You know you can't turn on the radio or TV and not hear an ad or news article about this thing called "The Energy Transition". We thought we should enlist an expert to help us gain some context around this ongoing development. So, joining me today is the Caterpillar expert on the subject Mr. Dean Musser.
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You know you can't turn on the radio or TV and not hear an ad or news article about this thing called "The Energy Transition". We thought we should enlist an expert to help us gain some context around this ongoing development. So, joining me today is the Caterpillar expert on the subject Mr. Dean Musser.
Email us: powerbytes@cat.com
LinkedIn: https://www.linkedin.com/showcase/cat-electric-power/
Facebook: https://www.facebook.com/Caterpillar.Electric.Power/
Lou: Intro: Good Day and welcome everyone to Power Bytes! I am your host Lou Signorelli and Power Bytes is your destination Podcast for power generation conversations. As always please know how much we appreciate you, our listeners. We hope you find our topics helpful and interesting. There are several ways for you to get in touch with the show. You can send us an email at powerbytes@cat.com or visit us at Cat Electric Power on Facebook or LinkedIn. Please remember to subscribe and leave comments wherever you listen to our show… it really helps.
Lou: You know you can't turn on the radio or TV and not hear an ad or news article about this thing called "The Energy Transition". We thought we should enlist an expert to help us gain some context around this ongoing development.
Lou: So, joining me today is the Caterpillar expert on the subject Mr. Dean Musser. Dean has a BS in Electrical Power Engineering from Drexel university and is currently the Managing Director of Caterpillar’s DERMS organization. Prior to this Dean was the COO of Comverge C&I Group and CEO of Enerwise Global Technologies.
Lou: Dean thanks for taking time to join us today!
Dean: Thanks for the opportunity. This will be my first podcast!
Lou: So, let's start with some basics. What is really going on when we hear "energy transition"?
Dean: Well, the utility and energy industries are going through unprecedented change. In the 1990’s many areas of the US went through deregulation which permitted customers to choose their energy provider while maintaining the utility deliver business.
At the time we thought this was a monumental change, but it was nothing like we are going to experience now. Even through de-regulation we had firm power from nuclear, coal, and gas power plants. The flow of electricity was predictable and reliable. Load growth was stable and manageable with planning.
Now, we are adjusting supply to remove much of the steady sources of power and replaced them with variable sources such as wind and solar. The flow of power is different requiring transmission infrastructure. Load is and will rapidly grow a result of new datacenters, crypto facilities and EV/machine charging infrastructures. Interconnect ques for new assets have ballooned to two or three year wait times. End use customers have taken matters into their own hands and are building distributed energy resources on their own sites for economic and reliability purposes.
Lou: So, we remove all the dependable power… then what? Are we going to see more power outages and less power quality?
Dean: I would say absolutely not. Innovation in terms of new technology like storage and business models such as EAAS are now and will now pour into the industry. For many years we could not attract new talent into the industry but now the industry is “cool” and filled with new ideas. Start-ups and tech companies are focusing on this market which will help facilitate change. Utilities understand the change is inevitable and are embracing new programs. FERC has set guidelines for this new world with FERC order 2222. So, no we are not headed for disaster we are reshaping the industry. This will not be without bumps in the road. The current industry is not used to this pace. We may have some pain, but in the end the industry will be dynamic.
Lou: You mention FERC 2222. What is this and how will it affect energy transition.
Dean: Great question, the federal energy regulatory commission has provided an outline as to how they view the future for the energy grid. Now the grid operators must produce a plan that provides the details to comply with the FERC’s vision. The success of the plans will come down to economics. Is there enough economics for end use customers to become interested? Will the economics for traditional grid players be strong enough for grid stability and sustainable profit? This is a tough balance, we want a reliable grid, with low costs, where power is derived from clean sources. The FERC laid out the vision, the grid operators will provide a plan, the energy markets will react. I am sure we won’t get it right the first time but as the plan evolves it will be successful.
Lou: Sounds great! We'll get new talent and new technologies into what has traditionally been a very slow to evolve space. Is there one key to the energy transition that stands out in your mind?
Dean: Flexibility. We need a grid that can ebb and flow with variable power sources and variable loads. We need end users to build flexibility into their own power systems and consumption patterns. We need energy policy that is flexible to accept the rapid deployment of new technology and ideas.
Lou: What can facility owners with power generation assets do today to take part in this growing industry?
Dean: There are many programs offered by grid operators or utilities today that a customer with energy assets can participate in. Depending on the program the customer can join these programs directly or through aggregators. From a generation perspective, the participating machines must be environmentally compliant with local, state, and federal rules. Customers that have energy assets, including standby units that are not compliant could pursue swapping the asset with natural gas machines. Depending on the program and market, this may be done without any capital cost from the asset owner through an Energy as a Service provider like Caterpillar. As I mentioned before these programs are expanding rapidly so opportunities to improve infrastructure and become greener will grow as well.
Lou: Dean, you have been around the industry for a long time now. Does all this change make you a little nervous?
Dean: I am excited for the next generation as they reshape the utility and energy industry. I am little jealous that I am not starting my career right now!
Lou: Thanks Dean, there is a lot to unpack as we adventure into Energy as a Service. Can you come back to continue our discussion?
Dean: I would welcome the opportunity.
Lou: There you have it folks. If you'd like more information on EaaS, please visit Cat.com/EaaS. Remember, you can visit us at Cat Electric Power on Facebook or LinkedIn. Please remember to subscribe and leave comments wherever you listen to our show… it really helps. Until next time, Have a great rest of your day!