Collaboration Is the Only Way to Net Zero

Summary

Every day we are reminded of the increasing adverse weather events disrupting power in the U.S. and beyond. The race is on to ramp up grid resilience and innovation. Experts are still coming to terms with the recent impact of Hurricane Beryl, which resulted in tragic loss of life, significant structural damage and mass-scale power outages.
 
Catastrophic events like this underscore the urgent need for the power and utility industry to map out a sustainable, reliable and efficient energy future.
 
Collectively, industry leaders and state energy commissioners are working to explore how we can harness technology to solve some of the industry's urgent challenges.

Four ways to think about power innovation

Through insights I’ve gained at industry events, and my conversations with clients, peers and partners, it’s becoming clear that power generators, distributors and transmission facilitators are rethinking their approach to innovation. Here are some examples of how:

Technological innovation: There are three main tech-driven innovations driving progress: data-driven decision making; AI and machine learning in grid management: and breaking down silos between operational technology (OT) and information technology (IT). This means modern utilities can anticipate peak demand, integrate the growing number of renewables sources and gain a holistic view of their operations, leading to better asset management, more efficient power distribution and better forecasting.

Philosophical innovation: We’re witnessing a fundamental shift in the industry’s approach to its mission. Affordability must not be sacrificed as we transition to a more sustainable grid. This new philosophy is pursuing a path to net zero that is both environmentally responsible and economically viable for all consumers.

Industrial innovation: New operating models are challenging traditional utility structures. Utilities are adopting more flexible, resilient approaches. They are moving from centralized systems to more distributed, adaptable networks. This shift not only improves grid resilience but also opens up new avenues for customer engagement and value creation.

Collaborative innovation: We’re moving towards interdisciplinary solutions to address complex industry challenges. It’s about creating ecosystems of innovation that span across utilities, tech providers, regulators and academia.

How partnerships can reshape utility innovation

As we navigate the energy transition, I’m convinced partnerships will play an outsize role in our success. Alliances of many shapes and sizes will help deliver our sustainable, reliable and resilient energy future.

Five examples of effective partnerships

1. Public-Private Partnerships (PPP): The challenges we’re facing require collaboration across policymakers, regulatory agencies, generators and consumers. PPPs are also crucial for addressing the complexities of integrating renewable energy sources, managing increasing demand from electric vehicles and data centres and maintaining grid stability. By combining public sector guidance with private sector innovation, we can accelerate solutions.
2. Community and tribes: The Tulalip Microgrid Project serves as an example of how tribal partnerships can foster energy sovereignty and resilience. Steve Hinton, who represents the Tulalip Tribes of Washington advocates 'small is beautiful' approaches and the need to aggregate change to benefit the community. In this way, utilities can develop more inclusive and effective solutions that respect cultural values and address specific local challenges.
3. Academic-industry: These partnerships play a crucial role in shaping the future workforce and driving innovation in the utility sector. For example, Washington State University's "Power Practicum" program is bridging the gap between theoretical knowledge and practical industry needs – including DER integration and meeting advanced forecasting needs. The university's own campus serves as a living laboratory.
4. Regulatory-utility: As the industry undergoes rapid transformation, regulatory frameworks must evolve to keep pace with technological advancements and changing market dynamics. Collaborative efforts between regulators and utilities can lead to more effective policies that balance innovation with consumer protection and grid reliability. These partnerships are essential for creating a regulatory environment that encourages investment in grid modernization while ensuring fair and affordable access to energy for all consumers
5. Technology-industry: The rapid advancement of technology is revolutionizing the utility sector. The importance of data in forecasting weather, electricity demand and asset availability is critical. Industry-specific technologies such as grid-edge intelligence, microgrids, advanced distribution management systems (ADMS), outage management systems (OMS), and distributed energy resource management systems (DERMS) are crucial for improving grid performance, reliability and resilience.

Collaboration is the only way to net-zero 

We’re in the midst of a new problem-solving age, one that’s as interconnected and dynamic as the grid itself.  Our ability to collaborate and exchange insights will determine our success in creating a next-gen future for utilities. Partnerships, twinned with innovation, are how we will realize a decarbonized future.