Growing up can be tough. But we all remember how good it felt to pass an important exam or achieve one of our major goals – whether it be getting a driver’s license or graduating from middle school. California’s landmark cap-and-trade program was just recently put to the test after undergoing a substantial growth spurt, more than doubling in size to include transportation fuels, California’s biggest source of greenhouse gas pollution. To account for this increase in the number of businesses and emissions capped by the program, more than three times the amount of allowances were offered in the cap-and-trade auction held last week as compared to the one before it. This was also the second auction since California began holding joint auctions with Quebec, the Canadian province that has a similar cap-and-trade program in place.
Auction results released earlier today indicate that the strong foundation built over the first two years of the program allowed the market to easily pass this important growth test, remaining stable and strong even in the face of a considerable change in allowance supply and shifting market dynamics.
So what happened in this auction?
Of the 73.6 million current vintage allowances offered in this auction, 100% were purchased at a price of $12.21. This is 11 cents above the floor price and the settlement price at the previous auction, and is consistent with historical trends of prices slightly above the floor. In the advanced auction for 2018 vintage allowances, over 10.4 million allowances were offered and 100% of these were purchased at the floor price of $12.10. These allowances can only be used starting in 2018 and the fact that there was a high level of demand for them once again reflects confidence in the future strength of the market. These companies are making financial investments that are consistent with the belief that the market will be in existence well into the future, as was strongly signaled through the Governor’s and the Legislature’s prioritization of long-term emission reductions. Read More
Apple and Google have changed our lives forever, both because of their technological innovations and sheer size as global corporations. Now, they’re aiming to reshape the energy landscape.
This month, Apple announced plans to spend nearly $2 billion on European data centers set to run entirely on renewable energy, and invested $848 million to secure power from 130MW of First Solar’s California Flats Solar Project under a 25-year power purchase agreement. Google also agreed to replace 370 wind turbines installed in the 1980s with 24 new, more efficient and bird-friendly turbines at the Altamont Pass in the San Francisco Bay Area. Moreover, there has been recent speculation Apple may be working on an electric vehicle to challenge Tesla’s dominance in that market.
These developments are impressive on their own, but they are also part of a new trend among major corporations – whose primary focus is not energy generation – proactively pursuing clean energy projects. So, why are they doing this?
For corporations whose businesses do not rely on fossil fuels, aligning themselves with clean power is proving a prudent move both financially and for public relations. Read More
We need to have “the talk” about solar power and equity, because ignoring uncomfortable questions will invite misinformation and bad decisions. We need an informed dialogue about how local solar power can impact low-income communities and communities of color in the U.S. We need to talk about “all the good things, and the bad things, that may be.”
First things first: the price of solar panels has fallen by 80 percent since 2008. This significant decrease in cost, coupled with incentives such as net metering which allow customers to send the energy they produce from their solar systems back to the grid and receive a credit on their bill, and the emergence of new financing models like solar “leasing” programs, has led to an explosion of local solar in the U.S.
We now boast an estimated 20 gigawatts of solar energy nationwide (enough to power more than four million U.S. homes), and the United States added more solar capacity in the past two years than in the previous 30 years combined. In fact, as President Obama highlighted in his State of the Union address, “every three weeks, we bring online as much solar power as we did in all of 2008.” Read More
Much has been written about the causes of the recent downturn in world oil prices. So it shouldn’t be much of a surprise to hear that many places which derive a significant share of their economic activity from oil production have begun to feel the effects of this downturn.
As less money is taken from the sale of each barrel of oil produced, both major and local economies alike – from Alberta, to Texas, the Middle East, and Kern County – have seen a rapid decline in their tax base and overall economic output. In some cases, the drop in oil money has been so rapid and significant that some jurisdictions have declared fiscal emergencies.
Whether from layoffs at oil and gas operators, or government program cuts due to reduced tax collection, the downturn associated with reduced oil and gas profits shows just how fragile, and damaging, the fossil fuel-based economy can be. Just as families are hit in the pocketbook when prices at the pump shoot up, so too are many family livelihoods hurt when prices plummet. With this lose-lose proposition, we need to know now: are other options available?
Thankfully, there is another way. A new report released today from the fuels and energy consulting firm Promotum, (commissioned by Environmental Defense Fund, Natural Resources Defense Council, and Union of Concerned Scientists) shows that an abundance of locally-based, alternative fuels is on the horizon. According to Promotum, the state is on track to achieve significant fuel diversification by 2020 and cut carbon emissions associated with fuel production and use. This positive forecast also means we can expect prolonged domestic economic growth from emergent alternative fuel companies up and down the state. Read More
EDF’s Innovators Series profiles companies and people across California with bold solutions to reduce carbon pollution and help the state meet the goals of AB 32. Each addition to the series will profile a different solution, focused on the development of new technology and ideas.
Emily Kirsch calls herself a “solar-lifer.” Kirsch came onto the solar scene by way of former Obama advisor Van Jones’ green jobs campaign in Oakland. Now, as the co-founder and CEO of Oakland-based SfunCube—the world’s only solar-exclusive start-up business accelerator—Kirsch is growing California’s clean economy in an entirely new way and she knows the future of solar is bright.
Nestled in the heart of downtown Oakland, SfunCube—Solar for Universal Need—is supporting a growing “solar ecosystem” of the most promising solar startups that are making the San Francisco Bay Area the nation’s epicenter for solar innovation and entrepreneurship. Recently, I had the opportunity to talk with Emily Kirsch and some of the solar pioneers who are working at SfunCube to make universal access to solar a reality in California, throughout the US, and around the world.
In California today, there are over 1,889 solar companies that are part of the solar supply chain, creating more than 50,000 jobs—roughly a third of all the solar jobs in the country—and that is no coincidence. Read More
A tool only has value if it’s used. For example, you could be the sort of person who’s set a goal of wanting to exercise more. If someone gives you a nifty little Fitbit to help you do that, and you never open the box, how useful, then, is this little device? The same is true about smart energy management solutions: good tools exist, but whether it’s calories or energy use that you want to cut, at some point those helpful devices need to be unpacked. The same is true for demand response, an energy conservation tool that pays people to save energy when the electric grid is stressed.
California's electricity industry stands at a crossroads. The state got an early start on creating laws and policies to cut carbon pollution, and is now reaping the benefits of these policies through reduced emissions and healthy economic growth. That said, California can’t cut carbon emissions and reduce its reliance on fossil fuels without having alternatives to choose from — some focusing on promoting renewable energy, others on smarter energy management tools. Demand response is one of these tools, and a critical one. This highly-flexible, cost-effective resource should play a key role in California’s clean energy future, but several barriers stand in the way of unleashing its full potential.
It’s hard to think of California as anything but forward-thinking, but, right now, the state’s demand response programs are lagging behind those in other states and regions of the country like the Mid-Atlantic. There is good news, however, because demand response is an evolving resource. And, with advances in smart grid technologies, demand response has the potential to improve our energy mix in California. In EDF’s new report, Putting Demand Response to Work for California, we offer recommendations on how to unlock demand response as an important part of the overall strategy for California’s bright energy future.