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2022 is a lost year for global climate goals

Doug Houseman's picture
Visionary and innovator in the utility industry and grid modernization Burns & McDonnell

I have a broad background in utilities and energy. I worked for Capgemini in the Energy Practice for more than 15 years. During that time I rose to the position of CTO of the 12,000 person...

  • Member since 2017
  • 253 items added with 90,884 views
  • Mar 3, 2022

With the invasion of the Ukraine, supply chains, ports, ocean going vessels and other parts of the logistics world are disrupted.

Oil prices are already up, and the US and European prices for Natural Gas will rise as the US prioritizes and delivers more gas to Germany and other European companies, this may go on for decades.

Don’t be surprised if the US administration prioritizes and permits more Natural Gas drilling and the President of the US signs an executive order or two to ease drilling and more pipelines.

If the gas prices rise enough, expect the fall elections to change the face of the US Congress significantly.

Lead times on batteries, transformers, and more have already jumped this morning based on some phone calls this morning. Many suppliers are unwilling to provide lead times today, beyond “it will take longer, but we have no idea how much longer.”

We may see further sanctions against governments beyond Russia if they support the Russia in the Ukraine.

Utility interconnects will be delayed for lack of equipment, likely the larger ones will be pushed out more than a year. Many utility employees are part of the National Guard or Reserve, if they are called up, lead times on non-emergency work will go up, even after they return to their day jobs, it will take time to work through the backlog of engineering work.

Utilities and developers need to work together to figure out a way forward. Regulators will have to relieve the “first come, first serve” if they want to maximize interconnections.

Bob Meinetz's picture
Bob Meinetz on Mar 3, 2022

Doug, high prices for gas and oil are a godsend for meeting climate goals. Higher prices = less consumption = lower emissions.

In fossil-based economies, however, climate progress is inversely correlated with economic progress. If we want both prosperity and a healthy environment, that means doing away with fossil fuels altogether. As soon as possible.

Doug Houseman's picture
Thank Doug for the Post!
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