Delivering clean, reliable, affordable energy well into the future is one of the greatest global challenges, National Grid CEO Steve Holliday told executives in Boston yesterday.
"Based on trends over the last few years, 2012 was supposed to be the year when investment in renewables globally surpassed fossil fuel generation for the first time," Holliday said during a speech before the Boston College Chief Executives' Club of Boston. "That didn't happen. Investment in fossil fuel generation started to increase again at the same time global renewable investment dollars tailed off, partly as a result of a drop in wind and solar generation costs."
The utility is "fundamentally changing how we operate" to address four areas of the global energy challenge: aging infrastructure, a revolution in energy supplies, extreme weather conditions, and an aging workforce and skills gap, according to Holliday.
The revolution in energy sources is being driven by aging power stations and wires, a growing realization of the impacts of climate and the need to reduce carbon emissions, and shale gas, according to Holliday.
The impacts of increasing extreme weather on National Grid were evident in 2011, when it "learned some hard lessons" responding to Hurricane Irene and an October nor'easter. "Our ... restoration efforts were, frankly, disappointing," Holliday said. "Our planning didn't account for the magnitude of the logistical challenges hitting our electricity and gas networks simultaneously, across three states and numerous regions. We now look at future scenarios, which include events we haven't seen before, to make sure we are better prepared."
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