unanimity. “There’s no evidence to show we should move forward with the bailout,” Glick said.
Glick cited transmission as a key focus for FERC, which, he said, needs to “incent” transmission facilities be built. And, he said, “we need to encourage utilities to use existing lines more efficiently.”
FERC’s role, according to Glick, is to be technology neutral but to help eliminate barriers to new technologies.
Philip Moeller, executive vice president, Business Operations Group and Regulatory Affairs at the Edison Electric Institute and a former FERC commissioner, said during the ensuing panel discussion the grid of the future will require statutory and regulatory reform as more players enter the market. The expansion of microgrids will pose regulatory hurdles, he added.
“Regulators need to be thoughtful and prudent,” said Moeller, who served on FERC from 2006 to 2015. He called on state regulators to realign cost and causation in order to lead to a more efficient system.
Joining Moeller on the panel were: Eric Hsieh, director of the Office of Energy Finance and Incentives Analysis at the U.S. Department of Energy (DOE); Rob Gramlich, founder and president of Grid Strategies; Dana Small, director of Smart Grid and Technology for Exelon’s Pepco Holdings; and Presley Reed Jr., a partner in the energy practice at Dentons LLP. The forum was moderated by Jeanette Pablo, general counsel for the Energy Futures Initiative and former senior advisor for DOE, and held at Pepco’s Edison Place Gallery in downtown Washington.
Gramlich predicted the grid of 2050 will get 60 percent to 80 percent of its energy from renewables, mostly wind and solar. A large feature will be storage, with batteries providing critical sources during times of need. FERC will need to play an active role in providing access to and regulating the grid of the future, said Gramlich, a former economic advisor at FERC.
“There’s plenty of potential out there for storage, behind the meter and in front of the meter,” added Moeller, who called on regulators to be flexible in assessing new technologies.
Dentons’ Reed said there will be certain times when federal agencies like FERC need to “step in” in order to properly allocate resources and determine what transmission projects get built. But, he noted, the federal agencies could run into roadblocks created by state regulators who see an encroachment on their powers. “There will be a reticence of states to cede power,” said Reed.
DOE’s Hsieh predicted increasing transportation resources will rely on electricity and that new electricity providers will emerge to serve the industry, especially electric cars. The grid of the future, he said, will also feature reserves for 100 percent of demand through various storage facilities. “Energy storage is the Holy Grail of the grid,” he stated. There will be a variety of challenges, Hsieh emphasized, like new service paradigms, seamless vendor/utility integration and enhanced consumer protection.
The need for new transmission resources will also be a major factor in the future gird, the group agreed. With the access to generation limited in certain regions, resource sharing will be critical, said Gramlich. That will justify more transmission lines.
Pepco’s Small said the advanced use of data analytics will continue to provide new opportunities for consumers, producers and providers. “We’ve gone from having scarce data to an over-abundance,” said Small. “How we take that data and create insights is almost the key to the future.”
Denton’s Reed predicted the grid of the future will include more microgrids, which will require greater coordination among regulators.
The participants also agreed on the need for greater cybersecurity. “Cybersecurity is the number one issue,” said Pepco’s Small. “There’s a lot of exposure to bad actors.”
Hsieh predicted the issue of cybersecurity will continue to vex the industry in 2050. “I predict the cybersecurity problem will not be solved,” he said.
