Hidden Energy Crisis: How Stranded Power is Holding Back the Renewable Revolution

September 5, 2024 – New York, NY

Stranded energy refers to energy produced but left unused due to transportation inefficiencies or infrastructure limitations. This issue has gained attention with the increasing use of renewable energy sources like wind, solar, and hydro, which are often located far from urban centers or demand hubs. Stranded energy arises from a mismatch between where energy is generated and where it’s needed, causing challenges in renewable energy integration.

There are various forms of stranded energy. Geographic stranded energy occurs when energy is generated in remote areas, such as wind farms in rural regions, and cannot be transported to where it’s required due to the lack of necessary transmission infrastructure. Temporal stranded energy happens when the timing of energy production and consumption does not align. Solar energy, for instance, is abundant during daylight hours, yet peak demand often occurs in the evening. Economic stranded energy is seen when the costs associated with transporting energy outweigh its market value, making it financially unfeasible to deliver.

The rise of renewable energy sources has brought stranded energy into focus, with wind and solar farms often established in regions with optimal conditions for energy production but far from cities and industrial areas. The inability to efficiently transport energy from these sites limits the growth of renewable energy, as projects risk becoming economically unsustainable if much of the energy generated goes unused.

Stranded energy is also exacerbated by the limitations of current energy transmission infrastructure. Modern electrical grids were built to support centralized fossil fuel-based energy production, which is more easily transported. Renewable energy, however, is frequently produced in decentralized locations, far from existing grid infrastructure. Constructing new transmission lines is both costly and time-consuming, making stranded energy a persistent challenge.

One solution to mitigate stranded energy is through the development of advanced energy storage systems. Technologies like lithium-ion batteries, flow batteries, and pumped hydro storage can capture excess energy and store it for use during peak demand periods. By adopting these storage solutions, energy producers can ensure that stranded energy is harnessed and available when needed most.