The Real Deal #12

Quick read today! I have listened and I’m trying to employ a skill known as BREVITY. Thanks for the feedback and please refer friends (see bottom for the details).

Let’s talk about energy as a commodity, like gold or silver or pork bellies. Tradable, valuable, dependent on supply and demand.

Welcome to the Real Deal - a the newsletter who for people who understand what the meaning of our log is (see above).

In my travels on LinkedIn (and online and in person), I’ve increased the volume of those who I follow from all over the world who pursue, evangelize, work in, and even oppose sustainability and renewable energy.

I’ve mentioned before that as an American I am disappointed that we — historically known builders and leaders — lag behind the rest of the world in this space. So I’m looking in those other places for clues — not about how things get done or why or whether it’s even worth it.

The clues I’m seeking are about what’s possible.

Don’t you ever wonder about what could be, instead of what is?

If understanding what’s possible gnaws at you, then check this out. This hit my feed this morning…someone I follow must have liked it or commented.

Australia, dear readers, is creating jobs, improving their infrastructure, cleaning their power markets and creating a new economy.

First, a little level-setting:

Australia as a nation has been aggressively pursuing renewable energy buildout and adoption for a long time now. It’s a journey, but they’re uniquely positioned to do this based on their location, size, and resources.

Keep in mind that I didn’t even know this until six months ago myself. I have been uploading a lot of information to my brain and what Australis is doing is showing the rest of the world HOW IT’S DONE.

What does it mean, though?

“100% Net Renewables” does not mean that there’s no other source of power. “Net” is the key word in that phrase.

For context:

• Time and Location are critical components of electricity generation and delivery.

• When it comes to renewable energy, time is of paramount importance. When the wind’s blowing, you get wind power. When the sun’s shining, you get solar. Obvious? Yes, sorry, but…

• …what if you have enough renewable capacity to power a place (say, a state) but not when it’s most needed? We use light and heat at night, but the sun’s not shining. The wind is fickle.

• AND, there’s another state next door who produces power the “old fashioned” way (pick your fossil fuel) which is dependable and transmittable to you. If you’re a rural state, and you generate a lot of renewable energy, but another urban area needs more power when you’re producing it…then you can trade.

In this way, South Australia can state that they are “100% net renewable.” Their renewable sources produce enough for their local needs, but not at the right time, and they can trade it for fossil power with someone else, and get what they need when they need it.

In a way it’s almost like time travel. Kinda.

Energy is a Commodity

It can be bought, sold, traded. The more efficient the grid, the better automation and technology and equipment and facilities in place to manage it, the easier it is to buy/sell/trade energy.

For centuries, we’ve been trading fuel. But under our feet there is an energy trading economy that’s been in place for many decades. Infrastructure, technology, and forward-thinking can make the power itself what is traded at scale, and “balance things out.”

Then we can worry about other stuff as a civilization.

What South Australia is stating is that they’re now producing enough power with renewables to buy energy with energy.

How is This Possible?

A modernized grid. Next Tuesday or Thursday, this will be the focus.

Talk to you next week and thanks!