The 2nd Regeneration Series from LE: Navigating Challenges, Celebrating Progress, and Risk Management in the Transition to Electrify Everything
Introductions and Event Overview
The 2nd Regeneration Series event continued discussions of how to successfully make a collective, global-to-local transition to electrification, inspired by John Hawkins’s book Regeneration: Ending the Climate Crisis in One Generation. The event was also made possible by the generosity of sponsor Kilowatts for a Cause.
This 2nd event was again introduced by Leaders in Energy Volunteer Director Linda Mansdorf and moderated by LE Project Manager Dina Monsour. Leaders in Energy brought together three experts in government and industry who presented updates on both progress and challenges facing the energy transition to decarbonization through electrification. The panelists offered inspiration, ideas, and suggestions for how individuals, government, and private industries can and are collectively working together to reach the goal of an electrified future. The panelists demonstrated how increased actions and awareness in innovation, policymaking, and individual energy source choices at home can make a difference. Panelists also highlighted areas for improvement and the need for further progress.
David Friedman, Senior Director, Federal Policy, Rewiring America
Topic: Federal Policies Impacting Consumer Energy Choices
David opened his presentation with a slideshow describing how the nonprofit Rewiring America engages in helping homeowners identify and leverage cost-effective solutions to fully electrify all energy sources for heating, cooling, and cooking. He also shared his lifelong passion for helping people better their lives, emphasizing his belief that electrification is essential to achieving decarbonization goals and, in general, making living spaces healthier and safer.
David explained that while Rewiring America seeks to effect lasting changes in policymaking to achieve its mission, the organization is equally dedicated to assisting individual businesses and homeowners in transitioning to electrification. He shared the astonishing insight that 42% of emissions come from the everyday decisions we as homeowners make when deciding how we cook our food, travel, and heat and cool our homes and water. David shared five lifestyle changes we could all reasonably make in our own homes, exercising significant power over the rate at which the country reaches our decarbonization goals:
- Install a heat pump for home heating and cooling
- Install a heat pump water heater
- Use an electric induction stovetop
- Drive an electric vehicle
- Use solar energy as a backup source to the electrical grid
Following the passage of the Inflation Reduction Act, Rewiring America amplified its efforts to inform businesses and homeowners of the potential cost savings in tax credits and deductions meant to encourage more people and businesses to make the transition to using alternative energy solutions. David included a chart of these various opportunities in his presentation, adding that federal legislation laid the groundwork for many states to offer tax incentives. David also informed viewers that Rewiring America has created tools to break down and simplify the incentives available in the Inflation Reduction Act.
Jamie Calderon, Director of Standards Development, NERC
Topic: Status and Role of Industry Regulations to Enhance and Maintain the North American Bulk Power Grid
Jamie introduced the primary mission of The North American Reliability Corporation as it relates to the company’s collaboration and coordination with the U.S. and Canadian governments and other industries to ensure the electrical grid in North America remains reliable and resilient.
Jamie emphasized NERC’s neutral position concerning their approach to collaboration regarding the innovation and use of new technologies, which she says will impact the grid’s resiliency, security, and functionality. She outlined NERC’s focus in the following areas:
- Maintaining situational awareness of conditions affecting the grid
- Analyzing and determining grid disturbances
- Reporting findings to make recommendations
NERC is also responsible for evaluating and reporting on the grid’s performance over time and providing detailed assessments of what to expect from the impacts of seasonal weather and climate-related conditions.
Jamie clarified that NERC prefers to conduct its operations by preventing, rather than reacting, to potentially threatening conditions. She explained that NERC aims to identify any conditions posing a potential threat as early as possible so the company can be ready to implement its mitigation plan and eliminate or at least reduce any negative impacts on grid performance.
NERC also reports on the evidence it collects and analyzes to show improvements to grid resiliency over time.
Using the body’s circulatory system as an analogy, Jamie discussed how federal governments authorize NERC to provide guidelines, training, and education to utility companies that continually face ongoing and increasingly complex and sophisticated challenges from cyber and other technologically related threats. NERC collaborates with industry by developing reliability standards and conducting audits for compliance.
Jamie explained that NERC is an independent not-for-profit organization authorized by the Electric Reliability Organization embedded in the provisions of the Federal Powers Act to collaborate with the federal government and other industry leaders. She further explained that collaboration with Canadian provinces is also critical to ensure continuity in standards since the North American bulk power grid extends over and beyond national, state, and provincial boundaries. Jamie mentioned that efforts are also being made to expand collaboration with Mexico.
Some positive changes NERC sees in its monitoring over time include a gradual reduction and even retirement of coal facilities in favor of natural gas, solar, wind, and electric battery sources. Changes also include customer “end use” transitions where electric vehicles are becoming more affordable, and data centers are choosing to rely more on electrical and solar power. Jamie cautioned that while the alternative energy transition is happening, NERC’s role steadfastly focuses on risk management, not advocating for one source over another.
The most important message Jamie highlighted in her presentation is NERC’s bottom-line goal of saving lives by ensuring the lights don’t go out. She used the recent example of Crowdstrike to illustrate that NERC conducts its thorough and consistent regulatory activities regardless of whether threats and incidents are caused intentionally or unintentionally.
Climate change causes extreme weather events that pose a severe and growing threat to the security and resiliency of the grid. Jamie shared that it is possible to prepare for, mitigate, and prevent risks associated with converting electricity as a source of alternative energy.
Sean Casey, Decarbonization Technical Lead, AECOM
Topic: Progress and Challenges Facing Businesses Making The Clean Energy Transition
Sean led his portion of the panel discussions, providing an overview of AECOM’s role in helping federal agencies and organizations meet their decarbonization goals. Sean shared that prior work with Habitat for Humanity opened his eyes to how decisions to build and power infrastructure, both commercial and residential, have significant impacts on our communities and the environment. Before diving deeper into his presentation, Sean showed a photo of Exit Glacier. The photo illustrates the significant melting of the glacier today compared to its size in 2005.
AECOM is focused on “sustainable legacies.” Sean expanded on this, describing four pillars of AECOM’s mission to help industries and individuals embed (ESG) sustainable development into every aspect of their lives and businesses. These four pillars also align with AECOM’s support of the Global Biodiversity Framework to reverse loss of nature by 2030 by:
- Embedding sustainable resilience across all work
- Improving social outcomes
- Achieving net zero (emissions)
- Enhancing governance
Sean conveyed with impactful images, charts, and cartoon illustrations the growing urgency for more people to awaken to the reality of dire consequences associated with climate change-related weather events and global warming. Yet, while the severity of existing threats is real and already happening, the remainder of Sean’s presentation focused on where and how he believes there is still time and hope to change course. From there, Sean addressed the specific challenges we face and the collective behavioral changes that humanity needs to reverse the crisis.
AECOM is making progress in helping various sectors of the economy implement more sustainable practices (retrofits and emissions reduction) in terms of the types of energy used. However, Sean also pointed out the equal importance of addressing the challenges of increasing demands for more energy. Some of those challenges will require significant upgrading of power grids to meet the demands placed on the grid, causing congestion, which now exceeds $20 billion annually in cost for upgrades and expansions.
The lengthening “interconnection queue” of new projects waiting to connect to the grid adds to high costs. As of 2023, there is 50% more power demand than available capacity, much of which involves companies and industries attempting to transition to alternative energies. Sean’s points drive home a reality that in addition to the ongoing challenges we face urging policymakers to act more swiftly in favor of climate-friendly energy sources, there are logistical supply chain and grid capacity obstacles to overcome.
In summary, Sean illustrated short- and long-term solution impacts, both positive and negative, to electrify everything. The most significant investment in green energy solutions suggests short-term outcomes of cleaner jobs and better health for workers in industries that either use or produce clean energy. It also will mean an aversion to climate catastrophes and better technological innovations that will ultimately ensure economic security and resilience. However, the short and long-term negative impacts of transition will incur potential reductions in Gross Domestic Product and job losses associated with the retirement of traditional fossil-fuels-reliant production of goods and services.
Sean acknowledged the significance of trade-offs and sacrifices to be made in achieving the goal of electrification of everything and making the intentional choices to transition fully. However, he expressed his belief that the losses, especially those in the shorter term, will be worth averting the worse consequences of the climate crisis if we are unwilling to meet and accept those challenges.
Conclusion and Panel Discussion:
Moderator Dina Monsour thanked attendees and panelists for their contributions. She opened the panel discussion with participants with the initial question: “Why electrifying various sectors is essential for achieving our climate goals, and how does each panelist see this playing out in the near future?”
David Friedman re-emphasized that electrification makes it easier for people to save money and join the clean energy movement. He also pointed out that electricity is a flexible energy carrier, and its capacity to reach more people is more significant and faster than traditional energy sources. David also agreed with Sean’s assessment that the benefits to the environment and our economy outweigh the trade-offs.
Jamie agreed with David’s comments regarding the ability of clean energy users and producers to naturally assist in the challenge of having enough storage capacity when the grid is overloaded. She highlighted that the demand for more energy storage to offset grid overloading is another of the many risk factors NERC monitors, especially now that fewer new storage facilities are being built.
Sean added to Jamie’s comments that energy production should be clean energy. Energy generation can be at the source where it is generated. This is less costly and more efficient, but to Jamie’s point, it must be paired with storage ability. Sean also reminded us that reducing overall consumption must also be part of the solution equation.
Highlights from participant questions:
David responded to a question about how to ensure electrification will reach and benefit all communities, especially those historically underserved by clean energy solutions. He emphasized the importance of how he and other influencers pushed for the Inflation and Reduction Act to include rebates that will do more to help marginalized communities than perhaps tax credits. He also mentioned the inclusion in the legislation to address the needs of housing situations where one gets a bonus in tax credits if the solar energy provided serves at least 50% of customers in low-income communities. Rewiring America is also working with groups like Habitat for Humanity to secure financing to build more affordable and electrified housing. ¾ of drivers purchase used vehicles, and tax credits are now available for used electric vehicles.
Sean was asked about his experience working as part of the team to implement the WMATA net zero emissions electrical busing system. He summarized some of how procurement and facilities management mindsets had to change. Workers needed new training and faced the overnight decisions to add new infrastructure, e.g., charging stations. Despite these challenges and rapid turn-around changes, Sean felt the benefits the city now is experiencing in emissions reductions were worth the efforts and that it was a good learning opportunity for better understanding how the clean energy transition, in general, presents opportunities as well as challenges we can be better prepared for to address the needs of all affected.
How can we address at the societal level the expected skyrocketing costs of clean energy transition? Jamie expressed that this is more of a cultural issue to solve than a technological one. David acknowledged the effect is real but an important reason we need to expand and enhance grid capacity and use all alternative options. He stated that we also should remember that cleaner energy is more efficient and produces far fewer emissions, which can expand room for more demand. Sean also shared that nuclear energy should be part of the transition discussion.
Christy Amada is the owner and principal manager of Amada Development Services, LLC., based in Alexandria, VA. Christy is a freelance contractor providing marketing and communications services to small businesses and nonprofit organizations. Christy is particularly interested in helping those engaged in missions to save biodiversity, address climate change, and lift up vulnerable peoples and communities. Christy is also a volunteer for Leaders in Energy.