Strategic electrification encompasses the deployment of new technology solutions that use distributed renewable energy instead of fossil fuels and less carbon-intensive grid-delivered electricity. Navigant Research defines strategic electrification as the deployment of cost-effective electrified technologies that lower costs, reduce environmental impacts, and enable local grid operators to flexibly reduce the cost and carbon intensity of delivered energy.
The electric power industry's shift from centralized generation toward cleaner distributed energy resources (DER) and smart grid solutions, known as the Energy Cloud, will create new opportunities for electrified technologies and energy sector stakeholders. The growth of electric transportation technologies such as light duty EVs, medium and heavy duty e-trucks, and e-buses is expected to increase load growth for grid operators. Other customer-focused strategic electrification technologies like solar PV, battery energy storage, air source heat pumps for space heating, cooling, and water heating, and certain industrial processes will play a lesser role in load growth. These technologies can also support local decarbonization strategies.
This Navigant Research report examines the emergence of strategic electrification technologies and various deployment strategies and business models. The study analyzes the lower cost, greener technology options that electrification creates and explores how they enable customers and grid stakeholders to reduce energy use and carbon emissions. It also provides recommendations for grid operators, EV technology vendors, automotive OEMs, and utilities and energy suppliers, among other energy sector stakeholders, on how to take advantage of the benefits of strategic electrification.
Key Questions Addressed:
- What are strategic electrification technologies?
- How can strategic electrification technologies lower customer and utility costs?
- How can strategic electrification technologies reduce environmental impacts?
- How can strategic electrification technologies flexibly reduce the cost and carbon intensity of peak energy use?
- How can energy sector stakeholders implement new business models to deploy strategic electrification technologies?
Who Needs This Report:
- Utilities and energy suppliers
- Utility business model strategists
- DER project developers, systems integrators, and financiers
- C&I solar PV, energy storage, EV, and heat pump technology manufacturers
- Industrial electric infrared and induction heater technology vendors
- Electric natural gas pipeline compression systems technology vendors
- DER management system software companies
- Federal, state, and local policymakers
Table Of Contents
Electrification Technologies Are Emerging for Customers and Grid Stakeholders
- Costs for Proven Strategic Electrification Technology Are Dropping
- Strategic Electrification Technologies Can Reduce Environmental Impacts
- Strategic Electrification Is Capable of Grid Optimization
Electrification Creates New Options for Customers, Vendors, and Grid Stakeholders
- Lower Cost, Greener Technology Options Enable Customers and Grid Stakeholders to Reduce Energy Use and Carbon Emissions
- New Decarbonization Options for Policymakers Bring Positive Benefits
- Grid Optimization Options Evolve for Local Grid Operators and Utilities
Guidance for Stakeholders Moving Forward
- Utilities and Grid Operators Need to Examine Load Growth and Grid Optimization Benefits
- DER Technology Stakeholders Need to Work Together to Benefit from and Support Strategic Electrification
- DER Technology Stakeholders Need to Ensure That New Business Models Deliver Lower Grid Impacts
- EV Stakeholders Need to Focus on the Potential Advantages of Electrified Vehicle Fleet Options
- DER Technology Stakeholders Need to Explore Customer-Facing Financing Options