However, even states without California\u2019s abundant sunshine can still produce low-cost solar power, thanks to declining solar-panel prices. The vast majority of sites in the study have sufficient buildable land to install solar projects.<\/p>\n
Phadke added that building off-grid systems would give factories faster access to renewables, since grid-tied wind and solar farms have to wait in long interconnection queues, which can delay projects for years. Ditching the utility would also let manufacturers avoid paying steep grid-delivery charges and other expenses \u2014 and sidestep competition with data center operators for power from an increasingly strained grid.<\/p>\n
The new site-level data \u200b\u201cis really helpful for project developers and technology developers to know how to prioritize their efforts, in terms of where to go and pitch industries on,\u201d said Jos\u00e9 Dom\u00ednguez, the study\u2019s lead author and a\u00a0research affiliate at the Goldman School.<\/p>\n
Making on-grid power cheaper<\/p>\n
The fact remains, though, that many factories will continue to rely on the electric grid in the near term. To get these facilities to consider transitioning to cleaner heat, the cost of electricity needs to come\u00a0down.<\/p>\n
The concept of electricity rate reform<\/a> is gaining traction among decarbonization advocates, state policymakers, and manufacturers like Eastman as a\u00a0tool for narrowing the gap between electricity and natural gas prices.<\/p>\n In California, Senate Bill 943<\/a> would authorize the state\u2019s Public Utilities Commission to fix utility rates and fees to make it more affordable for large industrial and commercial customers to switch from fossil fuels to electric heat. The bill passed the Senate in May and is now headed to the state Assembly\u2019s Appropriations Committee.<\/p>\n In the Upper Midwest, the utility Otter Tail Power<\/a> recently developed a\u00a0novel electricity tariff<\/a> that is designed to improve the bottom line of thermal energy systems and to ensure they benefit everyone on the grid. The first project to take advantage of this new rate is Antora Energy<\/a>\u200b\u2019s 5-gigawatt-hour battery in South Dakota, which turns cheap wind energy into clean industrial steam for Poet<\/a>\u200b\u2019s nearby ethanol-production plant.<\/p>\n \u201cReforming electric rates is a\u00a0good way to improve the economics of electrification while taking advantage of our clean electricity generation,\u201d said Lauren Kubiak, a\u00a0senior scientist for the Natural Resources Defense Council who works on California climate and energy policy.<\/p>\n