Last month, I attended the Vail Global Energy Forum in Colorado. Billed as a “mini-Davos” of energy (studiously ignoring the Aspen crowd a few hours down the highway), that moniker may have felt aspirational when the conference launched three years ago. But, this year it paid off: momentum for frank dialogue and global innovation is building on the slopes of the Vail Valley.
Here’s my take on how the clean air of the mountains cuts through the hot air of energy debates to illuminate practical, actionable ideas.
Three big ideas drove the conference:
- North American energy independence
Mexico, the United States, and Canada could, together, innovate their way to an energy marketplace that weakens dependence on overseas imports, scales up clean energy solutions, and charts a path to low-carbon prosperity. At times, the discussion was framed by the rise of unconventional oil and gas exploration (yes, “fracking”), collaboration around pipelines (yes, “Keystone”), and whether these could disrupt traditional geopolitical frames. Read More
Also posted in Air Quality, California, Cap and Trade, Clean Energy, Climate, Colorado, Energy Efficiency, Energy Financing, Methane, Natural Gas, Utility Business Models
Last week, Environmental Defense Fund (EDF) co-hosted a successful forum on residential time-variant electricity pricing – which allows customers to pay different prices for electricity depending on when it is used – within the context of New York’s ‘Reforming the Energy Vision’ (REV) proceeding.’
Co-hosted with the New York Department of Public Service and New York University’s Institute for Policy Integrity, the full-day forum, “On the REV Agenda: The Role of Time-Variant Pricing,” brought together more than 150 regulators, utility executives, academics, and other stakeholders to explore how residential time-variant pricing works, what it can accomplish, and how best to implement it. Below is a recap of some of the high-level takeaways from the forum.
How time-variant pricing (TVP) works
One of EDF’s objectives has been to improve the efficiency of the electricity industry by pursuing a market-based approach to electricity pricing. In most well-functioning markets, the cost of making a product and its relative scarcity is reflected in the price. For example, a door is more expensive than the wood with which it is made in order to reflect the labor costs involved. Similarly, strawberries are more expensive during the winter because they are less abundant during that time. Customers understand that prices vary with production costs and over time, yet neither of these elements gets reflected in how residential customers currently pay for electricity.
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