Ajot.com september 28 - october 11, 2020 - Apricum
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PERMIT # 558
PROVIDENCE, R
American Journal of Transportation
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ajot.com september 28 - october 11, 2020 ISSUE #712
4 American Journal of Transportation ajot.com
Power gridlock – The challenge Vulnerability of the grid and
of rebuilding the US power grid climate change
The U.S. power grid is millions of miles long, contains count- By Matt Miller, AJOT
less pieces of equipment, serves nearly 230 million people and
is magnificently deficient in upkeep. Analysts are engaged in As wildfires rage throughout the The fires highlight the dangers
multitrillion-dollar debate whether the grid needs rebuilding Western United States, they destroy of climate change. They also under-
or replacement. And every day, new power sources are coming everything in their path and imperil score the vulnerability of power
online that need to be incorporated into the grid – many of all in their range — life, property, grids to natural disasters and weather
them renewables like wind and solar, never envisioned as health, natural habitat. Add light and extremes, both of which will increase
becoming a “democratized” feature of the power grid. But power to that list. in scope and frequency because of our
“Flames knocked out transmis- warming planet.
now one thing is a certain, the power grid needs attention and
sion lines and generators from the “Climate hazards and extreme
it will be costly, the largest project and likely most expensive Sierra Nevada to the San Diego back- weather affect all components of the
“project” in U.S. history. country,” The Los Angeles Times electric grid system, from genera-
reported in September, adding that tion to end use,” the Oak Ridge study
By Matt Miller, AJOT utilities begged residents to conserve warned, adding that these systems,
electricity during the hottest times of decades old, weren’t designed to
Fixing America’s power grid is In 2017, the American Society day because of stresses on the system. handle new environmental realities.
a monumentally difficult and expen- of Civil Engineers released a “report An Oak Ridge National Labora- Bigger and more frequent wild-
sive task. Three years back, Joshua card” on US infrastructure, in which tory study last year detailed the devas- fires, hurricanes, blizzards, floods
Rhodes, a researcher at University it slammed the state of the country’s tation, obvious and not, that wildfires and drought all call for more renew-
of Texas, Austin’s Webber Energy power grid. “Electricity delivery can unleash on the grid: destruction of able energy, but more distributed
Group, estimated a complete grid in the US depends on an aging and power lines, towers and poles. “The power as well. These natural disasters
replacement would cost nearly $5 complex patchwork system of power transmission capacity of a line can “impose the need for another type of
trillion. “I’m sure it would be more generation facilities, transmission be affected by the heat, smoke, and flexibility, and that is flexibility in
now,” Rhodes recently said. and distribution grids, local distribu- particulate matter from a fire even if the grid to make it more resilient,”
tion lines, and substations,” the report there is no actual damage to the physi- said Florian Mayr, a Berlin-based
(GRIDLOCK – continued on page 6) cal structure,” it emphasized. (GRID – continued on page 13)
Joshua Rhodes, University of Texas,
Austin’s Webber Energy Group
The grid is comprised of three
parts: generation, transmission and
distribution. Transmission and dis-
tribution lines, many of which have
passed their life expectancy, are
already operating at capacity. Trans-
formers are failing. Hundreds of the
aged and uneconomic plants that gen-
erate power must be replaced.
Add to this an overall deficiency
in the grid’s maintenance. That’s
become especially apparent in par-
ticular pockets. However, the entire
country suffers. “There is a need to
invest and create infrastructure just
to keep [the US grid] up and keep it
going,” said Florian Mayr, a Berlin-
based partner at Apricum— The
Cleantech Advisory.
Florian Mayr, a Berlin-based partner at
Apricum – The Cleantech Advisory
Complicating matters, the US has
three separate grids — Eastern, West-
ern and Texas — that aren’t even con-
nected. Rick Rys, a senior consultant
who specializes in energy management
with ARC Advisory Group, calls this
“ridiculous for a modern country.”
6 American Journal of Transportation ajot.com
(GRIDLOCK – continued for example, can now more production and consump- these products take a decade
from page 4) accurately monitor equipment tion will become vital, while to build.”
said. It awarded energy infra- wear and tear, better match others believe this so-called
structure a dismal “D+.” supply and demand and more “micro grid” will remain of
It’s getting worse. precisely control usage. Utili- marginal importance.
ties are already devouring these Then, there’s politics.
State of the Grid systems. “The more funda- “The whole marketplace is
Recent events in Califor- mental change is on the soft- a political battle in terms of
nia provide dramatic warn- ware and controls basis,” said government and rules and
ing signs of what could Wanless. “It’s already hap- regulations and tax law skew-
happen if nothing is done. In pening. You just don’t know ing which source of energy is
the past two years, extreme it,” said Wanless. going to win,” said Rys.
weather triggered blackouts, Eric Wanless, director of “Our grid is getting smarter, Even advocates of a
a downed power line ignited technology and innovation at the but it has a long way to go,” complete grid transformation
Rockefeller Foundation
one enormously deadly fire added Rys. “Homes are get- don’t see some sort of magic
and the mere danger of wild- announced last week that it ting smarter, but they have switch being thrown. It’s not
fires caused a major utility will no longer build coal fired a long way to go. And the as if the old grid will one Rick Rys, ARC Advisory Group
to cut power to millions (see plants and shutter or sell exist- grid interactive home doesn’t day be shut down and a new Analysts have identified
box on page 4). Utilities these ing facilities to concentrate exist yet.” one powered up. Too much several elements of a new
days are scrambling to keep on renewables. With a change Although there’s univer- is at stake. “You don’t want grid. Here are eight:
their lines and equipment like this, project cargo special- sal agreement that a better to invest billions of dollars 1. A smart grid. The grid
safe from the fires that are ists should anticipate a signifi- grid is a much smarter one, on the grid maintenance and itself becomes a more active
now ravaging the West. cant upturn in business. it’s less certain exactly what then have it not actually work player, and at every junc-
“Utilities are already more shape a new power grid would for a future that we’re moving ture. Information becomes
vulnerable to extreme weather
Points of Improvement take. Among those who see toward,” said Wanless. “It’s increasingly more detailed
events than in the past,” wrote Despite its crumbling the basic outlines the same not two pots of money.” and actionable, making both
McKinsey & Co. in a report infrastructure, the grid displays way, important details differ. It will take time. “This is production and consumption
last year calling for utilities to some points of improvement. For example, some maintain not an easy infrastructure to (GRIDLOCK – continued on
adapt to new environmental Advanced software systems, that highly localized power change,” said Rys. “Many of page 13)
realities. (see box on page 4)
It’s not just utilities. It’s
vital for those in logistics to
understand what could be
a seismic shift in the grid
and the various components
SPECIALTY CARGO
involved. Building a new
grid — or even upgrad-
ing the current one — will
NEEDS SPECIAL
impact vessels and the ports,
rail and road, cargo handlers ATTENTION
and 3PLs. New equipment,
new handling methods, new
transport solutions will all
be required. Power, which
already plays a major role in
project cargo, will become
ever more important.
Everyone with an inter-
est in project cargo should be
aware of the state of the grid
and what changes are on the
horizon. Billions of dollars
will be at stake.
“People gloss over the
massive amount of logis-
tics required if you go from
having dozens of power
plants to tens of thousands of
power plants,” said Rhodes
in an interview, “the manag-
ing all of that, upgrading the
distribution system to handle
that, upgrading the transmis-
sion system to handle all that.
It is a lot.”
A modern grid becomes
ever more vital as we attempt
to move away from polluting
energy sources, embracing
everything from electric vehi- Breakbulk cargo isn't typical cargo. Good thing the
cles to rooftop solar panels. Port of San Diego isn't your typical port.
“As electricity consumption
is growing through elec-
trification efforts, there is OPEN SPACE • FLEXIBILITY • EXPERTISE
going to be a need for more
robust transmission and dis-
tribution infrastructure,” said Take advantage of our special advantage.
Eric Wanless, director of
technology and innovation portofsandiego.org/cargo
at the Rockefeller Founda-
tion, where he focuses on the
power industry.
Large, renewable energy
projects have already been
identified as important driv-
ers in a global economic
recovery following the Covid
pandemic. And the shift is
underway – GE the largest
builder of coal fired plants,
september 28 - october 11, 2020 p rojec t c arg o b i -annual 13
(GRID – continued from page 4) tributed, rather than the traditional tally necessary, it’s now the cheapest blow all day long. “With renewables,
partner at Apricum— The Cleantech model, which is a centralized system source of power in many areas and there’s much more fluctuation,” said
Advisory. of generation, storage and distribu- will become more and more economi- Mayr, who adds that energy storage
Old power sources, which pro- tion. Andrew Meyer, a Southern Cali- cal as time goes on. (California, for enables “flexibility in the grid.”
duce C02, exacerbate climate change. fornia clean energy advocate, talks of example, already depends on renew- 7. Smaller power plants, and many
The current power grid — with cen- six advantages: Efficiency, reliability, ables for one-third of its energy con- more of them. The days of the mam-
tralized power generation and distri- modularity, flexibility, economy and sumption and pledges to be 100% moth 1GW power plant lording over a
bution — makes the severity of the environmental responsibility. carbon-free by 2045.) city are over. The size of one plant isn’t
problem that much worse. Utilities are Customers have a greater role in not “A clean energy portfolio is key, overall production is. “The size
dependent on electricity coming from only consuming, but in generating cheaper to build today than certainly of power plants recently has shrunk,
limited sources, often over long dis- and trading electricity. The relation- coal and in a lot of cases, new natural and technology has also allowed them
tances, with equipment that is either ships between consumption, produc- gas plants,” said Wanless, who pre- to do that,” said Rhodes.
inadequate or unreliable in a crisis. tion, and storage become redefined, dicts this kind of cost advantage will This, however, means a greater
“There’s going to be an increased according to the equipment manufac- only grow in time. “This has been emphasis must be placed on more
desire to build out a more distributed turer Siemens. like a relatively huge paradigm shift efficient power transmission, both
grid particularly in terms of power 4. Behind the meter. These are cus- in the power sector.” locally and over long distances.
generation, because if lines go down tomer-generated energy resources, 6. Batteries. They will be a key 8. Microgrids. Shrink power genera-
or if there’s something happening on rather than utilities. It includes the component for much of the change, tion, transmission and usage down to
the transmission and distribution side, obvious, such as rooftop solar panels especially as the price of lithium- a neighborhood or a single complex of
a distributed grid is more resilient and batteries, and the not-so-obvious, ion batteries is falling dramatically, buildings, such as a university. That’s
because you don’t have to get power including electric vehicles and smart although other battery technology is the concept behind a microgrid, which
from A to B, the power is everywhere,” thermometers. being developed as well. Some bat- is usually connected to the main grid,
said Eric Wanless, director of technol- 5. Renewable energy. Solar, wind and teries will allow residences and busi- but can disconnect and function inde-
ogy and innovation at the Rockefeller hydro will account for a larger and nesses — as well as vehicles — to pendently through an autonomous
Foundation, where he focuses on the larger percentage of total power and store power. Others, called grid-scale power source. This is called “island-
power industry. some analysts such as Rhodes believe batteries, provide onsite storage for ing.” Ports of Long Beach, LA and
In August, consumers discovered renewable energy will account for power production. The issue for the San Diego have microgrid projects
just how tenuous the situation can 40% to 50% of total in another 15 to grid is energy variability. The sun underway while the Port of Baltimore
be. California utilities Pacific Gas 20 years. Not only is it environmen- doesn’t shine at night. Wind doesn’t (GRIDLOCK – continued on page 14)
& Electric and Southern California
Edison were forced to initiate roll-
ing blackouts for four days because
extreme heat spiked demand, while
supply was unexpectedly curtailed.
The utilities assumed they could
import power from Nevada and Ari-
zona. However, those states needed
the power for themselves as they were
experiencing record heat as well.
For PG&E, the state’s largest utility,
the linkages between cuts to the supply
of power and fires are becoming all-too-
common. In 2017, a downed transmis-
sion line triggered the worst wildfire in
California’s history, killing more than
80 and destroying the town of Paradise.
Last year, the utility cut the electricity to
millions of customers without warning,
fearing strong winds could blow down
trees, which in turn could down power
lines or other equipment.
Getting the grid to be more
weather-responsive is one side of
the equation. Reducing carbon diox-
ide levels in power production is the
other. Boosting renewable energy
sources is on the rise, although not as
quickly as planners believe necessary.
“First on our priority is de-car-
bonizing the electric grid,” said Rick
Rys, who specializes in energy man-
agement as a senior consultant with
ARC Advisory Group. “We haven’t
moved particularly fast compared to
how fast we need to go.”
(GRIDLOCK – continued from
page 6)
more efficient. “Data can be just as
valuable as the energy that’s flowing
across the lines,” said Rhodes.
2. A two-way grid. Customers will
produce energy as well as consume it.
(They are known in industry jargon as
“prosumers.”) Homes, vehicles, offices,
schools, shops and factories will all
become sources of power, with both
electricity and data flowing back and
forth. Mayr calls this the “democratiza-
tion of generation.”
“There will be two-way flows of
information, two-way flows of power.
It will be a much more integrated
systems approach to the power grid,
which is a fundamental shift from the
power grid of today, which really is
the same grid of 100, 120 years ago,”
said Wanless.
3. A distributed grid. Power will be
increasingly decentralized or dis-
14 American Journal of Transportation ajot.com
(SERVE – continued from ested entities has not started
page 10) yet, but Sabina anticipates
to supporting the develop- that further developments on
ment of a wind energy indus- that front will be announced
try in New Jersey and off its “in the coming months.”
coast. (See box on page 10) When the wind port is
The state estimates the new fully developed, Saporito
wind port will cost between expects it will be serving
$300 million and $400 mil- wind projects well beyond
lion to fully develop. NJEDA New Jersey waters, to include
is leading the development projects off New York, Dela-
efforts and is considering ware, and Maryland. “Par-
a range of public, private, cels like the wind port are not
and public-private partner- readily available,” he said.
ship financing options. The “When you look at the Con-
precise financing scheme necticut State Pier,” which is
for the wind port has yet to also vying for a slice of the
be announced but observ- wind business, “you are talk-
ers note that the gover- ing about 30 acres. We are
nor’s office would not have talking about 200 acres of
announced a construction property that we’re develop-
Dutch subsea cable installer, Blue Offshore, fashioned a unique “double basket” carrousel barge to move 8,000 tons start in the second quarter of ing. This is virgin land that
of cables from the manufacturing site in Greece to Rotterdam
2021 unless there was a clear the state wants to dedicate
(GRIDLOCK – continued that stretches more than 2,000 Rhodes calls it “a trillion-dol- path to financing. to offshore wind genera-
from page 13) miles. Transformers weigh lar problem,” adding, “even if “Planning and permitting tion. It’s different in size and
is studying the concept. Some 800 metric tons each and are the grid stays the exact same work is certainly well under scope,” when compared to
microgrids are already oper- 37 meters long (121 feet). as it is today, just on main- way,” Sabina allowed. other facilities that are being
ating, although there’s some Finally, just keeping the tenance, we’re going to be Similarly, the process of developed to serve the wind
skepticism that they can be old grid working is a tall order. spending trillions of dollars.” leasing port parcels to inter- energy industry.
widely used. “People roman-
ticize the idea of locally pro-
duced power, just like they
romanticize the idea of locally
produced food,” said Rhodes.
“It‘s a lot harder when it’s 100
degrees outside and you and
all of your neighbors want air
conditioning.”
Impact of Grid
Transformation
The grid’s transformation
will impact logistics handlers
in sometimes contradictory
ways. For example, as AJOT
has written about extensively,
wind turbines are becom-
ing ever more powerful,
which means they’re larger
and heavier. Transportation
and handling become pro-
portionately more challeng-
ing. For Instance, LM Wind
has developed a blade that
reaches 107 meters in length
[ 351 feet].
Offshore wind can be espe-
cially difficult, with purpose-
built vessels and advanced
handling techniques. In July,
for example, the Dutch subsea
cable installer, Blue Offshore,
fashioned a unique “double
basket” carrousel barge to
move 8,000 tons of cables
from the manufacturing site in
Greece to Rotterdam.
On the other hand, both
batteries and solar panels are
modular. They are built to be
containerized. An array of
photovoltaic cells stands in
stark contrast to a coal plant.
As power is decentral-
ized and distributed, the
physical attributes of the grid
change. “You need less grid
infrastructure and you also
need less centralized power
generation,” said Mayr.
On the other hand, ultra-
high voltage power lines
can more efficiently send
electricity from, say, a rural
source to a population center
hundreds of miles away. One
$6 billion project in China,
completed last year, con-
structed a 1,100-kV (1.1 mil-
lion volts) direct-current line
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