Energy Exchange

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 »

The U.S. Power Grid’s Cyber War Games

By John Finnigan / Published: October 28, 2013

In the 1983 thriller WarGames, Matthew Broderick plays a teen-age computer geek who unknowingly signs onto a Pentagon computer while hacking into a toy company’s new computer game. Thinking that he’s simply playing a game called Global Thermonuclear Warfare, Broderick launches the game and nearly starts a nuclear war. The North American Electric Reliability Council (NERC) will hold its own war game next month with a simulated attack on the U.S. power grid.

The drill, called GridEx II, will take place on November 13-14 of this year. The participants will include 65 utilities and eight regional transmission organizations, representing most of the nation’s electricity customers. The drill will test how well the electric utility industry and the grid itself respond to physical and cyber attacks.

A NERC Critical Infrastructure Protection Committee (CIPC) working group will begin the drill by sending participants a series of simulated physical and cyber attacks, climaxing in a national security emergency. Participants will then respond and interact with each other, just as they would in a real emergency. The simulation will last 36 hours, and the CIPC working group will evaluate the participants’ responses and provide feedback on how their actions impact the ongoing scenario. After the drill, the working group will analyze the results and prepare a report on lessons learned.

Also posted in Utility Business Models / Tagged Cybersecurity, FERC, NERC, Power Grid | Read 3 Responses

New Jersey Takes Initial Step Toward Modernizing Its Vulnerable Energy Infrastructure

By Mary Barber / Published: October 17, 2013

When Hurricane Sandy barreled through our country’s Northeast nearly a year ago, ravaging coastlines and submerging entire neighborhoods, New Jersey suffered catastrophic effects. The state suffered more than $30 billion in damage, most of it along the Jersey shore, while an estimated 2.6 million households lost power, many of them for weeks. Five days after Sandy hit, a third of New Jersey’s homes and businesses still did not have electricity.

New Jersey Governor Chris Christie immediately sought to restore the state’s most vital infrastructure and was tireless in attracting funds for the relief effort. However, it became clear that it was imperative to not just repair damage caused by Sandy but to upgrade and modernize the state’s outmoded, century-old grid to prevent damage from the next superstorm.

Last week, Governor Christie took a positive step toward upgrading to a smarter, more flexible power grid, which is crucial to resilience, safety, and storm recovery. He announced the allocation of $25 million in federal funds to local governments to develop alternative energy projects designed to make New Jersey’s energy infrastructure resilient and reliable in the face of power outages.

Also posted in Climate / Tagged Extreme Weather, Power Grid | Read 1 Response

More Companies Turning to Distributed Generation – What Does it Mean for Utilities?

By Paul Stinson / Published: October 3, 2013

Last month, the Wall Street Journal reported on an initiative at an increasing number of companies nationwide: on-site, or distributed, power generation. There are many reasons for this growing trend in corporate sustainability, along with many ramifications for the prevailing utility model in the United States – all of which highlight the importance of employing market-based solutions to create a cleaner, smarter, more resilient electric system.

Why Do Companies Unplug?

For companies such as Walmart, increasing the use of distributed, renewable generation is a vital part of larger sustainability goals, including increased use of clean energy and a call for safer ingredients used in the products the company sells. To be sure, however, even the most altruistic companies would be hard pressed to shift off the power grid without sound economic reasons.

A confluence of market factors, including tax incentives that spur attractive returns on investment, advances in solar and wind technologies and policies that encourage greater use of and investments in clean energy (like net metering and time-of-use pricing), has created an economic environment that makes distributed generation not just a viable option, but often a very attractive one. Further, off-grid power can be an effective way for companies to hedge against outages due to storms or unforeseeable catastrophes, a key idea included in the Hurricane Sandy Rebuilding Strategy.

Also posted in On-bill repayment, Renewable Energy, Utility Business Models / Tagged Edison Electric Institute | Read 1 Response

Hawaii Races To The Top For Award In Energy And Water Efficiency

By Kate Zerrenner / Published: September 24, 2013

Hawaii recently topped the national rankings for energy saving initiatives for the second year in a row. In August, the Energy Services Coalition (ESC) granted the state its ‘Race to the Top’ award for modeling excellence in energy and water efficiency. ESC’s Race to the Top challenge ranks states based on investment per capita in energy savings performance contracting. Hawaii leads with $132.25 per capita, followed by Ohio with $108.58 and Kansas with $97.77. The national average hangs at a low $37.20.

Hawaii sets a strong example for outstanding, innovative energy savings performance contracting. Performance contracts are commonly used for public-sector buildings, especially schools, which often cannot afford the upfront costs attributed to energy and water efficiency upgrades. Under many performance contracts, contractors pay the upfront costs and even guarantee net energy savings for the building owner. The contractor then recoups the investment through a portion of the resulting energy savings. This payment structure enables school districts and other public-sector entities to upgrade existing buildings with improved energy efficiency and without the worry of high upfront costs. To see why upgrades are so important for school buildings, see my other blog post here.

Also posted in Energy Efficiency, On-bill repayment / Tagged Energy Race to the Top, Hawaii | Comments are closed

Keeping It Clean: California Should Use Clean Resources To Integrate Renewables

By Lauren Navarro / Published: September 17, 2013

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

As the 8th largest economy in the world, California remains a global leader in clean tech investment, innovation and adoption of landmark climate and energy policies. What defines our success? Our ability to try things first, set the bar high, and get policies right.

California’s Renewable Portfolio Standard (RPS) is a perfect example of that bold, pioneering spirit. Passed in 2011, the RPS required that 33% of electricity come from renewables by 2020 – a lofty benchmark, even by California’s standards. Along with self-generation and solar rooftop programs, California is successfully adding solar, wind, and other distributed generation to its resource portfolio.

In fact, renewables are successfully becoming a large part of daytime energy production, the California Independent Systems Operator (CAISO) – the organization in charge of balancing the statewide grid – is concerned over how to make up for that energy when the sun goes down while evening energy demand spikes. The question is: How can the CAISO reliably integrate renewables?

The CAISO is currently figuring out how to address this need for “flexible” power and will have a draft decision out on October 2nd. Just like people prefer to take routes they know well when they drive, the CAISO is most comfortable with what they know: familiar fossil fuels. Using clean resources and demand response instead is new territory for them that will require careful orienteering.

Also posted in California / Tagged California, Demand Response | Read 1 Response