Policy certainty, modernized electric grid needed for a renewables future, GE Renewable Energy CEO says

GE Renewable Energy CEO Jérôme Pécresse called for policy certainty and a modernized electric grid as countries transition toward greater reliance on renewable energy sources, during a National Press Club Headliners Luncheon Oct. 28.

Pécresse’s address came after President Joe Biden unveiled a new version of his spending framework that looks to end the nation’s reliance on fossil fuels. Pécresse said that while investments in renewable energy like wind and solar will help in the long term, policy must also provide “short-term stability” to help ensure the supply chain and job market are not adversely impacted.

Energy policy has varied dramatically from former President Donald Trump to the current Biden administration, but, Pécresse said, businesses need governments to be consistent in policy “because it creates clarity, focus and the long-term picture that we need to drive investment in a capital-intensive sector.”

Biden has prioritized investing in wind and solar, including seven leases for offshore wind on the East and the West coasts, and Pécresse said those projects will create 80,000 “good-paying, skilled, sustainable jobs.”

As countries look to hit their goals on decarbonization and become less reliant on fossil fuels, especially with COP26 taking place in Glasgow, Scotland, Pécresse said, they will need three things to help them achieve that: using more renewable energy; making up for any shortfalls in supply with natural gas and nuclear energy where appropriate; and modernizing the electric grid.

Natural gas has an “important role to play” in stabilizing the grid when renewables are less available, especially with battery storage technology for wind and solar still evolving, Pécresse said. He said the U.S. can take advantage of hydropower as another clean energy source.

Meanwhile, modernization of the often overlooked electric grid is the next emphasis in the transition to renewable energy, as it must be able to accommodate those new sources of energy generation and also stand up to the challenges of severe weather and cyberattacks, he said.

“Taking full advantage of all three levers together is the most practical, the most efficient and the most achievable way to achieve the energy transition which is required to meet the world’s decarbonization goals,” he said.

Renewable energy will also become more available as technology continues to advance, Pécresse said, especially as it gets cheaper to build projects that run on renewables rather than fossil fuels. Pécresse said that is especially true of wind turbines, which generate far more energy than those a decade ago and have become more reliable and have better controls in place to ensure their smooth operation.

He said technology is “probably the biggest reason to be optimistic about the future of renewable energy,” but he warned that plenty of work lies ahead across governments, industry and advocacy groups to make a greener planet through clean energy a reality.

“Innovation is key, and there is a lot more that we can be doing,” Pécresse said.