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Electric Grid Upgrades Cause Energy Bills to Surge

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Emily Newton's picture
Editor-In-Chief, Revolutionized Magazine

Emily Newton is the Editor-in-Chief at Revolutionized Magazine. She enjoys writing articles in the energy industry as well as other industrial sectors.

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  • Jun 13, 2022
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The past eight summers were among the hottest ever due to climate change. Greenhouse gas emissions are the leading cause of changing weather conditions, and environmentalists are seeking sustainable solutions to the rising rates. 

Conducting electric grid upgrades and adopting efficient appliances can reduce specific greenhouse gas emissions. Countries must reduce the cost of electric power and phase out fossil fuels to conserve the global ecosystem.

The Demand for Electric Grid Advancements

Electric grid upgrades can help regions support the rising demand for electronics. More individuals are swapping their gas-powered goods for electric alternatives to reduce their carbon footprints. 

The electric vehicle (EV) industry is experiencing a global expansion. The cost-efficiency of EVs is paving the way for increased purchases. In fact, the cost of owning an EV became lower than gas-powered vehicles in 2020. 

Rising eco-consumer rates also influence growth in the EV sector. Researchers found over 60% of global customers will pay more for low-impact goods and services. People are adopting electric appliances to minimize their fossil fuel reliance. Therefore, supporting the sustainable transition with electric grid upgrades can decrease greenhouse gas emissions.

Environmentalists hope to eliminate society’s fossil fuel reliance by 2034. Adopting electric appliances as alternatives can help countries achieve their sustainability goals, but many places are struggling to create enough electricity to support the transition from fossil fuels.

Electric Grid Upgrades and Energy Costs

The current electric grid is incompatible with electronic growth. Fossil fuels deeply influence the global economy, and electricity costs correlate with oil and gas prices.

Nearly 80% of global society’s power supply derives from fossil fuels. The energy source’s inconsistent prices can negatively affect the transportation, industrial and construction sectors. Regions are upgrading their electric grids to meet eco-consumer demands, but they’re experiencing cost deficiencies.

Countries can diversify their electricity sources to improve cost-efficiencies and sustainability. Sustainably focused countries like the U.S. are using clean energy sources to create affordable electric grids. 

The Biden administration plans to expand its electric grid by strengthening renewable energy projects. America may source 100% of its electricity from emission-free sources by 2035. The upgrade will decrease greenhouse gas emissions and increase the national electricity supply. Expanding global electricity supplies can help regions support sustainable transformations.

Additional Influences on the Cost of Electric  

Fossil fuel prices directly impact the cost of electric supplies. Current oil and gas prices are skyrocketing from the war between Russia and Ukraine, and researchers predict gas prices in Europe will soon double.

One barrel of crude oil may reach $100 by the end of 2022. The rising fossil fuel prices are also increasing electricity costs. Overextracting oil also impacts electricity costs because the energy source is depletable.  

Weather is another influential factor in electricity costs — heatwaves significantly impact prices. Climate change is exacerbating summertime heat and increasing power costs.

Energy professionals expect electricity prices to increase by 4.7% as the global temperature rises. However, expanding the electric grid as climate change worsens can decrease its affordability. 

Adding renewable energy sources can also increase electricity prices due to the Kuznets Curve. This principle signifies a hypothetical projection of economic inequality during development. It implies society will experience price increases during industrialization and decreases over time.

Adding solar and wind power to the electric grid may require steep upfront costs. However, people who pay off their system purchases and installation fees may access more cost-effective electricity. These costs will level out over time, and the global supply will grow.

Sustainable Solutions

Integrating renewable energy into the electric grid may decrease electricity costs. Renewable resources are significantly more cost-effective than fossil-fuel-sourced power. The price of developing solar farms decreased by nearly 85% in the past decade.

Onshore wind prices are also declining as technology advances. The cost of wind power decreased by about 13% between 2019 and 2020. Adding solar and wind power to the electricity grid can help regions phase out fossil fuels.

Transitioning away from fossil fuels requires adopting new electricity-producing equipment. Individuals can reduce municipal solid waste (MSW) by recycling old energy facility materials. Professionals may collect and recycle transformers to support the circular economy.

The circular economy relies on repurposed materials for production practices. It minimizes society’s reliance on single-use items, which decreases MSW. Individuals can increase the global electricity supply while reducing pollution by recycling energy-production components.

Expanding Clean Energy Projects

Countries can expand clean energy projects to reduce electricity costs. In the U.S., the Department of Energy (DOE) began funding renewable power projects to increase production. It provided a green hydrogen facility in Utah with $504.4 million to cover startup fees.

Individuals can also rely on green hydrogen to produce affordable, low-emission electricity. Green hydrogen derives from wind, solar and hydropower. It releases water and heat during energy production instead of greenhouse gas emissions.

Other regions of America are lowering electricity costs by expanding offshore wind research and production. This creates different economic benefits. The offshore energy sector is expected to employ about 77,000 individuals by 2030.

Increasing job opportunities and decreasing fossil fuel usage can improve electricity costs.

Storing Renewables

Energy professionals can increase renewables’ compatibility with the electric grid by advancing storage technologies. Solar panels and wind turbines produce and move electricity directly to consumers. The systems have limited storage capabilities, which decreases the abundance of electricity.

Environmental engineers may develop more renewable energy storage technologies to expand the electricity supply and decrease costs. Green hydrogen is one source that can be used to store and distribute electricity. Systems use excess energy from panels and turbines to fuel the electrolysis process. Electrical currents pass through chemical solutions to extract pure hydrogen.

Individuals can use hydrogen to store renewable electricity in a solid form. The systems use fuel cell technology to convert the hydrogen back into power as energy demands rise. These storage systems are a sustainable and cost-effective way to phase out fossil fuels.

Lowering Utility Costs and Shrinking Carbon Footprints

Replacing fossil fuels with clean electricity can reduce energy costs over time. Regions may access these affordable power sources after paying off initial purchasing and installation fees. They can also preserve the atmosphere by reducing greenhouse gas emissions.

Reducing climate change may decrease heat’s impact on electricity costs. People can lower electric power costs and reduce their carbon footprints by accessing more clean electricity.

Discussions
Jim Stack's picture
Jim Stack on Jun 15, 2022

The higher cost of GRID power makes Solar with advanced battery storage even better. V2G Vehicle To GRID will pay off even faster. The entire GRID will benefit from these great new features of electric vehicles. In FCT the GRID Energy storage is using the same batteries used in the electric cars and trucks now rolling out.  

    This statement has been true since 1985, QUOTE = The electric vehicle (EV) industry is experiencing a global expansion. The cost-efficiency of EVs is paving the way for increased purchases. In fact, the cost of owning an EV became lower than gas-powered vehicles in 2020.

Emily Newton's picture
Thank Emily for the Post!
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