Energy Exchange

If we don’t talk about water, are we really talking about resiliency?

It’s time to rely on water-smart power

Energy Secretary Rick Perry is trying to prop up coal and nuclear companies under the guise of enhanced “resiliency.” The Department of Energy’s (DOE) proposal does not define resiliency, nor does it even make clear what resiliency means in the context of the electric grid.

Resiliency in the energy sector generally, however, depends on water. The majority of the electricity that powers our world runs on century-old technology, guzzling down our most precious resource: water. Depending on the type of technology, generating just one megawatt-hour of electricity could use anywhere from 500 to 50,000 gallons. Solar and wind, on the other hand, use negligible amounts of water, and energy efficiency uses none.

Yet neither the DOE’s proposal nor its recent study on grid reliability touches on climate and water. Specifically, there is no mention of how climate change affects water availability or what that means for electric reliability. If Secretary Perry is really concerned about resiliency, water should be a key focus. And as a former governor from a drought-stricken state, he should know better. Read More »

Also posted in Clean Energy, Energy-Water Nexus, Grid Modernization / Read 1 Response

Department of Energy’s proposal to FERC: Too many costs, no actual benefits

By Natalie Karas, Michael Panfil, and Rama Zakaria

Department of Energy (DOE) Secretary Rick Perry recently proposed that the Federal Energy Regulatory Commission (FERC) provide new revenues and guaranteed profits to the owners of inefficient and aging coal and nuclear power plants at the expense of American homeowners and businesses. These aging units are losing out to more efficient and innovative ways to generate power, reduce peak demand, and foster participation and competitive in the markets. EDF filed comments – separately and with a coalition of environmental organizations – today opposing DOE’s proposal to diminish, if not destroy, the integrity of competitive wholesale electricity markets.

The proposal is plagued by both procedural and substantive infirmities. It prevents informed outcomes by shortening FERC’s generally lengthy rulemaking process to a mere 60 days – offering little time for key stakeholders to participate. And it directs an independent, fuel-neutral federal agency to bankroll favored companies and energy sources under the guise of “resiliency,” a term the proposal does not define, applied to a problem that does not exist. In fact, a study released today shows “no clear relationship” between increased reliability and more coal and nuclear power. Read More »

Also posted in Clean Energy, Grid Modernization / Comments are closed

Rick Perry’s coal bailout is an attack on competitive energy markets, with customers footing the bill

Secretary of Energy Rick Perry – whose agenda as governor of Texas was squarely focused on states’ rights and free markets – is now pushing for a federal plan that could disrupt organized electric markets.

Perry’s proposal to the Federal Energy Regulatory Commission (FERC) aims to prop up uneconomic coal at the expense of Americans’ health and wallets.

Perry’s proposal would effectively pay owners of coal and nuclear power plants their operating costs, plus a guaranteed profit, regardless of whether those plants are selling electricity at a competitive price. These aging plants are currently being driven out of the competitive market by flattened energy demand and a growing list of cheaper, cleaner, more efficient alternatives – from natural gas and renewables to demand response and grid-scale battery systems. Simply put, Perry’s proposal shields uneconomic coal power, replacing competitive markets with profit guarantees.

That’s not a thumb on the scale supporting obsolete and expensive energy; it’s an elephant.

Because carbon pollution from coal plants causes asthma attacks, heart attacks, and a staggering number of premature deaths every year, propping up this dirty energy source will not only raise electricity bills, it will hurt American families. Read More »

Also posted in Clean Energy, Energy Innovation, Grid Modernization / Read 1 Response

Goodbye, internal combustion! Electric vehicles are rolling in

By Rory Christian and Larissa Koehler

Electric vehicles (EVs) don’t make much noise on the road, but they’re generating a lot of buzz about the future of this technology and what it means for business and the environment.

Cars, buses, and trucks are the second biggest source of pollution in the U.S. after electricity production. They are responsible for over 26 percent of emissions that adversely affect the health and well-being of the population, and put communities located close to highways and other major thoroughfares at risk. These communities, typically low-income, are often plagued by elevated asthma rates and other pollution-induced health conditions.

When thinking about ways to reduce pollution, EVs can make a world of difference. And, when charged using renewable energy sources, they produce no emissions and can be much cheaper to operate than traditional, internal combustion vehicles. As such, let’s take a look at the global EV market and impacts in the U.S. on the electric grid in two environmentally progressive states ‒ New York and California. Read More »

Also posted in Clean Energy, Electric Vehicles, General, New York REV / Read 3 Responses

What will FERC do in wake of increasingly affordable electricity prices?

Electricity is becoming increasingly affordable throughout the United States. This fact was not lost on the Federal Energy Regulatory Commission (FERC), the entity charged with overseeing our interstate electricity grid, during a Technical Conference held last month.

Although the Conference was initially organized to focus on how regional electricity markets and state public policies interact, it became clear over the two-day long event that more fundamental questions were on the minds of many participants. Most significantly, for generators, was the question of cost.  Read More »

Also posted in Clean Energy, General / Read 2 Responses

Southern California Edison attempts to delay renewable-friendly electricity rates

By Larissa Koehler and Jamie Fine

California has worked hard to build up a nation-leading clean energy portfolio. And the state has been hugely successful in adding renewable energy, especially solar, to the electric grid. However, having too much solar energy on the grid relative to energy demand can lead to grid operators turning off that clean power. This is costly for customers and makes it harder to meet our clean energy goals. One solution?  By putting price signals in place, such as time-of-use (or TOU) rates, we can encourage customers to use energy at times when solar or wind power is abundant.

TOU pricing does this by making electricity cheaper when the supply of electricity exceeds demand. Times of day when solar panels across the state are generating power will align with predictable low prices. If done right, TOU pricing can give Californians control over their energy bills, avoid pollution from fossil-fuel power plants, and maximize the production of renewable energy without additional cost.

The California Public Utilities Commission – the body that regulates utilities in the state – supports this strategy. In 2015 it decided to transition residential customers to a default TOU rate, with the explicit goal of integrating more renewable energy. Unfortunately, Southern California Edison (SCE) – a utility that serves electricity to over 3 million Californians – is proposing to delay putting some or all of their customers on these rates. This setback could have negative economic and environmental impacts. Read More »

Also posted in California, Clean Energy, Time of Use / Read 6 Responses