California’s electrical grid has become a central focus in the state’s energy transition. It is both a key to unlocking clean energy potential and a significant obstacle, as it has been waiting 36 months to connect new resources. This challenge, rooted in transforming a century-old one-way infrastructure into a two-way system with multiple input and offtake points, was the subject of a passionate discussion at our MeetUp on January 16. The event drew our largest crowd in months and highlighted some of the biggest opportunities for innovation and business growth in clean technology.

A Panel of Experts

We were honored to feature three distinguished panelists:

• Anthony Pham, the State Affairs Analyst for the California Independent System Operator (CAISO), the nonprofit private manager of the major grid in California and several western states.
• Deji Sonoiki, the Director of Utilities for Momentum, a firm that helps innovators secure funding.
• Shivani Ganguly, the CFO/COO of New Sun Road, which offers hardware and software solutions for managing microgrids and integrating them with the larger grid.

Their insights offered a comprehensive view of the challenges and opportunities facing the grid as it evolves.

The Scale of the Problem

Anthony Pham began by summarizing CAISO’s transmission outlook, which estimates that $46 to $63 billion in new transmission investments will be necessary. This significant figure sparked concern from attendees, particularly in light of recent record-breaking rate increases for consumers.

With the current grid operating at only 40% of its full capacity, many questioned whether existing infrastructure could be optimized before investing in costly new transmission lines. Traditionally, underutilizing expensive assets would be unthinkable in other industries. However, factors like diurnal load variations and safety margins for line outages complicate grid operations.

Possible Solutions

1. Enhanced Transmission Lines: Deji Sonoiki shared that some of Momentum’s clients are exploring innovative technologies, such as TS Conductor’s advanced wires, which can increase the carrying capacity of existing lines by 2-3x.
2. Microgrid Integration: Shivani Ganguly proposed reconfiguring the system with controllable microgrids. These would reduce reliance on high-voltage transmission lines while improving efficiency and resilience. She highlighted the capabilities of New Sun Road’s controllers and software in enabling smoother integration.

Future Demands and Challenges

Despite these innovative solutions, skepticism remains about whether they can address the anticipated influx of new generation from remote sources like offshore wind farms, increased electric vehicle (EV) charging demands, and the energy needs of AI data centers. CAISO’s recent load forecast reflects this challenge, with an increase of over 4,000 MW (from 73 GW to 77 GW) in its 20-year outlook to account for these changes.

Key Questions for Innovators

• Can advancements make AI data centers less power-hungry?
• Could better scheduling of EV charging reduce the need for additional capacity?
• Will resistance to large grid investments drive breakthroughs in new technologies?

Bright Spots for Innovation

Thomas Hall noted that companies focused on grid enhancements represent a particularly promising area for investment in clean technology. This sector’s potential to attract new entrants underscores the opportunities available to innovators willing to tackle the grid’s challenges.

Join the Conversation

The discussion at our January MeetUp made it clear that grid innovation is both a pressing issue and a fertile ground for technological advancements. As the debate over investment and innovation continues, it’s essential to stay engaged.

Don’t miss future MeetUp topics that dive into critical issues like this. Join us.for stimulating evenings of conversation, learning, and networking with your peers.