The electrification of America is something we all take for granted. Just look at all of the things you need to start your workday — cellphone, laptop, desktop, Wi-Fi hookup and everything that attaches to them. They all require electricity. And you haven’t even left your house yet.
Calls for mass electrification, where most of our energy comes from electricity instead of other sources such as natural gas, nuclear or oil, are growing louder across the country. In fact, a handful of states and cities have passed or are considering laws that require new building construction to use only electric for heating and cooking instead of natural gas or require incentives to be offered for building all-electric homes or transitioning away from gas.
The International Energy Agency even recommended a worldwide ban on fossil fuel furnace sales by 2025. Of course, at least 19 states in response have passed laws preventing local governments from restricting natural gas utility and distribution service.
The world isn’t black and white. Our energy consumption shouldn’t be either.
As the country charges into this new world, a cautionary note needs to be sounded. Becoming completely committed to only one energy source is never a good idea. Diversity is key in all we do, from the HR department to the energy industry.
The natural assumption is that the electricity would be generated using renewables, but it also could be generated using renewables, nuclear energy and fossil fuels. Diversity in our energy resources will help ensure their sustainability.
The energy industry is paying attention to ESG — the environmental, social and governance factors that customers, investors and firms consider to determine if operations are delivering value on all those fronts. But that introspection needs to be widened into a critical look by all stakeholders at what electrification means to our resources, our electric grid and our lives.
The Biden administration’s energy goals include building a network of electric vehicle charging stations across the country and incentives for buyers and makers of electric cars and trucks. How will the grid handle all of that extra demand, coupled with the new all-electric houses, commercial buildings and factories?
We’re not sure. We do know the grid is already taxed and isn’t handling today’s demands consistently. Look at the havoc the stressed grid wreaked after the Texas snowstorms or what the summer weather is doing to California’s power grid.
Over the last decade, the number of U.S. electricity outages has doubled because of everything from severe weather to gnawing squirrels. The western U.S. is constantly faced with rolling brownouts and blackouts because it is so heavily leveraged toward renewable energy. If that happens in the abundant sunshine, imagine what the Northeast might face in the winter if it’s depending on solar energy.
The mass electrification of America demands more capacity. Princeton University estimates we will need double to triple today’s electricity transmission capacity to accommodate the Biden administration’s climate goals by 2050. Even without those goals, it’s clear the increase of severe weather events around the globe requires a better system of reserve power.
The entire grid may be better supported with the expansion of microgrids, self-sufficient energy systems that serve a specific footprint, such as a hospital complex, a college campus or even entire communities. Pittsburgh International Airport flipped the switch this summer on its microgrid, using solar and natural gas from its own land to power its terminal and other buildings. The remainder is sold to the grid.
Microgrids protect against blackouts and service disruptions, but they also increase the number of connections to the grid. More connections open the grid to a greater threat of cyberattacks, so greater investments in security need to be made.
Perhaps a case could be made for increased electrification instead of mass electrification. In either case, stakeholders need to consider the overall impacts of this movement. The world isn’t black and white. Our energy consumption shouldn’t be either.
