Role Of DG And NEM 3.0. We haven’t talked about it in some time but California is coming up to a legislative crossroads and grid operators may have one less tool to use in their grid planning. There is a bill working through the assembly that could possibly end net metering as we know it and change the rules for existing solar that has been installed. In solar we’ve become normalized by the process of being attacked and hearing the worst-case scenarios only to see the end result work for us. The problem with being numb to the process is that you never know when you may just take it for granted and lose. While it cost jobs in Nevada and Arizona when we lost those net metering battles, imagine the future of NEM 3.0 in California is lost to the incumbents. Not only does it destroy 40% of the market, but it also crushes the foundation of the entire solar market, investor confidence, and the opportunity to continue the energy transition.
Pipeline Cyberattack. A fuels pipeline company was attached by ransomware hackers and had to shut down their pipeline as a precaution. While the infrastructure itself was not impacted by the hack, it clearly identifies the risk of large concentration into that system. It also should create the question internally at your companies how your systems are maintained from a compliance and cybersecurity perspective.
What’s The Plan? The IEA is about to publish the report that outlines its view on how to get to 100% by 2050. Interestingly, the road will likely not only include generation but also the ability to expand and integrate more variable generation using more dynamic infrastructure on the grid-like smart transformers, storage, and HVDC. From an engineering perspective, you have to be excited about what a dynamic grid can do, with more elasticity than ever and generation on both ends of it. The entire planning exercise is made more complicated with the electrification of transportation, just think of the single variable of a school bus fleet needing to be charged at the same location at the same time, a couple of thousand times per day across the Country.
The Infra Bill. Congress is back in session this week. Don’t get distracted by some of the crazy sideshows that are happening or any of the commentary from individuals on either extreme side. This week, Biden is looking to play Let’s Make A Deal!
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The Jobs Census. While the pandemic took some air out of the jobs market in the solar industry, our productivity increased a great deal. We’re now seeing the lack of workers in solar once again while seeing backlogs and pipelines expand across the market ecosystem. Without a doubt, pipeline of trained workers is a crucial piece of the pie.
Busy Week. Sorry for the lack of content this week, it’s been a busy week at FlexGen and I will be getting back to your regularly scheduled programming next week. Have a great weekend!
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24 By 7 Procurement. Corporate renewable energy purchasing is headed to the next phase and it is going to impact ecosystems across the market. Corporates have reached their 100% renewable energy goal and now going to the time matching of procurement and usage. Google Cloud is announcing that they are partnering with AES to buy renewable energy matched to their usage. This is a little fish in a big ocean way to do it but here are two things that will happen next. Data centers will go first, not only those that are exclusive to big corporates, but data centers that are providing services to companies will have to match renewable energy to their consumption in order to retain their customer base. Second, renewable energy generators will have to learn to shape their curve. Imagine having to reengineer the 8760 forecast based on the consumption curve of the off taker. Careful though, missing your production could mean having to go to the market to make up the energy and leave you naked on the hedge.
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