Despite its enormous relevance to the struggle to build a cleaner, greener electric system, New York’s ‘Reforming the Energy Vision’ (REV) proceeding is not fundamentally an environmental one. It is concerned with building a new electric marketplace for a broad range of energy resources, some zero-carbon and some not, which are expected to reduce total costs paid by tomorrow’s customers over the long term compared to what would be expected under a ’business as usual’ scenario.
My last blog post described the new electric industry market structure envisioned by New York regulators in the recent Track 1 order of the REV proceeding. As promised, this week I’m providing a closer look at the environmental implications of the new order.
While reducing carbon emissions is one of the six stated goals of the proceeding, it is not the sole thrust. Interestingly, the order begins a deep dive on what decarbonization means for the electric system and discusses various environmental issues at length, potentially raising their profile in the proceeding. Highlighting the importance of environmental issues is a welcome change, but, to accomplish the goal of emissions reductions, the devil is in the details. Read More
Nearly a year ago, the New York Public Service Commission (Commission) initiated a groundbreaking effort, called ‘Reforming the Energy Vision’ (REV), to overhaul the longstanding electric utility business model. In the months since starting the REV proceeding, the Commission has sought advice from Department of Public Service staff, industry stakeholders, and environmental non-profits, among others, quietly refining its vision while largely refraining from big pronouncements about the progress of the proceeding.
That changed late last month when the Commission issued its ‘Track 1’ order establishing the ‘vision’ component of the REV proceeding. We are now starting to get a better sense of what sort of future electric marketplace the Commission anticipates and what role utility companies would play in this new marketplace. We can also begin to assess the extent to which this new marketplace will lead to the improved environmental outcomes stated as a goal of this proceeding. Read More
We already know the innovative program NYC Clean Heat is yielding tremendous results: soot pollution from buildings in New York City has fallen by more than 50 percent since 2011, preventing an estimated 800 deaths and 2,000 hospital visits due to lung and cardiovascular diseases annually. That hard work by Environmental Defense Fund (EDF), the City of New York, and our partners has now been recognized –again.
The Association of Energy Service Professionals has given NYC Clean Heat an award for Outstanding Achievement in Non-Residential Program Design & Implementation. We are honored to receive this award from such a distinguished organization and believe it shows that a program like NYC Clean Heat is both necessary and replicable.
EDF partnered with the City to create NYC Clean Heat in 2012, which forged a diverse coalition of the financial, real estate, and non-profit communities, to launch a $100 million financing program to help phase out dirty heating oils. The program helped 4,000 buildings – half of them affordable housing – convert to cleaner, more efficient heating oils. Read More
The New Year is a time for reflection, beginning with a look back on the previous 12 months and all that they brought. A quick scan of the U.S. climate and energy news in 2014 will tell you it was a very big year.
The Environmental Protection Agency (EPA) proposed the first-ever limits on carbon pollution from power plants, the U.S. and China struck a historic climate deal, and Tesla broke ground in Nevada on the largest advanced automotive-battery factory in the world – a move that’s expected to slash the cost of lithium ion batteries by a third. At the same time that these important national and international advancements were grabbing headlines, Environmental Defense Fund (EDF) and our partners were working together to incrementally transform the U.S. electricity system by rewriting outdated regulations, spurring energy services markets, and modernizing our century-old electric grid.
The U.S. is on the verge of a revolution in the way we make, move, and use energy. And, having spent years working on governmental and regulatory matters related to our power system and lessening its impact on the environment, I can honestly say there has never been a more exciting time to be in this field. Here are a few of the moments that were near and dear to our hearts over the past year, developments I see as a sure signal 2015 will be another epic year for clean energy. Read More
Also posted in Clean Energy, Demand Response, Energy Efficiency, Energy Financing, Energy Storage, Illinois, Investor Confidence Project, New Jersey, Renewable Energy, Smart Grid, Texas, Utility Business Models
In the future, when we look back on 2014, I believe it will be remembered as the tipping point for climate action. In the Northeast, we’ll remember the devastating early-season snowstorm that caused over a dozen deaths. In the Southwest, many will remember the third-straight year of a drought that seems without end. And, nationally, many will remember 2014 as one of the hottest years in recorded history – the hottest since 2010 and the 11th time the record for hottest year has been set since 1998.
In a year punctuated by extreme weather across the country and the globe, 2014 will also be remembered as the year when seeds of coordinated global action to address climate change first took root. The federal Clean Power Plan, the Lima Climate Agreement, the United Nations Climate Summit, and the U.S.-China Climate Accord, among other major milestones, all highlight the growing awareness and importance of taking action to address climate change. Though many view these events as tentative first steps, they are nonetheless steps in the right direction.
Action at the national level has been long overdue and support for the Environmental Protection Agency’s proposed Clean Power Plan, which would set the first-ever national limits on carbon pollution from existing power plants, is borne from decades of work at the local level. The historical absence of a broader national agenda has spurred cities and states to act on their own, and local authorities are continuing to make significant, innovative strides forward. Read More
Since the New York Public Service Commission (Commission) opened its Reforming the Energy Vision (REV) proceeding in the spring to modernize the state’s electricity system, a lot has happened. Namely, New York utilities are already working to align themselves with the broad objectives outlined in the REV proceeding. Here is an overview of efforts by the state’s big players:
CON EDISON – Brooklyn/Queens Demand Management Program
Growth in electricity demand in parts of Brooklyn and Queens is taxing infrastructure and will require action from Con Edison to ensure reliability. Con Edison could pursue a costly $1 billion substation upgrade to meet this rising demand. Instead, the utility is slashing needed investment by half and plans to invest around $500 million – $305 million in traditional utility investments and $200 million clean energy resources – to address the area’s growing energy needs as part of its Brooklyn/Queens Demand Management program. Measures include:
- Demand Response (a tool that pays customers to conserve energy when the electric grid is stressed): A new demand response system from energy services provider Alstom, which would allow 3.3 million customers to be compensated for the value they provide to the grid.
- Energy Storage: Battery-based energy storage for electricity produced when electricity demand is low (off-peak hours) for use when demand is high (peak periods), easing the burden on the electric grid at those times.
- Microgrids (which generate electricity nearby or on-site where it’s consumed): The development of microgrids to improve resiliency and enable the aforementioned demand response system.
- Electric Grid Resilience and Optimization: Expanded use of smart meters, which provide detailed electricity use data throughout the day, will improve response time to power outages and give customers more control over their energy usage.