The HM Treasury’s and Department for Business, Energy & Industrial Strategy (BEIS) initiated a consultation focusing on innovation in utilities, with the aim to “ensure our system of utilities regulation is fit for the future.” As an innovator of technology that will radically transform the market and with a growing global presence, Faraday Grid is keen to engage in the conversation and submitted a response to BEIS, which can be accessed here.
In this response to Greg Clark MP, Founder & Chief Technology Officer Matthew Williams and Chief Economist & Head of Government Affairs Richard Dowling together challenge the idea that the Energy Trilemma is “over” and examine how greater amounts of renewables will affect energy security and energy equity, should there be no change to the current grid.
What is the "Energy Trilemma"? The Energy Trilemma presents three interconnected goals that have proven exceedingly difficult to address individually. Recent history has shown that unilateral actions taken to address one dimension of the trilemma often results in undesirable reactions on the other dimensions. Hence it is currently not practical to simultaneously install new low carbon generation, ensure affordable energy for consumers, and guarantee that there will be security of electricity supply accounting for future demand.
There are multiple technologies - such as simulation studies, forecasting, and storage - for anticipating and mitigating the risks to renewable energy supplies of very rare but consequential weather events. The 21 August total solar eclipse in the United States suggests similarly that while rare, such risks arehas neither been “uncontrollable” nor “unpredictable” to policy makers. However, some of the utilized risk solutions seem to start by assuming a centralized electricity grid, where energy supplies are optimized to meet demands. As such, they overlook new possibilities of risk management in transactional electricity grids.