Energy Exchange

Thinking Long Term On America’s Energy Future

On Wednesday, President Obama, speaking at Georgetown University, set out a multi-pronged approach to boosting America’s energy security.  We agree that America “cannot keep going from shock to trance on the issue of energy security, rushing to propose action when gas prices rise, then hitting the snooze button when they fall again.”  President Obama’s goals to leverage alternative fuels, increase efficiency, and invest in smart grid technology, advanced vehicles, high speed rail, and public transit are critical steps toward a truly clean energy economy.

The core objectives of our Energy Program are to help accelerate the deployment of large-scale, clean technologies into the nation’s energy system and remake the market for efficiency and innovation.  Our goal is to reduce the environmental impact of energy production, delivery, and use.  Why?  Because investments in clean technology will bring about the clean energy revolution we need by greatly reducing our use of dirty fuels and improving air quality and, thus, the health of millions of Americans – especially children and the elderly. 

We can improve our energy independence and end the economic hardships imposed on American families by spiking energy costs while preserving our air, land, and water for future generations.

As important as the energy, environmental, and public health outcomes are, this revolution also benefits our economy and creates jobs.  American workers have tremendous opportunities related to energy efficient and clean technologies, which are creating well-paying jobs and helping companies compete in the global market.  

One of EDF’s main areas of focus is on smart grid technology.  President Obama’s Advanced Research Projects Agency-Energy (ARPA-E) funds projects that will help modernize our antiquated electricity system.  A smarter grid can adjust demand, reducing the need to build costly, new power plants.  It will enable extensive new wind and solar energy to integrate into an upgraded grid so that we can rely far more on clean, renewable, home-grown energy.  The result:  less environmental damage, more jobs, and a more efficient, reliable, and resilient electricity system.  A smart grid will also facilitate the switch to electric vehicles, making it possible to “smart charge” them at night so they can be ready the next morning for commuters who will no longer be paying for gasoline.

Another key point that the President made was on responsible development practices for natural gas.  Natural gas can play a significant role in achieving our clean energy future – but it needs to be developed safely and in an environmentally sound manner.  Protecting citizens’ health and the environment will require that we “get it right from the start.”  That means putting rules in place to guarantee that our water and land are protected from contamination and ensuring that leakage of harmful air pollution is minimized.

The President’s call for increased transparency in the use of hydraulic fracturing chemicals is a necessity.  The natural gas industry is engaged in a public perception war that it is not winning.  Participating in the development of transparency within the industry is the first step necessary in attempting to rebuild public trust.  A balance between creating a sustainable market for business and ensuring the health and safety of the public should not be a source of division, but instead our common ground. 

While Congress is negotiating the federal budget, members would do well to recognize the essential need to make long-term investments in a 21st century clean energy economy that will reduce America’s dependence on foreign oil and put Americans back to work.

EDF commends the President for his willingness to look to the future.  If we can do that, we will all benefit from a stronger economy, energy security, and a cleaner environment that protects our public health and maintains our quality of life.

Also posted in Climate, Energy Efficiency, Natural Gas, Renewable Energy, Washington, DC / Read 1 Response

Smart Meters. An Integral Piece To The Smart Grid Pie.

As you may have heard, the roll out of smart grid technology in California has raised some health concerns over the safety of smart meter use.  As a result, the California Public Utility Commission (CPUC) has ordered Pacific Gas & Electric (PG&E) to develop an alternative to wireless meters.

The Environmental Defense Fund (EDF) is following this issue closely.  Our organization offers a unique perspective given our proven track record of enabling markets and innovation to gain environmental benefits.  Our national organization is working across the country to advance smart grid deployment in a way that ensures maximum consumer, economic, and environmental benefits.  To do so, we are working with public utilities and regulatory commissions on smart grid policy and advancing smart grid pilots such as Austin’s world-renowned Pecan Street Project.

Deploying an effective smart grid throughout the country is a national priority supported by multiple stakeholders: from companies like GE, Cisco and Google, who see it as key to the future of their businesses, America’s global competitiveness, and job growth, to Chambers of Commerce, who see the huge economic development and security benefits in making more energy at home and keeping energy dollars at home, to consumer groups like the Citizens Utility Board, our partner in Illinois, who see it as the only way to keep electric bills from climbing steeply in the years to come.  Right now, our outdated energy grid wastes approximately 10% of generated electricity just in transmission and distribution, costing the consumer roughly $25 billion a year.  We lose another estimated $100b in black-outs, which a smart grid will help us avoid.

Digital “smart” meters, capable of two-way communication between customers and electric utilities, are key to realizing the multiple benefits of a smart grid.

A properly designed smart grid will help households and businesses reap many economic and environmental benefits. It will allow us to greatly reduce our use of dirty energy, improving air quality and the health of millions of Americans now hurt by dangerous air pollution.  With easy-to-use tools, such as online updates on how much energy they’re using and what it’s costing, consumers will be able to make choices that lower their bills.  Businesses will be able to pinpoint the most valuable opportunities to make their buildings and operations more energy efficient, saving money. Utilities will be able to provide customers with more reliable service.

Smart meters allow information to flow between meters and utilities by utilizing radio frequencies (RF) such as those currently used by AM/FM radios, baby monitors and cell phones.  Studies (such as research by the California Council on Science and Technology (CCST) and the Electric Power Research Institute) have found no evidence that these radio frequencies pose risks to human health.  In fact, the CCST report released earlier this year found that even if smart meters were on 100% of the time, an individual’s exposure would be a very low (4 uW/cm3).  To put this number into perspective, the average exposure to RFs from using a cell phone is between 1,000 and 5,000 uW/cm3 or 250 – 1, 250 times that from a smart meter.

A well-designed smart grid will be a boon to public health.  It will improve our quality of life, grow our economy, and drive the clean energy revolution we need.

For more information regarding the benefits of a smart grid, please view EDF’s fact sheet here.

Also posted in California / Read 2 Responses

The Smart Grid 2025 Has Arrived. And It’s Addicting.

I spent my lunch break yesterday playing an online game.  No, not World of Warcraft; I played Smart Grid 2025, an innovative, multiplayer online game that lets players submit their original ideas on how to design the smart grid of the (not too distant) future.  Once you register, you can submit “Positive Imagination” ideas on what’s needed or “Dark Imagination” concerns about barriers and potential negative outcomes.  The game also allows you to respond – positively or negatively – to other players’ posts.  The more players that build on your ideas, the more points you earn.  And if the game administrators tag your idea as “Most Super Interesting,” you get a whopping 20 points.  I have only gained enough points for the “Inspired” level ranking, but I’m shooting for “Legend!”  If you have a great idea to share, give it a shot: http://game.smartgrid2025.org/.

Posted in Grid Modernization / Comments are closed

Talking Smart Grid In The Land Of Lincoln

Earlier this week, I participated in a joint hearing of the Illinois Senate and House Public Utilities Committees.  It was a packed house, full of people like me who had made the 3-hour trek from Chicago to Springfield, past vast corn fields and — I was excited to see — a large wind farm. The topic: a bill that would authorize the state’s largest electric utility, Commonwealth Edison (ComEd), to spend at least $1.5 billion over the next ten years on “smart grid electric system upgrades.”  Of course, as with most utility investments, it’s the utility’s customers who will ultimately foot the bill.  So the crucial question of the day was, “What will ComEd’s customers get for their money?”

Our friends at the Illinois Citizens Utility Board, or CUB, asked EDF to testify at the hearing on “smart grid done right.”  We’ve done a lot of thinking on the subject, with experience engaging in smart grid policy and projects in California, Texas, North Carolina, and elsewhere.  And we are working closely with CUB and other partners on a variety of smart grid-related projects in Illinois, including a look at the health and environmental impacts of ComEd’s smart meter pilot in the Chicago area.

The potential benefits of a smart grid are significant.  A smart grid will enable the use of a wealth of clean energy resources, including more energy efficiency, demand response, distributed generation, and renewable energy.  By doing so, a smart grid will reduce our need for dirty fossil fuel-powered plants, including the expensive peak power plants that run only a few hundred hours a year but are often close to urban centers.  A smart grid will also enable us to make the shift to electric vehicles, reducing our dependence on foreign oil imports and the damage to our economy when oil prices spike, as they have in recent days.  EDF believes that a well-designed smart grid can cut air pollution from the electric power sector by more than 30% and transportation by more than 25% by 2030.

Best of all, a well-designed smart grid will deliver all of these benefits while giving homeowners and businesses the power to manage their energy use and save money.  With easy-to-use tools—such as simple online displays of the information smart meters provide about use and prices, and set-and-forget home energy management tools—consumers will be able to make choices that lower bills and shrink their environmental footprint.

But a smart grid won’t deliver on that promise if the policy behind it doesn’t set the right goals from the get-go.  Smart grid policies must be designed with clear performance targets, metrics, and milestones – and utility compensation should be directly tied to their achievement.   Unfortunately, the draft bill now being debated by the Illinois General Assembly does none of this.  In fact, the only mention of energy efficiency I found in the language was a requirement that a new employee training facility be LEED certified!  ComEd’s President Anne Pramaggiore acknowledged as much in the hearing.  CUB, the Illinois Attorney General’s Office, and others raised similar concerns.  EDF will continue working with CUB and other Illinois allies to ensure these critical targets for energy efficiency and other environmental goals are included.

A smart grid requires smart policy.  The deployment of smart grid technologies and infrastructure has met with controversy in places where the policies (or sometimes, the lack thereof) have failed to place utility customers first.  Customers need access to information to make good choices about their energy use; without it, a “smart grid” won’t be so smart.  As Lincoln said, “Calling a tail a leg doesn’t make it so.”  This is why it is critical that Illinois get the policy right from the start.  EDF is joining forces with CUB and the Illinois Science and Technology Coalition to host a smart grid briefing in April for Illinois legislators and others, to help make the smart grid a reality here.

Posted in Grid Modernization / Comments are closed

What People Need And Want From Their 21st Century Electricity Grid

By: Derek Walker, Director, California Climate Initiative & Deputy Director, States Climate Program

For most people, the “smart grid” is just another nerdy-sounding concept, a little like the Internet was 15 years ago.  Back in 1995, only a crystal ball would have given a hint of the rapid explosion of the information age and the changes it would bring about in our daily lives.  The “smart grid” is in its infancy, but the benefits it offers are starting to become clear: reduced air pollution, more reliability, and greater control for the people and businesses that use energy.  Not to mention some very cool gadgets that can do everything from remotely starting your washing machine to telling you, in real time, how much money you are spending to power your iPad.

Last month, the 2011 State of the Consumer Report was released by the Smart Grid Consumer Collaborative (SGCC), an organization (EDF is an affiliate member) whose mission is to listen to, educate, and collaborate with consumers to ensure the most efficient and effective transition to the “smart grid” of the future.  After all, billions of dollars will be spent in the next 20 years to upgrade our electricity infrastructure, and we need to get the most bang for every buck.  That means the best technology, the most cost-savings, and the greatest degree of consumer empowerment possible.

The SGCC report combines the insights from over 80 studies and white papers to give a thorough snapshot of what consumers want, need, and expect from new energy technologies and the modernized “smart grid.”  The result is a template for innovators, policy makers, and consumers themselves about how best to get and stay engaged in the exciting changes that are coming…and in many cases, are already here.   

The results of the studies clearly show that people are intrigued, but that there are many different kinds of people that have different needs and require varying levels of engagement.  It also shows that those fascinated with new gadgets and those with the greatest interest in doing their part to create a healthy environment and reduce pollution are the most likely ‘first adopters.’  The report concludes that to generate more widespread enthusiasm for the “smart grid,” it is important to emphasize how the increasing costs of energy can be cut through a “smart grid” and how simple and user-friendly new clean energy technologies can be.  

Ultimately, people want and embrace what they can see, feel and touch.  That means that tangible benefits such as energy and cost savings, more reliability, and the ability to pick and choose technologies and pricing schemes are vital.  The report touches on a basic truth about human behavior:  the gap between intention and action.  Consumer education, engagement, and empowerment are critical keys to successfully unlocking the myriad benefits of the “smart grid.”

Posted in Grid Modernization / Comments are closed

Who or What is to Blame for Last Week’s Rolling Blackouts in Texas?

Last week’s rolling blackouts have left a lot of people wondering what (or who) exactly is to blame.  While it’s clear that incredibly cold weather played a significant role, details have only now begun to trickle out about the root causes of the rolling blackouts – and what helped save Texas from a system wide blackout that would have taken hours, if not days, from which to recover.  That didn’t stop a lot of people from throwing out bizarre conspiracy theories, unfounded assertions, or claims about the need to build more fossil fuel plants in Texas, all before the facts were even known. 

Just the Facts, Please

We’ll get to that soon enough, but first let’s hear from someone who really knows what happened – Trip Doggett, head of the Electric Reliability Council of Texas (ERCOT), which manages the state’s electric grid and ordered utilities to begin rolling blackouts to avert a more serious crisis.  In a Texas Tribune interview last week Doggett said: “Our problem was more around the 50 generating units who had issues with their lack of winterization or insufficient winterization efforts that caused the major problem.”  50 generating units.  About 7,000 MW of fossil fuel plants, or more than 10% of the supply on the grid, went down last week because of ‘insufficient weatherization.’ Read More »

Also posted in Energy Efficiency, Texas / Read 1 Response