Energy Exchange

A Smart Approach To Smart Meters

By John Finnigan / Published: September 4, 2013

A new documentary about smart meters opens on September 5^th called Take Back Your Power. The film suggests that smart meters cause illness. According to an August 12 USA Today story, the film’s director was inspired by a friend who became seriously ill after a smart meter was installed at his home. Naturally, this type of personal experience might shape one’s view on smart meters, but correlation is not causation.

Electric utilities have installed over 38 million smart meters across the country and there “has never been a documented injury or health problem associated with such meters.” According to the Federal Communication Commission (FCC), “no scientific evidence establishes a causal link between wireless device use and cancer or other illnesses.”

Smart meters send information to utilities by using radio frequencies (RFs) such as those currently used by televisions, radios, baby monitors, cell phones and wifi routers. RF signals have permeated our atmosphere for as long as we’ve had televisions and radios.

We use these devices every day, and many of them create much higher levels of RF exposure than smart meters. The exposure level depends on the strength of the RF signal emitted by the device, the duration of the RF signal and—importantly— the distance from the source. Cell phones emit up to several thousand times more RF signals than smart meters. Smart meters also transmit intermittently and briefly during the day, while we talk on cell phones for long periods. Finally, smart meters are located outside the home, while cell phones are often used close to one’s head.

Posted in Grid Modernization / Tagged Clean Energy, Smart Grid, Smart Meters, Utility Business Models | Read 25 Responses

U.S. Electric Grid Under Cyber-Attack

By John Finnigan / Published: August 20, 2013

If Ben Franklin lived today, he might say that nothing is certain but death, taxes and cyber-attacks. Cyber-attacks occur when individuals or groups hack into another group’s computer information systems to steal, alter or damage key infrastructure. Our nation’s electric grid is under constant attack according to a survey of electric utilities by U.S. House Representatives Henry Waxman and (now) Senator Edward Markey. The grid was the greatest engineering achievement of the 20^th Century, but cybersecurity was equally unknown to those grid engineers as it was to Ben Franklin. We need to do more to protect our energy infrastructure.

The U.S. has finally called out China for repeated and pervasive cyber-attacks. Mandiant, a cybersecurity firm, released an alarming report in February 2013 regarding the ongoing cyber-attacks by the Chinese army. James Clapper, the Director of National Intelligence, described cyber-attacks as a soft war already underway and a dire global threat in his April 2013 World Threat Assessment to the U.S. House Permanent Select Committee on Intelligence. In May of this year, for the first time, the Pentagon’s annual report to Congress on the Chinese military openly accused China’s military of repeated cyber-attacks on the U.S. government and defense contractors.

Cyber-attacks are underway not only by China, but also by Iran, Russia, Al-Queda, organized crime, industrial spies, ex-utility employees and rogue hackers. The U.S. Department of Homeland Security investigated over 200 serious cyber-attacks against critical infrastructure during the first half of 2013. The electric grid was targeted in over half of these attacks. At the recent Black Hat security conference in Las Vegas, Cyrill Brunschwiler of Compass Security explained how the smart grid’s wireless network can be easily exploited to steal electricity and to cause massive blackouts. Though innovation and new clean energy technologies are key to modernizing our antiquated energy system, the electric grid is more vulnerable to cyber-attacks with increased use of smartphones, tablets, mobile apps and electric vehicles to connect with our home electronic devices. A July 2012 report by the Government Accountability Office (GAO) outlines the various threats to the electric grid.

Posted in Grid Modernization, Utility Business Models / Tagged Cybersecurity, Electric Grid | Read 1 Response

Big-Box Retailers Turn To Solar, How Can Electric Utilities Adapt?

By John Finnigan / Published: August 9, 2013

Source: Costco

The electric utility industry faces the risk of declining revenues as more customers install solar panels on their homes and businesses. Solar power currently supplies 2% of the country’s electricity needs, and is projected to grow to 16% by 2020. In 2013, solar panel prices for commercial installations fell 15.6%, from $4.64/watt to $3.92/watt. To protect their revenues, some utilities are raising electricity costs for solar panel owners – but with mixed results. Credit ratings agencies are also expressing concern. Is there real cause for alarm or are these companies crying wolf? Judging by one customer segment – big-box retailers – the threat is real.

The Solar Energy Industries Association (SEIA) ranks U.S. companies based on their solar energy capacity, and the top five companies on the list are big-box retailers:

Walmart tops SEIA’s list with 65,000 kW of solar power, which is enough to supply the annual energy needs of over 10,000 homes. They recently installed ten new solar rooftop systems in Maryland, totaling more than 13,000 panels. Walmart is the largest retailer in the U.S. and in the world by revenue, with 4,423 U.S. stores and over 10,000 stores worldwide. Walmart and EDF have been working together since 2004 to reduce the Walmart’s environmental footprint. With more than 200 solar installations across the country, Walmart plans to have 1,000 solar installations by 2020. Walmart’s goal is to eventually supply 100% of its energy needs with renewable energy.

Posted in Renewable Energy, Utility Business Models / Tagged Electric Grid, Solar, Utility Business Models | Read 1 Response

West Texas Electricity Prices Skyrocket – Demand Response Is The Answer

By John Finnigan / Published: July 31, 2013

Source: ENR New York

The Wall Street Journal recently reported that electricity prices in West Texas skyrocketed over 20% this year. West Texas is home to the Permian basin, one of the world’s largest oilfields, and energy producers use hydraulic fracturing, or “fracking,” here to unlock vast new oil and gas supplies. The increased drilling, oil refining and natural gas processing uses large amounts of electricity.

Cheaper electricity supplies are available, but cannot be delivered to West Texas due to transmission bottlenecks, or “congestion.” The only power that can be delivered is from older coal plants. This leads to transmission “congestion” charges (i.e., higher energy supply costs caused by the transmission bottlenecks), which commercial and industrial consumers must pay as a surcharge on their monthly electricity bills. Using these older coal plants leads to more pollution as well because these plants burn fuel less efficiently and have higher levels of toxic air emissions.

The typical solution is to build new transmission lines to access cheaper electricity supplies. But a better and cheaper approach is to pay consumers for voluntarily reducing their electricity usage when energy supplies are tight. Known as “demand response,” this solution:

Posted in Demand Response, Texas / Tagged Demand Response, Electricity, energy, texas | Comments are closed

Maryland’s Governor O’Malley Leads The Way On Climate And Clean Energy Policy

By John Finnigan / Published: July 29, 2013

Maryland Governor Martin O’Malley continues to lead the way on climate and clean energy policy. On Thursday, he unveiled Maryland’s new Greenhouse Gas Emissions Reduction Act (GGRA) Plan. Gov. O’Malley’s plan raises the targets for renewable energy, energy efficiency and peak energy demand reduction, while re-affirming Maryland’s membership in the Northeast Regional Greenhouse Gas Initiative (RGGI). The plan adds new climate programs relating to transportation and forestry, and a new aspirational goal to make Maryland a zero-waste state.

Maryland is particularly vulnerable to climate change with 3,000 miles of shoreline along scenic Chesapeake Bay. The state ranks 42^nd in total area, but 10^th in coastline area. Gov. O’Malley has addressed climate change since his early days in office. In 2007, he established the Maryland Climate Change Commission to address the causes and effects of climate change in Maryland and develop an action plan. The Maryland Climate Action Plan (Plan) was issued in August 2008, and Gov. O’Malley has labored diligently to implement the plan since that time.

The new Plan calls for increasing the renewable energy portfolio standard from 20% to 25% by 2022, as well as the energy efficiency and peak demand reduction targets (with the new, higher targets to be announced at a later date). Like a true leader, Gov. O’Malley aims high and is unafraid to be different. His call to raise these clean energy standards comes at a time when some states have been unsuccessfully pressured by the fossil-fuel industry to consider lowering their clean energy standards.

Posted in Climate, Renewable Energy / Tagged Clean Energy, Climate, Energy Efficiency, Energy Policy | Comments are closed

Net Metering And Rooftop Solar For The Utility Of The Future

By John Finnigan / Published: July 24, 2013

Like the tide washing upon the shore, new technologies are gradually eroding electric utility revenues. These new products enable consumers to use cleaner energy and use it more efficiently. Electric utilities worry this trend will ravage their industry just as wireless technology convulsed the telecommunications industry. The utility industry urges its members to stem the tide by, among other things, increasing consumers’ net metering costs.

Net metering makes small-scale renewable energy, such as rooftop solar panels, more affordable by crediting the “distributed generation” owners for the excess energy they produce. The electric meter measures how much electricity flows back to the grid from the distributed generation unit. A corresponding credit is applied to the consumer’s monthly energy bill. The Energy Policy Act of 2005 requires public utilities to offer net metering to all consumers upon request.

Why the new focus on net metering? The cost for rooftop solar panels has fallen 80% since 2008, including 20% in 2012 alone. Installed rooftop solar energy has increased by 900% between 2000 and 2011. As consumers install more rooftop solar panels and net meter them, utility revenues will decrease. Read More »

Posted in Renewable Energy, Utility Business Models / Tagged Net metering, Solar, Utility Business Models | Comments are closed