Aligning Climate and Reliability Goals for Extreme Weather

In a Utility Dive article, Guidehouse discusses how diversification will be crucial to successful power systems

Digitization, decentralization, and decarbonization are major trends happening across the electric power system. They are creating new challenges and opportunities for energy providers. 

In an article for Utility Dive, Guidehouse’s Lon Huber, director, discussed how states need to help with power system diversification to maintain reliable operations of bulk power systems.

Extreme weather events are becoming more frequent across the world. In 2019, weather events created significant power outages that have shown the power system’s vulnerability. Therefore, energy portfolios need to be properly balanced so that weather does not impact supply.

Optimally diversified power will need to be unique to each region, which is why regional coordination to promote diversification will be essential as state, policymakers, and regulators pursue policies of digitization, decentralization, and decarbonization.

States can help diversify power by ensuring that economic signals reflect reliability impacts and benefits of capacity to the system by location and time. They can also support efforts to improve weather forecasting and modelling.

“If states do not align policies of digitization, decentralization, and decarbonization with a fourth dimension of diversification, industry may need to take unprecedented action,” Huber said. “Alternatively, with diversification as a check and balance on existing trends, states can meet clean energy goals and support the bulk power system's reliable operation.”

Read the Utility Dive Article
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