Energy Exchange

A Future Of Hotter Summers Will Stress Energy And Water In Texas

This commentary originally appeared on EDF’s Texas Clean Air Matters blog.

With Labor Day behind us, Texans can look forward to a welcome respite from the hundred-degree days of August. The pending arrival of fall may signal milder temperatures for now, but the latest report from John Nielson-Gammon, Texas’ state climatologist, tells a different story about Texas’ long-term climate trend. The study released last month indicates that peak summer temperatures may increase by up to five degrees by 2060. What we once thought of as a unique heat wave (think back to 2011) are likely to become the new normal, and will eventually – according to Nielson-Gammon – be replaced by even hotter temperatures.

At the same time, increasing temperatures would place further severe stress on the state’s energy and water systems. Texas’ recent extreme summers have already plunged much of the state into drought. The latest data released by the U.S. Drought Monitor predict water emergencies could occur in at least nine U.S. cities—five of which are in Texas. And experts expect the drought will persist for years to come as climate change intensifies.

Texas lawmakers must take these grim projections into account as they plan the state’s energy and water futures. Some Texas decision makers are already calling for more fossil-fuel power plants to cover the need for more power (to run all those air conditioners) in light of 2011’s historic summer highs, which will emit more carbon pollution into the air and add to the warming. These same Texas lawmakers insist we should keep our heads in the sand, ignore the mounting evidence pointing to a new climate normal and do nothing to alleviate or adapt to the problem. Read More »

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A State Race To Save Energy

Earlier this year, the Alliance Commission on National Energy Efficiency Policy unveiled a plan to double nationwide energy productivity by 2030.  It’s an ambitious move to greatly increase our nation’s use of energy efficiency, which represents a huge – and largely untapped – opportunity.  Reducing wasted energy through efficiency cuts harmful pollution and saves people money on their energy bills.  After all, the cheapest, cleanest, most reliable electricity is the electricity we don’t have to use.

Source: Church Times

Similarly, the State Energy Race to the Top Initiative (Initiative) is an incentive for states to make voluntary progress to increase their energy productivity. The U.S. Senate is moving forward to make this idea a reality.  Originally introduced as a bill in June, the Initiative has now been filed as a potential amendment, sponsored by Senators Mark Warner (D-VA), Joe Manchin (D-WV), and Jon Tester (D-MT), to the Shaheen-Portman energy efficiency bill.  If passed, the Initiative will stimulate energy innovation in both the public and private sectors, and allow states to tailor energy saving policies to their particular needs.

Administered by the Department of Energy (DOE), the Initiative will be broken into two phases.  In the first phase, following the submission of state proposals through their energy office, DOE selects 25 states to receive funding (a combined $60 million) to move their energy productivity concepts forward.  Although states have complete independence in developing and implementing their own clean energy strategies, the DOE will provide technical assistance upon request.  Eighteen months later, in the second phase, the 25 states will be asked to submit progress reports to DOE.  Based on their projects’ success, DOE will then select up to six states to receive a share of $122 million to continue their energy saving efforts.

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Local Energy-Water Solutions Should Be A Model For The Nation

Over the past several weeks, I’ve written a lot about the intimate and inextricable connection between energy and water. The energy-water nexus involves a number of technologies, environmental factors and stakeholders. Thus, it’s no surprise that water and energy’s fundamental connection has eluded policymakers for so long. With this post, I review the lessons discussed so far, so that policymakers can understand the key issues surrounding the energy-water nexus and what’s at stake if we fail to act now.

The Bottom Line

Conventional electricity sources, like coal, natural gas and nuclear power plants, require an abundance of water — about 190 billion gallons per day. Because the majority of our electricity comes from these sources, high energy use strains the water system and contributes to Texas’ prolonged drought. Coincidentally, extreme drought could force power plants to shut down.

Climate change is having a profound effect on our weather patterns, making extreme heat and drought more common in Texas and throughout the Southwest. If we don’t set the energy-water system on a sustainable course, we risk a compounded problem.

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Austin Energy + Nest: Empowering Texans To Take Control Over Their Own Energy Use And Electric Bills

Source: Nest

If you have been following our Texas Energy Crunch campaign over the last year, you know that demand response (DR) can play a pivotal role in meeting Texas’ energy needs without relying on dirty, inefficient fossil fuels that pollute our air and consume much-needed water.  Simply put, demand response rewards those who reduce electricity use during peak (high energy demand) times, resulting in more money in peoples’ pockets, a more stable and reliable electric grid and less harmful pollution from fossil fuel-fired power plants.

That said, fully harnessing DR in Texas homes has been a bit of a challenge, despite the high electricity prices that result from the scorching summer temperatures.  To understand the issue, it’s important to look at the obstacles emerging technologies often face.  I highlight some of these obstacles in a recent EDF Voices blog and will be diving deeper in future posts.  Namely, the infrastructure to fully enable residential DR adoption isn’t in place, yet.

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Aloha for Clean Energy Finance: A Tale of Two States

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

For over two years, EDF has been working to establish an On-Bill Repayment program in California that would allow property owners to finance energy efficiency or renewable generation projects and repay the obligation through their utility bill.  Since utility bills tend to get paid and the obligation could ‘run with the meter’, defaults are expected to be low, which will improve the availability and reduce the cost of financing.  In May 2012, the California Public Utilities Commission (“CPUC”) agreed with our position and ordered the large utilities in California to develop a program for commercial properties.  EDF estimates that this program could generate $5B of investment over 12 years, which is expected to support 36,000 jobs.

Unfortunately, we are still waiting for the nonresidential OBR pilot in California to be implemented and if the utilities get their way, we may be waiting for close to another full year.  The California utilities appear to be fearful of change, distributed generation, and the impact of reduced demand.  They have employed aggressive tactics with teams of lawyers arguing and re-arguing every potential issue, even after the issues have presumably been settled by the CPUC.

This stands in sharp contrast to what is happening in Hawaii.  On March 25, the Hawaii Public Utilities Commission (“HPUC”) ordered the primary Hawaii utility, Hawaiian Electric Company, (“HECO”) to establish an OBR program for residential and commercial customers.  I just returned from 3 days in Honolulu and it appears that they are working cooperatively to get the program running in the first quarter of 2014.  This timetable of 12 months from HPUC order to implementation is less than half of what we seem to need in California, despite the fact that the Hawaii program covers a much broader range of property types and relies on public as well as private sources of financing.

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Rural Communities Need Extra Support In Light Of Energy And Water Constraints

Source: Winning Communities

Around 20% of the US population lives in an area that is classified as “rural.” The US Census Bureau defines an urban area as a territory with a population of at least 50,000, or a cluster of 2,500 to 50,000 people. Rural is then defined as anything outside of that definition. Rural areas face particular challenges when it comes to energy and water use. For example, utilities are met with higher costs and often find it harder to implement new clean technologies to modernize their energy infrastructure because of the great distances between customers and an irregular patchwork of reliable resources. Besides, many system planners and thought leaders for innovative energy technologies live in urban or suburban areas and may find it harder to relate to the specific challenges of rural settings.

It’s likely that climate change will impact rural communities in different ways than it will urban areas, due to a number of factors including the types of common occupations, poverty levels and demography. Of particular concern is the “climate gap”, which refers to the lower economic and physical adaptability of rural communities.  It will vary based on region, but research indicates that rural communities in the Southeast and Southwest could face particularly dire circumstances due to changes in electricity prices and water scarcity.

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