Is the grid ready for fully renewable energy?

Someone from Pacific Gas and Electric (PG&E) , a large ISO in California, once told me a joke.

Alexander Graham Bell and Thomas Edison came back to the world to observe what they invented.  

Bell held a smart phone in his hand and said “Wow!  This is NOTHING like what I invented!”

Edison observed the electrical grid and said “Wow!  This is EXACTLY what I invented!”

The joke, funny because it is true, punctuates a couple of things:  First smart technology is amazing and second, we have somewhat neglected the advancements necessary to our infrastructure which will be critical to our adoption of technology for efficiency and our energy demands in the future.  

So what exactly is the grid?

The electrical grid is a network that allows electricity to reach all buildings and things that require energy across the U.S. It is broken into three regions: the Eastern Interconnection (east of the Rocky Mountain states), the Western Interconnection (Pacific Ocean to the Rocky Mountain states), and the Texas Interconnected system (Texas has its own grid which is not connected to the adjacent states). Each of these regions are interconnected with local electricity grids within that region. Think of the Grid like a diagram for March madness and there you have it. Within the local electricity grids, electricity generating power plants are connected to their respective grids to make the electricity that the grid then provides, or transmits, to buildings throughout the region. This means that the electricity that you use at a building is not all produced at the same power plant and instead comes from multiple sources and how clean your energy is, is a blend of these different sources.

The grid has a lot to be desired. First, the grid is not two-way everywhere, but rather one-way. This means that the grid can only supply power to a building and the building cannot supply power back to the grid. This would be beneficial for buildings that have on-site renewable energy and storage and produce an excess amount compared to its usage. A one-way system only allows energy to flow from the power transmission plant to the building. Second, a lot of energy is lost on the grid. About 60% of the energy used to generate electricity is lost in the conversion process, and even more is lost in the form of heat as it travels through transformers and power lines.In fact, more than 60% of energy used for electricity generation is lost in the conversion. That’s a lot of wasted resources. Lastly, antiquated meter technology prohibits real time data and demand response programs, making buildings vulnerable to inefficiency and demand overload. Real time data can help consumers understand when the grid has the cleanest and most efficient energy to eliminate the risk for blackouts. Smart meters can also transmit to the grid when there is a service interruption, reducing the time it takes the grid operator to identify the source of in issue in an interruption in service.   

Although many markets have made adjustments to the grid and their meters, the old infrastructure still is in operation today in some areas.

What is eGRID?

The EPA uses the Emissions and Generation Resource Integrated Database (eGRID) to calculate greenhouse gas emissions (GHG) emissions data based on types and amounts of electricity generated at individual power plants, data that is provided by the U.S. Energy Information Administration (EIA). The EPA’s emissions data and the EIA’s electricity generation data can be used together to calculate the emissions in the same units for each type of electricity so they can be compared to each other. The data can then be aggregated into the eGRID regions. If you don’t know the specific electricity mix that you consume then the eGRID data is used to account for regional differences (what resources are more abundantly available: hydroelectric power in coastal states, solar power in sunny states, etc.).

What about microgrids?

A microgrid is a smaller system that can be connected to the larger grid or work by itself. Microgrids can be multiple sizes from a few buildings to entire neighborhoods, college campuses, or military bases. Microgrids can run on any power source such as renewables like solar, wind, and geothermal, non renewables like coal and fossil fuels, or a combination of both. Microgrids can increase resilience by remaining active when the grid goes down, reducing the amount of demand on the grid during high use times like heat waves or when everyone gets off work and goes home, and reducing energy costs by using renewable energy sources. Using renewable energy sources as the primary source for a microgrid can allow you to have lower energy costs and cleaner energy sources that may not be available on the grid.

Why does renewable energy matter to the Grid?

Renewable energy is energy that is generated from sources that cannot be depleted. These types of energy do not have any GHG emissions because they come from non-carbon sources such as the sun (solar panels) and wind (wind turbines). Nonrenewable sources, on the other hand, can be depleted and are often GHG emitting. The most common sources are fossil fuels like coal and natural gas which are made from organic matter like dinosaurs and algae that contain carbon which is released when burned to create energy. Increasing the amount of renewable energy on the grid reduces emissions from the electricity that we use.

We use electricity for much of our daily lives, from powering on lights, heating water, air conditioning, powering our electronics, and more, that we don’t want to give it up. However, using renewable sources of energy eliminates the need to burn fossil fuels and release that carbon back into the atmosphere. In 2021, 25% of GHG emissions were attributed to the Electricity Production sector in the U.S, and 60% of our electricity came from burning fossil fuels. Using renewable energy can significantly reduce our carbon footprint. Additionally, renewable energy is unlimited, unlike fossil fuels that are subject to increases in price with decreasing availability. 

The biggest user of electricity is space heating and cooling. When it gets too hot for you to handle, it gets too hot for others to handle too. So what do you do? You turn on your air conditioning. And so does everyone else. This high demand leads to more generation in energy from power plants and lower efficiency.  There are also risks of demand exceeding the ability for electrical plants to supply, which can result in brownouts or power interruptions. However, adding renewable energy sources and renewable microgrids to an upgraded grid can alleviate risk and, keeppower plants working more efficiently. 

Can the grid handle our energy use?

One of the primary concerns is whether or not the grid can handle a switch to electrification (the use of electricity rather than on-site fuel like natural gas). Changing all of our energy usage to electricity requires a much larger amount of energy than the grid currently provides. Most of the grid in the U.S. was built in the 1960s and 1970s, and while that may not seem like that long ago, U.S. electricity consumption has risen from 0.3 trillion kilowatt hours in 1950 to 4 trillion kilowatt hours in 2022. Powering cell phones, computers, electric vehicles, heating, cooling, and everything else demands a lot of electricity. A single gaming console uses as much energy as a full size refrigerator, so the more devices there are, the greater consumer need is for energy. The grid needs some changes. 

The grid may not be ready for every building system and appliance in the country to be electrified, but infrastructure changes are being made today. Electrification will not happen instantly, but rather over the time it takes to reach net zero goals, many of which are not until 2050. Electrification is a key component to reducing GHG emissions from energy by using cleaner energy on the grid. Taking advantage of currently available incentives can help you stay compliant with building performance standards, save money on energy bills, and save money on capital costs with funding opportunities that may not be available in the future.

What needs to happen to make the grid ready?

Grid infrastructure needs a little bit more than a facelift. Storage distribution, demand response,  smart transmission lines and smart meters, microgrids, and more are needed to ensure the grid is ready for electrification, the transition from appliances and systems powered directly by natural gas or other fuels to appliances and systems that use electricity. For example, a stove may be directly hooked up to a gas line, but an electric version would plug into an electrical socket and the electrical load capacity for that location needs to be able to support that additional electric requirement. The good news is that changes are already underway. In 2023, the DOE announced $3.5 billion for 58 projects across 44 states to increase electric grid resilience and reliability while providing jobs. One of the focuses is lowering energy bills and increasing clean energy. The DOE funding allows grid infrastructure improvements without passing these additional costs to consumers. Improvements allow for easier installation of renewable energy production and electric vehicle charging stations on site and enables cleaner energy on the grid. 

What about onsite renewable energy?

Onsite renewable energy production is a great way to reduce GHG emissions associated with energy use. Solar power is one of the most popular forms of renewable energy since it is relatively easy to install, available in most markets and with technology costs reducing is becoming more affordable.. Solar panels can be placed on roofs or carports, taking advantage of unused surface area. Offsetting the cost of installing solar or other forms of renewable energy is often a sticking point for many people. There are financial incentives available offered by a variety of jurisdictions, however it has been estimated in a 2022 Princeton report that about 80% of emissions reduction funded by the Inflation Reduction Act will be lost unless grid improvements are made.d. Energy can only be sold to the grid in a smart  system which allows energy to go from the building to the grid whereas a one-way system (the majority of the grid) only allows energy to go from the grid to the building. While it seems daunting, the transition to renewable energy is here. Capitalizing on these new opportunities can save you money on utility bills and capitalize on incentives for energy efficient appliances and infrastructure for renewable energy while they exist today. Changes to grid infrastructure are happening and being an early adopter of renewable energy and electrification can save you money now and in the future.  


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