“One of the things that AI can do, it can actually do storm damage assessments, which is something that we haven’t been very good at before.” – 06:11
Jeff Gitterman, CEO of Gitterman Asset Management, joins Remy Blaire to explore how utilities are adapting to the challenges posed by climate change and increasing energy demands.
The conversation begins with an overview of the significant rise in energy demand, which has escalated from a stable growth of 1-2% over the past few decades to predictions of 6-8% due to advancements in AI. Jeff explains that this surge necessitates a reevaluation of how utilities manage their infrastructure and prepare for extreme weather events. He highlights the innovative use of AI-driven tools that analyze real-time data from sensors, weather forecasts, and historical trends to identify vulnerabilities in the grid, particularly in the face of storms, heat waves, and wildfires.
Remy and Jeff delve into the regulatory challenges that utilities face while implementing resilience strategies. Jeff discusses the deployment of drones to assess vegetation risks that could lead to fires, allowing utilities to respond more quickly and effectively. He also notes the shift from traditional two-week weather forecasting to advanced seven-month predictive capabilities, which enable utilities to proactively manage energy supply and avoid outages during peak demand periods.
As they consider the scaling of resilience plans, Jeff emphasizes the need for interconnectedness among state-operated grids. He points out that many grids operate in silos, complicating cross-state support during crises. By anticipating potential grid failures months in advance, utilities can coordinate energy resources more effectively, including the deployment of battery storage to meet future demands.
The discussion also touches on the financial aspects of these investments, with Jeff noting that blue states like Massachusetts, New Jersey, and New York are leading the way in funding resilience initiatives. In contrast, red states are lagging behind, despite Texas’s significant advancements in renewable energy. Jeff underscores the importance of making strategic decisions about energy allocation, especially as demand increases from both residential needs and commercial entities like data centers.