Energy Exchange

Innovative Strategies for Utilities in the Face of Increased On-Site, Distributed Generation

By Brad Copithorne / Published: January 22, 2014

Last year, the trade association for the utility industry, the Edison Electric Institute (EEI), published a whitepaper on the disruptive challenges facing the utility industry. In summary, EEI’s thesis was that the existing utility business model (centralized, fossil-fuel based generation) is under threat from on-site, distributed generation as more customers switch to cleaner, and often cheaper, solar power. The white paper poses an important question: How can utilities acquire the revenue needed to keep the electric grid humming and provide reliable power to all customers if a growing number of people are producing their own electricity?

In business, one of the most difficult problems that companies face is how to adapt a successful business model to technological or social changes that threaten that business model. Wang, Unisys, DEC and Amdahl were all big computer companies in the 1970’s that clung to an obsolete business model in the face of distributed computing. IBM and HP, on the other hand, adapted their business models and generally thrived.

Over the past year, we have seen several utilities tackling this challenge head-on by investing in distributed, renewable energy projects. In September, I wrote about how NextEra and NRG were voluntarily developing solar investments and how Direct Energy and Viridian were investing in solar installations developed by SolarCity. Read More »

Also posted in Demand Response, On-bill repayment, Renewable Energy / Tagged Clean Energy, Hawaii, Utility Business Models | Read 3 Responses

New York Public Service Commission Signals Big Changes to Prioritize Clean Energy

By Elizabeth B. Stein / Published: January 17, 2014

In the last week of December, the New York Public Service Commission issued an Order that signals big changes coming soon to New York’s electric utility landscape. The Commission made it clear that it wants clean energy resources, including on-site, distributed power generation (such as solar PV), energy efficiency and energy load management strategies, to play a central role in how the energy system brings value to customers. In contrast to the peripheral role clean energy resources have played in the past, the Commission is now ready to make them a priority, signaling a willingness to transform the regulatory landscape.

The Order was one of a trilogy arising from three intertwined proceedings, all of which were considered by the Commission on December 19, 2013. One of those three – perhaps the most concrete and immediate – was a proceeding concerning the initial capitalization of New York’s Green Bank, a new entity that aims to advance clean energy funding in New York State. That proceeding addresses a proposal to leverage ratepayer funds and private investment to systematically address market barriers to private financing of distributed generation, energy efficiency and demand management projects, with an ultimate goal of building a clean energy marketplace that can stand on its own. The other related proceedings concerned two New York State programs that draw on the same funding sources that are now being made available for the initial capitalization of the Green Bank: New York’s Renewable Portfolio Standard (RPS) and the Energy Efficiency Portfolio Standard (EEPS).

This Order concerns various proposals to improve and streamline the EEPS programs. Some of these changes are effective immediately, such as the elimination of duplicative reporting requirements. Other, more substantive program modifications – such as the changes to the structure of EEPS and other clean energy programs, as well as the responsibilities of various entities (including the Commission’s Staff, the New York State Energy Research and Development Authority (NYSERDA) and the utilities themselves) – are to be addressed through a new “E² working group,” which is to be formed by February 1, 2014. This new working group is tasked with “sharing and developing concepts for an optimized E² portfolio that supports a scale-up of energy efficiency and overall system efficiency,” for a program launch by the end of 2015. Read More »

Also posted in Energy Efficiency, New York, Renewable Energy / Tagged Green Bank | Read 1 Response

Google Partners with Nest in Race to be Your Smart Home Provider

By Marita Mirzatuny / Published: January 15, 2014

On Monday, Google announced it is spending $3.2 billion to buy Nest Labs, the trailblazing company funded through its Google Ventures program and responsible for transforming “unloved” home products into beautiful, smart appliances. That’s a lot of money for a business with only two products: a thermostat and a smoke detector. Nest is not exactly reinventing the wheel, right? Well, actually they are.

Welcome to the Smart Home

Google’s move is a starting shot in the race to become the go-to smart home provider, putting in place stepping stones to realizing a future in which our homes will become one ecosystem – integrated and functioning as a whole. Customers are looking for smart appliances that can notify you when they are wasting energy or not performing properly. Plus, these innovative technologies provide customers with more opportunities to engage with and benefit from other cost- and energy-saving solutions, like demand response, rooftop solar power and electric vehicles. This puts customers in the driver seat, giving them insight and control over their daily lives in ways never before imagined (even if just to use automated, “set-it-and-forget-it” functionality).

The Nest thermostat learns household behaviors and habits and sets temperatures at the optimal comfort and energy-saving level accordingly. Nest also enables residents to control their electricity remotely and provides the interface needed to participate in demand response, an energy management program that rewards participants for conserving energy during peak, or “rush hour,” times on the electric grid. Read More »

Also posted in Renewable Energy / Tagged Google, Nest | Comments are closed

We Can’t Expect a Reliable Energy Future Without Talking Water

By Kate Zerrenner / Published: January 14, 2014

This commentary originally appeared on our EDF Voices blog.

It’s no secret that electricity generation requires substantial amounts of water, and different energy sources require varying amounts of water. Nor is it a surprise that Texas and other areas in the West and Southwest are in the midst of a persistent drought. Given these realities, it is surprising that water scarcity is largely absent from the debate over which energy sources are going to be the most reliable in our energy future.

Recent media coverage has been quick to pin the challenge of reliability as one that only applies to renewables. The logic goes something like this: if the sun doesn’t shine or the wind doesn’t blow, we won’t have electricity, making these energy sources unreliable. But if we don’t have reliable access to abundant water resources to produce, move and manage energy that comes from water-intensive energy resources like fossil fuels, this argument against the intermittency of renewables becomes moot.

Moving forward into an uncertain energy future, the water intensity of a particular electricity source should be taken into consideration as a matter of course. Read More »

Also posted in Climate, Energy-Water Nexus, Renewable Energy, Texas / Tagged Energy-Water Nexus | Comments are closed

Governor Cuomo Announces $40 Million in Post-Sandy Microgrid Competition

By Rory Christian / Published: January 14, 2014

Since Superstorm Sandy stranded thousands without power across the state of New York in 2012, it has become clear that infrastructure upgrades are a necessity for the state. The current, outdated energy system is not up to the challenges of the present day and a changing climate. A year after Sandy, New York has a plan. Last week during his State of the State Address, Governor Cuomo announced the allocation of $40 million to the new Community Grids NYPrize Competition, a program which promises to help New York achieve a more sustainable, resilient energy future.

The competition, aimed at jump-starting at least ten “independent, community-based electric distributions systems” across the state by the end of 2014, is a highlight of a larger $17 billion plan to prepare for future storms like Sandy. Upon full implementation, the NYPrize Competition Community Grids are expected to support approximately 40,000 New York residents.

A “community microgrid” is a new type of energy system that leverages decentralized, local, clean power sources such as solar and wind that are able to operate independently of the centralized electric system. Microgrids are small-scale distribution systems that link multiple distributed energy resources (DERs) into a network that can generate, store and control its own power. Microgrids can operate in tandem with the main power grid during normal conditions, but can disconnect and function as an independent “island” of stable power if the main grid fails. The use of microgrids greatly reduces the number of outages and allows more people to keep their lights on during (and in the wake of) extreme weather events. Read More »

Also posted in Demand Response, New York / Tagged Clean Energy, Energy Efficiency | Read 1 Response

New Sustainable FERC Website Charts Progress to Clean, Low-Carbon Energy

By Elizabeth B. Stein / Published: December 18, 2013

The Sustainable FERC Project, a coalition of environmental and clean energy organizations, launched its new website today: www.sustainableFERC.org. The site will inform the public and policymakers about the coalition’s efforts to increase the amount of clean, low-carbon energy powering the nation’s electric grid, which focus on the Federal Energy Regulatory Commission (FERC) and the regional entities regulated by FERC.

FERC is a federal agency whose activities include regulation of transmission and wholesale sales of electricity in interstate commerce. Working on behalf of its coalition partners, the Sustainable FERC Project develops and advocates for federal policies and regional implementation and practices that will give rise to a cleaner, more efficient energy system. The coalition’s top priorities include removing the barriers to getting clean energy on the transmission grid, maximizing the use of energy efficiency in planning and facilitating a transition to a cleaner energy future.

Source – Windpower Engineering Development

EDF’s work as a member of the Sustainable FERC Project coalition complements our own Smart Power Initiative, which is working, primarily through state-level advocacy, to change the trajectory of the U.S. electricity system to help avoid dangerous climate change through smart power policies and clean energy investments. The Smart Power Initiative focuses on ensuring that the right state policies are in place to allow for better integration of clean energy resources into the power grid.

Optimizing the environmental performance of the U.S. electric grid – which is sometimes called the “largest machine on the planet” – requires environmentally-sound policies and practices at all levels to drive system planning and operation. The new website (www.SustainableFERC.org) will feature issue analysis, coalition comments filed with FERC and regional grid organizations and links to blogs written by representatives from the coalition. It should become a go-to site for those wanting to deepen their understanding of environmentally-important smart grid developments in the federally-regulated portions of the U.S. electric system.

Also posted in Energy Efficiency / Tagged Clean Energy, Electric Grid, FERC | Comments are closed