The Future of Electricity: Clean and Bright
February 22, 2016 Leave a comment
What happens when you bring together nearly two dozen energy leaders from across the globe into a room for several days of uninterrupted discussion on the Future of Electricity? Throw in jet lag for anyone not from United Arab Emirates, add a cocktail of fossil fuel interests along with renewable energy advocates, shake well in nearly 100 degree F heat, and one could not imagine consensus coalescing around almost anything. Surprisingly, perhaps, this group, convened by the World Economic Forum, agreed on a set of trends that indicate change is nigh in the electricity sector:
- The world is increasingly electrified.
- Renewable energy has the greatest capacity growth.
- Clean energy enables growing universal access to electricity.
- Energy security increases as a result of more indigenous clean electrification.
- Distributed energy resource deployment is significantly increased.
- Energy storage provides critical grid services.
- Consumer engagement and choice shape future electric growth.
- The price of electricity may increase briefly, then decrease, over time.
- Regulation supports and accommodates these changes.
This transformation will not happen organically, however. The group also identified requirements to realize this transformation in our electric system:
- Politic targets must be clear, transparent, and consistent.
- Regulation should anticipate trends and create a climate for investment.
- Power markets and platforms must be open for all participants.
- Financing mechanisms should be clear and risk factors understood.
- Business and monetization models must evolve.
- Consumers must be allowed to participate.
- Special provisions should be made for universal access.
It was affirming as a participant in this process to hear from others about the same policy hurdles I deal with every day in Congress, state legislatures, and regulatory bodies. My firm‘s public policy work, while mostly centered in the U.S., can be informed by policies that have been tried elsewhere with varying degrees of success. That the Global Agenda Council on the Future of Electricity could arrive at these principles and requirements should give us all a cogent road map to this transition. Read the full report here.