Author Archives: Lauren Navarro

EDF is Calling for More Demand Response in California and Why You Should Too

Source: North America Power Partners

Source: North America Power Partners

This week the California State Assembly will consider Senate Bill 1414 (Wolk). What’s so exciting about SB 1414? This bill will accelerate the use of demand response (DR), a voluntary and cost-friendly program that relies on people and technology, not power plants, to meet California’s rising electricity needs.

DR programs compensate people and businesses who volunteer to use less electricity when supplies on the power grid are tight and/or to shift energy use when cleaner, renewable resources are available. Every time a customer participates in lowering their energy use through demand response, they are rewarded with a credit on their electricity bill.

The implementation of demand response will help catalyze a much needed upgrade to our outdated grid, whose fundamental design hasn’t been updated since Thomas Edison invented it over a century ago. Demand response can empower participants to lower their electricity bills and carbon footprints, improve air quality, allow for more renewable electricity, and enhance electric grid reliability. In a tree of options for modernizing and cleaning up our energy system, demand response is a low-hanging-fruit. Read More »

Posted in Clean Energy, Demand Response, Smart Grid| Tagged | Comments closed

The cheapest way to cut climate pollution? Energy efficiency

This blog post was co-authored by Kate Zerrenner, an EDF project manager and expert on energy efficiency and climate change.

On June 2, the U.S. Environmental Protection Agency made a historic announcement that will change how we make, move and use electricity for generations to come.

For the first time in history, the government proposed limits on the amount of carbon pollution American fossil-fueled power plants are allowed to spew into the atmosphere.

There are two clear winners to comply with the plan while maintaining commitment to electric reliability and affordability: energy efficiency and demand response.

We’re already seeing pushback from some of our nation’s big polluter states, such as West Virginia and Texas. But the truth is that while the proposed limits on carbon are strong, they’re also flexible.

In fact, the EPA has laid out a whole menu of options in its Clean Power Plan – from power plant upgrades, to switching from coal to natural gas and adopting more renewable energy resources. States can choose from these and other strategies as they develop their own plans to meet the new standards. Read More »

Posted in Clean Energy, Climate, Energy, Energy Efficiency, Smart Grid| 1 Response, comments now closed

Climate Action is Turning Green to Gold for Californians

By Lauren Navarro and Emily Reyna

What would you do with extra cash? Starting this April, customers of California’s biggest utilities will experience first-hand how the state’s fight against climate change is actually paying off – in the form of real money.

Wait… real money? How does that work?

Source: Flickr/Mike Schmid

Source: Flickr/Mike Schmid

Yes. Millions of household customers of Pacific Gas & Electric, San Diego Gas & Electric, Southern California Edison, and other investor-owned utilities will automatically receive a “Climate Credit” twice a year through 2020 – every April and October – as a line item on their utility bill. This money comes from California’s cap-and-trade program, which holds the state’s largest emitters, including electric utilities, accountable for their climate pollution. With cap and trade, regulated companies must buy “allowances,” or permits, if they plan to emit carbon pollution –equivalent to nearly $1.7 billion to date. Now, part of this money is being returned to these utilities’ customers. For average Californians, the Credit will cover the slightly higher rates that cover California’s green transformation. But if you’re conscientious about your energy use – and are a below average energy user – your Credit will be a bonus for you.

The Climate Credit is one way Californians are benefiting from the state’s action on climate and it will help people participate in building a clean energy economy. This smart policy builds on years of people-focused efforts, like energy efficiency standards and clean energy installations. In fact last year California more than doubled its rooftop solar capacity to 2,000 MW of power.

In California, we spend less overall on energy because we use it wisely and waste less, even though we pay more per unit of electricity.  In fact, while the state is ranked 8th in average cost of electricity (cents/kWh), we rank 47th in total energy expenditures per capita. Read More »

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CPUC Singing the Right Tune on SONGS, But Southern California Still Needs to Harmonize to Achieve a Clean Energy Future

rp_Navarro_Lauren.jpgLast week, the California Public Utility Commission (CPUC) finalized an important decision for Southern California’s energy supply following the closure of the San Onofre Nuclear Generating Station (SONGS). The plan emphasizes increased reliance on clean energy in this part of the state – an important step towards a fully realized low-carbon future.

The decision authorized San Diego Gas and Electric and Southern California Edison to procure at least 550 megawatts (MW) of ‘preferred resources,’ which include renewable energy, demand response (a tool that’s used by utilities to reward people who use less electricity during times of “critical,” peak electricity demand), energy efficiency, at least 50 MW of energy storage, and up to 1,000 MW of these resources altogether.

That’s a major step forward, as utilities across the country traditionally rely on large fossil fuel plants to meet regional demand.

However, the CPUC also authorized the procurement of 1,000 MW of power from natural gas generation, demonstrating that Southern California still has a ways to go to reach its clean energy potential.

Read More »

Posted in Clean Energy, Energy Efficiency, Smart Grid| Comments closed

At a Key Moment for Energy, California Should Seize Demand Response

Traditionally, if an area’s population grows — or it loses a power plant — it needs more energy. But California and some other states can approach it differently and reduce the use of fossil fuels.

Instead of asking, How can we add more energy?” the real question becomes “How can we reduce demand?”

Two words: Demand Response (DR).

DR is an incentive that has been proven to work on the East Coast and elsewhere, encouraging energy users who voluntarily participate to reduce their electricity usage temporarily when demand could outpace supply.

Recently, the California Energy Commission’s Integrated Energy Policy Report (IEPR) Draft recognized DR as a technology with a high potential to maximize energy efficiency. This report comes at an important time for the state, when greenhouse gas emissions from large facilities have increased in California after decreasing the previous years, in large part due to the closing of the San Onofre Nuclear Generating Station (SONGS) power plant.

In our recently submitted comments, EDF commended the Commission on thinking big on demand response, a cutting edge load management technology that can lower wholesale energy prices when they are highest, dramatically minimize system costs, and reduce air pollution and greenhouse gas emissions.

In their report the Commission also acknowledged that while DR is a great tool if used well, there still “has been little progress towards increasing the amount of DR used in the state.”  The Commission included several recommendations to bolster DR going forward, which EDF supports and will advocate for.

We also made suggestions for how the Commission could maximize the use of DR in California, including:

Time of Use (TOU) tariffs allow customers to pay prices for energy that depend on both when and how much they use. By giving customers the option to save money for reducing their energy use at peak times, older, less efficient peaker plants aren’t used as much and the overall system costs go down dramatically. If half of Southern California Edison’s ratepayers adopted its voluntary TOU program, this would replace the need for two thirds of the San Onofre generating capacity.

  • Set clear and ambitious goals for demand response in the state

The Commission should set ambitious benchmarks in regard to demand response capacity.

  • Foster consumer adoption of innovative demand response technology

Modern technology allows for automated thermostats, ‘set it and forget it’, and other options for easy to use systems that allow interested electricity customers to quickly and consistently respond and reduce energy use when demand is high and the grid is stressed. The Commission should plan to increase consumer uptake of these technologies.

  • Support new technologies and quick scaling up of pilot projects

Demand response opportunities exist on a broad scale in California.  Innovative ideas like charging electric cars when solar power is abundant to help maximize the benefits from renewables are still being developed. The Commission should encourage and support these new technologies, and look for successful pilots that are both cost-effective and fully scalable.

  • Establish effective enforcement mechanisms

By putting in place proper monitoring and enforcement mechanisms, the Commission will help ensure expected environmental benefits.

 The Commission’s IEPR is a great step forward, and comes at a key moment for managing California’s energy system. We urge the Commission to continue its work with other stakeholders to increase this momentum, and to utilize its authority – such as appliance and buildings standards and electricity forecasting – to help implement the state’s vision for demand response.

Posted in Energy, General, Smart Grid| Comments closed

Keeping it Clean: California Should Use Clean Resources to Integrate Renewables

As the 8th largest economy in the world, California remains a global leader in clean tech investment, innovation and adoption of landmark climate and energy policies. What defines our success?  Our ability to try things first, set the bar high, and get policies right.

California’s Renewable Portfolio Standard (RPS) is a perfect example of that bold, pioneering spirit. Passed in 2011, the RPS required that 33% of electricity come from renewables by 2020 – a lofty benchmark, even by California’s standards. Along with self-generation and solar rooftop programs, California is successfully adding solar, wind, and other distributed generation to its resource portfolio.

In fact, renewables are successfully becoming a large part of daytime energy production, the California Independent Systems Operator (CAISO) – the organization in charge of balancing the statewide grid – is concerned over how to make up for that energy when the sun goes down while evening energy demand spikes.  The question is: How can the CAISO reliably integrate renewables?

The CAISO is currently figuring out how to address this need for “flexible” power and will have a draft decision out on October 2nd.  Just like people prefer to take routes they know well when they drive, the CAISO is most comfortable with what they know: familiar fossil fuels. Using clean resources and demand response instead is new territory for them that will require careful orienteering.

Yet getting comfortable with the new, cleaner terrain means a less polluting, less expensive, more resilient energy future.  California passed the RPS to reduce fossil fuel consumption — and the pollution that comes with it.  If fossil fuels become the main method by which renewables are integrated, they could eliminate the emissions benefits of renewables entirely, while consumers may pay more than necessary to integrate renewable energy.

There are clean options that have been proven to work in grid operations, such as demand response – the voluntary reduction of electricity use by customers who are paid to do so when called upon.  By reducing demand at key times, demand response lowers the need for electricity production and saves money in the process. (This is an area where California can learn from East Coast states that are robustly using demand response in their electricity markets.)

EDF has actively engaged CAISO on the need for “flexible” power, and knows they are working hard to figure out how to use demand response and other clean options to integrate renewables. We have also asked CAISO to utilize existing, clean resources and to revisit this framework every few years to make sure it is as clean as it can be – all to make sure that California has time to get it right.

Leading the way isn’t always easy, but if successful, California and CAISO will show they can utilize proven resources like demand response to keep California’s energy policies clean and cost-effective, while readying the grid for high levels of renewable resources.

Posted in Clean Energy, Smart Grid| Comments closed
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    How California can leverage market-based environmental policies to revitalize its economy, protect its quality of life and retain a leading edge in global innovation.

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