Energy Exchange

Texas Boasts Most Modern Power Grid In The Country

In an effort to gauge where America’s power grid stands, Washington D.C.-based group GridWise Alliance evaluated grid modernization in 41 states and the District of Columbia.  Texas and California tied for first place—standing far above the next runner up.

So what makes Texas’ grid so special?

Texas restructured its electricity market in 1999, introducing competition into the retail electric market.  The new competitive retail market gave most Texans a choice of electricity providers from dozens of companies, so these energy providers compete to offer the most advanced services.  For example, Texans can opt for 100% renewable electricity from Green Mountain Energy.

Additionally, in an effort to update Texas’ electric grid, the Public Utility Commission, Texas’ governing body for electricity, passed a resolution prompting “wires companies”(the firms that deliver energy from power plants to homes and businesses) to invest in millions of smart meters.  Smart meters can help eliminate huge waste in the energy system, reduce peak energy demand (rush hour on the electrical wires) and spur the adoption of clean, low-carbon energy resources, such as wind and solar power, by managing energy demand and generation more efficiently.

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Seeing Green: Emission Reducing Fuel Policies Help Lower Gas Prices

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

By: Tim O’Connor and Shira Silver

Californians struggling with high gas prices should feel optimistic about the future.  A new memo by economists from EDF and Chuck Mason, a prominent economist at the University of Wyoming, demonstrates that policies established to reduce emissions and help the state reach its climate change goals also help to arm consumers at the pump.

The Low Carbon Fuel Standardcap and trade, and other complementary policies such as Governor Brown’s Zero Emission Vehicle program and national Renewable Portfolio Standards seek to integrate lower or zero-carbon fuels into the energy market in an effort to reduce greenhouse gas pollution.

As our memo explains, in California these efforts also help to increase the market share for alternative, lower-carbon fuels. Between now and 2020, alternatives may grow to occupy between 15 and 24 percent of the market, creating new jobs and addressing the large market share that oil companies have in California.

Currently six oil companies control 94 percent of the fuels market in California. Through a set of mergers and other factors they have developed a strong lock on fuel in the state, and more specifically on consumers’ pocketbooks at the pump.

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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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Auto dealers vs. Tesla: Why the market will decide

This commentary originally appeared on EDF’s Voices blog.

Source: jurvetson/Flickr

The European Union, the United Kingdom, Australia and the State of California have all set ambitious targets to reduce greenhouse gas emissions 80% by 2050. Given that a large share of global greenhouse gas emissions comes from transportation (including 29% of U.S. emissions), it will be very tough to meet this goal without “decarbonizing” our cars and trucks.

The most obvious solution is electric vehicles (EVs) charged by clean energy sources like solar or wind. While several startup EV companies – including Fisker, Coda and Better Place – have struggled, the Tesla car company seems to be succeeding. At least that’s the current view of the markets: Tesla shares have more than tripled since March and in May the company raised almost $1 billion in new capital.

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