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Achieving a net-zero energy system in 2040 will have significant implications for PG&E’s energy delivery system over the coming decades. As the operator of a dual-commodity energy system, PG&E is uniquely positioned to lead this transition and shape the future—with a continued focus on helping our customers and hometowns prosper.
Energy system innovation: unlocking artificial intelligence (AI) solutions
PG&E’s 2024 Research and Development (R&D) Strategy Report (PDF) outlines nearly 70 of the highest priority challenges in realizing an energy system that is affordable, decarbonized, safe, and resilient to the impacts of climate change for all Californians. Our R&D strategy outlines an ambitious vision to leverage the power of AI to accelerate the transformation of our energy system.
Following the report’s publication, PG&E hosted our second Innovation Summit, where participants shared opportunities for AI solutions, and we demonstrated novel climate-tech solutions with partners.
We launched over 20 technology development and demonstration projects, funded through the Electric Program Investment Charge (EPIC) program to advance technologies related to:
- Rapid wildfire ignition identification and suppression.
- AI and machine learning models to support predictive maintenance of assets, asset data quality, and asset conditions.
- EV adoption and increasing access to distributed energy resources (DERs).
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- Increased energy throughput on PG&E’s existing transmission lines.
“EV Connect” is demonstrating the next-generation residential meter that can enable managed Level 2 EV charging at home without triggering costly panel and local grid upgrades:
- If successfully deployed at full-scale, this has the potential for $1 billion+ in savings through avoided grid and customer costs.
Another project will develop battery energy storage system controls for capacity and voltage support and deploy them on a constrained, rural circuit to increase capacity and improve power quality:
- This has the potential to avoid $50 million in capacity-related conventional line construction and supports local economic development by enabling over 30 local businesses to connect to PG&E’s energy grid.
PG&E’s innovation strategy and programs, like EPIC 4, hypothesize, test, and validate strategies to improve customer affordability, enable decarbonization, and increase climate resiliency of our energy system. PG&E’s strategy and needs, as well as available technology and solutions, continue to evolve over time, and there will be additional avenues for collaboration.
Electric system planning and innovation
Electrification, where feasible, provides the lowest-cost way to decarbonize the energy system and achieve net-zero, and we embrace the role we play in enabling and scaling a decarbonized grid. Customers with EVs and electric heating and cooling systems use about double the annual electricity of households without, driving unprecedented growth in electrification. In fact, we expect electricity demand across our service area to double by 2040.
To enable this dramatic growth, our vision is to make the electric grid smarter, more dynamic, and more flexible—incorporating new energy technologies and giving our customers increased flexibility, choice, and value. For example, residential PG&E electric customers with an iPhone, iPad, Mac, and Apple Watch have access to new electricity usage features within Apple’s Home app. Customers can connect their PG&E account to the app to access, understand, and make informed decisions about electricity use.
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Whether customers are upgrading one appliance or designing an all-electric home, PG&E is offering an ever-expanding suite of electrification programs. With a strong focus on affordability, PG&E is testing new approaches to support building electrification and integrated load management strategies for customers, such as:
- Zonal Electrification Equity program electrifies residential and commercial customers on identified gas distribution and transmission system “zones,” with the intent of decommissioning that section of the gas system or avoiding new future gas capacity projects.
- Residential Electrification Equity program serves hard-to-reach and underserved customers in disadvantaged communities by addressing the up-front costs and potential energy bill increases associated with building electrification.
- Alternate Energy Program identifies projects that would be more cost-effective to electrify versus performing planned gas projects.
- Residential Whole-Home Load Management program investigates how energy efficiency measures, time-of-use rates, and other distributed energy resources can provide consistent load reductions, while providing a positive customer experience.
Since 2018, we have successfully completed over 100 building electrification pilot projects at no cost to customers via equity-driven programs. PG&E is supporting customers through a Guide to Home Electrification and various programs, including an Induction Cooktop Loaner Program, where customers can borrow an induction cooktop unit for two weeks at no cost. We also continue to offer education and training on electrification for industry professionals.
PG&E is developing new tools, including a clean energy calculator for individual building analysis and a geospatial electrification tool to identify larger zones with multiple buildings to target for electrification.
We recognize the need to reimagine the grid to meet varying and evolving needs. Today, our electric system faces accelerating, multi-dimensional needs that we must address to deliver for our hometowns:
- Permanently reducing wildfire risk.
- Adding system capacity to accommodate growing electricity demand.
- Improving the health of our electric assets.
- Enhancing reliability for customers.
We’re adopting an integrated grid planning approach to meet these objectives and to support the state’s bold climate goals, as well as our own. Integrated grid planning is a data-driven approach to planning that seeks to bundle work that addresses multiple needs for the grid, creating efficiencies that reduce the cost of delivering energy to our customers.
We are also helping to drive the innovation needed to meet California’s policy and clean energy goals, including innovative bidirectional EV charging technology partnerships.
Gas system planning and innovation
PG&E’s gas strategy focuses on a diversity of win-win options that will be needed to meet our climate goals—and those of California. Our goal is to be the safest and most reliable gas utility in the country, and pave the way to an affordable, net-zero future.
We are planning and investing for the gas system to evolve—to deliver cleaner fuels and meet gradually declining customer demand. At the same time, we expect our gas system infrastructure to continue to play a vital role over the coming decades for our customers and the state as a reliability, storage, and resiliency resource.
To realize this vision, PG&E is implementing a strategic and proactive approach to modernizing the natural gas system. This involves identifying opportunities to optimize the costs associated with necessary system upgrades, installations, and removals through efficient coordination and planning, contributing to the stabilization of gas rates.
We are committed to enabling building electrification for our customers and pursuing cost-effective solutions to avoid ongoing investments and maintenance for the gas system. Additionally, we are transitioning the gas system to transport and deliver cleaner fuels such as RNG and hydrogen.