The U.S. electricity sector is responsible for nearly one-third of total U.S. CO2e emissions. To reach climate goals the sector must reduce emissions by 80 percent by 2035. Reductions of that size will require a greater investment into reliable solutions. After the extreme cold snap that hit much of the Midwest on December 23-24, utilities have been hard at work preparing for future events. Because the demand for electricity was so high compared to the supply of electricity, a wide portion of the country’s power grid was at risk of extensive blackouts. “The storm highlighted the risk of significant weather events – and the need for the utility industry to adapt,” said Ari Peskoe, Electricity Law Initiative director at the Harvard Law School Environmental and Energy Law program. Utilities like TVA and Duke Energy have already spent billions on upgrading systems, however, extreme temperatures still posed a problem. “It was a mess,” said Simon Mahan, executive director of the Southern Renewable Energy Association (SREA). For Texas, the software failed to provide accurate information and led operators to believe more power was available than there really was.
Rocky Mountain Institute (RMI) analysis has found that, targets are both not climate-aligned and unlikely to be achieved. Rocky Mountain Institute (RMI) estimates, the investment opportunity to electrify the US economy is conservatively valued at about $3 trillion by 2035. The non-profit organization, RMI, has created a new platform to help investors by becoming a resource for utilities transitioning.
Energy transition and rising electricity demand will require more investments. How has your utility adapted to reduce emissions and incorporate renewable energy?