On the heels of a recent Forbes blog post where I call out Texas' Comptroller for playing favorites in her biased scrutiny of Texas' wind industry, comes another Forbes piece by James Taylor from the Heartland Institute. Confusing correlation with causation, Taylor claims wind energy causes higher energy prices. However, an increase in electricity prices cannot automatically be accounted for by pointing the finger at wind energy. That’s simply playing fast and loose with the facts.
This is the same tired slant we have heard from Heartland Institute time and time again. Not surprising – when pundits want to cherry pick data to make their argument strong, it doesn’t always work.
First there are many, many factors that determine energy rates, not just one type of resource. In an analysis of utility rates, economists Ernst Berndt, Roy Epstein, and Michael Doane identified 13 reasons why an electric utility’s rates may be higher or lower than the average. They include things like the average use per customer, age of the electricity distribution system, generation resource mix, local taxes, and rate of increases prior to any implemented renewable portfolio standard (RPS). So faulting renewables for high energy prices is a bogus claim. Furthermore, there is no data showing a nationwide pattern of renewable energy standards leading to rate increases for consumers. The report states: “American consumers in the top wind energy-producing states have seen their electricity prices actually decrease by 0.37 percent over the last 5 years, while all other states have seen their electricity prices increase by 7.79 percent over that time period." Further, 15 studies from various grid operators, state governments, and academic experts have examined the impact of wind energy on wholesale electricity prices and confirmed that wind energy reduces electricity prices. Read More
For 10 weeks this summer, EDF Climate Corps fellow Karan Gupta worked for JLL, a commercial real estate firm, to optimize energy use at one of the company’s largest buildings: 77 West Wacker Dr., a 1-million-square-foot commercial office building in downtown Chicago.
At the core of Karan’s work was demand response – an energy savings tool that pays people to shift their electricity use to times of day when there is less demand on the power grid, or when more renewable energy is abundant.
I spoke with Myrna Coronado-Brookover, JLL’s senior vice president and general manager, to find out why her company placed a bet on this technology. Read More
On September 17th, the D.C. Circuit Court of Appeals declined en banc review of Federal Energy Regulatory Commission (FERC) Order 745, dealing a blow to FERC’s regulation on demand response. This sounds complex, but behind these technical terms, hidden in plain sight, is a monumentally important and unfortunate legal outcome: we’re likely about to see an unnecessary rise in electricity prices and increase in new polluting power plants. This is bad news for the consumer, bad news for efficiency, and bad news for the environment.
First, a bit of background…
FERC Order 745, issued in 2011 by the federal agency that regulates electricity throughout the United States, has successfully allowed demand response to fairly compete in the electricity marketplace with more traditional energy resources like coal and natural gas.
Demand response is an important clean energy resource used by utilities and electric grid operators to balance stress on the electric grid by reducing demand for electricity, rather than relying on dirty “peaker” power plants or new infrastructure. It pays people to conserve energy during periods of peak or high demand in exchange for their offset energy use. This makes our grid more efficient, reduces harmful air emissions from fossil fuel plants, and keeps electricity prices lower. Read More
Since 2004, the year of the first major revision of Germany’s Renewable Energy Act (EEG), the country has added at least 35 gigawatts (GW) of solar and 35 GW of wind to its electric grid – enough to offset upwards of 35 coal plants. What’s more impressive is during the first half of 2014, close to 29 percent of Germany’s electricity came from renewable sources. For perspective, America’s renewables percentage, at about 14 percent, was half of Germany’s during this timeframe.
Meanwhile, the country has improved its status as a grid reliability leader, causing the Heinrich Böll Foundation’s Energy Transition blog to conclude, “Clearly, installing the equivalent of 100 percent of peak demand as wind and solar capacity does not bring down the grid.” Renewables International further asserts, “Renewables have not yet reached a penetration level that has detrimentally impacted grid reliability.”
This success runs contrary to the predictions of Energiewende’s critics, who have sounded the alarms about investing in “too much” renewable energy. Some of these concerns are more valid than others, but the truth is, most of these claims are blown out of proportion, fixable with solutions that are not overly complex, and/or based on no empirical data. Read More
Since EPA released its proposed Clean Power Plan (CPP) in June of this year, the plan has been a hot topic in every state. In Texas alone, the state has held a joint regulatory agency hearing and two days of legislative hearings. Unfortunately, in both cases, the general tone of testimony was that of Chicken Little. But I prefer to view the CPP as a fantastic opportunity and certainly don’t think the sky will fall because of it. In fact, our skies should be considerably brighter without all that carbon pollution clouding them up.
I’ve written before about the opportunity for Texas to amplify current trends and increase our energy efficiency and renewable energy to meet these goals. And there’s an added benefit to transitioning away from coal-fired power plants and toward cleaner energy choices, one that will be critical in a state like Texas that’s in the middle of a multi-year drought: water savings and relief for our parched state.
What if I told you that with the CPP, the Electric Reliability Council of Texas (ERCOT), which controls the power grid for roughly 80 percent of the state, could save more than 60,000 acre-feet (or nearly 21 billion gallons) of water per year by 2030? Read More
New York’s “Reforming the Energy Vision” (REV) proceeding aims to reform the state’s long-standing electricity system to lay the groundwork for a cleaner and more efficient grid that allows for more customer choice and competition from third-party energy services companies. Forming the centerpiece of this 21st-century vision is a platform that would smoothly integrate innovative energy services and solutions into the existing grid, allowing them to compete on equal footing with electricity from centralized power plants.
Currently, the electric industry comprises three functions: generation, transmission, and distribution. Generation refers to making electricity, traditionally from large, centralized power plants. Transmission refers to sending that electricity along high-voltage wires to substations closer to electricity customers. Distribution refers to delivering the power from the substations to homes and businesses. In its recent straw proposal, the Department of Public Service Staff (Staff) recommends splitting the distribution function into two parts, one performing the traditional delivery service and the other serving as the Distribution System Platform Provider (DSP), to grant equal priority to energy solutions that are not centralized, such as on-site, distributed generation and energy efficiency. Read More
By: Jeff Milum, ICP Director of Marketplace Development
In virtually all established markets, from car loans to timeshares, standardization and automation has helped to accelerate underwriting, reduce long-term liability, and spur investment. The potential energy efficiency market is estimated at $1 trillion, but in order to achieve a fraction of this, the energy efficiency industry will need to leverage standardization and automation in order to scale to this level.
EDF’s signature energy efficiency initiative, the Investor Confidence Project (ICP), is accelerating the development of a global energy efficiency market by standardizing how Investor Ready Energy Efficiency™ projects are developed and energy savings estimates are calculated.
As a part of this effort, ICP is pleased to announce the release of the ICP Software Provider Credential, which will standardize the process of developing and documenting energy efficiency projects. Read More
Fall is in the air, the State Fair of Texas is in full swing, and the annual meeting of the University of Texas (UT) and the University of Oklahoma (OU) will occur at Dallas' Cotton Bowl this weekend. One of the greatest football rivalries in the Big 12, UT and OU have been battling it out since 1900. Even the governors of both states frequently place bets on the game, like the losing governor having to present a side of beef to the winning governor.
And, while Sooners and Longhorns may not easily take advice from each other, Texas utilities should take a few lessons from Oklahoma Gas & Electric (OG&E). OG&E is Oklahoma's regulated utility serving over 800,000 customers in Oklahoma and western Arkansas.
Here in Texas, we are proud of many things from our "don't fence me in" ethos and wide-open landscapes to our self-reliance and abundant natural resources. Not too many states have the type of pride that Texas possesses (kitschy or otherwise). That pride extends to our innovative energy utilities as well, like Green Mountain Energy, Austin Energy, and CPS Energy in San Antonio, all of which are helping lead the state into the new energy sphere. Read More
By: Victoria Mills, Managing Director of EDF Climate Corps
Energy efficiency is a goldmine, but not everyone has the time or resources to dig. That’s why for the past seven years, over three hundred organizations have turned to EDF Climate Corps for hands-on help to cut costs and carbon pollution through better energy management. And every year, the program delivers results: this year’s class of fellows found $130 million in potential energy savings across 102 organizations.
But this year we also saw something new. In addition to mining efficiencies in companies’ internal operations, the fellows were sent farther afield – to suppliers’ factories, distribution systems, and franchisee networks. What they discovered demonstrated there is plenty of gold to be found across entire value chains, if companies take the time to mine it.
Here are three places where EDF Climate Corps fellows struck gold: Read More
A majority of Americans endorse setting limits on carbon emissions from the nation's power plants, which account for the single largest source of carbon pollution in the U.S. The United States is on the verge of doing just that with EPA's proposed Clean Power Plan.
Nationally, the plan will reduce carbon emissions from power plants 30 percent below 2005 levels by 2030. However, these carbon-reduction mandates vary from state-to-state, which will cumulatively lead to a nation-wide reduction of 30 percent.
In North Carolina, where I live, the plan requires the state to reduce absolute carbon emissions about 21 percent by 2030 from a 2012 baseline, according to an analysis by Bloomberg New Energy Finance. Read More