Episode
11

The Future of Energy Storage with Hydrostor President & COO Jon Norman Part 2

September 1, 2021
|
Duration:
2086429
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In This Episode:

Join energy coaches David Arkell and John Pooley on an episode with President & COO of Hydrostor Inc., Jon Norman. This episode highlights decarbonizing the grid, how this impacts grid pricing, organization adaptation, and more.

Highlights

  • ‍Decarbonization Beyond the Grid: Norman stresses that decarbonizing the grid alone isn’t enough. Industries, transportation, and residential sectors, which heavily rely on direct fossil fuel use, must shift toward electrification.
  • ‍The 20% Fossil Fuel Challenge: Some jurisdictions have reduced grid reliance on fossil fuels to around 20%, but eliminating this final percentage is difficult. Long-duration storage solutions are essential to achieving complete decarbonization.
  • Decentralization vs. Centralization: While decentralization appeals conceptually, Norman argues that centralization is often more efficient. Existing infrastructure and resources make complete decentralization impractical for large-scale energy needs.
  • Cross-Jurisdictional Learning: Regions tend to work in isolation, leading to repeated challenges. Norman highlights the need for shared learning and collaboration across jurisdictions to accelerate energy resilience efforts.
  • Utility Ownership and Incentives: Different models of utility ownership—state-owned, municipal, and private—each come with unique incentives. Diversity in ownership may foster innovation, though incentives and regulations ultimately drive decarbonization.

Key Insights

  • Importance of Long-Term Infrastructure: Short-term solutions like five-year batteries cannot sustain long-term decarbonization goals. Infrastructure investments in long-duration solutions are needed to meet aggressive targets for 2030 and beyond.
  • Evolving Market Signals: Effective price signals are crucial for encouraging adoption of decarbonizing technologies, but current market mechanisms alone may be insufficient. Robust carbon pricing and incentives are needed to drive impactful shifts.
  • Challenges of Full Decentralization: Decentralized energy generation, while beneficial in some applications, may be less effective at scale. Centralized infrastructure leverages existing resources and is generally more efficient for large energy demands.
  • Grid Resilience as Adaptation: Long-duration storage enhances resilience, reducing reliance on single fuel resources prone to disruptions. Norman discusses the case of California, where wildfires drive the need for adaptable energy solutions.
  • Ownership Diversity in Utilities: While ownership type is less critical than incentives, models like community choice aggregators in California illustrate how diversified ownership can foster progressive energy solutions and community resilience.
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