Smart Energy Voices - Episode 114

Heard at Net Zero Forum: The Current State of Clean Energy

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The Evolving Energy Landscape

Solar power is expected to dominate new energy installations in 2024, with a significant addition of energy storage systems to help balance supply and demand. The increasing reliance on solar requires advancements in storage capacity.
One challenge is the growing interconnection queue, which reflects the difficulty of incorporating numerous smaller renewable projects. Power purchase agreement (PPA) prices have also risen due to higher financing costs post-COVID, although there's potential for future decreases. Emerging technologies like small modular reactors (SMRs) and advanced geothermal are gaining attention but face regulatory and commercialization hurdles.

Geothermal Power and Long-Duration Storage

Kelly-Detwiler dives into two emerging technologies aimed at addressing the challenges of renewable energy storage and dispatchable power. One is enhanced geothermal systems, with companies like Fervo working on large-scale projects and initial outputs expected by 2026. Though promising, large-scale commercialization of this technology is still years away due to ongoing cost reductions and technological advancements.

With the rise of intermittent renewable sources like wind and solar, long-duration energy storage solutions are becoming crucial. Form Energy's innovative storage system uses the process of steel oxidation to store energy. Although it is still in the development phase, it could play a significant role in storing energy over long periods.

Data Centers and the Future of Energy Supply

AI-driven data centers require vast amounts of data processing and power, and the demand from these centers is expected to grow significantly as AI continues to evolve. This is putting additional pressure on power grids, particularly in states like Texas. As more energy-intensive data centers enter the market, the energy demand curve shifts, likely leading to higher equilibrium prices in competitive wholesale power markets.

Decarbonizing the Global Economy

EV growth rates are slowing but still represent around 9-10% of total vehicle sales, with over 5 million EVs now on the roads. Solar adoption, on the other hand, continues to rise, with over 5 million rooftop solar arrays in place. Hydrogen development is also progressing slowly, with several hubs receiving funding but not expected to materialize until 2028.

The carbon markets, particularly voluntary ones, are facing credibility issues after scandals like the Kariba forestry project, leading to a decline in traded carbon credits. There is also a push for better accreditation mechanisms to improve the transparency and trustworthiness of these markets.

Connect with Peter Kelly-Detwiler

• On LinkedIn

Peter Kelly-Detwiler has 30 years of experience in the electric energy industry, with much of his career in competitive power markets. He’s currently a leading consultant in the electric industry, providing strategic advice to clients and investors, helping them to navigate the rapid evolution of the electric power grid. Mr. Kelly-Detwiler offers numerous keynotes and workshops on a wide range of topics. He has also written widely on energy issues for Forbes.com and GE, with over 300 articles to his credit. His book on the transformation of electric power markets – “The Energy Switch” – was published by Prometheus Books in June of 2021.