Exploring the Role of Utilities and Other Game-Changers
The energy landscape is going through some major changes, aiming for sustainability and decarbonization. It is an exciting time full of challenges and opportunities.
At the Microgrid Knowledge Conference this year, we moderated a lively panel session that led to a thought-provoking discussion about energy service models, utilities, microgrids, and their respective roles in this energy transformation.Included in the panel were Michael Bates, the GM at Intel's Energy Center of Excellence; Patrick Avery, VP of Power Grid Automation at G&W Electric; Robert Lachenmayer, Shell's Microgrid Technology Lead; and Cris Eugster, Ever.green President and CEO.
The following conversation reveals the opposing perspectives on who will ultimately lead the energy transition. Will Utility companies continue to hold their ground in the energy landscape?Who knows, there might be other unexpected players ready to make a difference! Let us speculate and explore together.
Will Utilities Hold Strong?
Mike Bates, a proponent of utility involvement, emphasizes that utilities possess a unique advantage as platform owners for energy delivery. They already possess comprehensive knowledge of load profiles, effective load balancing techniques, and crucial billing relationships with customers. Despite certain restrictions, utilities have the potential to leverage their existing infrastructure and expertise to navigate the evolving energy landscape.
Bates suggests that pioneering utilities, particularly those in California, are already embracing the challenge and taking steps to reinvent themselves as delivery platforms for energy-as-a-service. While the utilities themselves may not directly provide the services, they could play a crucial role in enabling third-party service providers to offer innovative solutions to consumers.
Will they figure out how to innovate and adapt?
Will Energy Service Providers Take the Lead?
However, not everyone shares Bates' optimistic view for utilities.Bob Lachenmayer raises valid concerns about the challenges utilities face in transforming their business models. He emphasizes the need for utilities to not only change their own models but also address regulatory frameworks that govern their operations. Achieving a fully decarbonized system and maintaining cost-effective and resilient energy infrastructure require substantial collaboration with regulators, consumers, and other stakeholders.
Bob doesn't dismiss the utility's role entirely, but he's not convinced they'll be the ones leading the charge. Rather, Lachenmayer believes that energy service providers might take the lead in driving the energy transition. While utilities may need to adapt and evolve, their historical risk aversion and embedded industry practices might hinder them from leading the way.
Will Consumers Hold the Keys?
Here's an interesting perspective from Pat Avery: consumers are the primary drivers of change. Just as the deregulation of generation was driven by consumer demands, today's consumers want reliable power 24/7, and they're not settling for less. Pat even shares a personal story about how his boss demanded a microgrid after a storm caused a major outage. It's clear that consumer demands can push utilities and other players to step up their game.
Will Technology Boom Put them Ahead?
Cris Eugster adds a dynamic twist to the conversation. He believes technology will play a crucial role in determining who takes the lead. If advancements happen quickly and utilities don't keep up, they might lose their leadership position. The speed of technological progress and utilities' ability to embrace it will shape the energy landscape. It's a race against time, and utilities need to adapt and leverage emerging technologies to stay relevant.
Considering the Viewpoints
The discussions have given us a lot to think about. The energy transition is a complex puzzle with various stakeholders involved. Utilities do have advantages, but their ability to lead depends on many factors. Collaborating with regulators, meeting consumer demands, and embracing technology are all part of the equation. All these opinions intersect on the understanding that the energy transformation requires collaboration, regardless of who leads the way.
The energy transition is an ongoing journey, and it is an exciting one.As the energy landscape evolves, collaboration and dynamic responses will shape the future. So, let's keep exploring, speculating, and pushing for a sustainable and resilient energy system together. Who knows? The next big game-changer might be just around the corner!
Listen to the full conversation here: link