Category Archives: smart grid

Pecan Street Inc. Researchers’ Report Receives Outstanding Paper Award

Source: Pecan Street Inc.

With 1.8 gigawatts (GW) of solar power installed in 2011 and an expected 2.8 GW in 2012, it is safe to say that solar energy has solidified its role as an important part of our nation’s energy portfolio. Affordability, competitive financing and reduced greenhouse gases are just a few of the reasons why the number of solar installations has skyrocketed in the past several years.

Now, new research from Dr. Alexis Kwasinski, Dr. Fabian Uriarte, and Amir Toliyat, engineers from the University of Texas at Austin, sheds some light on how rapidly growing solar installations can work with the current electric grid. For their groundbreaking findings in "Effects of high penetration levels of residential photovoltaic generation," they were recently awarded an Outstanding Paper Award at the International Conference on Renewable Energy Research and Applications (ICRERA) in November for their in-depth research and innovative solutions.

Jump started by a $10.4 million grant from the Department of Energy, Pecan Street Inc. is a “community-wide collaboration to fully reinvent the energy delivery system”  based in Austin, Texas.  This living ‘smart grid laboratory’ provided a perfect data collection site for the researchers. Pecan Street’s leadership focuses on developing new technologies that reinvent the way we create and use energy, so that residents drive electric vehicles, invest in cutting-edge technology and, of course, use solar panels.

The massive amount of data gathered from Pecan Street’s efforts provided researchers the opportunity to analyze solar energy’s effect on the three key characteristics of “power quality” (voltage level, voltage unbalance and power factor).  The researchers found that energy inflections (voltage levels and voltage unbalance) did not create any major concerns with the power grid, despite unfounded claims to the contrary by some solar critics.

Digging further into the data, the researchers unexpectedly found that power factor could become a real issue if solar installers don’t use modern equipment that provides for power factor support.  While the issue could become very real at higher levels of solar penetration, the solution is simple, cheap and currently available; it simply means installers should begin using newer models of solar panel “inverters,” which convert solar power into electricity that can be fed into your grid and home.

Inverters simply convert raw DC power to AC power (i.e. the type of electricity we need to use everyday household items). Maximizing the amount of electricity that is converted into usable power makes solar energy more competitive, ensuring that it will remain an important and growing part of our nation’s energy mix.

It’s exciting to see that these researchers are receiving accolades for their groundbreaking work, and international acclaim is always an excellent motivator for this kind of work, but it’s nice to be appreciated where you hang your hat too.  Fortunately that doesn’t seem to be a problem, since earlier this year Austinites voted in the Best of Austin 2012 award by the Austin Chronicle for Best Way to Turn Some Green Even Greener.  Their choice: Pecan Street Inc.

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Visit EDF At The SXSW Eco Conference In Austin On Oct. 3-5

Next week, I am pleased to speak on a panel at the second annual SXSW Eco Conference. My panel will explore How "Big Data" Fits into the Smart Grid Evolution. Each day, people generate billions of data points and this “big data” is all around us. How we manage this highly valuable data will be of utmost importance and poses many challenges. I will engage in discussion with partners from Pecan Street Inc., to discuss how big data is key in evolving the smart grid. Specifically, my focus will be on the environmental benefits that can be realized from enabling consumers with this information.

Another panel I am excited to attend will feature EDF Health Scientist Elena Craft and attempt to answer the question: Can Natural Gas be Sustainable? Increased natural gas production has made a remarkable impact on electricity generation, but its use is not without controversy. Public concern is growing about the health and environmental impacts of drilling. Elena, along with representatives from industry, NGOs, and the community, will explore how stronger standards and best practices can minimize impacts.

Additionally, EDF Conservation Scientist David Wolfe will present a panel on how Habitat Credit Trading Markets Save Rare Species. Conservationists have known for decades that vast landscapes must be conserved in order to ensure the survival of many species, yet we struggle with how to transform this knowledge into action. The power of the market can be substantial in achieving landscape-scale conservation goals by transforming the way that developments mitigate their impacts on wildlife. David and his partners will describe how these regional habitat credit trading markets are being established throughout the country to create a win for wildlife recovery.

EDF will also be a sponsor of the Eco Connect event at SXSW Eco. This recruitment opportunity will allow us to showcase EDF Climate Corps, our innovative summer fellowship program that places specially-trained MBA and MPA students in companies, cities and universities to build the business case for energy efficiency. Stop by Eco Connect next Wednesday from 1:30 to 3:30 pm to learn more about becoming a Climate Corps fellow or host organization.

Also posted in Natural gas | 1 Response

Demand Response: A Key Component In Texas’ Electricity Market. Why Isn’t The State Taking Advantage Of It?

This commentary was originally posted on the EDF Energy Exchange Blog.

On Monday, the Texas Senate Business and Commerce Committee took up the critical issue of the impact of extreme drought conditions on electric generation capacity and state officials’ plans to respond to those risks. A number of important issues and policy solutions were raised, from on-bill financing of energy efficiency to renewable energy to send the right ‘market signals’ to incentivize the construction of new power plants. Public Utility Commission (PUC) Chair Donna Nelson singled out, in particular, the state’s energy efficiency and renewable energy goals. These policies have helped reduce pollution, saved customers money and have the added benefit of reducing our dependence on water for electricity production.

Another important part of the solution discussed was raised by a number of panelists: demand response (aka load management). The ability of end-use customers to reduce their use of electricity in response to power grid needs or economic signals has helped the Electric Reliability Council of Texas (ERCOT) avoid rolling blackouts and, in other regions of the country, it has helped markets avoid the need for new capacity. As ERCOT CEO Trip Doggett and PUC Chair Nelson pointed out in their testimony, demand response is a market competitive resource that uses no water and, as such, it may prove to be a valuable resource in view of the state's record drought.

The Texas Capacity Crunch – Obstacles and Opportunities
The historic drought of 2010-2011 has put Texas' conventional power plants at risk, threatening a return of the rolling blackouts caused by extreme winter conditions just a year ago. State Climatologist, Perry appointee John Nielsen-Gammon says, “Statistically we are more likely to see a third year of drought.”

At the same time, ERCOT faces a challenging capacity crunch caused largely by “low natural gas prices, an influx of low marginal cost wind power, increased wholesale market efficiencies, low wholesale power prices, tight credit markets” and other issues according to TXU Energy. With limited ability to invest new capital given the current market conditions, and over 11,000 MW of power dependent on water sources at historically low levels, Texas needs to tap into resources that can be deployed rapidly and require less capital and much less water.

Demand Response – Low Cost, Zero Water Resource
Fortunately Texas has ample resources to meet these needs with demand response. If allowed to participate fully in Texas’ energy markets as it does in other regions, demand response can benefit customers and increase grid reliability. Unfortunately Texas continues to lag behind other states and regions, which have seen market-competitive demand response grow rapidly as market barriers have been removed.

    • The definition of “demand response” is “end-use customers reducing their use of electricity in response to power grid needs or economic signals from a competitive wholesale market.”
    • The potential for cost competitive demand response is tremendous – according to the Federal Energy Regulatory Commission (FERC) Texas could add as much as 19 GW in capacity by 2019 if we open up our electric market to allow customers to compete alongside generators.

Texas currently is among the lowest states in terms of load management, despite having the highest potential by far according to FERC and the Brattle Group.

Source: FERC

Why Does Texas Lag the Nation in Demand Response?

  • In 2011, demand response amounted to 9% of the PJM’s (a grid operator in the Mid-Atlantic/Midwest) system peak demand, greatly benefitting customers and improving reliability.
  • At ERCOT, despite great potential, demand response only amounted to just over 2% of peak demand, limited by unnecessary market barriers.
  • Texas leads the nation in smart meter deployment, intended by the legislature to “facilitate demand response initiatives.” Why is ERCOT so far behind?

Market Barriers Prevent Customers from Competing in ERCOT

  • ERCOT’s legacy demand response program is capped at 1150 MW and is effectively limited to large industrials within ancillary services markets.
  • ERCOT’s Emergency Reliability Service is the only program in the market that allows any customer to participate if they qualify. The program is limited in scope (it can only be called on twice per year) and to date has been unable to reach the original goal of 500 MW. Despite these limitations, the program helped avoid rolling blackouts last summer.

Source: NERC

Regulators are Focused on Building New Power Plants

  • Instead of looking to all possible solutions, regulators seem focused only on how to get new power plants built.
  • Other grid operators have successfully created programs for smaller commercial and residential customers to compete through aggregation. In Texas, residential and small commercial customers have been put on the back burner.
  • Despite the PUC’s reluctance to act on other clean energy opportunities, such as the 500 MW non-wind RPS or increasing the energy efficiency standards, it is clear that these programs have been successful in creating clean, “water-proof” power.
  • In the midst of a capacity crunch caused by extreme drought and market structure problems, demand response provides an opportunity to address both by enabling cheaper, water-free capacity by simply opening markets to customers.

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Pecan Street Named #1 Electric Vehicle Initiative Of The Year

This commentary was originally posted on the EDF Energy Exchange Blog.

As the Christmas season revs up and a New Year fast approaches, you may have noticed the sentimental commercials of couples giving each other new cars amidst snowy scenes and jolly music or well-choreographed salespeople urging you to shop thedealership as eager car companies showcase their new model year offerings. This happens every year around this time, some obviously more ridiculous than others. But with each year as more hybrid and electric vehicles join the marketplace, these companies are touting their environmental acumen as much as their sleek body styles and luxurious interiors. While there are still hurdles to overcome, the age of electric vehicles (EV) is beginning.

(Source: Pecan Street)

2012 will see the 100% gas-free Ford Focus, now taking reservations, Mitsubishi’s MiEV’s as the cheapest offering in the EV market, and the all electric Honda Fit, released initially as lease only until 2013. With a limited supply of Fits coming to the US, Engadget even suggests “you may want to add your local Honda dealer to the holiday card list — it certainly can't hurt your chances of getting Fit next summer.” One analyst believes by “model year 2015, the new car market will have 108 electric-drive models.” And a University of California at Berkeley study predicts that by 2030, 64% of light vehicle sales in the US will be EV.

All of this excitement and momentum begs many questions about the state of infrastructure for these new ways of driving. Will batteries evolve and will prices come down? Will the better buy be a car with gas back-up or will towns be equipped with adequate charging stations? What will emission profiles look like for those charging in the Northeast versus those out west in sunny, solar California? While this will be a dynamic process for many years, luckily there are some groundbreaking projects underway that are working to answer these questions and build the transportation revolution. And our own Pecan Street tops the list of the Top Five Electric Vehicle Initiatives of the Year! Greentech Media calls it “certainly the most ambitious EV-solar-smart-grid integration project in the United States.”

As we wrote back in September, Pecan Street announced that Chevy GM will be jumping onboard, making “102 Volts available to people living in the 172-home test area. The cars will come with double the current $7,500 federal rebate to try to boost sales. It will likely represent the largest non-fleet concentration of EVs in the country, which will offer valuable data regarding use, grid strain and even basic things like how long the wait will be at available charging stations. Combined with a push to optimize solar for the conflicting needs of EV charging, battery storage and regular old grid supply, the Pecan Street initiative will provide a number of valuable answers.”

As we reflect on the past year and look forward to the new one just around the corner, we are excited that Pecan Street’s EV ambitions have been recognized as #1! Of all the car commercials we will be bombarded with this December, perhaps the timeliest one of all is from the Nissan Leaf which puts gasoline and energy use in a whole new perspective. Here’s to a 2012 that uses less.

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