Fixing the Backbone of the Energy Transition
by Monica Varman, Partner at G2 Venture Partners
California, Michigan, and Texas residents are emerging from yet another season of multi-day power outages, in what has become an annual pattern. Across the U.S., households experienced major power outages at a rate of 1-2 per week over the past 3 years, with a total of 1,542 outages caused by severe weather between 2000-21. Interconnected networks of aging infrastructure buckle under the strain of severe weather, creating dangerous conditions on roads and inside frigid homes.
In addition, physical and cyber attacks on the grid continue to rise with an attack nearly every other day in 2022, a 74% increase over the previous year. Lack of power continuity results in significant loss in economic output, and can often be a matter of life and death. These impacts are disproportionately felt by economically disadvantaged communities, who do not have the means to invest in backup power and often need to commute to work regardless of weather conditions.
Utilities face limited choices to harden the power grid in its current architecture. Undergrounding wires has its challenges, with cost estimates at over $3M per mile, and flooding or earthquakes still posing a substantial risk. PG&E’s proposal to underground 10,000 miles of wires is estimated to cost up to $40B, putting additional pressure on rates that have been rising 20% year over year.
All this is happening as we are facing the challenge of our generation to mitigate climate change, with the “electrification of everything” and decarbonization of the grid as two critical levers. EV adoption is past the tipping point for mass adoption, and sales of heat pumps outpaced gas furnaces in 2022. How can we sustain this momentum when we are unable to deliver electrons as reliably as molecules?
Investing in the resilience of our poles and wires is critical for a just energy transition. Given the complexity of the challenge, there are several pathways to improve the reliability of the grid:
Proactively identify and manage at-risk resources: Asset owners can identify lines and equipment most vulnerable to disasters using satellite imagery and sensor technology, and use that intelligence to balance grid capacity and reliability. AiDash helps utilities forecast damages, identify system risks, and prioritize interventions such as vegetation management. LineVision’s lidar technology monitors transmission lines to help operators balance safety (e.g., during high-wind events) and line capacity.
Deploy and unlock the potential of Distributed Energy Resources (DERs): Batteries, whether embedded (e.g., in electric vehicles and appliances) or standalone, demand response, and behind the meter generation (e.g, rooftop solar) can all be powerful tools to improve grid flexibility. These resources bring supply closer to demand, reducing the need for centralized generation and transmission resources. They can also rebalance demand and supply by staggering charging windows for EVs in a territory, proactively adjusting temperatures to reduce HVAC load, or deploying Virtual Power Plants (VPPs) in response to a demand surge. FERC Order 2222 enables these DERs to also directly participate in wholesale markets, increasing the size of the profit pools available to them. Companies like Leap, Voltus, and Weavegrid help DER owners unlock this value by simplifying the user experience of participating in grid services.
Localize the grid: Microgrids, with localized generation resources (e.g., community solar, batteries), and controls (e.g., distribution-level grid orchestration), reduce the risk of single points of failure for vast networks. Companies like Scale Microgrids and Camus Energy are building and orchestrating local resources.
Like many problems in the climate space, solving the grid resilience challenge requires innovation across policy, products, and business models. Policy enables market design for integrating flexible resources and upgrading existing infrastructure. Great products with strong business models drive the adoption of technologies for distribution generation, load shifting, and grid optimization.
Last summer, California avoided rolling blackouts during a monster heatwave by activating energy storage resources and mobilizing consumers to reduce demand in response to text alerts. Future-proofing the grid will require a move away from our top-down, fixed network paradigm to a more inclusive, engaged, and decentralized system – a future we all have a stake in building.
🍿 The Lean Back
Learn about ClearFlame in the latest Pique Action film.
📢 Climate Action of the Week
Sign up for the next Climate Changemakers Hour of Action here.
Regulating fossil gas and coal plants is an essential step toward 100% clean electricity. The EPA is expected to imminently release long-awaited regulations that set carbon standards on both new and existing gas and coal power plants. As we await the regulations, we can help build public support for strict standards by writing a letter to the editor.
🎙My Climate Journey Podcast
💸 Jason talked to Mark Robinson, Founder and Managing Director at WAVE Equity Partners, about the industrial market landscape and the firm’s investment stage, check size, sector focus, diligence process, and value-add post-investment.
🚙 Cody talked to Scott Case, Co-founder and CEO at Recurrent, about what impacts an EV battery’s health, how Recurrent uses data to make health assessments, and future predictions for the used EV market.
🧪 In Yin’s Skilled Labor Series, we learned from Alana Guzzetta, National Research Laboratory Manager at Vulcan Materials, about the history of concrete and how new technologies are disrupting an industry that dates back to the fourth century BC.
👩💻 Climate Jobs
For more open positions, check out the #j-climatejobs channel in MCJ Slack as well as our MCJ Job Board.
Accounting Manager at AMP Robotics (Louisville, CO)
Head of Product Development at EcoSafi (Remote/Bay Area)
Chief of Staff at Euclid Power (NYC)
Product Marketing Manager at Funga (Remote)
Environmental Health and Safety Specialist at Heirloom (Tracy, CA)
Business Development Representative at LevelTen Energy (Seattle, WA)
Origination Production Lead at Pachama (Remote)
Supply Growth at Patch (Remote)
Product Manager at SPAN (San Francisco, CA)
Senior Process Engineer at Twelve (Remote)
✨ Highlights
This month we’re shining a spotlight on MCJ member, Laurie McGinley. Learn more about Laurie’s climate journey here.
🗓 May Events
Click the event title for details & RSVP info. For more climate events, check out the #c-events channel in MCJ Slack.
🙋♀️ MCJ AMA: Maddie Hall - Living Carbon: Living Carbon is a public benefit company on a mission to fight climate change by genetically enhancing CO2 capture and storage in trees. (5/03)
💡 College to Climate Monthly: This month’s speaker is Caitlyn McCloskey, process engineer at Sublime Systems, a Boston-based startup that is commercializing a breakthrough process to make low-carbon cement. (5/03)
📚 MCJ Book Club: Join us for a discussion of Regeneration by Paul Hawken. (5/03)
🤖 MCJ Boulder Area Climate Tech with Amp Robotics: Come learn how Amp Robotics is transforming the recycling industry with an on-site tour followed by a casual meetup. Check out tour times here. (5/04)
🤝 DC Climate: May Meet Up: Whether you're a veteran or looking to transition, come chat about sustainability and climate tech. (5/04)
👋 Community Welcome Call: Connect, share and learn with the MCJ team and community members. (5/04)
🙌 Climate Career Advancement Meetup: If you are thinking about advancing your career to work in climate, please join us for an hour of learning and networking. (5/10)
🇬🇧 London Energy Meetup: Hosted by MCJ x Intercalation x Energy Revolution Ventures. Come by for a few drinks and talk about everything energy! (5/10)
🚙 Monthly Idea Jams: The theme is transportation. We’ll have two presenters pitch their ideas to the group, and attending community members will provide their feedback. (5/12)
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