Reliable Energy Will Demand a Wide Energy Mix

How does California ensure that the lights stay on and people can get to work amid the state's transition to renewable energy? At a recent PPIC conference, New York Times energy correspondent Ivan Penn moderated a panel discussion on the resources needed to power the state as California faces "an aging electric grid that is increasingly under strain."

Reliability is a priority alongside wildfire mitigation and affordability, explained Roderick Robinson, vice president of electric system operations for Pacific Gas and Electric Company (PG&E). The critical resources that can provide that reliability today "are Diablo Canyon [nuclear] power plant, our hydro resources," Robinson said, "because of the stability they provide when issues show up on the grid" such as higher energy loads.

"You're not ready for a world without fossil fuels," warned Andy Walz, president of Downstream, Midstream, and Chemicals at Chevron. "Reliability is going to matter. If you can't get the product you need because it's not available, that's a crisis." Walz pointed out that fossil fuels still comprise 80% of California's energy supply. "We need the big refineries as we transition."

"[Californians] believe very strongly that we should not be displacing current, affordable sources of energy before new sources can come on stream," said Peter Weber, a board member on the New California Coalition. "Natural gas today is the fastest, cheapest way to back fill as we try to get more renewables." Weber argued that, amid the switch to renewables, California has ignored the impact of energy on affordability and opportunity. "While people are concerned about the future of California and … the planet, they are even more concerned about what's happening to them here in California today."

Kate Gordon, CEO of California Forward, proposed an alternate view of the transition's risks and rewards. "The energy system we're trying to get to looks really different from the energy system we're moving from," Gordon said-that is, from one with a few energy inputs like petroleum and coal to one that is extremely diversified with different industries and technologies.

Gordon agreed that California policy tends to focus on the future, and advised "thinking in an innovative way [about] using existing infrastructure … transitioning refineries to renewable fuels … There is a path to getting there, and it includes working with people who've done this forever." Gordon urged the state to explore a holistic, coordinated approach that might duplicate the energy transition offices adopted by other states.

While seconding the value of coordination, Robinson noted that the pace of change can be an obstacle in California, where developing a plan involves talking with legislators, regulators, and other stakeholders. "We need to be able to … evolve based on the changes we see in California."

"We don't need more regulation," Walz said. "We don't need more agencies." And offering kudos to California for its cleaner fuel and reduced smog, Walz again emphasized the need to keep refineries in the state for the foreseeable future. "If you don't have a refinery, the product's coming in from Korea or China.… That's not saving carbon."

An audience member questioned the role of nuclear energy going forward, especially as AI and data centers gain traction throughout the state. Earlier, the panel had identified natural gas as a necessary resource to generate sufficient power to run these sites.

Nuclear will be critical to success, Robinson said, as "it is one of the cleanest, most stable" sources of energy available. Walz and Weber agreed. "If we are going to participate in the AI revolution," Weber said, "nuclear is indispensable."

***

PPIC's Speaker Series on California's Future invites thought leaders and changemakers with diverse perspectives to participate critically, constructively, and collaboratively in public conversations. The purpose is to give Californians a better understanding of how our leaders are addressing the challenges facing our state.

PPIC is a nonpartisan, nonprofit organization. PPIC does not take or support positions on any ballot measure or on any local, state, or federal legislation, nor does it support, endorse, or oppose any political parties or candidates for public office. Any opinions expressed by event participants are theirs alone and do not necessarily reflect any position of the Public Policy Institute of California.