What is the current case for solar and wind energy, especially considering the costs, grid upgrades, energy storage, and intermittent supply issues?
The case for solar and wind energy remains strong despite the challenges you mentioned. Achieving sustainability requires a massive acceleration of renewable energy sources, including solar, offshore wind, hydro, nuclear, and a focus on energy efficiency. The electrification of transportation and heating sectors is also crucial for this transition. One of the industry's main challenges is that advocates often represent specific sectors, which can create a narrow view of what a sustainable future should look like. From a utility perspective, it’s not about favoring one solution over another. Instead, it's essential to embrace a combination of energy sources that collectively contribute to a sustainable future.
At Eversource, we recognize that no single energy source can be the ultimate solution for sustainability.
Our approach involves integrating solar, wind, and other renewable sources, while also addressing energy efficiency and demand response. This comprehensive strategy allows us to build a resilient and sustainable energy infrastructure that meets our customers' needs while driving progress toward a greener future.
What challenges have you faced with offshore wind development, and how is Eversource addressing these issues?
Offshore wind development is relatively new, and the unknowns present significant challenges. This includes everything from turbine technology to the cables that bring power onshore. Additionally, population density in areas where offshore wind cables are landed is often low, and the transmission systems in these regions weren't designed to handle thousands of megawatts of new offshore wind generation. This presents a significant opportunity, but it also requires foresight and a robust transmission planning team to predict and solve these challenges.
We are addressing these challenges by focusing on grid integration, ensuring that we have a clear line of sight on how to upgrade transmission systems to accommodate the influx of offshore wind power. Having a dedicated team with the capability to plan for these large-scale integrations allows us to project future needs accurately and develop strategies that ensure efficient and reliable transmission of offshore wind energy.
How is Eversource ensuring grid reliability, particularly in the face of weather events and increasing demand?
We approach grid reliability and resilience by considering the growing intensity of weather events and the increasing electrification of heat and transportation. Data shows that storms are becoming more frequent and intense, which means our grid must be more resilient. For example, recent storms like Isaias, Irene, Sandy, and Alfred were each considered "one in 20-year" storms, yet they all occurred within a decade.
To address this, Eversource has proposed a comprehensive plan that includes hardening distribution lines, upgrading substations to host more solar energy, and increasing transmission capacity to handle offshore wind and solar energy more efficiently. We are also focusing on building a transmission network that can handle this increased demand while ensuring reliable energy delivery to our customers, even during extreme weather conditions.
What role do you see natural gas playing in the energy transition, and how is Eversource adapting to this?
In the short term, natural gas plays a crucial role in ensuring energy reliability, especially as we transition to cleaner energy sources. It's not feasible to immediately retire all fossil fuel generation and rely solely on renewables. This transition requires a systematic and measured approach. Our responsibility as a natural gas provider is to educate stakeholders about the realistic pace of this transition, ensuring we don't make hasty decisions that compromise energy reliability.
At Eversource, we have adopted a thoughtful, engineering-based approach to integrate our gas and electric systems. We've developed a team capable of conducting both hydraulic and electric power flow analysis, allowing us to strategically retire natural gas pipelines while ensuring we maintain reliable energy delivery. This engineering-driven approach ensures that the pace of electrification and the reduction of natural gas consumption is based on comprehensive analysis and planning.
Are current policy frameworks reflecting this rational approach to energy transition, or is there a sense of impatience in implementing these changes?
There’s often a perception of impatience when it comes to the energy transition, which stems from the belief that not enough is being done. In many cases, this impatience is driven by a lack of visible action, leading to policymakers stepping in with top-down approaches. However, the most effective transitions occur when utilities take a leadership role and work collaboratively with policymakers to develop thoughtful, engineering-based solutions.
In jurisdictions where utilities are proactive and transparent about their strategies, policymakers tend to be more receptive and willing to adjust their approaches based on industry insights. This collaborative process results in policies that are better aligned with the complexities of the energy transition, ultimately leading to more sustainable outcomes.
What do you see as the main challenges for your company in the next 5 to 10 years?
The utility sector's biggest challenge is workforce-related. It's not just about having enough people; it’s about having the right people with the necessary skills and a culture that encourages innovation and the adoption of new technologies. We need a workforce capable of managing the entire lifecycle of utility operations, from design and engineering to construction and maintenance. Fostering a culture that embraces technological advancements and automation will be critical for success.
Another significant challenge is resource adequacy, particularly in deregulated utility markets. Ensuring that we have sufficient resources to meet future demand, while also retiring fossil fuel assets, is a complex task. Additionally, climate change presents ongoing challenges, as we must continuously adapt to increasingly frequent and severe weather events. This requires investing in resilience measures and working closely with regulatory bodies to develop forward-thinking strategies that protect customers and infrastructure.
How do you maintain trust with your customers and communities, particularly in the context of sustainability initiatives?
Building and maintaining trust requires constant communication, transparency, and genuine engagement with customers and communities. It's about showing up when customers need us the most, particularly during catastrophic events like major storms. Our line workers are often the face of Eversource in these moments, and their dedication to restoring power builds trust and a positive relationship with the communities they serve.
We’re taking steps to deepen this trust by actively involving community stakeholders in our planning processes. Through initiatives like our Clean Energy Stakeholder Advisory Group, we invite input from environmental justice communities and other stakeholders to help shape our projects and infrastructure planning. This engagement ensures that we not only educate ourselves but also adapt our strategies to address the real needs and concerns of the communities we serve. This collaborative approach is essential for building long-term trust and achieving sustainable outcomes.
