FAQ: Why is electricity transition planning so complex?
Transition planning is complex because it requires meeting increasing electricity demand with lower carbon intensity electricity sources while maintaining reliability and affordability.
Each generation technology has distinct operational characteristics. For example, while fossil fuels provide consistent output, renewable sources like wind and solar provide power intermittently. This requires complementary solutions, including storage, to reliably meet electricity demand. Utility-scale lithium-ion storage doesn’t generate electricity itself but helps to balance intermittent generation sources like renewables.
Electrification of transportation, heating, and industrial processes, along with rising electricity demand from data centers, are already straining existing grid infrastructure. To address these challenges, a successful transition has to incorporate a mix of strategies, including expanding and integrating lower carbon electricity capacity, deploying long-duration electricity storage, and optimizing demand-side flexibility. Coordinating these elements while keeping electricity affordable, reliable, and climate-forward makes electricity transition planning a complex task.
We also need to consider how best to incorporate distributed forms of low carbon generation in the grid. Historically, generation assets were concentrated both physically (a few huge power plants to serve a region) and economically (most utilities, state-owned or otherwise, are monopolies). More distributed generation can facilitate lower GHG emission solutions and new ownership models. Distributed energy resources may also aid grid resilience, such as by allowing individual consumers to supply excess electricity generation back to the grid during peak demand periods.
