Energy Exchange

Gigafactory Proves that Tesla is Ahead of the Clean Energy Curve, But Does Texas Stand to Benefit?

By Marita Mirzatuny / Published: March 28, 2014

Elon Musk, Tesla CEO, speaking to Texas Legislature in 2013. Source: Texas Public Radio.

Disruptive technologies tend to follow a certain trajectory. First, they are outliers, often ignored, and typically on the cusp of never entering the market. But, for the successful ones, a tipping point is ultimately reached, after which the technology goes viral and changes the status quo it was designed to replace. In the new energy revolution, Tesla is one such company that has surpassed the tipping point and threatens to change the way we produce, distribute, and consume electricity.

It isn’t just Tesla’s sleek and beautiful electric vehicles that will be key to disrupting the status quo. At a current price point of around $80,000, most people en masse won’t be able to afford a Tesla, even though the company has plans to develop more affordable models. But what makes Tesla unique, besides the strange genius of CEO Elon Musk, is the potential diversification of its offerings, highlighted recently by the company’s announcement to build the GigaFactory, a $5-billion battery factory that will employ 6,500 workers.

Set to open in about three years, the new GigaFactory will be large enough to manufacture more lithium-ion batteries than the entire industry produces now, and due to its sheer scale, is expected to reduce the cost of batteries by almost one-third. Read More »

Final Order from NYPSC on Con Edison Rate Case Reveals Especially Encouraging Language on Climate Change Directives

By EDF Blogs / Published: February 27, 2014

By: Elizabeth B. Stein, Attorney and Adam Peltz, Attorney

Source: Iwan Baan

In Tuesday’s blog post, we discussed the recently concluded Con Edison rate case, its context, and its significance in advancing clean energy and grid resilience in New York. Today, we take a closer look at the final Order posted last Friday by the New York State Public Service Commission (the Commission) to uncover some of the more encouraging outcomes buried in this 300+ page document:

Con Edison agreed to various measures that allow for more distributed generation, i.e. on-site power generation, such as combined heat and power, rather than relying solely on power generation and distribution from the traditional, centralized grid. For example, Con Edison agreed to pay for some fault current mitigation, which enables distributed generation to be connected to portions of Con Edison’s grid where it would otherwise be prohibited, and agreed to develop an implementation plan for a microgrid pilot. Additionally, Con Edison agreed to treat customer-sited projects, including distributed generation, as integral parts of its system by considering them in its 24-month planning horizon. Because some distributed generation can operate in an ‘islanded’ mode, or separate from the main grid, and can thus continue operating in a power outage, distributed generation can play a critical role in improving resilience. Read More »

Also posted in Air Quality, Clean Energy, Electricity Pricing, Grid Modernization, Methane, Natural Gas, New York, Renewable Energy, Utility Business Models / Comments are closed

How Electric Vehicles are Strengthening the Texas Power Grid and Improving Air Quality

By Marita Mirzatuny / Published: February 6, 2014

This commentary originally appeared on our Texas Clean Air Matters Blog.

San Antonio’s Southwest Research Institute (SwRI) brings Texas the latest example of an intelligent, demand-side resource that can play an active role in the power grid and offset the use of fossil-fuel power plants. Late last month, SwRI announced that its innovative vehicle-to-grid system got the green light from the Electric Reliability Council of Texas (ERCOT), the grid operator, to participate in the state’s electricity market. This system is able to control the charging and discharging for a fleet of electric delivery trucks, meaning that when the supply of electricity struggles to meet demand, the intelligent vehicle charging system can simply stop charging (thus lowering demand). This technology will significantly increase grid reliability, thanks to its quick response time, and effectively deter the need for firing up another dirty power plant.

In order to avoid a blackout, the supply of electricity to the power grid must equal the electric demand from customers. Conventionally, this balance is maintained by power plants that remain on stand-by, ready to respond at a moment’s notice. Every hour of the day, ERCOT precisely controls these power plants to keep the grid balanced. In the process, a power plant has to rapidly increase or decrease its power output, which decreases its efficiency and increases its carbon and pollution footprint, much like an a car revving its engine. Read More »

Also posted in Clean Energy, Demand Response, Grid Modernization / Tagged Energy Storage | Comments are closed

Pecan Street’s Study Shows Electric Vehicles Won’t Overload the Electric Grid

By Marita Mirzatuny / Published: November 18, 2013

Source: Pecan Street Inc.

Over the past few years, we’ve seen some of the world’s largest automakers release their first mass-market electric vehicles. Models like the Chevrolet Volt, Nissan Leaf and Tesla Model S are popular with consumers looking to reduce their carbon footprint and spend less at the pump. But the vehicles’ rising popularity has raised concerns about the effect they might have on the electric grid, particularly during the hot summer months in Texas.

Electric vehicles are the largest new home electric load in decades. Some suspected that drivers, upon returning home from work, would charge their vehicles during the evening hours (a ‘rush-hour’ time for the wires that carry our energy, which strains the electric grid). They thought that the increased need for energy would overwhelm the electric system, possibly force utilities to fire up more dirty fossil fuel power plants and offset any potential environmental benefits of the gasoline-free car. Thankfully, this line of thinking is now an idea of the past.

A recent report from Pecan Street proves that electric vehicles have less of an impact on the electric grid than anticipated. Read More »

Also posted in Grid Modernization, Texas / Tagged Pecan Street | Read 3 Responses

Seeing Green: Emission Reducing Fuel Policies Help Lower Gas Prices

By Tim O'Connor / Published: September 5, 2013

This commentary originally appeared on EDF’s California Dream 2.0 blog.

By: Tim O’Connor and Shira Silver

Californians struggling with high gas prices should feel optimistic about the future. A new memo by economists from EDF and Chuck Mason, a prominent economist at the University of Wyoming, demonstrates that policies established to reduce emissions and help the state reach its climate change goals also help to arm consumers at the pump.

The Low Carbon Fuel Standard, cap and trade, and other complementary policies such as Governor Brown’s Zero Emission Vehicle program and national Renewable Portfolio Standards seek to integrate lower or zero-carbon fuels into the energy market in an effort to reduce greenhouse gas pollution.

As our memo explains, in California these efforts also help to increase the market share for alternative, lower-carbon fuels. Between now and 2020, alternatives may grow to occupy between 15 and 24 percent of the market, creating new jobs and addressing the large market share that oil companies have in California.

Currently six oil companies control 94 percent of the fuels market in California. Through a set of mergers and other factors they have developed a strong lock on fuel in the state, and more specifically on consumers’ pocketbooks at the pump.

Also posted in California / Tagged California, emissions, EV | Comments are closed

Auto dealers vs. Tesla: Why the market will decide

By Brad Copithorne / Published: August 29, 2013

This commentary originally appeared on EDF’s Voices blog.

Source: jurvetson/Flickr

The European Union, the United Kingdom, Australia and the State of California have all set ambitious targets to reduce greenhouse gas emissions 80% by 2050. Given that a large share of global greenhouse gas emissions comes from transportation (including 29% of U.S. emissions), it will be very tough to meet this goal without “decarbonizing” our cars and trucks.

The most obvious solution is electric vehicles (EVs) charged by clean energy sources like solar or wind. While several startup EV companies – including Fisker, Coda and Better Place – have struggled, the Tesla car company seems to be succeeding. At least that’s the current view of the markets: Tesla shares have more than tripled since March and in May the company raised almost $1 billion in new capital.

Also posted in California / Tagged EV, Tesla | Comments are closed