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Across the U.S., sustainable microgrids are emerging as a vital tool in the fight against climate change and increasingly common natural disasters. In the wake of hurricanes, earthquakes and wildfires, the traditional energy grid in many parts of the country is struggling to keep the power flowing, causing outages that slow local economies and ultimately put lives at risk.
Microgrids — power installations that are designed to run independently from the wider electricity grid in emergency situations — have been around for decades, but until the turn of the century, relied almost exclusively on fossil fuels to generate power. While it’s taken another 20 years for solar panels and battery storage costs to fall far enough to make truly sustainable microgrids an economic reality, a recent surge in interest and installations have shown that they’ve reached an inflection point and could very well be the future of clean energy.
Take Santa Barbara, where the Unified School District voted unanimously in November to allocate over $500,000 to study and design microgrid installations for schools around the county. A preliminary assessment by the Clean Coalition identified more than 15 megawatts of solar generation potential across 18 school sites.
These solar-plus-battery-storage microgrids would greatly enhance the ability of chosen schools to serve communities during natural disasters or power outages, like the ones induced by California’s PG&E electric utility that affected hundreds of thousands of residents last October. The sites will provide a place to coordinate essential emergency services, store perishable food and provide residents with light, power and connectivity in times of distress.
A completed feasibility study for the microgrid installations is expected in June, and while initial estimates put the final cost around $40 million, long-term power purchase agreements (PPAs) will allow the school district to have the sites set up for free and paid for over time via its normal electric bill — at a cost no greater than grid power. Agreements like these have only become economically viable in the last few years as renewable energy generation costs have continued to fall, and are a major driver of the microgrid boom.
At the end of January, Scale Microgrid Solutions received a commitment for $300 million in funding from investment firm Warburg Pincus. Microgrids today are typically designed and installed to the unique specifications of individual customers. Scale Microgrid Solutions instead provides modular microgrid infrastructure built using shipping containers that combine solar and battery storage with control equipment and backup gas generation.
These modules enable faster deployment and provide a viable option for customers or institutions seeking microgrid capabilities in the $15 million price range. The first modular microgrids were launched in May 2019 with financing provided by Generate Capital, a financing firm focused on advanced, clean-energy technology investments.
Meanwhile, on the opposite side of the country, successive disasters are already proving the value of solar-plus-storage microgrids in Puerto Rico. In 2017, Hurricane Maria catastrophically damaged the centralized electricity grid in the U.S. territory and left many without power for more than a year.
A project funded by the Rocky Mountain Institute, Save the Children and Kinesis Foundation installed solar-plus-battery-storage microgrids at 10 schools in the mountainous central regions of the island, designed to provide energy for on-site libraries, kitchens and water pumps indefinitely during power outages. The installations were completed in December 2019, just weeks before a series of earthquakes that began in January endangered the island’s already sluggish economic recovery. The RMI Island Energy Program told Microgrid Knowledge that while grid power around several of the sites had gone down, the microgrids had continued to operate successfully and provide critical services.
Microgrids go beyond schools though. Several communities are also linking solar-and-storage systems mounted on their homes, employing inverters and controllers that have only become efficient and affordable in the last few years to create “community microgrids” that share power among the participants to supplement or replace grid energy.
In January, Australian startup Relectrify closed $4.5 million in Series A funding to continue refining their inverter and battery-management technology that increases battery lifespan by as much as 30% while reducing operational costs. Relectrify tech also allows large batteries from electric cars — including Tesla’s wildly popular offerings — to be repurposed after they are no longer reliable enough for use in EVs, opening up an enormous pool of second-hand batteries to be repurposed for growing microgrid storage demand.
Programs like these are attractive not just because they offer resilience and independence from grid power often produced with fossil fuels, but because they are increasingly the cheaper option for energy consumers. Residential retail energy prices in Puerto Rico were as high as 27 cents per kilowatt hour (kWh) in 2019, while the calculated cost from home solar-plus-battery-storage systems fell as low as 24 cents in good conditions.
The cost of solar installations has plummeted 90% in the past decade according to the research firm Wood Mackenzie. At the same time, the early effects of a warming climate and associated natural disasters have started to take a toll on American energy infrastructure already struggling to keep pace with regular maintenance and demand growth. Impacted communities have already seen the value of microgrids and are racing to adopt them, even as many larger utility providers look to natural gas or other partial solutions that rely on the aging centralized power grid.
The greatest impact of these early sustainable microgrids may reach beyond the emergency power they provide to nearby residents. They offer a glimpse of a radically different way for communities and energy consumers to think about how power is produced and used. In community microgrid systems, residents have a concrete, practical connection to their source of energy and are asked to work together with their friends and neighbors to control their energy demand so there is enough to go around.
Such a system stands in stark contrast to the power grid of today, where peak demand facilities are routinely called upon to burn some of the most environmentally harmful fuels to accommodate demand with few if any social or technological limitations. Sustainable microgrids are finally becoming truly affordable, and in the process are beginning to change the way we think about energy consumption and resilience.
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The enterprise software and services-focused accelerator Alchemist has raised $4 million in fresh financing from investors BASF and the Qatar Development Bank, just in time for its latest demo day unveiling 20 new companies.
Qatar and BASF join previous investors, including the venture firms Mayfield, Khosla Ventures, Foundation Capital, DFJ and USVP, and corporate investors like Cisco, Siemens and Juniper Networks.
While the roster of successes from Alchemist’s fund isn’t as lengthy as Y Combinator, the accelerator program has launched the likes of the quantum computing upstart Rigetti, the soft-launch developer tool LaunchDarkly and drone startup Matternet .
Some (personal) highlights of the latest cohort include:
Watch a live stream of Alchemist’s demo day pitches, starting at 3PM, here.
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This weekend, I finished reading Oliver Morton’s The Planet Remade (thanks to reader Eliot Peper for recommending it). Morton has a multitude of goals with the book, but there were two I think are deeply valuable. First, geoengineering is a plausible approach to solving our climate problems this century, and second, engineering the climate generates tough policy challenges, but also opportunities to make the planet more equitable.
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First and foremost: the book is mind-expanding in the best way possible. Morton confronts an extremely contentious issue with judicious facts and supreme insight gleaned over many years of studying geoengineering. Whether you are a dedicated acolyte of cloud seeding and veils or a committed opponent to any tampering of earth’s environment, he has developed a book that forces us to think about our actions and ultimately what the consequences of those choices are.
Frankly, those choices offer stark consequences. Morton describes the challenge of climate this century:
The world’s population is expected to grow from seven billion today to more or less ten billion by 2100. By that time the number of people enjoying rich-world energy privileges should also reach ten billion. So the challenge is to achieve for an extra eight billion people in the twenty-first century what was achieved for two billion in the twentieth century. Meeting that challenge implies a lot more energy usage.
Morton is a staunch environmentalist and deeply concerned about environmental justice and the inequities of the planet. But he is also a “climate realist” — he understands that our current solutions to climate change are not really solutions at all, since they either lack the scale required to solve the problem, or will continue to exacerbate existing inequities between different people of this planet.
For example, take emissions-free nuclear power, which is brought up as a panacea to our fossil fuel-driven economy. Morton writes:
If the world had the capacity to deliver one of the largest nuclear power plants ever built once a week, week in and week out, it would take 20 years to replace the current stock of coal-fired plants (at present, the world builds about three or four nuclear power plants a year, and retires old ones almost as quickly).
Sure, nuclear power plants are a literal solution, but most definitely not a pragmatic one since the scale required is just not there.
He also spends significant time deconstructing recent climate negotiations, finding that the focus on carbon has been something of a red herring (many other emissions are far worse than carbon and less directly connected to the modern industrial economy). Instead, they have been driven by the alignment of different environmentally-concerned parties:
Carbon dioxide suited scientists because it seemed like a straightforward measure of the problem. It suited greens because it was a pretty good proxy for the industrial society against which their movement was a reaction. The international negotiations that set up the UNFCCC showed that it suited developing countries because it was primarily a developed-country issue; at the time of Rio, the vast majority of all the industrial emissions since the the eighteenth century had come from Europe and America.
Carbon is of course a problem, but it has become a tagline, a brand, a cri de coeur of the international climate movement. Yet the challenges facing the planet are so much deeper than just carbon.
To avoid that narrow focus, Morton argues for a complete reframing of the climate debate toward solutions that can actually repair the climate, and even improve it for diverse populations around the world.
Now, the term “geoengineering” brings with it a bag of Hollywood-induced imagery of nuclear winters and globe-spanning hurricanes. Morton addresses those risks across his chapters, noting that geoengineering can indeed go wrong.
Even so, he convincingly argues that there are geoengineering techniques designed around key climate processes that can be high leverage, reversible, testable, and that have the scale required to actually solve climate challenges in a sustainable way. These processes aren’t speculation — we (mostly) understand the science today, and have pathways toward the technology required to execute a strategy.
The real challenge — as it always is — are humans and their governments. Morton notes that climate change has a huge deleterious impact on nations such as Maldives, but that it can also benefit certain regions by transitioning them from colder to more temperate climates.
That means that any geoengineering solution is going to face the prospect of creating winners and losers. Any international agreement is going to have to contend with those politics, and design mechanisms to ameliorate their effects.
Much as Morton calls for a planet remade, he sees an opportunity for geoengineering to trigger reflection among governments on their own interests:
Much better, rather than treating geoengineering as a technocratic way of avoiding politics, to use it as a way of reinventing politics. Exploring the potential of geoengineering could spur and shape the development of a new way of making planetary decisions. The aim should not be the development of a thermostat alone; it should be the development of a new hand to use it.
Environmentalists may balk at the idea of allowing humans to have their hands on any part of the earth system. But we are here, all seven billion of us, and we already have our brutal hands on the system. The question is whether we can start to use our hands in a far more productive way that can make the earth sustainable for centuries to come. As Morton notes, “The planet has been remade, is being remade, will be remade.” Geoengineering technologies offer solutions, if we can agree in how to use them.
My colleague Eric Eldon and I are reaching out to startup founders and execs about their experiences with their attorneys. Our goal is to identify the leading lights of the industry and help spark discussions around best practices. If you have an attorney you thought did a fantastic job for your startup, let us know using this short Google Forms survey and also spread the word. We will share the results and more in the coming weeks.
Short summaries and analysis of important news stories
Craig Mod wrote a compelling piece in Wired on the future of the book, and why today’s books essentially look the same as when the printing press was first invented. Despite the prognosticators expecting books to have moving pictures, interactivity, and dynamic narratives, almost nothing in that direction has actually occurred as readers continue to enjoy the traditional format. Instead, where the real innovation has taken place is on the business side, where new models from crowdfunding to email subscriptions have transformed the economics of book publishing.
While content management systems have been around for decades, almost none of these systems are designed to create revenues for their users out of the box. WordPress doesn’t have any subscription features or advertising networks built-in, which means that sites that want to make money have to spend a lot of dollars just to get setup and started.
So the announcement this morning that Automattic, the owner of WordPress.com, is going to offer a new platform combining content management with revenue called Newspack is both interesting and definitely needed. It’s a proper extension of their existing platform, and a reminder for product managers that the sustainability of their customers is critical for long-term success.
We have been following Huawei’s travails in the West for some time. One major point of contention is whether the company spies on behalf of the Chinese government. Western governments have argued that it does, but as China has repeatedly noted, they have never provided any proof.
On Friday in Poland, a Huawei executive was arrested for alleged espionage, which could provide the first public evidence of collusion between Huawei and Beijing. The company subsequently fired the executive and claimed that his actions were unrelated to the company. Poland has since called on NATO countries to remove Huawei equipment from their telecommunications infrastructure. Huawei equipment is widely installed in Europe and European governments have so far evaded calls by the U.S. to boycott the company. As the largest telecom equipment manufacturer in the world, Huawei’s response could have vast repercussions for the deployment of 5G networks.
Silicon Valley’s (and much of California’s) gas and electric utility is going bankrupt following massive liability claims against the utility due to its equipment sparking wildfires over the past few years. California may lead the world in innovation, but it seems to always be on the precipice of disaster when it comes to infrastructure.
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Northern California has become a test-bed for electric vehicle charging. And it’s no accident; the region is home to more electric vehicles and EV charging stations than anywhere else in the country. Like other innovative industries, the EV charging models, products and services that prove successful over time will scale around the state, the country and the world. Read More
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