Category Archives: Smart Grid

California Clean Energy Bill Could Open Door for Homeowners and Small Businesses

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Source: Flickr/constellationenergy

Governor Brown has the opportunity to make energy-saving upgrades possible for families and small business owners by signing Assembly Bill 1883 (Nancy Skinner- Berkeley). This bill would significantly lower the cost of Property Assessed Clean Energy (PACE), a tool which enables property owners to take advantage of energy efficiency and rooftop solar PV for their homes or buildings with no money down, allowing them to pay off the investment over time through their property tax bill.

AB 1883 would streamline the PACE process and drive down the fixed transactional costs associated with commercial projects. Lowering these transaction costs is especially important for small businesses because high transaction costs can reduce the economic viability of the smaller energy upgrades that small business typically need. AB 1883 also incorporates new options for financing rooftop solar PV through PACE, which will enable a greater number of homeowners and small businesses to qualify for cost-saving solar PV contracts. Read More »

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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The implementation of demand response will help catalyze a much needed upgrade to our outdated grid, whose fundamental design hasn’t been updated since Thomas Edison invented it over a century ago.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 »

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Finding Common Ground on Pricing Clean Energy Resources in California

This post was co-written by Chris Yunker, Rates and Analysis Manager at San Diego Gas & Electric.

Source: limelightpower flickr

Industrial and environmental stakeholders are usually portrayed as adversaries. But one exciting example from California proves there can be another side to that story. San Diego Gas & Electric (SDG&E) worked with Environmental Defense Fund, Sunverge, Google, and the California Public Utility Commission at Rocky Mountain Institute’s eLab Accelerator to investigate electricity tariffs that enable new technologies and practices and to reveal their costs and benefits to the grid. As distributed energy resources (DERs) continue to grow rapidly, there is increasing need to enable the marketplace to value utility-supplied grid services and customer-sited resources.

SDG&E serves 3.4 million people in and around San Diego, and is also home to roughly 10,000 electric vehicles and 40,000 rooftop solar systems. SDG&E is responsible for keeping the lights on despite growing demand (the region has one of the largest EV adoption rates in the nation) and variable electricity generation (PV panels stop producing at sunset).

Rather than resisting these changes, SDG&E has been working collaboratively to explore a vision of a future with even greater quantities of distributed energy resources. That vision looks at several features: Read More »

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The 2014 U.S. Clean Tech Leadership Index: Did your State, City Make the Cut?

cleantech indexjpgIf there is one thing that works in the world of advocacy, it is a ratings table that shows how one state, metropolitan area, or utility compares to its peers. The latest report, U.S. Clean Tech Leadership Index, from Clean Edge does just that.

The fifth annual U.S. Clean Tech Leadership Index finds that California, Massachusetts, Oregon, Colorado, and New York lead the way among states in solar and electric vehicle adoption, with smart climate policies and clean energy financing driving the clean tech leadership index growth.

Clean energy is becoming a popular choice for mainstream America with 11 states now generating more than ten percent of their electricity from non-hydro renewable sources, according to the Clean Edge report. As seen in the graph below, Iowa leads the way in utility-scale wind, solar, and geothermal electricity generation. Read More »

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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 »

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Nest’s Promising Results for Reducing Peak Electricity Demand

Back in January when Google announced it would spend $3.2 billion to purchase Nest, EDF knew this was a company to watch. The results of three new reports, released today, confirm that controllable thermostats like the Nest Learning Thermostat are both customer-friendly and useful for energy system planners. Moreover, the reports signal that smart devices, such as those Nest manufactures, have potential for generating marked savings for utility customers.

The reports analyze 2012-2013 energy use data gathered from four major utilities across the U.S. that offer Nest energy services programs: Austin Energy, Reliant Energy, Green Mountain Energy, and Southern California Edison.

The first report evaluates the results of Rush Hour Rewards, a demand response service that changes the temperature of the homes of Nest users during energy “rush hours”, or times when demand on the grid is highest. The second examines Seasonal Savings, a program that runs for three weeks and slowly modifies the temperature according to the customer’s behavior (which this smart thermostat is able to ‘learn’ via its built-in motion sensor and understanding of its owner’s temperature preferences). Both operate during times of heavy usage, namely winter and summer. The third report analyzes home energy data of Nest customers more broadly, comparing energy use before and after the installation of a Nest Thermostat. Read More »

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Connecticut’s Green Bank Uses PACE to Accelerate Commercial Solar, California Expected to Follow

rp_Brad-Copithorne-Photo1-200x300.jpgUp to now, the most popular and cost effective forms of financing solar projects have been leases and Power Purchase Agreements (‘PPAs’), which allow homeowners to install solar photovoltaic (PV) systems on their property and purchase power from the system’s output via a financial arrangement with a third-party developer who owns, operates, and maintains the solar panels.

Unfortunately, these creative financing mechanisms have not generally been available for commercial property owners. The only exceptions were buildings owned (or leased for a very long time) by investment-grade entities such as Google, Walmart, or a state or local government. Most small or medium businesses, office buildings, shopping centers, and apartment buildings could not access financing for money-saving solar projects as investors have been wary of extending 20-year solar financings for most commercial properties.

Fortunately, our good friends at Connecticut’s Green Bank (CEFIA) have created the first solar leasing investment fund that uses Property Assessed Clean Energy (PACE) to provide investors assurance that they will be repaid. The ‘CEFIA structure’ allows commercial property owners to sign a lease or PPA in the same manner and terms as their investment-grade brethren. The only difference is that payments are linked to the property tax bill and survive foreclosures. Since the taxman almost always gets paid, this structure allows investors to consider a much wider range of commercial credits. Read More »

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Demand Response: People, not New Power Plants, are Driving the Clean Energy Future

Clean energy resources, like wind, solar, and energy efficiency, have certain key advantages over traditional, fossil fuel-based resources: they don’t require expensive, polluting fuels or large capital investment, consume little to no water, generate negligible carbon emissions, and are easily scalable. To take full advantage of low-carbon, renewable energy sources, we need a power grid with enough flexibility to harness clean energy when it is available and abundant. That’s where demand response, a people-driven solution, comes in.

On a hot summer day, for example, electricity use rapidly increases as people turn on air conditioners to avoid the heat of the late afternoon. A decade ago, the grid operator’s only option is to turn on another fossil fuel power plant to meet the increased need for electricity. But, at any given time, there are thousands of light switches left on, idle water heaters, cycling swimming pool pumps, and forgotten thermostats that people could temporarily turn off or down, if only they were offered the right incentive. If asked, people can adjust their power usage in exchange for a financial reward. We call this “demand response,” and it is increasingly helping to balance the flow of electricity with our energy needs at a given moment.

Demand response diverts money that would generally go to a fossil fuel power plant to homeowners and businesses instead. In this scenario, a utility or demand response provider sends a message for participants to reduce electricity use at key times in exchange for a credit or rebate on their utility bill, in addition to the cost savings they will earn through conservation. Of course, participants always have the option to opt-out with the tap of a button on their smart phone or thermostat. Read More »

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LA Better Building Challenge Partners with EDF’s Investor Confidence Project to Accelerate Citywide Energy Efficiency Goals

By Matt Golden, Senior Energy Finance Consultant

Source: LA Better Buildings Challenge

Environmental Defense Fund’s Investor Confidence ProjectSM (ICP) is pleased to announce a partnership with the Los Angeles Better Buildings Challenge to help develop a more robust marketplace for energy efficiency retrofits in the city. Los Angeles has set a goal of achieving 20% energy savings across 30 million square feet of existing buildings by 2020 as part of the Better Buildings Challenge, a national leadership initiative sponsored by the U.S. Department of Energy. If achieved, it is estimated that this 20% reduction in energy costs will create over 7,000 high-quality local jobs, and avert annual carbon emissions equivalent to taking more than 18,000 cars off the road.

The LA Better Buildings Challenge will be promoting the ICP Protocols through its network of building owners and industry stakeholders to help bring even greater transparency and accountability to the energy efficiency market by introducing a system of standardization in the way commercial building retrofits are developed, funded, and managed. The ICP framework assembles best practices and existing technical standards into a set of protocols that define a clear roadmap for developing projects, determining savings estimates, and documenting and verifying results.

David Hodgins, Executive Director of the LA Better Buildings Challenge, describes how the partnership with ICP will help the project meet its goal. The mission of the LA Better Buildings Challenge is to support our partners in achieving a minimum of 20% savings by 2020, and to get there we need to have a clear path. We are excited to partner with ICP, which offers our partners a best-practice approach to developing, underwriting, and measuring the impact of their resource efficiency projects,” he said. 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 »

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