In the U.S., the electricity sector accounts for over a third of the country’s yearly greenhouse gas emissions, contributing more to climate change than any other sector, including transportation.
Furthermore, electricity costs have increased dramatically over the years, and are projected to continue their upward trend. Utilities and regulators have made great strides in promoting renewable energy, increasing the efficiency of the power grid, and reducing harmful pollution. However, customers, too, can be part of the solution by better managing their use of electricity – especially during those times when it is most expensive and dirty to produce.
Electricity is more expensive during ‘critical peaks’
The cost of producing electricity – and the carbon emissions associated with it – varies significantly throughout the day, depending on electricity demand at any point in time. For example, when a heat wave occurs and many customers begin cooling their homes after work, demand skyrockets and creates what is known as a ‘critical peak.’ Read More
Over the past several months, we’ve been providing updates on the ongoing litigation surrounding Order 745 – a vital, federal rule on demand response. As a low-cost, environmentally beneficial resource, demand response relies on people and technology, not power plants, to manage stress on the electric grid during periods of peak energy demand. Simply put, demand response pays people to conserve energy when it matters most – a win-win for people and the environment.
But this critical energy management tool has also been subject to an amazing amount of scrutiny (which we’ve covered here, here, and yes, here, as well). In short, the thorny issue boils down to this: a recent court decision found that the federal agency responsible for regulating demand response didn’t have the authority to do so.
When the decision came down, many were shocked. The general assumption had been that this agency (known as the Federal Energy Regulatory Commission or “FERC”) certainly was within its rights to issue Order 745, a set of rules for how demand response would function in our nation’s energy markets.
And last week, the United States Solicitor General sided with the “general consensus” on Order 745. Read More
The Electric Reliability Council of Texas (ERCOT), which manages 90 percent of Texas’ electric grid, has been busy. In the last two months of 2014, the agency released two very lengthy reports examining the future of a lower-polluting power grid in light of upcoming EPA clean air protections, in particular the Clean Power Plan. As the media described it, the reports did not provide the rosiest of outlooks for costs to Texans or electric reliability. But I think they are looking at the reports the wrong way.
The electric grid is changing. Innovative technologies – many of which are created right here in Texas – are lowering electricity bills and increasing energy independence. They are disrupting the way we produce and use electricity and they are changing the way ERCOT looks at grid reliability – albeit not in these two reports.
Cleantech entrepreneurs are at the helm of deciding Texas’ (and, let’s face it, America’s) energy future. And there are quite a few market opportunities outlined in the reports, if you look closely. Here are a few hidden in the report, plus other trends to keep an eye on: 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, New York, Renewable Energy, Texas, Utility Business Models
By: Patty Durand, Smart Grid Consumer Collaborative Executive Director
Understanding customers’ attitudes, viewpoints, and overall favorability around a modernized electric grid is integral to fully realizing all the benefits the smart grid has to offer.
Smart Grid Consumer Collaborative (SGCC) recently completed a new consumer analysis, Consumer Pulse: Focus on Seniors, which takes a deeper dive into the data collected from SGCC’s national flagship research series, Consumer Pulse Wave 1-4, which was collected during 2011–2013.
In the energy industry, there is no single study that explores seniors’ attitudes toward the smart grid and energy programs. Therefore, this new analysis provides insight for utilities and the smart grid stakeholder community on a demographic that is not well understood. Further, the Consumer Pulse: Focus on Seniors report answers the key question: What benefits do older Americans value most from a smarter grid? Read More
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