The Truth About Energy Resilience From First Hand Experiences

How My Time In Iraq Gave Birth To My Mission and VECKTA

Beyond The Boardroom

I was painfully motivated by the unfolding crisis in Cuba, where the entire island has been plunged into darkness. An old power plant and disruptions to fuel transportation systems have left over 10 million people without electricity. When the Antonio Guiteras power plant in the western province of Matanzas failed on Friday, it created cascading impacts that led to the total breakdown of Cuba’s ability to power its nation.

This should not come as a surprise as this has been years in the making and is an unfortunate blueprint for many other countries. This situation is not just a distant calamity; it's a stark reminder of how fragile our energy infrastructure can be—even in places we might not expect. As I reflect on Cuba's plight, memories of my years in Iraq following the second Gulf War come flooding back. This is the reason behind the birth of VECKTA, and my personal mission - to adapt how we think about global energy security - how we produce, manage, and consume energy.

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A Vision Born In The Shadows Of Conflict

In the eerie silence that followed the barrage of a mortar attack, I lay flat on the cold floor of my makeshift accommodation—a 20-foot shipping container on a U.S. Army base in Basra, Iraq. The year was 2009 and I was a freshly married late twenty-something seeking a new adventure. It had never really dawned on me that wars have been fought over energy for as long as civilizations have existed. Yet here I was, in a land that was once the cradle of civilization, witnessing dire consequences firsthand.

Iraq, with its vast oil fields, was the reason I was there. My sole purpose was to support the world's biggest oil and gas companies in assessing the conditions of the oilfields before assuming production. Despite its energy wealth, the local population suffered from severe power shortages. Businesses and communities were surviving on just 2-4 hours of electricity a day due to damaged and neglected power infrastructure, following years of conflict. Those fortunate enough had diesel generators loudly chugging away to keep the lights on and buildings cool in the sweltering heat. The stark contrast between the potential of this land and its harsh reality was overwhelming.

Since the 90s, businesses and communities in Iraq have been expected to survive with intermittent and unreliable energy. No economy can survive or thrive under these conditions. In the 80s, Iraq was one of the Arab World’s most advanced economies with a considerable industrial sector, a well-developed transport system, good infrastructure, and solid agricultural capacity. The education and medical systems were impressive. Iraq had a well-educated middle class and income per capita was good. My colleague told stories of his Dad driving a Jaguar car and enjoying cigars, life was good. Much of this was possible due to having access to secure, reliable and low-cost energy. 

After years of conflict and infrastructure left in tatters, energy became less accessible; the industrial sector could not operate reliably, the agricultural breadbasket had become desert, and education, and health care deteriorated. The cost of energy—when it becomes scarce and contested—is not just measured in dollars and cents but in lives disrupted and futures dismantled.

This realization didn't come in a boardroom or during a business retreat but while staring one of my colleagues in the eyes as we lay there, hoping the next mortar wouldn't land directly on us. Our training had taught us that the shrapnel gets people, so we needed to stay low. Most nights, we went through the same harrowing experience. First, the base alarms would sound, indicating an incoming projectile. Cell service and Wi-Fi would be cut off to prevent local remote detonations, which worried my wife back in our home base, in Dubai. Our conversations on Skype could be abruptly ended, leaving her in agonizing uncertainty for hours.

Then the Phalanx guns would roar—the sound always got me—firing thousands of rounds a minute to intercept incoming threats. The auditory barrage was intense yet strangely comforting as it lit up the night sky. For those projectiles that got through, the thud of impact followed—sometimes at a safe distance, other times alarmingly close.

The Turning Point

Energy, like many of us, had never crossed my mind before - it showed up when and where we wanted it with a flick of a switch. I did not want to acknowledge where it came from or what it took to provide the standard of living I had come to expect. But being in Iraq showed me that energy powers everything - our economies, businesses, homes, lives, and lifestyles, and those with access to it thrive, while those without…. well, the story continues.

Each day, surrounded by armored vehicles and the vigilant gaze of security guards, I pondered the irony of the resource that was both a curse and a cure.

We started our days by receiving a security briefing. One briefing in particular hit me hard. We were shown a video left behind from the previous night's mortar attack. The officers explained that the people carrying out the attacks had to video themselves completing it in order to get paid. In their haste to escape, they had left the camera behind.

This intelligence update shattered my preconceived notions. These were not "insurgents" driven by deep-seated hatred - they were ordinary people like you and I. They were trying to provide for their families. The translation from the video shown to us was something to the effect of, "Man, it is cold and wet tonight. I wish I was at home with my family." Then—whoosh—the rocket launched, and they ran.

This was the moment my mission crystallized: to transform the way we think about and utilize energy.

The predominant energy source powering our world couldn't rely on extracting precious resources from beneath the ground in far-flung places we've fought over. Then transport them around the world to burn them in large power plants to generate electricity and then transmit and distribute that through long, vulnerable, expensive power lines.

There was a better way to power our lives. We could harness local and abundant resources with the same ingenuity we've applied to extract challenging energy resources throughout history. To do this, we need to disrupt the existing energy system.

The Global Wake-Up Call

My experiences in Iraq were a microcosm of a larger global issue. Recent events have shown that the vulnerabilities I witnessed are not isolated but a trend.

Take South Africa, for example. Once a beacon of development on the African continent, it now grapples with chronic power shortages leading to "load shedding"—scheduled blackouts lasting up to 12+ hours a day. In 2021, South Africa experienced 75 days of load shedding. By 2023, that number skyrocketed to 332 days, affecting 90% of the year.

Aging coal plants frequently break down, and the inability to meet demand has led to severe economic and social consequences. The economic toll is staggering. Retail electricity costs have escalated 653% from 2007 to 2022 (inflation was 129% over the same period), annual economic losses are estimated to have been $92B in 2023 alone, and this led to a 5% loss of total tax revenue for 2023 due to load shedding. This is primarily a result of demand outstripping supply, coal plants being old and coal supply being unreliable, aging transmission/distribution infrastructure, government/grid operator corruption, and grid sabotage (every time the power goes off - copper is stolen).

Island nations like Puerto Rico and Cuba face unique energy challenges due to their geographical isolation, reliance on imported fuels, aging infrastructure, and vulnerability to natural disasters. In Puerto Rico, outdated electrical grids and dependence on imported fossil fuels have led to frequent power outages, especially after Hurricane Maria in 2017, which left some areas without electricity for nearly a year. The economic impacts are severe, with damages estimated between $90 billion and $120 billion, and significant funds needed for grid reconstruction and modernization. In Cuba, outdated thermoelectric plants, reliance on dwindling oil imports from Venezuela, and economic sanctions contribute to frequent blackouts, economic strain, and social unrest. These issues hinder industrial production, healthcare services, and overall quality of life while also imposing high operational costs on already strained economies.

Not to mention, the current war in Ukraine, where their power infrastructure is the frequent target of Russian attacks - in the knowledge that a few strategic impacts and entire towns and cities are left in darkness.

Grid Vulnerability in the U.S.

The fallacy is, in the United States we should be proud of our energy infrastructure. But the truth is, our infrastructure is aging, the risks are mounting and we are not adapting. The American Society of Civil Engineers gave the U.S. electric grid a C- grade in its 2021 Infrastructure Report Card. Senior utility executives consistently rate aging infrastructure as the top issue facing the industry. Over the past two decades, we've witnessed a 64% increase in major power outages, costing our economy $150B a year.

Our grid is a complex, interconnected web of transformers, substations, and transmission lines, many decades to a century old. A 2013 study by the Federal Energy Regulatory Commission (FERC) revealed that if just nine critical substations were taken offline, it could result in a nationwide blackout. Large transformers, essential for high-voltage transmission over long distances, are particularly vulnerable. They are custom-built, expensive, and can take up to two-three years to replace due to manufacturing backlogs and the specialized nature of their production.

Compounding the problem is the surge in demand for these critical components from tech giants building data centers and expanding computing power. Companies like Google, Amazon, and Microsoft are consuming vast amounts of energy and purchasing large quantities of electrical infrastructure equipment, including transformers. This has led to supply shortages and increased lead times for essential grid components. To sustain global leadership in tech, AI, robotics, manufacturing and beyond, it all needs abundant, affordable and clean energy

The strain on our grid isn't just from aging infrastructure but also from extreme weather. Hurricanes like Katrina, Sandy, Ida and more recently Helene and Milton consistently leave millions of people without power. On the West Coast it is wildfires - we are now so concerned about the risks - if the winds blow on a hot day, we proactively shut off the power. Here and in other developed countries we are able to relatively quickly dedicate incredible people and resources to patch the system back together - but we are doing just that - the equivalent of using duct table and super glue to get it working again before it is next taken out. These are not sustainable solutions.

The Solution: A Paradigm Shift in Energy Generation

Given these mounting challenges, it's clear that we cannot continue to rely solely on centralized, aging grid infrastructure, risky supply chains and traditional fuels. There are several consistent and common issues.

Many countries that are fossil fuel producers are vulnerable to conflict (Venzuala, Iran, Iraq, Russia, and Nigeria, to name but a few). Supply chains are becoming increasingly challenged. For instance, a significant portion of the world's oil passes through a narrow waterway called The Strait of Hormuz. It has been subject to geopolitical tensions, piracy, and threats from state and non-state actors, making it a key focus for international security efforts.

When fuel is accessible, we rely on aging generation, transmission, and distribution infrastructure. In the U.S., the reason for recent economic success has been the transition from a net energy importer to an exporter due to the unconventional gas opportunity—providing more energy sovereignty. In the last few years, much of our inflation pain has also come from increasing energy prices and supply chain challenges. There is a better way.

We need to rethink our approach to energy generation and distribution. The solution lies in onsite hybrid energy systems where we produce and store energy right where we need it and then interconnect them with other adjacent onsite systems - which are quick to build, cheaper to operate, more reliable, and leverage our existing built environment (no need to use up more of our open land).

If you had the choice of where your energy came from, would you choose image 1 or 2 - the first being a gas-oil separation plant in Iraq, or an onsite system at your business?

Imagine a future where businesses and communities generate their power through renewable sources like solar and wind, supplemented with gas generators and energy storage systems tailored to specific needs. Microgrids can operate independently or in conjunction with the main grid, providing resilience against outages and reducing the load on central systems. This decentralized approach enhances reliability but also empowers our companies to become "prosumers"—both producers and consumers of energy - versus passive consumers reliant on one vulnerable source. This is possible today, and it is often cheaper than we pay for grid power.

Technologies once considered too expensive or impractical are now viable and profitable investments. The cost of solar panels and battery storage has plummeted by over 90% in the past decade. Advancements in turbines, fuel cells, and energy management systems allow for real-time optimization of energy use and reliable power, increased efficiency, and reduced costs.

Moving Forward Together

My vision is clear: clean, affordable, and reliable power for all. This must start with businesses that use the most energy, produce the most emissions, and have the resources to invest. By taking control of their energy future, companies can realize significant gains, take the strain off the grid, show what is possible, and propel society towards a profitable, sustainable, and sovereign future.

Globally, we don't have to rely on fuels that we need to fight for or coordinate challenging supply chains, outdated commercial models, and centralized infrastructures (generation and distribution) that are vulnerable, old, and under strain. By empowering our businesses and communities, we can transform energy from a limiting factor into a catalyst for prosperity. This is essential for our economies and lives - without reliable, clean, and affordable power, progress will slow, and we will not be able to compete on a global stage. Today, companies in China pay $.09 for each kw of energy compared to $.14 in the U.S. While it is anticipated that the cost of electricity will increase in the U.S., the costs will drop in China to less than $.07 cents. There is a reason why Germany’s industry is crumbling, energy there is twice the price of that in the U.S. and 3x China. Is this acceptable?

If we want to sustain and enhance our lifestyles in developed nations at an affordable price (the reason for inflation right now is largely as a result of energy costs - another post soon), provide energy access to the billion people still without power today and ensure developing countries can access affordable and reliable power, we need to think and operate differently. The old system served us well. I am proud of the prosperity oil and gas and our central grid have afforded us, and we will likely need it for decades to come. But we cannot rely on it, and we have an opportunity to transition away from it on our terms. There are superior ways for us to generate, store, distribute and manage energy today. Change is scary, but the alternative is worse.

It's time to challenge the status quo and pursue a reality where energy doesn't dictate our fate but empowers our future.

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Power Picks

Best Read: Behind The Meter - Electricity Rate Increases + Grid Defection + Onsite Energy and the Commercial Real Estate Sector

Best Listen: Operational Resilience During Extreme Weather

Best Watch: Millions of Cubans still without power as crisis deepens | REUTERS

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Power Moves

The future of energy is not just a possibility—it's a choice, and it starts with us. By embracing distributed and onsite energy solutions, we can build profitable businesses and resilient communities. With your leadership teams, I encourage you to consider the risks and opportunities facing your business locally and globally in terms of competitiveness, profitability, reliability and sustainability. What company do you want to operate, one that relies on traditional fuels, aging infrastructure and outdated utility models to provide your most precious resource or one that owns its destiny and leaves a positive legacy in the process?

Let's embark on this journey together, I know we can power our profits and, in doing so, power our future. A core value at VECKTA is to empower cocreation and I am so very proud of the team, platform and expertise we have created to enable this future - it is our mission to support you to realize profitable, sustainable and thriving outcomes!