Energeia https://energeia-usa.com/ Pioneering the future of energy Thu, 11 Sep 2025 02:41:22 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.3 https://energeia-usa.com/wp-content/uploads/2023/08/cropped-Energeia-logo-white-space-added-32x32.png Energeia https://energeia-usa.com/ 32 32 Moreno Valley Integrated Resource Plan (IRP) https://energeia-usa.com/moreno-valley-irp/ Thu, 22 May 2025 01:11:29 +0000 https://energeia-usa.com/?p=5601 Energeia was engaged by Moreno Valley Utility (MVU) to develop their 2023-25 Integrated Resource Plan (IRP). As part of this process, Energeia will be analyzing current and future load and load modifier profiles as well as generation and BTM resource profiles.

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Moreno Valley Integrated Resource Plan (IRP)

Energeia was engaged by Moreno Valley Utility (MVU) to develop their 2023-25 Integrated Resource Plan (IRP). As part of this process, Energeia will be analyzing current and future load and load modifier profiles as well as generation and BTM resource profiles.

Energeia was engaged by Moreno Valley Utility (MVU) to develop their 2023-25 Integrated Resource Plan (IRP). The IRP outlines Moreno Valley Utility’s long-term strategy for delivering reliable, affordable, and sustainable electricity to their community.

It serves as a roadmap for meeting future energy demands while aligning with state mandates, environmental goals, and the needs of this growing city. The 2025 IRP incorporates updated forecasts, technology assessments, and policy considerations to guide resource decisions through a balanced and forward-looking approach.

As part of this plan, MVU is prioritizing the integration of additional renewable energy resources, energy storage, and demand-side programs to reduce greenhouse gas emissions and enhance system resiliency.

Read the complete plan here.

For more information on Energeia’s research and analysis on fleet transport electrification, please contact us at insights@energeia-usa.com

For more information or to discuss your specific needs regarding Integrated Resource Plans, please request a meeting with our team.

For more detailed information regarding key challenges of truly integrated system planning, please see Energeia’s Charge Ahead webinars and associated materials.

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BESS Forecasting for an Array of Cities Nationwide https://energeia-usa.com/bess-forecasting/ Thu, 22 May 2025 00:40:03 +0000 https://energeia-usa.com/?p=5585 Energeia’s research and data engineering expertise proved essential in building a comprehensive custom database of utility grid infrastructure spatial data for each target market.

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BESS Forecasting for an Array of Cities Nationwide

Energeia’s research and data engineering expertise proved essential in building a comprehensive custom database of utility grid infrastructure spatial data for each target market.

Background

A Tier 1 Battery Energy Storage System (BESS) Supplier was accelerating the North American clean energy transition by providing an industry-leading BESS to couple with electric vehicle (EV) charging infrastructure. Their product aims to provide reliable, affordable electricity to customers by shifting grid energy consumption from peak periods to off-peak periods, reducing demand on the grid, and reducing customer energy bills.

PassKey’s customer-centric mission requires extensive research and analysis to ensure their BESS can not only provide energy and economic benefits to customers but also mesh with existing grid infrastructure to improve system resiliency.

Services

Turning to Energeia and our partners Black & Veatch (BV), our client required utility needs and distribution-connected BESS forecasting for a country-wide array of cities. Energeia’s research and data engineering expertise proved essential in building a comprehensive custom database of utility grid infrastructure spatial data for each target market. Using feeder-level GIS data and city land use data, Energeia spatially allocated electrical load to assets to forecast demand from 2022 to 2040.

Results

Using Energeia’s battery optimization models and forecasting tools, our client identified nine key U.S. markets for entry. Energeia’s models and tools produced both feeder-level 8760 load profiles and individual customer battery system ROIs for cities from San Francisco to New York in a first-of-its-kind study of this granularity.

Outcome

This Tier 1 BESS Supplier is now partnering with EV charging technology and SmartPower software to enter the EV charging market at airports across the U.S. and continues to leverage Energeia’s forecasting modeling tools to identify markets that will benefit from distribution-connected BESS. These innovative data systems and applications will accelerate the clean energy transition, help reduce emissions, improve grid resiliency, and provide customers with reliable, affordable energy.

For more information or to discuss your specific needs regarding PEVs or EVSE markets, request a meeting with our team.

For more detailed information regarding key challenges facing electrification and climate action, check out Energeia’s Power Session webinars.

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LADWP Develops an Integrated Human Resources Plan to Aid the LA100 Program https://energeia-usa.com/ladwp-develops-ihrp/ Thu, 22 May 2025 00:00:38 +0000 https://energeia-usa.com/?p=5560 Los Angeles Department of Water and Power (LADWP) gathered a team of leading industry experts, including Energeia, to develop an Integrated Human Resources Plan (IHRP) to realize this transition and prepare its workforce to efficiently and effectively deliver the LA100 program.

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LADWP Develops an Integrated Human Resources Plan to Aid the LA100 Program

Los Angeles Department of Water and Power (LADWP) gathered a team of leading industry experts, including Energeia, to develop an Integrated Human Resources Plan (IHRP) to realize this transition and prepare its workforce to efficiently and effectively deliver the LA100 program.

Background

The Los Angeles Department of Water and Power (LADWP) was transforming its electricity grid and resource systems in 2021 to meet decarbonization goals established by the State of California, the City of Los Angeles, and the company itself to deliver 100% clean energy by 2035. This venture requires a series of extensive upgrades and new builds along the transmission and distribution system, achievable only through the hiring, training, and retention of qualified personnel over the next decade.

LADWP gathered a team of leading industry experts, including Energeia, to develop an Integrated Human Resources Plan (IHRP) to realize this transition and prepare its workforce to efficiently and effectively deliver the LA100 program.

Services

Energeia, alongside our partners, AECOM and Grid Focus, was contracted to identify the personnel needs associated with long-term power system planning and implement a plan to ramp up the hiring and training of these personnel in accordance with LA100 goals.

To do so, Energeia conducted a thorough review and analysis of current staffing levels, vacancies, and projected needs within the eleven divisions within the Power System section of the organization. Energeia also engaged with senior personnel within each division to obtain LADWP’s qualitative and quantitative feedback on the IHRP process and projected staffing capacity.

Results

Energeia incorporated feedback and data from each Power System division to model annual personnel needs by division through 2032. Energeia reported these results for each of the eleven divisions under four different power system buildout scenarios while also accounting for current hiring and training constraints. Key findings included the identification of three roles that are severely constrained due to training capacity. The identified gap between new hires and projected needs is expected to grow without changes to the current training process.

The broader consulting team subsequently identified areas of improvement within the current hiring and training processes to deliver more qualified personnel, sooner.

Outcome

Phase 1 of the Integrated Human Resources Plan results were presented to the LADWP Board of Commissioners on Oct 25, 2022 (see timestamp 56:26), and discussions are currently being held regarding a revamping of the hiring and training processes in accordance with the consulting team’s recommendations. Energeia will continue to support LADWP throughout the iterative IHRP process as LADWP works to provide affordable, equitable, and reliable clean energy to all customers.

For more information or to discuss your specific needs regarding PEVs or EVSE markets, request a meeting with our team.

For more detailed information regarding key challenges facing electrification and climate action, check out Energeia’s Power Session webinars.

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Kenmore Electric Vehicle Infrastructure Plan (EVIP) https://energeia-usa.com/kenmore-evip/ Wed, 21 May 2025 22:05:32 +0000 https://energeia-usa.com/?p=5507 Energeia was engaged to conduct the technical modeling of electric vehicle (EV) adoption, charging energy needs, charger siting and grid integration for the City of Kenmore’s fleet electrification and EV infrastructure plan.

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Kenmore Electric Vehicle Infrastructure Plan (EVIP)

Energeia was engaged to conduct the technical modeling of electric vehicle (EV) adoption, charging energy needs, charger siting and grid integration for the City of Kenmore’s fleet electrification and EV infrastructure plan.

The City of Kenmore engaged Accenture and Energeia to develop the Electric Vehicle Infrastructure Plan (EVIP) to support the City’s transition to clean, sustainable transportation by developing a robust, accessible, and future-ready electric vehicle (EV) charging network. 

This initiative aligns with local and regional climate action goals and aims to reduce greenhouse gas emissions while preparing the city for the projected growth in EV adoption.  conduct the technical modeling of EV adoption, charging energy needs, charger siting and grid integration for the City of Kenmore’s fleet electrification and EV infrastructure plan. This plan aims to strategically place EV chargers across the city, focusing on high-traffic areas and potential partnerships with local businesses. In partnership with Accenture, Energeia developed a Washington-specific transport electrification toolchain to estimate charging needs for the city including optimized, least-cost charging infrastructure recommendations. 

The EVIP outlines a strategic framework to: 

  • Assess the current state of EV charging infrastructure in Kenmore
  • Identify key locations for new charging stations to ensure equitable and convenient access
  • Align with state and regional initiatives, including Washington’s goal for 100% clean-powered new vehicle sales by 2035
  • Support the city’s Climate Action Plan and Comprehensive Plan by targeting a 95% reduction in heavy-duty vehicle emissions and achieving net-zero emissions by 2050
  • Position Kenmore to secure funding and guide both near-term actions and long-term planning for EV infrastructure

The full council meeting minutes can be found here, or read the abridged version of the EVIP presentation.

For more information on Energeia’s research and analysis on fleet transport electrification, please contact us at insights@energeia-usa.com

For more information or to discuss your specific needs regarding EV data forecasting and modeling, please request a meeting with our team.

For more detailed information regarding key challenges facing electric vehicle uptake, please see Energeia’s Charge Ahead webinars and associated materials.

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Bridging the Skills Gap: Workforces for Electrification https://energeia-usa.com/workforces-for-electrification/ Tue, 20 May 2025 23:01:19 +0000 https://energeia-usa.com/?p=5419 Electrification is one of the most important strategies for reducing carbon emissions in the future, as it assists in transitioning away from fossil fuels across a range of sectors, including residential, commercial, industry and transport. A key question is how will these changes be enabled by and impact the workforce, and how can it be best positioned?

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Bridging the Skills Gap: Workforces for Electrification

Electrification is one of the most important strategies for reducing carbon emissions in the future, as it assists in transitioning away from fossil fuels across a range of sectors, including residential, commercial, industry and transport. A key question is how will these changes be enabled by and impact the workforce, and how can it be best positioned?

Figure 1 below shows leading state and federal CO2 targets, with California, Colorado, Massachusetts, and Maryland undertaking some of the most comprehensive climate action plans, driven by state policy.

Figure 1 – Leading State and Federal CO2 Targets, Source: US EIA (2023)

Electrification is one of the most important strategies for reducing carbon emissions in the future, as it assists in transitioning away from fossil fuels across a range of sectors, including residential, commercial, industry and transport. Understanding the opportunities and challenges related to electrification is key to ensuring that policies supporting electrification are effective, and workforce development is increasingly at the top of this list.

Energeia’s analysis of workforce related issues and best practices is broken down into a workforce impact assessment, which assesses the change in workforce requirements over time due to multi-sector electrification, and workforce solution development, which captures the solutions available to meet the workforce needs.

Workforce Impact

The following sections provide examples of workforce requirements analysis we have completed across key decarbonization pathways, and highlight the associated key methods, issues and insights:

  • Building electrification
  • Gas sector decarbonization
  • Future electricity utilities
  • Gas infrastructure

Building Electrification

One of the Australian state governments was considering policy options to achieve faster gas system decarbonization. following charts show Energeia’s analysis of the number of Full-time Equivalent (FTE) personnel required under different policy options related to electrifying appliances.

The analysis considered the impact of banning gas connections in new premises, and/or banning the sale of new gas appliances, for existing appliances at the end of their life. The modeling showed that bans would have significant impacts on trade jobs, with Figure 2 showing the business-as-usual outcome, and Figures 3 and 4 showing the policy options gas connection ban and gas appliance ban, respectively.

Figure 2 – Business as Usual, Source: Energeia Modelling
Figure 3 – No Gas in New Premises from 2023, Source: Energeia Modeling
Figure 4 – No New Gas Appliances Sold from 2024, Source: Energeia Modeling

The results of the scenario analysis above show that each policy option results in a large increase in electric-related work hours and a decrease in gas-related work hours. Both the gas connection ban and appliance ban scenarios result in changes to workforce needs.

A key recommendation was to set bans far enough in the future to allow the market to adjust as well as stagger bans. For example, start with residential water heaters, followed by space heaters, then commercial water heaters, then space heaters, and so on.

Gas Sector Decarbonization

A US state was considering a wide range of options to decarbonize its gas sector, and not just electrification. The following charts show Energeia’s analysis of the number of FTEs required for different gas system pathway options.

Energeia modeled the impact of each pathway on sector utility and trade jobs. The impacts were mainly estimated using throughput and installation labor estimates. The analysis highlights the significant differences in potential impact depending on the pathway chosen.

Figure 5 – Forecast Change in Gas Trade Jobs, Source: Energeia analysis, Note: BaU = Business as Usual, CF = Cleaner Fuels, SDF = Statewide Dual Fuel, LCF/EE = Low Carbon Fuel/Energy Efficiency, CZA = Climate Zone Approaches, HEF = High Electrification Future, TU = Thermal Utility
Figure 6 – Forecast Change in Electric Trade Jobs, Source: Energeia analysis, Note: BaU = Business as Usual, CF = Cleaner Fuels, SDF = Statewide Dual Fuel, LCF/EE = Low Carbon Fuel/Energy Efficiency, CZA = Climate Zone Approaches, HEF = High Electrification Future, TU = Thermal Utility

The above analysis highlights the high level of variation of skilled labor requirements across different sectors due to policy decisions and the importance of considering potential workforce shortages on policy implementation.

 

 

Future Electricity Utilities

Electricity utilities are also impacted by the increasing decarbonization of consumer end uses and the grid transitions.

The following analysis was developed through an engagement with a US utility that is aiming for 100% renewable energy in the next 10 years. Energeia developed workforce estimates from strategic plans, human resources and finance datasets. The project identified the workforce needs vs. supply gap based on current recruitment and training capacity, and developed a strategy for addressing them.

Future FTEs by class were estimated over time, based on planned investments in the distribution, transmission, generation and BTM program capacity and capabilities. Figure 7 below reports on the forecast change in the number of employees needed for the utility.

 

Figure 7 – Forecast Change in FTEs Needed Over Time, Source: Energeia analysis, Note: Field = Field Services, EE/BE/PV = Energy efficiency, building electrification and photovoltaics, Eng = Engineering, Major = Major Works, Dx = Distribution, Gx = Generation

Moving to a 100% renewable grid is likely to involve a more decentralized system, requiring a large shift in focus and reallocation of spending and workforce composition. Key recommendations from this work included the need to enhance their understanding of:​

  • Future changes in job and skills mix​
  • Integration of relevant data systems, including HR, finance, and system planning
  • Strategies to increase capacity and capability​
  • Strategies for optimizing the make vs. buy decision

Gas Infrastructure Decommissioning

The government of the Australian Capital Territory (ACT) was considering methods of shutting down the gas network over time, as well as different policy options that would assist in transitioning people off gas.

Figures 8 and 9 below show two different methods for shutting down the gas network. The first is to shut down portions of the gas network once consumption has fallen below a certain threshold, and the second is to shut down an equal portion each year. The modeling outcomes below show that different decommissioning strategies would have very different impacts on demand for gas and electricity.

Figure 8 – Gas Consumption Over Time Using a Threshold Based Decommissioning Approach, Source: Energeia
Figure 9 – Gas Consumption Over Time Using a Phased Decommissioning Approach, Source: Energeia

The two methods, which are achieving similar outcomes, have very different gas and electric sector workforce impacts. The difference in these two graphics shows the importance of considering the impacts of policies on skilled labor requirements.

Key recommendations from the work included banning new appliances as soon as possible to avoid future asset-stranding costs, pushing out decommissioning as far as possible to minimize stranding of existing assets, and managing price increases to avoid uneconomic switching over time​.

Workforce impact analysis was not in scope, but the difference in network shutdowns by scenario shows the potential for rapid change in utility and trade jobs between the gas and electric systems​.

Energeia’s detailed report can be found here.

Listen or click through at your own pace

Workforce Solution Development

The following section outlines key dynamics in the current US workforce, including current trends, challenges and solutions for meeting the required increase in the workforce.

Key Barriers

Energeia has summarised the key workforce barriers below, which were determined from both contractor interviews and research. Interviewees cited barriers such as the competitiveness of wages, blue-collar job stigma, retraining incentive availability and uncertainty around demand for green jobs.

Table 1 below summarizes the identified barriers, which include a decline in energy job interest, a small pool of workers, a lack of training access, and high entry requirements.

Table 1 - Key Workforce Barriers, Source: Energeia Research

Career Attractiveness

Energeia analyzed hourly wages for blue-collar jobs and compared them to the hourly wages of the contractors who install building electrification appliances. The findings showed that plumbers, electricians, and HVAC professionals all make significantly more than most non-BE blue-collar jobs in this example.

  • Plumbers make ~$46/hr on average.
  • Electricians make ~$45/hr on average.
  • HVAC professionals make ~$36/hr on average.

As shown in Figure 10, the only non-building electrification blue-collar job that makes more than contractors related to building electrification technologies is construction, which makes ~$1 more per hour than HVAC professionals. The key takeaway here is that plumbers, electricians, and HVAC professionals have competitive salaries when compared to other trade jobs.

Figure 10 – Contractor Wages Compared to Blue Collar Trades, Source: Employment Development Department (EDD), Energeia analysis

Workforce Development

The following table summarizes the challenges and associated strategies to overcome these challenges in the electrification workforce, based on Energeia research.

Table 2 - Strategies to Increase Building Electrification Workforce, Source: Energeia Research

On the basis of the above challenges and solutions, Energeia developed a targeted workforce strategy for a Community Choice Aggregator (CCA) that addressed key workforce needs and barriers. Table 3 below captures the estimated costs and workforce impacts of selected key solutions from one of our recent engagements in California.

  • Entry-level bonus reflects the average signing incentives provided to new entrants upon completing training in trades such as HVAC, electrical, and plumbing, based primarily on actual industry data.
  • The retraining bonus is based on a Silicon Valley Clean Energy’s (SVCE) Future Fit Fundamentals Program, which offers a $500 training incentive to those who completed a training course.
  • Energeia also developed an estimate of the cost of process improvements and advertising campaigns based on experience, but these numbers should be validated on a case-by-case basis.
Table 3 – Workforce Development Strategies, Costs and Impacts, Source: Energeia Analysis. Percentage impacts represent estimated values

The resulting, illustrative workforce development program impacts are shown in Figure 8. They include strategies for increasing the efficiency of the existing workforce, e.g., instant permits and streamlining. In this case, the plan was smoothed to reflect the realities of hiring and program implementation (ideally, it should ramp up). The resulting, illustrative workforce transition forecast is shown below against the target needed to hit the identified building electrification goals.

Figure 11 – Workforce Need Above BaU vs Modeled Supply, Source: Energeia Analysis

Energeia recommended revisiting workforce development plans each year to validate assumptions and to refine programs as required.

Key Takeaways and Recommendations

Energeia’s key takeaways and recommendations for tackling the skills gap in the workforce and implementing decarbonization are summarized below.

Key Takeaways:

  • Achieving federal, state and city decarbonization targets will require significant workforce development.
  • The impacts across the electric, natural gas, refined product, and utility sectors vary significantly by pathway.
  • Best practice transmission planning includes assessment of impacts, and workforce development strategies and plans.
  • Workforce planning can effectively manage the transition in a timely and equitable basis.
  • Workforce development infrastructure will need to grow and change to meet expected workforce development needs.
  • Workforce development funding will need to grow to meet growing transition targets, and is a key gap at the moment.

Key Recommendations:

  • Ensure that transition planning includes workforce impact and optimization assessments, development strategies, plans and funding.
  • Engage with the workforce early to identify and address local issues and potential strategies, or risk significant pushback.
  • Understand the timing and mix of workforce impacts, and develop strategies to ensure an equitable, timely transition.
  • Significant education and support are likely to be needed across a wide range of sectors to ensure programs and funding are commensurate.

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Industrial Decarbonization: Hard-to-Abate Sectors https://energeia-usa.com/hard-to-abate-sectors/ Mon, 24 Mar 2025 19:53:13 +0000 https://energeia-usa.com/?p=5328 Examining the specific CO₂ generation activities, fuel inputs, and viable decarbonization options—including electrification—of hard-to-abate sectors is required to provide an accurate outlook on this critical aspect of the energy transition.

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Industrial Decarbonization: Hard-to-Abate Sectors

Examining the specific CO₂ generation activities, fuel inputs, and viable decarbonization options—including electrification—of hard-to-abate sectors is required to provide an accurate outlook on this critical aspect of the energy transition.

Hard-to-abate emissions continue to be forecast as minimally changing to 2050 across various sectors in the United States, including transportation and industrial sectors which account for two-thirds of total baseline emissions, as shown in Figure 1. These industries rely on energy-intensive processes that are difficult to decarbonize, such as high-temperature furnaces, heavy machinery, and chemical reactions.

Figure 1 – Reference Case Emissions Projections by Sector, Source: US EIA (2023)

Figure 2 below shows the emissions targets federally and by state, which show the misalignment between the forecast emissions over time shown in Figure 1. Understanding the factors driving industrial emissions, and the unique abatement options of these sectors, including their potential for energy efficiency, fuel switching or post-emissions abatement is crucial for utilities, policymakers, and industry leaders.

Figure 2 – Leading State and Federal CO2 Targets, Source: US EIA (2023)

The following sections summarize Energeia’s latest research into hard-to-abate industrial emissions, including the factors contributing to their persistence, strategies for improving energy efficiency and reducing emissions, and opportunities for implementing carbon capture and alternative technologies. These sections offer actionable insights and recommendations designed to help stakeholders address the complexities of decarbonizing hard-to-abate industries while maintaining economic competitiveness.

US Industrial Energy Consumption

Industrial energy usage is shown below in Figure 3 by industrial segment and fuel type along with corresponding emissions. Bulk chemicals, mining, refining, and construction have the highest total energy use.

Figure 3 – Industrial Energy Usage by Segment and Fuel Type in 2025, Source: EIA (2023)

Refining and bulk chemicals generate more than double the level of CO2 than most other sectors. This investigation into hard-to-abate sectors has focused on a subset of these, where more than electrification is likely to be required for a range of reasons.

Figure 4 – Industrial CO2 Emissions by Segment in 2025, Source: EIA (2023)

Which Sectors and Processes are Hard to Abate

Hard-to-abate processes occur in a number of different sectors. Each of the hard-to-abate end uess typically involves one of the following:

  • Processes with CO2 as a feedstock
  • Processes with CO2 as a byproduct
  • Processes requiring a light-weight fuel, typically aviation
  • Processes requiring a dense fuel, typically shipping
  • Processes at very high temperatures, which have historically been difficult and/or costly to achieve with electricity

Table 1 below summarizes the sectors and their corresponding processes which classify them as hard to abate.

Table 1 – Summary of Hard-to-Abate Industry Sectors, Source: Energeia Research

Solutions for Abatement

The following table summarizes the different solutions which aim to abate carbon emissions from processes.

Table 2 – Summary of Solutions for Hard-to-Abate Industry Sectors

Different hard-to-abate sectors benefit from different solutions for emissions abatement. Mixed solutions may be required for different processes within the same industry. Energy efficiency, and alternative processes may not abate all emissions.

Table 3 – Potential Solutions by Section, Source: Energeia Research

Listen or click through at your own pace

Cost to Abate

Energeia researched and modeled the cost per metric ton of CO2 abatement to decarbonize different sectors. Energeia’s analysis shows a wide range of costs among potential decarbonization pathways for hard-to-abate industry sectors.

Industrial Sector

Figure 5 below shows the outcomes of the modeling for iron and steel production. Key iron and steel abatement options can be extremely expensive at over $3,000/CO2e, with carbon capture, utilization and storage (CCUS) or offsets potentially being more cost-effective solution.

Figure 5 – Iron and Steel Production Costs by Key Abatement Solution, Source: Zuberi et al. (2022), IEA (2021 & 2020), ARENA (2021), Note * indicates a solution that can address all stages of production, ^ indicates a simplified levelized cost

For aluminum, shown in Figure 6 below, there are a number of options at much lower cost, but as is the case for iron and steel, CCUS is the only solution (other than offsets) capable of achieving 100% abatement net of lower-cost alternative process solutions.

Figure 6 – Aluminum Production Costs by Key Abatement Solution, Source: Zuberi et al. (2022), IEA (2021 & 2020), ARENA (2021), Note * indicates a solution that can address all stages of production, ^ indicates a simplified levelized cost

For cement production, costs rise compared to aluminum, and improved thermal efficiency is the lowest cost solution to abatement, however, this solution is not capable of abating all emissions. Note that the CCUS costs are vastly different between steel and iron vs. cement, mainly due to the difference in capture and utilization costs.

Figure 7 – Cement Production Costs by Abatement Solution, Source: Zuberi et al. (2022), Mission Possible (2022), ARENA (2022) Note * indicates a solution that can address all stages of production, Source: European Commission (2022), European Parliament (2023), freethink (2024), Energeia Research

Petrochemical and chemical production have very high abatement costs, as shown in Figure 8 below, with carbon capture the lowest cost solution to full abatement, and hydrogen alternatives the highest cost solution of any hard-to-abate solutions considered.

Figure 8 – Petrochemical and Chemical Production Costs by Abatement Solution, Source: IEA (2021 & 2023). Note * indicates a solution that can address all stages of production

Importantly, many of the key solutions identified here will not be able to reduce 100% of sector emissions, instead requiring a portfolio approach and/or offsets.

Transport Sector

Transport remains one of the largest emitting sectors that many countries are looking to decarbonize moving forward. Figures 9 – 11 show the cost to abate emissions for heavy-duty road transport, shipping and aviation.

For heavy-duty road transport, electrification is the least cost solution for short-distance applications, however, current battery electric technology is constrained by energy density. Biofuels provide a cost-effective solution for reducing emissions in existing fleets across all sectors despite their lower energy density. Alternative fuels (ie. hydrogen) offer a potential technical solution to the energy density challenge for vehicle range, however, face infrastructure and scalability issues due to the immaturity of the technology. Alternate fuels are also currently modeled to be the highest-cost solution.

Figure 9 – Heavy Duty Transport Production Costs by Abatement Solution

Heavy duty transport and shipping appear capable of decarbonization without CCUS or offsets, however, aviation remains high cost.

Figure 10 – Shipping Production Costs by Abatement Solution, Source: ARENA (2024), Concawe (2022), Rony et al. (2023), NatureEnergy (2024), Energeia Research
Figure 11 – Aviation Production Costs by Abatement Solution, Source: ARENA (2024)

Future Directions

Uncertainty in costs additionally drives the complexity of decarbonization of hard-to-abate sectors. Figures 12 and 13 below show the range in estimates of solution costs depending on the technology and the forecast year.

Figure 12 – Carbon Capture and Storage (CCS), Source: IEA (2022), Wood Mackenzie (2021)
Figure 13 – Land Use, Land-Use Change and Forestry (LULUCF), Source: MIT (2024)

Key Takeaways and Recommendations

Energeia’s key takeaways and recommendations for tackling emissions reductions in hard-to-abate industries (derived from Energeia’s best practice research and innovative analysis) are summarized below.

Key Takeaways:

  • Industry and transport sectors (excluding light duty) represent 2/3 of baseline emissions in the US
  • Of these, a large proportion of them are not suited to electrification for a range of reasons
  • While specific solutions are being developed in each case, they can be very high-cost
  • CCS/CCUS and offsets are general approaches that may be needed to achieve abatement targets
  • A key question is how accurate the CCS / CCUS cost estimates are

Key Recommendations:

  • Electric high temperature heat technologies are a key solution that will be essential to the transition​
  • R&D focus will be key to bringing its cost down​
  • While biofuels are relatively low cost, there are not enough of them to meet all needs​
  • Green hydrogen will be needed to provide feedstock, and the focus should be on this application​
  • Much is riding on CCS / CCUS and LULUCF, and additional effort should be focused on them to bring costs down and ensure capacity

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The Future of Data Center Electrical Grid Impacts https://energeia-usa.com/data-center-grid-impacts/ Mon, 27 Jan 2025 20:36:20 +0000 https://energeia-usa.com/?p=5245 The rapid expansion of data centers in the U.S. to support AI, cloud computing, and digitization is reshaping electricity demand and challenging grid planning. Energeia's research highlights the drivers of data center growth, their unique energy profiles, and strategies for efficient grid integration.

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The Future of Data Center Electrical Grid Impacts

The rapid expansion of data centers in the U.S. to support AI, cloud computing, and digitization is reshaping electricity demand and challenging grid planning. Energeia's research highlights the drivers of data center growth, their unique energy profiles, and strategies for efficient grid integration.

As new data center developments expand rapidly across the United States to accommodate growth in IT-intensive sectors like artificial intelligence (AI), cloud computing, and e-commerce, they are reshaping electricity demand and presenting new challenges for grid planning and distribution system integration. These sectors require power-intensive servers, data storage, cooling systems and more. Understanding the drivers behind data center load growth, the unique energy load profiles of data centers and their potential flexibility, and their integration with distribution systems is essential for utilities, policymakers, and industry leaders.

The following sections summarize Energeia’s latest research into data center load growth, including the factors driving their development, strategies for efficient integration into grid infrastructure, and opportunities for increasing load flexibility and energy efficiency. The following sections

Drivers of Data Center Growth

Generative AI, blockchain, social media, gaming, and virtual reality are among the top sectors driving data center growth, as listed in Table 1. Each sector presents unique energy demands, from the computational intensity of AI training to the consistent, baseline uptime required by e-commerce platforms. These sector-specific characteristics influence energy intensity, synchronicity, and the right strategies for least-cost integration with the grid. The following section dives into detail for a selection of key industries driving data center growth.

Table 1– Key Sectors Driving Data Center Growth

E-commerce, one of the oldest IT applications, has served as a foundational driver for cloud computing platforms like AWS. Initially growing in parallel with the U.S. economy until approximately 2010, the sector has since accelerated significantly. E-commerce exhibits notable load flexibility, due to factors such as inventory management, allowing for asynchronous operation. However, as transactions are continually digitized, Figure 1 suggests electricity demand in this sector could grow sevenfold over the next 10–20 years, assuming an 80% sales market saturation.

Figure 1 – US Retail & Wholesale vs. E-Commerce Sales

Whereas e-commerce shows significant, consistent growth potential up to reasonable market saturation, cryptocurrency mining is a volatile, energy-intensive activity subject to economic factors like market prices and hash rates. Figure 2 below shows a relationship between Bitcoin price and hash rates over time and implies a $0.14/kWh average mining revenue.

Figure 2 – Bitcoin Price vs. Hash Rate

Crypto mining operations across the US are geographically ; the largest mining operations are not necessarily located in regions offering favorable electricity rates or land costs[1].

Utilities face challenges in predicting energy demand due to the volatile nature of cryptocurrency markets and the sporadic nature of mining operations.

Artificial intelligence has grown exponentially in recent years as well, with model training consuming ten times the energy of typical cloud processes. Figure 3 shows OpenAI’s ChatGPT-4 consumes up to 7.2 GWh in its training processes.

Figure 3 – AI Training Energy Consumption by Model

Similarly, Figure 4 shows that an AI-powered Google Search uses as much as 25x the energy as a typical Google Search. As AI becomes embedded in more applications, its power and energy requirements are projected to rise significantly. Data centers supporting AI training and utilization will require advanced infrastructure to balance real-time processing needs with grid constraints. Key questions facing the industry include:

  1. How many more commercial AI models will be trained
  2. Which industries will apply AI to automate processes at scale?
Figure 4 – Energy Consumption by Query/Search Type

Forecasts for U.S. data center energy consumption in 2030 vary widely, ranging from 120 TWh to over 600 TWh by 2030, as shown in Figure 5. This lack of consensus highlights the uncertainty in estimating data center growth, driven by differing assumptions about efficiency improvements and sectoral expansion. Both top-down estimates based on historical growth rates and bottom-up forecast methods based on processor sales and power requirements have their limitations, further complicating grid system planning.

Figure 5 – US Data Center Consumption Forecast Comparison

The following section helps demystify the details of data center energy intensity, subloads, flexibility, energy efficiency options and more, providing insight into the tools required to develop a sound outlook for data center growth.

Data Center Subloads, Energy Efficiency, and Flexibility

In a typical data center today, more than 70% of energy is consumed by , servers, and storage, with power conversion and network hardware contributing to approximately 25% of load, while lighting typically accounts for less than 3%, as shown in Figure 6.

Figure 6 – Typical Data Center Consumption Mix by Source (PUE: 1.56)

Listen or click through at your own pace

Power Usage Effectiveness (PUE), a key metric for non-IT load efficiency, measures the ratio of total data center power usage to critical IT power, which includes servers, storage, and network hardware. While average PUEs fell substantially until 2013, progress has since plateaued. Industry leaders like NREL, Google, and Meta have achieved PUEs as low as 1.03 through innovations like liquid cooling, though the broader industry has yet to match these [2]

Figure 7 shows various outlooks for more efficient data centers relative to a base scenario of 100%, via both non-IT and processor efficiency improvements. It is critical to note that the specific processor and cooling technologies present in each data center, or even server rack, will directly impact its power requirement.

Figure 7 – Data Center Energy Efficiency Scenarios

An estimated data center load profile within the AI sector is shown in Figure 8, with varying levels of training, utilization, and load shifting. Flat, flexible load typically represents asynchronous processing, while synchronous processing drives profile shape.

The relatively flat profile below shows very little weather sensitivity in its cooling systems, and may only reflect critical IT loads. Other literature in data center subload analysis, such as Ghatikar et. al (), suggests data center load shapes include more weather sensitivity on daily and seasonal bases to maintain safe operational temperatures within these facilities[3].

Figure 8 – Estimated AI Data Center Average Hourly Load

Data on the actual amount of synchronous vs. asynchronous processing by IT-intensive sector is not widely available. Smart metering data analysis could provide key insight into the synchronicity of data center load requirements and the associated flexibility, providing utilities with a clearer view of data center load shapes and their coincidence with asset and system peak demands.

Data Center Siting and Sizing

Data centers come in a wide variety of types, categorized into four main groups, as shown in Table 2. The largest hyperscale facilities are typically developed by major companies like Google and Meta. While their total capacity can exceed 300 MW, these centers are usually constructed in modular blocks of around 25 MW over time. This phased development approach is similar to that of traditional industrial.

Table 2 – Overview of Data Center Types and Sizes

Key data center hot spots in the US include Northern Virginia, Phoenix, Dallas, Atlanta, and Silicon Valley, with average data centers in these areas requiring from 5 up to 14 MW per site. Land and electricity costs drive the fundamental economics of siting, as telecommunications speeds and user proximity can dictate the type and load shape of data centers. Edge data centers are optimized for higher levels of synchronicity than hyperscale centers, and can be located in different proximity to end users. Figure 9 below summarizes the key factors impacting data center siting.

Figure 9 – Drivers of Data Center Siting

Industry Levers for Least Cost Integration

Load serving entities face significant risk in integrating data centers at least cost in the coming years. The following Table 3 describes a series of key potential levers for utility system planners to best manage data center integration, from rate design to demand response programs, distributed renewable development and defining an entirely new customer class.

Table 3 – Key Industry Levers for Integrated Data Centers at Least Cost

Key Takeaways and Recommendations

Energeia’s key takeaways and recommendations for integrating data centers into distribution systems (derived from Energeia’s best practice research and innovative analysis) are summarized below.

Key Takeaways:

  • Growth in server intensive industries is uncertain, but the fundamentals suggest it has legs for at least the next 10 years
  • Growth will be uneven, focused on areas near to major population centers, fiber links, low real estate and electricity costs
  • New connections will vary in size, with the largest connections likely near to population centers (synchronous) or major fiber links with low-cost land and electricity (asynchronous) – the latter is for overflow only after load sharing
  • A significant portion of the load seems likely to reflect underlying economic and demographic patterns
  • There is still significant potential for energy efficiency to reduce consumption per compute/storge activity, with AC and standby power opportunities well

Key Recommendations:

  • Determine the nature of your utility’s likely share of IT intensive industry load, to allocate appropriate levels of effort:
    • How close are you to population or business centers?
    • How good is your fiber connectivity?
    • How low are your land and electricity prices?
  • How much spare capacity do you have the in medium voltage and sub-transmission networks in areas of low land prices, connected to the fiber optic backbone?
  • Consider opportunities for strategic planning and connection policies, e.g. like for renewable energy
  • Be proactive with cost reflective rates and associated demand response programs, best practice here does not yet exist

[1]Tracking electricity consumption from U.S. cryptocurrency mining operations (2024), Tracking electricity consumption from U.S. cryptocurrency mining operations – U.S. Energy Information Administration (EIA)

[2]High-Performance Computing Data Center, High-Performance Computing Data Center | Computational Science | NREL

[3]Demand Response and Open Automated Demand Response Opportunities for Data Centers (2010), Demand Response and Open Automated Demand Response Opportunities for Data Centers

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EDF Leads Grid Readiness for MHDV Electrification https://energeia-usa.com/edf-leads-grid-readiness-for-mhdv-electrification/ Sun, 12 Jan 2025 05:16:53 +0000 https://energeia-usa.com/?p=5205 The Environmental Defense Fund (EDF) engaged Energeia to analyze grid planning and investment strategies for medium- and heavy-duty vehicle (MHDV) electrification. The study identified cost-effective strategies for proactive grid investments, emphasizing managed charging and early utility-fleet operator engagement

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EDF Leads Grid Readiness for MHDV Electrification

The Environmental Defense Fund (EDF) engaged Energeia to analyze grid planning and investment strategies for medium- and heavy-duty vehicle (MHDV) electrification. The study identified cost-effective strategies for proactive grid investments, emphasizing managed charging and early utility-fleet operator engagement

Background

The electrification of medium- and heavy-duty vehicles (MHDVs) is a crucial step in achieving sustainability goals and reducing emissions. However, it poses significant challenges for the current grid infrastructure, which was not designed to handle the high-power charging demands of MHDVs, especially during peak periods or in areas with limited grid capacity. Addressing these challenges requires substantial upgrades to transmission and distribution networks, integration of renewable energy sources, and energy storage. Without these upgrades, the electrification transition risks grid instability, increased costs, and delays in meeting climate goals.

The Environmental Defense Fund (EDF), a leading nonprofit organization dedicated to tackling pressing environmental issues, recognized the need to address these challenges. EDF engaged Energeia as a part of a team to analyze grid planning and investment strategies for MHDV electrification. The study focused on determining the economic and technical feasibility of proactive grid investments, which anticipate future needs, compared to sequential investments that address load requirements as they arise. The analysis aimed to identify cost-effective strategies to meet rising EV demand while ensuring reliability and efficiency.

Services/Results

Energeia partnered with Black and Veatch to deliver this report. While there are several different potential proactive investment methods, Energeia’s analysis compared proactive investments in the form of substation voltage upgrades with sequential substation capacity upgrade methods, using case studies of Con Edison in New York and CenterPoint in Texas.

The findings revealed that proactive planning often delivers cost savings when load growth is significant and predictable. A mixed approach combining proactive and sequential strategies was deemed optimal for balancing cost and flexibility across varying circumstances. The study also highlighted the importance of managed charging, demonstrating that tools like time-of-use incentives and active controls can help mitigate peak demand, delay infrastructure upgrades, and lower costs.

Fleet electrification presents additional complexities, including the need to align EV adoption timelines and geospatial location with grid readiness planning so the grid can accommodate high energy demands for MHDV charging. Energeia emphasized the importance of early engagement between utilities and fleet operators to improve forecasting and streamline planning to enable efficient infrastructure development that mitigates the risk of stranded assets.

Outcome

The report, published by EDF on November 6, 2024 here, underscores the value of proactive planning in reducing costs and enhancing grid readiness for MHDVs. Energeia is proud to have supported EDF in advancing its mission to address climate change and promote clean energy. The study provides actionable insights for utilities and stakeholders, contributing to a sustainable, cost-effective future in transportation electrification.

Read about the full Proactive Grid Investment Assessment report here.

For more information or to discuss your specific needs regarding PEVs or EVSE markets, request a meeting with our team.

For more detailed information regarding key challenges facing electrification and climate action, check out Energeia’s Power Session webinars.

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Roseville Enhances Grid Resilience with PEV Programs https://energeia-usa.com/roseville-grid-resilience/ Sun, 12 Jan 2025 04:50:17 +0000 https://energeia-usa.com/?p=5189 Energeia conducted an assessment of the existing conditions in the Plug-in Electric Vehicle (PEV) and Electric Vehicle Supply Equipment (EVSE) markets

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Roseville Enhances Grid Resilience with PEV Programs

Energeia conducted an assessment of the existing conditions in the Plug-in Electric Vehicle (PEV) and Electric Vehicle Supply Equipment (EVSE) markets

Background

With the growing demand and usage of Plug-in Electric Vehicles (PEVs), electric utilities are facing important considerations regarding grid reliability and power supply.

California is at the forefront of developing electrification programs and setting emissions reduction targets, including Executive Order N-79-20, requiring all new passenger vehicles sold to be zero emission by 2035, and all medium- to heavy-duty vehicles sold to be zero emission by 2045. As a result, various California utilities, including Roseville Electric Utility (REU), are actively developing PEV programs to incentivize electrification and managed charging to support the grid. Through these initiatives, REU not only commits to a more resilient grid system but also enhances access to electrification for its customers and ensures that challenges posed by PEVs to the system are carefully considered and addressed through advanced planning.

Service

Energeia conducted an assessment of the existing conditions in the Plug-in Electric Vehicle (PEV) and Electric Vehicle Supply Equipment (EVSE) markets, as well as anticipated changes in these markets in the coming years. This evaluation included factors such as vehicle model availability, driving range, and battery capacity for both light-duty and heavy-duty EVs, in order to forecast adoption by individual consumers and fleets. Energeia identified current and potential trends in PEV technology, adoption, and usage to project demand in REU’s service territory.

This project serves as an update to previous work conducted by AECOM and Energeia in 2018, which focused on PEV projections, technologies, and resources, including the required infrastructure for Direct Current Fast Chargers (DCFC) over the next decade. The earlier study also examined the impacts on Roseville’s electric grid and recommended implementation practices to minimize strain on the grid and mitigate emissions. The aim of the current study is to inform REU of changes in the transportation electrification landscape and update forecasts of PEV adoption and grid impacts in REU’s service territory. Energeia’s work equipped REU with the necessary information and capacity to offer sufficient and easily accessible charging infrastructure to Roseville residents.

Results

As part of this analysis, Energeia discovered that Level 3 –DCFC are increasingly accessible to the general public, along with the emergence of Vehicle to Grid (V2G) charging. Both advancements were projected to become standard in the future.

Energeia developed three bottom-up models for REU, including a PEV Uptake Model to forecast PEV adoption over time by vehicle type, an 8760 Model to forecast charging load by vehicle type and charging location, and a Grid Impacts Model to project the count of PEVs, peak load kWs, and V2G load by transformer over time. Energeia’s grid impact analysis determined that impacts are highest around DCFC locations, parking lots, and commercial and government depots due to vehicle concentrations and projected implementation of high-power DCFC charging solutions.

Outcome

The results of Energeia’s PEV Update Study have been presented to REU and recorded in a final report.

For more information or to discuss your specific needs regarding PEVs or EVSE markets, request a meeting with our team.

For more detailed information regarding key challenges facing electrification and climate action, check out Energeia’s Power Session webinars.

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Advanced Metering Infrastructure (AMI) Across the Philippines Being Rewritten https://energeia-usa.com/advanced-metering-infrastructure-usaid/ Sun, 12 Jan 2025 04:39:28 +0000 https://energeia-usa.com/?p=5180 Energeia is aiding the USAID and the Philippine government in the Energy Secure Philippines (ESP) project by providing research and expertise for Advanced Metering Infrastructure (AMI) regulation updates. This initiative aims to align the Philippines with international standards, ensuring a cost-effective and efficient transition to smart metering, enhancing energy security and resilience.

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Advanced Metering Infrastructure (AMI) Across the Philippines Being Rewritten

Energeia is aiding the USAID and the Philippine government in the Energy Secure Philippines (ESP) project by providing research and expertise for Advanced Metering Infrastructure (AMI) regulation updates. This initiative aims to align the Philippines with international standards, ensuring a cost-effective and efficient transition to smart metering, enhancing energy security and resilience.

Energeia is helping rewrite the for Advanced Metering Infrastructure (AMI) across the Philippines

Background

United States Agency for International Development (USAID) and the Philippine government are teaming up to deliver Energy Secure Philippines (ESP), a five-year project to develop an environmentally cleaner, more secure, and more resilient Philippine energy sector. A key initiative within the ESP program will be the deployment of an Advanced Metering Infrastructure (AMI). This technology will facilitate secure, resilient, and automated communication between utilities and their customers.

Service/Results

USAID contracted Energeia to provide bespoke research and subject matter expertise to support ongoing AMI regulation updates to align the Philippines with international industry standards and identify best practices. Up-to-date regulations informed by best practice research  support a cost-effective and efficient transition to a smart metering system.

Energeia evaluated over 80 international studies on AMI to identify industry trends in the deployment, regulation, and cost-effectiveness of widespread AMI rollouts. This best practice research found that rollouts using a maximize net benefits and more fairly allocate costs to benefits by allowing customers to gain early access for a fee. A ‘new and replacement’ strategy limits smart meter deployment to new buildings and end-of-life replacements, protecting utilities and customers from the sunk costs of replacing the previous generation of meters before their end-of-life.

In addition to this insight, Energeia found that successful deployment of AMI is also contingent on customer education, data security and privacy, organizational change management, and proactive benefits management.

Energeia also surveyed 144 Filipino distribution utilities to assess the current state of AMI readiness and identify key priorities and concerns. Most respondents reported that their smart grid plans are ongoing or not yet started, with nearly 75% of respondents reporting a planned AMI rollout within the next 5-10 years.

Outcome

Following the review of international best practices and survey outcomes, Energeia  recommended AMI regulation updates for the Philippines to align with industry standards and support a successful deployment of AMI across the country.

The updated regulations by the Philippine Energy Regulatory Commission (ERC) in April 2023 and are currently in the public consultation stage. Energeia is providing ongoing support to USAID and the ERC throughout this process until the updated AMI rules are fully in effect.

For more information or to discuss your specific needs regarding Advanced Metering Infrastructure, request a meeting with our team.

For more detailed information regarding key challenges facing electrification and climate action, check out Energeia’s Power Session webinars.

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