Linkages in energy policy and technology: grid-scale renewables integration at high penetration levels requires sustained and corrective policy support

We are approaching a critical inflection point in the history of industrial civilization. The year 2012 observed several extreme weather events symptomatic of anthropogenic climate change trends. Simultaneously, global investment flows into renewable energy projects have grown above $257 billion annually reaching new highs. And whereas record-breaking growth in these projects has enhanced the maturity of renewable energy technologies, the current pace of technology adoption has been too slow to stem rising greenhouse gas emissions. In particular, proponents of “smart grid” in the United States promise a revolution in the electric power industry as a means towards genuine sustainability. In reality however, the largest barrier to that goal is not technology adoption but rather policymaking. This paper begins with a brief history of the operation and development of an electric power sector shaped by the interplay of industry and policy throughout the twentieth century in the U.S. We then evaluate current technology and policy challenges in the context of this history and finally propose a set of policy recommendations to accelerate renewables penetration. In particular, sustained policy support for demand dispatch tightly integrated with intermittent generation is crucial to that goal.