Sample interview questions: Can you discuss the economic implications of different energy supply chain configurations?
Sample answer:
1. Decentralized Energy Generation:
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Reduced Transmission & Distribution (T&D) Losses: Distributed energy resources (DERs) like solar PV and microgrids reduce the need for long-distance transmission, minimizing losses and enhancing grid efficiency.
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Improved Reliability and Resilience: Decentralized generation enhances grid resilience by reducing the impact of outages and disruptions on centralized power plants. DERs can provide backup power during emergencies, improving reliability.
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Increased Energy Access: Decentralized systems facilitate energy access in remote areas where extending the grid is costly. DERs can provide electricity to underserved communities, promoting energy equity.
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Reduced Environmental Impact: Decentralized generation often relies on renewable energy sources, reducing greenhouse gas emissions and air pollution. This can lead to improved air quality and public health outcomes.
2. Energy Storage Integration:
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Load Balancing and Peak Demand Management: Energy storage systems (ESSs) can store excess electricity during low demand periods and release it during peak demand, reducing the need for additional generation capacity and minimizing price volatility.
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Improved Grid Flexibility: ESSs enhance grid flexibility by providing fast-responding reserves and enabling the integration of intermittent renewable energy sources. This reduces the reliance on fossil fuel-based generation and supports a more sustainable energy mix.
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Increased Renewable Energy Penetration: Energy storage facilitates higher penetration of renewable energy by addressing intermittency and variability issues. ESSs can store excess renewable generation and release it when needed, ensuring a reliable and continuous supply of electricity.
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Enhanced Resilience and Reliability: ESSs can provide backup power during outages or disruptions, improving grid resilience and reliability. They can also support microgrids and isolated systems, ensuring uninterrupted power supply.
3. Demand Response Programs:
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Reduced Energy Consumption and Cost Savings: Demand response programs incentivize consumers to reduce their electricity usage during peak demand periods. This reduces the need for additional generation capacity, lowers wholesale electricity prices, and results in cost savings for participating consumers.
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Improved Grid Efficiency: Demand response programs help balance electricity supply and demand, reducing the strain on th… Read full answer