Electrifying Everything- Policy Brief

ELECTRIFYING EVERTHING | La Jolla Conference 30 th Anniversary Policy Brief

In September 2015, the State of California passed legislation – formally known as SB 350 – aimed at increasing California’s renewable energy mix to 50 percent. The legislation also sought to double the energy efficiency of existing buildings. All of the provisions of the new legal framework were crafted by energy and climate action advocates to catapult California’s electricity system into the future with a more robust, resilient and cleaner matrix and grid.

In many circles, the bill became known as the “electrify everything” policy framework for the state.

Since its implementation in California, the concept has been heavily debated across the world, particularly as the imperative and society’s pressure for tackling climate change grows but is also an ever more complicated public policy discussion. The energy transition, in some ways, should be understood to signify more energy, not less. But more energy, with less carbon. Or, as the subject of this brief sets forth, more electricity.

This Policy Brief is based upon discussions that took place in May as part of the Institute of the Americas 30th La Jolla Energy Conference and a Virtual Roundtable held under Chatham House Rules.

The Policy Brief summarizes and adds context to those discussions wherein industry leaders and experts discussed the topic of electrifying everything, what it means, where to start, challenges to overcome and what the electric future will look like in 2030.

What do we mean by electrifying everything?

The goal is to build a power system that allows us to meet growing energy demand and consumption as much as possible through our electric grid. Or, as Amy Myers Jaffe wrote in the Wall Street Journal , “the concept, most simply put, is that more of the energy we use will come from the electric socket.”

There is a growing focus on the possibility to replace a significant portion of energy consumption, that is, our tendencies for certain technologies mostly involving combustion, to alternatives that are run or powered by electricity.

A fundamental issue to address as part of the “more, not less” energy transition is: what kind of electricity? Clearly, as the California example underscores, the desire to electrify everything has at its core an effort to enhance climate action and reduce emissions. Therefore, the increased electricity should come from clean sources—as otherwise, the overall effect on emissions might not be the desired one. Of course, those clean sources such as wind and solar must also become available at a competitive price as to replace fossil fuels. Fortunately, wind and solar have proven to be extremely cost-competitive for power generation, if not cheaper altogether, as their levelized cost of energy decreased at an unparalleled pace in the past two decades.

ELECTRYFING EVERYTHING | INSTITUTE OF THE AMERICAS