By Mani Vadari, President, Modern Grid Solutions
The energy industry is moving towards an unusual future. For the most part, over the last decade, electricity consumption was declining, mainly spurred by aggressive energy efficiency actions. In the U.S., overall electricity consumption has either been flat or declining despite (1) increased population, (2) increased appliances in residence, and (3) companies expanding (pre-COVID) their real-estate needs.
One silver lining of this unusual time is the advent of electric vehicles. Consumer, light commercial vehicles, and large interstate transport vehicles are expected to change the consumption trajectory by bringing a new electric load into the system – and why many electric utilities are eagerly embracing this change.
Another major change on the horizon is an assault on natural gas. A growing number of U.S. cities are taking a stand against gas stoves, long-billed as a more convenient way to cook, because of their contribution to climate change. Since June 2019, a dozen cities have banned natural gas equipment in new buildings. Berkeley, California, was the first, followed in the state by San Jose, Mountain View, Santa Rosa and Brisbane. In addition, a half-dozen other cities have passed laws to encourage all-electric construction without outright
banning fossil fuels. On the East Coast in November, Brookline, Massachusetts, became the first city in the state to ban new gas hookups. From Cambridge and Newton in Massachusetts to Seattle, dozens of other cities are considering similar bans.
The last change on my mind in this area is the nascent advent of hydrogen as an alternative fuel in all of its various colors (white, grey, brown, green, blue, yellow, pink, or turquoise), used to identify the source of electricity to create hydrogen.
The question to me is not whether natural gas is good or bad. Nor is it about whether natural gas should be banned. These are topics for people much smarter than me. However, if one identified themselves, I would love to pick their brains on this.
At its core, a utility’s business – indeed, its purpose – is delivering energy to its customers. Regardless of form (electricity or gas) and method (central or distributed generation), the utility of the future must have an open mind when considering options to achieve its mission-critical role. Just as renewable resources have become a viable alternative to fossil fuels, new technologies like dual fuel solutions, hydrogen delivery, fuel cells and others are being considered for a diverse energy future.
Signing off
Mani Vadari