Energy Exchange

Utility 2.0: NY’s New Business Model Should Properly Value the Costs and Benefits of Distributed Energy Resources

Source: AtisSun

Source: AtisSun

As we’ve mentioned before, New York is changing how it evaluates and compensates electric utilities. One goal of this change is increased consumer engagement, which makes customers allies in the development of a more reliable, resilient, and ‘smart’ electric grid.

Many customers have begun taking advantage of new energy technologies and their falling prices by turning to community microgrids, installing on-site distributed generation, like rooftop solar, or investing in more efficient appliances, among other actions. Advances in telecommunications and information systems have also created new opportunities for energy services we could not have imagined just a few years ago. For example, innovative tools like demand response allow third parties or utilities to turn off pre-approved appliances – like swimming pool pumps and air conditioners – remotely when the power grid is stressed and needs a quick reduction in energy demand. Read More »

Also posted in Clean Energy, Grid Modernization, New York, Renewable Energy, Utility Business Models / Tagged | Comments are closed

The Solution to Accurate Energy Data May Be Closer Than We Think

By: Karan Gupta, student at Duke University’s Nicholas School of the Environment

karan guptaAs Lord Kelvin famously said, “If you cannot measure it, you cannot improve it.” Here at 77 West Wacker, despite extensive metering relative to comparable buildings, we have found a lack of visibility into energy consumption data is one of the greatest barriers to implementing energy conservation measures (ECMs).

The need for detailed energy consumption data

Ideally, building equipment and tenants should be sub-metered. It might be overkill to meter every individual piece of equipment, but if all supply fans, or all water pumps, or all chillers were grouped on a single meter, understanding building behavior would be greatly simplified. Tenants, on the other hand, are sub-metered. The issue is that building management and operations do not always have access to that data because tenant consent is required to view tenant usage data. Unfortunately, a consent form does not exist in our service area to allow that. The way tenants are currently billed assumes equal energy use on a square footage basis, and therefore, does nothing to promote energy efficiency. Knowing exactly how many kilowatt-hours are used by each tenant each month would allow building management to accurately bill those tenants, thereby incentivizing conservation on their part to reduce operating costs. As building managers around the country are charged with making their buildings more efficient, they will need the tools to do so. Read More »

Posted in Energy Efficiency / Comments are closed

Upholding FERC Order 1000 Unlocks Efficiency and Spurs Clean Energy Solutions

Source: BranderGuard Flickr

Source: BranderGuard Flickr

Late last week, the D.C. Circuit Court of Appeals affirmed an important Federal Energy Regulatory Commission (FERC) Order, giving the agency a big win and aiding in the promise of a cleaner, smarter, and more efficient power grid.

By upholding FERC’s Order 1000, the court confirmed what many think is common sense: Because the power grid crosses state and utility boundaries, a coordinated planning approach to electricity transmission (that is, moving electricity from one place to another) is more efficient and cost effective than multiple entities planning in isolation.

Order 1000 opens the door for two big electrical grid improvements. First, the order helps spur a more efficient planning process, meaning less waste and better coordination in our energy system. Second, the order allows greater opportunity for clean energy resources like demand response, energy efficiency, and renewables. It does this, in large part, by ensuring that state policies like renewable portfolio standards are taken into account. Relying on more clean energy resources will improve air quality and the health of millions of Americans now harmed by dangerous air pollution while advancing our country’s energy independence and economic growth. Read More »

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

Utility 2.0: NY Utility Regulators Should Consider Change to “Formula for Success”

Source: Daniel Schwen, Wikimedia Commons

Source: Daniel Schwen, Wikimedia Commons

Acquire more customers, sell more electricity. This primary formula has fueled the runaway success of utility companies in America, as well as the rest of the world, for well over a hundred years.

But today, in an era when customers are technologically savvy, price conscious, and environmentally aware, more families are pursuing opportunities that will cut electricity bills and carbon emissions. Options once considered fringe, like installing rooftop solar panels and driving electric cars, are now becoming so mainstream that utilities everywhere are seeing their bottom lines crunched and even fear for their survival. The electricity sector needs a new formula that can account for these changes, while still providing reliable, safe, and affordable electricity for all.

As a result of increased energy efficiency and heavier reliance on local, distributed energy resources, it’s clear our country is moving toward a reality in which less electricity will come from centralized, fossil fuel power plants. At the same time, customers want utilities to continue providing basic electricity services while allowing them to benefit from new energy-efficient solutions and clean technologies in order to waste less electricity and generate our own power.

How will this be possible? A key first step is moving away from the existing regulatory paradigm, which rewards utilities for investing in more power stations and equipment, to a model that rewards utilities for the performance we seek today. Read More »

Also posted in Clean Energy, Grid Modernization, New York, Renewable Energy, Utility Business Models / Tagged | Read 9 Responses

EPA’s State-by-State Carbon Limits Indicate Smart Policy, Not Arbitrary Rulemaking

EDF_FB_renewableEnergy_solar (1)In June, U.S. Environmental Protection Agency (EPA) announced – for the first time ever – standards to limit carbon emissions from U.S. power plants, known as the Clean Power Plan (CPP). Currently power plants emit 40 percent of U.S. carbon emissions, but under the proposed Clean Power Plan, the U.S. power sector will cut carbon pollution by 30 percent below 2005 levels.

Since this announcement, the usual suspects have attacked the CPP, calling its proposed state-by-state reduction standards arbitrary. Their claims couldn’t be further from reality. When EPA asked states for feedback on how to best craft this standard, states asked for two things: individual standards and flexibility. And that’s what they got. Anyone familiar with the proposed standards will know they are based on a consistent and objective methodology that takes into account each state’s unique energy portfolio and emissions, as well as built with maximum flexibility in mind.

At first glance, the climate-change-denying crowd dismissed the standards as arbitrary, because the limits vary from state to state. For example, Washington needs to reduce its emissions rate by 72 percent by 2030, while Kentucky only needs to cut its emissions rate by 18 percent over the same period. Texas lies somewhere in the middle with a 39 percent reduction required. So what gives? Read More »

Also posted in Clean Energy, Climate, Demand Response, Renewable Energy / Tagged | Comments are closed

Can I Do This Again Next Year Please? My Fellowship at Fort Bragg

fortbragg

By: Farris Galyon, Climate Corps Fellow

I do not want to brag, but the U.S. Army engagement at Fort Bragg is the best in EDF Climate Corps. I apologize for the bombastic tone of this statement; however, when I consider the opportunities afforded to me during my time here, it is hard for me to imagine a comparable experience anywhere else. I base my assertion on three particular characteristics of this engagement: 1) the unlimited learning opportunity, 2) the opportunity to add value in multiple areas and 3) the opportunity to meet high profile and multi-talented individuals.

Unlimited Learning Opportunity

Upon my arrival to the energy office at Fort Bragg, I met a team of nine individuals comprised of several engineers with 25-40 years of experience, a former employee of a private utilities company and a dual master’s degree holder currently pursuing her M.S. in global energy management. Suffice it to say, I was the least experienced person in the room. It did not take long for me to realize that my ability to identify efficiency/conservation opportunities they had not already considered was limited. My first response to this reality was to be disconcerted; how would I fulfill my obligation to EDF and the Army without possessing any experiential or academic advantage over this exceptional team? Fortunately for me, this fact would prove beneficial to me rather than detrimental. While the overview offered during EDF Climate Corps training was informative, my full immersion into this work environment proved to be downright educational. Thanks to the energy team’s expertise, I was presented with superb demonstrations on evaluating energy project viability. It was this team’s willingness and ability to teach that presented me with my chance to add value. Read More »

Also posted in Clean Energy / Comments are closed