What Does a Joe Biden Presidency Mean for Microgrids?

Nov. 10, 2020
Microgrids, already growing in demand because of wildfires, hurricanes, the pandemic and energy equity issues, are likely to soon experience another boost — the climate policies of President-elect Joe Biden.

Microgrids, already growing in demand because of wildfires, hurricanes, the pandemic and energy equity issues, are likely to soon experience another boost — the climate policies of President-elect Joe Biden.

Biden’s “Plan for a Clean Energy Revolution and Environmental Justice” makes several pledges that could influence the microgrid market:

  • A “historic investment” of $1.7 trillion in clean energy, climate research and innovation over the next decade
  • Incentives for rapid deployment of clean energy innovations across the economy, especially in communities impacted by climate change
  • Spending by federal facilities on clean energy resilience
  • The linking of environmental justice to energy planning

“With his shift in priorities to a lower carbon energy future and away from propping up various aspects of the fossil fuel industry, the election of Joe Biden as president can only help microgrids – especially those incorporating renewable energy. Rather than focused on dated arguments pitting the economy against the environment, Biden buys into the value proposition that new clean energy technologies are the wave of the future,” said Peter Asmus, research director for Guidehouse Research.

Congressional Democrats already have signaled their support for microgrids in the “Moving Forward Act,” legislation introduced in June that specifically named microgrids as part of its $1.7 trillion infrastructure proposal. The legislation would offer financial and technical assistance, grant programs, and feasibility studies for microgrids, as well as various incentives for distributed energy resources.

In addition, Reps. Nanette Diaz Barragán from California and Yvette Clarke from New York recently introduced the Energy Resilient Communities Act, which would specifically provide $1.5 billion in grants for clean energy microgrids. 

All eyes on Georgia

Exactly what will become law remains highly uncertain. One of the key wildcards remains the outcome of two Senate runoff elections in Georgia scheduled for January. The special election will determine whether Biden’s party — the Democrats — control both the House and Senate, giving Biden better ability to usher through legislation.

Still microgrid supporters are buoyed by the prospect of a federal government that again uses its platform to back clean energy. In addition, they note that  microgrids tend to enjoy a space outside the bipartisan divide. Research by the Civil Society Institute, a Massachusetts think tank, found that Democrat and Republican voters are aligned in their support of microgrids, once the technology is explained to them. 

Of course a good deal hangs on the outcome of the Senate races in Georgia, but let’s assume the Republicans maintain control.  In that case, I think we can be cautiously optimistic, politically,” said Peter Kelly-Detwiler, principal, NorthBridge Energy Partners. “The beauty of microgrids is they are all about reliability and resilience – something that’s pretty bi-partisan – in the face of increasingly challenging weather events.  They are also solid economic development tools and can obviously include significant amounts of sustainable technologies, principally solar and batteries.”

Microgrids: Child of competitive markets

Microgrids evolved out of rules that opened competition in electricity markets two decades ago — and have continued to be refined by the Federal Energy Regulatory Commission. The rules have created more consumer choice, principles historically supported by both Democrats and Republicans.

 “With FERC Order 2222 as an example, the opening up of markets is not really an issue pitting right versus left,” said Asmus. “There is emerging consensus that empowering consumers to become prosumers is the way to go, along with tighter integration of wholesale and retail markets. Renewable and resilient power systems enjoy wide support among all voters.”

Let us know your thoughts on microgrid policy! Join us November 19 at Microgrid 2020 Global for interactive polling and an exciting policy discussion 11 am to noon ET. Register here. Note: Space is limited on the platform so we encourge you to register soon.

Several environmental and clean energy groups issued statements in recent days heralding the Biden win.  

Gina McCarthy, President and CEO of the Natural Resources Defense Council, said: Joe Biden’s climate plan is the strongest we have ever seen from any president before him.”

Kelly Speakes-Backman, CEO of the US Energy Storage Association: “By electing Joe Biden as President of the United States of America, Americans have sent the signal to accelerate the path forward toward a clean energy economy. We expect to see strong support from the new administration focused on decarbonization of the electric and transportation sectors, which will further drive the deployment of energy storage.”

Over the last four years, U.S. cities, states and businesses have worked together to make progress on climate change, even without federal leadership. Now, we need an all-hands-on-deck approach with national, state and local leaders pulling together for a low-carbon economy, powered by equitable and sustainable growth. These leaders should urge Congress to join the national effort.

Andrew Steer, President & CEO, World Resources Institute: “Over the last four years, U.S. cities, states and businesses have worked together to make progress on climate change, even without federal leadership. Now, we need an all-hands-on-deck approach with national, state and local leaders pulling together for a low-carbon economy, powered by equitable and sustainable growth. These leaders should urge Congress to join the national effort.”

Track news about microgrids and the Biden administration’s energy policy. Subscribe to the free Microgrid Knowledge newsletter.

About the Author

Elisa Wood | Editor-in-Chief

Elisa Wood is an award-winning writer and editor who specializes in the energy industry. She is chief editor and co-founder of Microgrid Knowledge and serves as co-host of the publication’s popular conference series. She also co-founded RealEnergyWriters.com, where she continues to lead a team of energy writers who produce content for energy companies and advocacy organizations.

She has been writing about energy for more than two decades and is published widely. Her work can be found in prominent energy business journals as well as mainstream publications. She has been quoted by NPR, the Wall Street Journal and other notable media outlets.

“For an especially readable voice in the industry, the most consistent interpreter across these years has been the energy journalist Elisa Wood, whose Microgrid Knowledge (and conference) has aggregated more stories better than any other feed of its time,” wrote Malcolm McCullough, in the book, Downtime on the Microgrid, published by MIT Press in 2020.

Twitter: @ElisaWood

LinkedIn: Elisa Wood

Facebook:  Microgrids

Exploring the Potential of Community Microgrids Through Three Innovative Case Studies

April 8, 2024
Community microgrids represent a burgeoning solution to meet the energy needs of localized areas and regions. These microgrids are clusters of interconnected energy resources,...

Download the full report.

Microgrid Implementation Challenges and Key Technologies

Schneider Electric identifies the main challenges faced during a microgrid project implementation and provides practical information for addressing them.