Several states have embraced net metering in order to encourage the adoption of solar energy and other distributed generation. Sometimes referred to as “running a meter backwards,” net metering allows people to generate their own electricity, export any excess electricity to the grid, and get paid for providing this excess energy to the utility who may use it to power nearby homes or manage overall electricity demand.
Net metering leads to lower – or in some cases negative – electricity bills without having to invest in expensive batteries to store excess energy, which can be cost-prohibitive. By generating energy on-site where it’s consumed, net metering also reduces the strain on distribution systems and cuts the amount of electricity lost to long-distance transmission and distribution (estimated at seven percent in the U.S.). Net metering, moreover, tends to reduce greenhouse gas emissions by incentivizing people to adopt renewable energy and become more aware of energy-saving opportunities. Read More
For more than 100 years, the U.S. power system relied on fossil-fueled power plants to meet our growing energy demand. Now, clean energy resources like renewables are quickly changing our energy mix. But what happens when the sun isn’t shining or the wind isn’t blowing? What about when power demand momentarily outpaces supply? That’s where batteries and energy storage come in, offering a fundamental, even disruptive change to the U.S. electricity system as we know it.
Batteries are energy game-changers
Today’s electricity system not only overproduces to be prepared for unforeseen problems, it also deploys dirty “peaker” plants that fire up during those few times per year when electricity demand is high (like during a heat wave) and the electric grid is stressed. With batteries, there’s no need for either overproduction or inefficient backup reserves, ultimately saving both utilities and customers money.
Batteries can provide bursts of electricity incredibly fast, often in milliseconds, and with far quicker reaction times than traditional power plants. As a result, energy storage helps the electric grid absorb and regulate power fluctuations, providing electricity fast, when and where it’s needed. Since the supply and demand of power must be carefully balanced, this ability helps prevent the grid from experiencing brownouts or blackouts. Read More
A new utility business model – “Utility 2.0” or “reform” – is the hot topic in statehouses and regulatory commissions across the country. This is due to many factors: technological innovations in the energy sector, changing consumer expectations, increasing electricity prices, tighter regulations, and the need to decarbonize our energy sector as we grapple with climate change.
Some argue utility earnings should be based on performance rather than volumetric electricity sales. They suggest utilities’ monopoly interests should be aligned with enabling clean energy services – such as on-site renewable energy and home energy management – instead of simply delivering more electricity.
Key to this new approach is the ability to define – and then measure – performance. This will require a set of metrics by which utility investments can be judged and rewarded. Illinois was the early adaptor of performance-based metrics for its historic smart meters roll-out and is finalizing a set of metrics this week that are critical to designing a utility business model for the future. Read More
Source: Alex Rumford
Energy data collected via smart meters could lead to services that improve people’s lives and cut harmful carbon pollution. This is true if customers have easy access to the energy data they need to control their own energy use and reduce their electricity bills – which isn’t always the case.
When the Illinois General Assembly passed the Energy Infrastructure Modernization Act in 2011, local utilities ComEd and Ameren touted their many benefits, including greater control over peak energy load, electric grid resiliency, and cost savings resulting from the energy conservation efforts of their electricity customers. Now that smart meter deployments are well underway, utilities need to enable the many benefits of smart meters by empowering customers with easy access to their own energy data.
To facilitate this endeavor, EDF and Citizens Utility Board (CUB) joined forces to develop the Open Data Access Framework, a first-of-its-kind proposal, which the groups presented to the Illinois Commerce Commission (ICC) on Friday, August 15th. Read More
Chris Prandoni certainly is welcome to his own opinions, but not his own facts. As the Director of Energy and Environmental Policy at Americans for Tax Reform, Prandoni may favor coal-fired power plants and dislike energy efficiency and renewables, but there’s no doubt Ohio’s clean energy standards are saving consumers money and bringing huge investments into the state.
Prandoni supports S.B. 310, which has already passed the Ohio Senate and is expected to enter the House within the next week, and promises to kill the state’s renewable portfolio standards (RPS) and energy efficiency directives. If Prandoni has his way, and as he points out in his misinformed Forbes op-ed, Ohio would be the first state in the nation to “pare back” its clean energy mandates, but this is not something Ohioans should be proud of. Read More
Source: S. Sepp, Wikimedia Commons
Competition from new players will drive innovation in the changing electric utility market
The blogosphere is abuzz with plans to create a new electric utility business model, one that reduces energy costs and pollution. The power company of the future, many experts say, will feature new electricity rate structures that reward efficiency, finance and integrate local, on-site power generation (like rooftop solar), and put more smart meters in the system to help us better understand and control our energy use.
Such changes could indeed help reduce consumer costs and pollution, yet they ignore larger opportunities to advance innovation and efficiency. Missing in most Utility 2.0 discussions is any real debate about the emerging electricity-services market, filled with hundreds of innovative entrepreneurs who want to profitably provide consumer services that revolutionize how we use and interact with electricity. Instead, most experts simply assume the monopoly structure of the past several decades will continue. The introduction of new players into the electricity market, however, challenges that assumption. Read More