Monthly Archives: August 2014

To Opt-In or Opt-Out: What Works For Time-Variant Pricing

By Beia Spiller / Published: August 7, 2014

Source: Johannes Rössel, wikimedia commons

It would be logical to assume that we make decisions based on our needs, desires, and values regardless of how the choice is presented. For instance, we wouldn’t expect the choice to become an organ donor to depend on whether you must check a box to accept or decline donation. But we would be wrong: our decisions depend a great deal on how the choice is presented.

Choice architecture gets to the heart of the debate on whether it’s preferable to offer people the opportunity to opt-in or to opt-out, and this question has become crucial to the discussion about time-variant electricity pricing throughout the country.

Opt-out vs opt-in time-variant pricing

Currently, most electricity customers pay for electricity at a single flat rate (i.e., one price per kWh consumed). Such pricing is simple but doesn’t reflect actual system costs, which are higher during times of the day when overall energy demand peaks. Time-variant pricing instead allows utilities to charge more for electricity during periods of peak demand, and less during periods of lower demand. Read More »

Posted in Clean Energy, Demand Response, Electricity Pricing, Energy Efficiency, Grid Modernization / Read 3 Responses

Moving On, but Continuing the Work

By Brad Copithorne / Published: August 7, 2014

Source: Chuck Abbe

Four years ago, I joined Environmental Defense Fund to work on climate policy as I believe that the issue is one of the most critical challenges of our era. I felt that my background working on Wall Street could be put to good use in crafting finance policies that help fight climate change. I chose EDF because they are the environmental organization that best understands how to use market mechanisms to deliver environmental solutions.

Tomorrow will be my last day at EDF, but I am not leaving because of any disappointment with the organization or any decline in my commitment on climate issues. At this point in time, new market mechanisms to finance clean energy are in place. The biggest contribution I can make is to switch to the private sector and demonstrate how well these mechanisms can deliver job-creating private investment.

Over the past several years, On-Bill Repayment (“OBR”) and Property Assessed Clean Energy (“PACE”) programs have been developed that are expected to allow for significantly increased investment in energy efficiency and solar generation projects. State of the art PACE programs are up and running in California for commercial and residential properties, and in Connecticut and Ohio for commercial properties. Texas and New Jersey are expected to also launch programs in coming months. Later this year, Hawaii is expected to start the country’s first open-source OBR program that EDF helped design. Read More »

Posted in California, Clean Energy, Climate, Energy Financing, Investor Confidence Project, On-bill repayment, Renewable Energy, Utility Business Models / Tagged Hawaii, PACE | Read 1 Response

Can New York Beat California in the Clean Energy Race?

By Rory Christian / Published: August 7, 2014

Source: Martineric/Flickr

This post was adapted from an op-ed piece published in Morning Consult.

New York doesn’t have California’s sunshine or Texas’ wind. But it has a vision and willpower that is quickly turning the Empire State into a leader for clean energy solutions.

In the year and a half since the devastating impact of Hurricane Sandy, New York Gov. Cuomo has appointed strong leadership and devoted large-scale investment to develop a resilient energy infrastructure that can withstand the extreme weather events brought on by climate change.

And the state is now digging into a major evaluation of how energy is produced, distributed, and priced – while ramping up funding for renewable energy. Read More »

Posted in Clean Energy, Energy Financing, New York, Renewable Energy / Read 1 Response

EPA Refinery Standards and California Carbon Limits Can Solve the Puzzle of Refinery Pollution

By Tim O'Connor / Published: August 5, 2014

By Tim O’Connor with Larissa Koehler and Jorge Madrid

EPA recently proposed a final pollution reduction rule for refineries that will help cut toxic air emissions and improve monitoring at the nation’s largest industrial facilities. This new rule is an important complement to the state level carbon and air pollution limits we have in California, and together will make our state cleaner, healthier, and more prosperous.

Source: flickr/Jason Holmberg, Richmond, CA

Any doctor will tell you that to fight the toughest diseases you often need a combination of treatment options. The clean air laws we have in California are an indispensable part of the cure for our air pollution problems. But to be fully effective, they need complementary policies from Washington.

Central to the challenge is the fact that large refineries are all too often found in disadvantaged communities – and release greenhouse gases, carcinogens, neurotoxins, and hazardous metals. Even though our state has been regulating refineries for decades, millions of Californians are still exposed to dirty, dangerous air. The puzzle of how to protect our communities is still missing pieces.

What is needed is direct federal attention to oil refineries. With an EPA standard that is based on the most up-to-date pollution control technology and a new health impact analysis, we can cut pollution and ensure the communities living next to refineries have healthier air and more information about what they’re breathing. Read More »

Posted in General / Comments are closed

The Chance for Demand Response to Thrive in California All Hinges on One Vote

By Michael Panfil / Published: August 5, 2014

By: Michael Panfil, attorney for EDF’s US Climate and Energy Program, and Jamie Fine, senior economist for EDF’s Clean Energy Program

Demand response encourages customers to shift their energy use to times of day when there is less demand on the power grid or when more renewable energy is abundant. It is an invaluable component of the smart grid that improves air quality, enhances electric grid reliability, and helps utilities, homes, and businesses financially benefit from conserving electricity.

Yesterday, a diverse group of organizations submitted an important and far-reaching settlement agreement on the future of demand response in California to the California Public Utilities Commission (Commission) for its approval. The settling parties – including EDF, California investor-owned utilities, California Independent System Operator (CAISO), consumer groups, and others – recommend, for the first time, a path to properly value, realize, and account for demand response. If approved, these changes have the potential to increase the role of demand response in meeting California’s energy demands, reducing hazardous air pollution, and more efficiently operating the state’s electrical grid. Read More »

Posted in California, Clean Energy, Demand Response, Grid Modernization / Comments are closed

What We Can Do to Ensure Solar Panels Work During the Next Sandy

By Mina Berkow / Published: August 4, 2014

Source: Lewis Clarke

New Jersey is a national leader in solar power. With close to 1,300 MW of solar energy currently installed, the state ranks third in the country in solar capacity.

A commitment to photovoltaic (PV) technology has helped New Jersey reduce carbon emissions, create jobs, and lower electricity bills. Yet despite its impressive track record in New Jersey, distributed solar PV proved vulnerable when it was most needed – during an historic electricity outage in the wake of Superstorm Sandy. With another hurricane season upon us, it’s a good time to look at ways solar can be utilized when the grid fails.

An unfortunate reality

When Superstorm Sandy hit, residential and commercial PV owners were frustrated upon realizing that their solar panels were rendered useless without a functioning central grid, even when the sun was shining brightly. Read More »

Posted in Clean Energy, Grid Modernization, New Jersey, Renewable Energy / Comments are closed