Decarbonizing the grid is essential, but the haphazard, rudderless and leaderless path we are taking will lead to a lot of problems that could severely impact your business.
We are attempting to radically change the largest and most complex machine on the planet (the grid). The grid, for all its faults, has evolved over many decades with a clear architecture and goal. Now we are trying to fundamentally change it on the fly without a plan and by hoping that by throwing a lot of tax incentives into the market, it will all work out. This is dangerously naïve. While the free market and capitalism can be highly efficient at capital allocation, they are not concerned with the well-being of all participants, only their direct investors. With no plan and no guardrails, this free-wheeling attitude towards our climate future is irresponsible.
While it is impossible to accurately forecast the future, the trajectory we are on is certainly pointing towards increasing problems and challenges. Here is what we expect in the short and medium term.
- High price volatility. The increase in volatility will also cause an increase in prices for fixed priced
contracts. Important to understand your exposure. - Reduced capacity margin. Increasing solar penetration will result in capacity risk in the early
evening when solar ramps down, load rises and wind generation is uncertain. - Increased likelihood of grid outages. The reduced capacity margins will require the grid to
respond with brownouts. - Declining power quality. The influx of intermittent renewables, especially widely distributed
rooftop solar which is not actively managed by the grid, is reducing power quality and shutting
down industrial processes with micro-outages that might only last a couple of seconds but will
shut down a plant for hours.
Sorry, there is no good news here, only a warning. “Take action now. Things will not get better, only
worse.” Ok, that’s not very helpful. What action should you take? You need to adapt and the best way
to accomplish that is with a concierge utility™. Exergy, your concierge utility, represents you and sits
between your operations and the complex energy markets and the energy transition and provides you
with the power you need. Exergy will manage your energy at no upfront cost to you. If you need backup
power or batteries, Exergy will take full responsibility and provide Backup Power and Resiliency as a
Service. There is no CAPEX, only the confidence that you have energy experts on your team.
To learn more about Exergy Energy, your concierge utility™, please visit our website: https://exergyenergy.com