Microgrids, already growing in demand because of wildfires, hurricanes, the pandemic and energy equity issues, are likely to soon experience another boost — the climate policies of President-elect Joe Biden.
Biden’s “Plan for a Clean Energy Revolution and Environmental Justice” makes several pledges that could influence the microgrid market:
- A “historic investment” of $1.7 trillion in clean energy, climate research and innovation over the next decade
- Incentives for rapid deployment of clean energy innovations across the economy, especially in communities impacted by climate change
- Spending by federal facilities on clean energy resilience
- The linking of environmental justice to energy planning
“With his shift in priorities to a lower carbon energy future and away from propping up various aspects of the fossil fuel industry, the election of Joe Biden as president can only help microgrids – especially those incorporating renewable energy. Rather than focused on dated arguments pitting the economy against the environment, Biden buys into the value proposition that new clean energy technologies are the wave of the future,” said Peter Asmus, research director for Guidehouse Research.
Congressional Democrats already have signaled their support for microgrids in the “Moving Forward Act,” legislation introduced in June that specifically named microgrids as part of its $1.7 trillion infrastructure proposal. The legislation would offer financial and technical assistance, grant programs, and feasibility studies for microgrids, as well as various incentives for distributed energy resources.
In addition, Reps. Nanette Diaz Barragán from California and Yvette Clarke from New York recently introduced the Energy Resilient Communities Act, which would specifically provide $1.5 billion in grants for clean energy microgrids.
All eyes on Georgia
Exactly what will become law remains highly uncertain. One of the key wildcards remains the outcome of two Senate runoff elections in Georgia scheduled for January. The special election will determine whether Biden’s party — the Democrats — control both the House and Senate, giving Biden better ability to usher through legislation.
Still microgrid supporters are buoyed by the prospect of a federal government that again uses its platform to back clean energy. In addition, they note that microgrids tend to enjoy a space outside the bipartisan divide. Research by the Civil Society Institute, a Massachusetts think tank, found that Democrat and Republican voters are aligned in their support of microgrids, once the technology is explained to them.
“Of course a good deal hangs on the outcome of the Senate races in Georgia, but let’s assume the Republicans maintain control. In that case, I think we can be cautiously optimistic, politically,” said Peter Kelly-Detwiler, principal, NorthBridge Energy Partners. “The beauty of microgrids is they are all about reliability and resilience – something that’s pretty bi-partisan – in the face of increasingly challenging weather events. They are also solid economic development tools and can obviously include significant amounts of sustainable technologies, principally solar and batteries.”
Microgrids: Child of competitive markets
Microgrids evolved out of rules that opened competition in electricity markets two decades ago — and have continued to be refined by the Federal Energy Regulatory Commission. The rules have created more consumer choice, principles historically supported by both Democrats and Republicans.
“With FERC Order 2222 as an example, the opening up of markets is not really an issue pitting right versus left,” said Asmus. “There is emerging consensus that empowering consumers to become prosumers is the way to go, along with tighter integration of wholesale and retail markets. Renewable and resilient power systems enjoy wide support among all voters.”
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Several environmental and clean energy groups issued statements in recent days heralding the Biden win.
Gina McCarthy, President and CEO of the Natural Resources Defense Council, said: Joe Biden’s climate plan is the strongest we have ever seen from any president before him.”
Kelly Speakes-Backman, CEO of the US Energy Storage Association: “By electing Joe Biden as President of the United States of America, Americans have sent the signal to accelerate the path forward toward a clean energy economy. We expect to see strong support from the new administration focused on decarbonization of the electric and transportation sectors, which will further drive the deployment of energy storage.”
Over the last four years, U.S. cities, states and businesses have worked together to make progress on climate change, even without federal leadership. Now, we need an all-hands-on-deck approach with national, state and local leaders pulling together for a low-carbon economy, powered by equitable and sustainable growth. These leaders should urge Congress to join the national effort.
Andrew Steer, President & CEO, World Resources Institute: “Over the last four years, U.S. cities, states and businesses have worked together to make progress on climate change, even without federal leadership. Now, we need an all-hands-on-deck approach with national, state and local leaders pulling together for a low-carbon economy, powered by equitable and sustainable growth. These leaders should urge Congress to join the national effort.”
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