Here’s to the Future: Blueprint Power’s Predictions for 2023

2022 was characterized by soaring demand for renewable and clean energy resource development, but that demand was hampered by supply chain breakdowns and rising costs that were further exacerbated by inflation. Layer in increasing interest rates, and what you have going into 2023 is a lot of unrealized potential for widespread installation and deployment of clean energy resources. Here are some predictions from our experts on how that will manifest in 2023:

JESSE GARY, HEAD OF ENERGY SYSTEMS

Building owners can generate environmental and financial benefits at the same time; and in doing so, buildings will become an essential resource for energy flexibility as the trend toward electrification continues. Building owners and operators shouldn’t have to choose between a good environmental decision and a good financial one. Buildings are a valuable source of flexible capacity, and in 2023 the grid will continue the trend toward fairly compensating the resources that provide that flexibility. New market reforms, program offerings, and increased budgets are on the way from utilities and RTOs/ISOs to allow networks of aggregated distributed energy resources to participate in energy markets the same way that a traditional power plant does. 

In 2023, the trend toward electrification will continue, and while more renewables are coming online, we must also look at battery storage to help flatten the duck curve. Demand flexibility will become an even more critical consideration because the energy transition will require more sources of flexible capacity to be successful in the long term. Buildings will be a key component of this success, as the communication and data exchange between buildings and the distribution/transmission networks improve to accommodate the delivery of grid services. 

ROBYN BEAVERS, CHIEF EXECUTIVE OFFICER

2023 presents an opportunity to streamline local permitting and regulatory red tape so people can take advantage of available clean energy funds, modernize infrastructure and attract new talent. The last shoe to drop, as new clean energy finally explodes in the U.S., is local permitting and regulatory red tape. Even though there are hundreds of billions of dollars available for clean energy initiatives, that money cannot be invested if federal, state, and local red tape remains a barrier. This is a major theme, and people in the industry are fixated on it. 

There is reason for optimism. This year’s Inflation Reduction Act (IRA) allocated significant funds to streamline transmission permitting and capacity building, including a $350 million allocation to the Federal Permitting Improvement Steering Council to bolster the Council's work making the Federal permitting process more accountable and ultimately more efficient, and a $760 million grant program to support state-level authorities in facilitating the siting and approval processes (H.R. 5376). Further funding has been made available for RTO/ISO reforms to further assist in this process. The coming year presents an opportunity to use available funds, modernize infrastructure, and attract new talent.

NICK SCHMIDT, CHIEF TECHNOLOGY OFFICER

Management of building systems is increasingly networked and automated, and associated digital security must keep pace too. Buildings are becoming smarter, and what we're seeing is a race to implement consumer home energy products, like Nest thermostats, at businesses. It’s the idea that it shouldn't take 10 monitors on a wall somewhere to control the temperature of a building. However, many are realizing how difficult it is to manage. So, you have this sophistication exchange that's happening with traditional building management systems getting more into the IoT space, and IoT getting more into a building management space. 

Maintaining digital security should be an important discussion point in any new implementation, particularly because some legacy systems weren’t built with this in mind. We specifically designed Blueprint Power’s DIGBOX® and Portal to provide more granular, real-time insight into energy usage data with a more secure approach.

ANDY RUBIN, VP OF BUSINESS DEVELOPMENT

Building owners and tenants see the value of implementing lower-carbon energy sources, but they need strategies that yield timely benefits. Building owners and tenants are investing in the energy transition with the firm belief that it will increase the value of their properties, while providing a more desirable working or living environment for their tenants. Onsite distributed generation assets can help alleviate electrical grid congestion and provide much added resiliency to their properties and peace of mind to their tenants, but they need solutions that can generate value in the near-term to help fund further onsite asset investment. For example, what existing flexible energy capacity does a building have that can be tied to and monetized with market programs? Are there submetering opportunities? Are there ways to reduce energy consumption now to make ‘headroom’ for adding EV charging, for example, without increasing bills? The answer is often “Yes.” Blueprint Power can help identify the opportunities, and grid operators and regulators will need to continue to provide practical incentives and clarify procedures for connecting to revenue generating and bill savings programs. 

In Conclusion

The energy industry is facing an exciting year ahead with unprecedented incentives for renewable investment, transmission expansion, and smart technology adoption. It won’t be without challenges, however, and thoughtful permitting reform, market incentives, and strategic digital security will be keys to leveraging existing momentum and future opportunities.