Electrifying Everything- Policy Brief

ELECTRIFYING EVERTHING | La Jolla Conference 30 th Anniversary Policy Brief

demand centers. The timelines and costs associated with increased transmission capacity to wheel the growing amount of renewable electrons must also be considered and planned years in advance, as transmission lines can end up becoming sunk costs with limited scope for expansion. In many ways, these constraints and challenges further support the case for storage solutions. Certainly, distributed energy resources provide an additional solution to redressing the transmission issues.

A last challenge worth highlighting stemming from the electrification of our daily lives is that of cyber-security related to the increased digitalization and growth of the power market and grid, as it inherently increases the risk of cyberattacks. It is a challenge to consider and discuss, particularly for grid operators and power producers, and one that needs further understanding. Cyber-threats are more likely to occur on the operator side and present more of a problem for transition or distribution networks. The upside is that, as with regards to solving some of the challenges of transmission networks, there are clear advantages of distributed generation to mitigating cyber threats and challenges. The decentralized nature of microgrids and behind-the- meter distributed solar and storage greatly reduces the reach of cyberattacks in transmission or distribution networks.

What does the electric future look like in 2030?

Beyond the previously noted elements of the electrification of transport, along with navigating challenges of universal elect ricity access, there was consensus amongst panelists as to what the near-term future holds: by the end of the decade, electrifying everything will likely appear through the use of micro grids for small communities. In addition, nimbler demand and flexible approaches from regulators will add to the electrification efforts. Furthermore, though perhaps not by 2030, part of the electrifying everything equation will be what may be called the new geopolitics of energy . Certainly, control over critical minerals and particularly supply chains of key inputs for electrification are ominous challenges — and opportunities— for countries, while cyber threats and attacks are part of that geopolitical equation in which data and electrons are the new oil. The more positive side of the new geopolitics of energy as posited by those seeking to pursue broader electrification goals is the potential for a more balanced global system if we electrify everything. Electrification could be key to removing the distortion from fossil fuels and geopolitical games around those energy sources that make the world unbalanced and where too often projects are politically motivated. Electrification and distributed solutions for smaller grids will make people more independent in terms of self-sufficiency and allow for fewer disruptions.

The Institute of the Americas would like to recognize Cecilia Aversa , Managing Director for Innovation at Integra Capital for chairing the Virtual Panel and the participation of expert presenters: Andres Chambouleyron , Non-Resident Fellow at the Institute of the Americas; German Chullmir , CEO of OREL Energy Group and a member of the IOA’s Energy Steering Committee and Thorsten Dradrach , Head of Power Region America, MAN Energy Solutions and a member of the IOA’s Energy Steering Committee.

We would also like to acknowledge the efforts by Romie Tejeda-Barron and Kathryn Hillis , graduate students at UCSD’s School Global Policy and Strategy (GPS), who served as the rapporteurs and assisted in drafting the Policy Brief.

ELECTRYFING EVERYTHING | INSTITUTE OF THE AMERICAS