Energy Exchange

Four reasons to be optimistic this Earth Day

By Jim Marston / Published: April 21, 2017

I’m going to stay positive this Earth Day. I know that’s not what you might expect from me this year, but really, when it comes to America’s shift to cleaner, smarter, advanced energy, there’s reason to be optimistic.

  1. Business is booming…

The advanced energy industry is booming. This includes everything from solar and wind power, to new energy innovations that are smarter and reduce our reliance on fossil fuels, like energy storage, electric vehicles, energy efficiency, and demand response.

The industry grew 29 percent in the last five years, and last year was worth $200 billion – about the same size as the pharmaceutical industry. Tesla – a sort of poster child for the advanced energy industry – just passed Ford Motor Company and General Motors in market cap. In fact, the company dropped “motors” from its name last year, a simple recognition that it’s far more than a car company. Read More »

Also posted in California, Clean Energy, Demand Response, Illinois, Ohio, Solar Energy, Time of Use, Wind Energy / Comments are closed

Proving the negative: The challenge of calculating energy efficiency

By Dick Munson / Published: April 19, 2017

Andrew Barbeau, senior clean energy consultant for EDF, contributed to this post.

“Efficiency is good.” That’s the mantra, a known truth, shared by both business executives and environmentalists, who eliminate waste to increase profits and reduce pollution.

When it comes to electricity, efficiency also has proven effective. Whereas power consumption a few decades ago was rising annually at more than 7 percent, the introduction of inexpensive and efficient lightbulbs, refrigerators, and smart heating and cooling has recently led to slight declines in energy consumption, even as the economy boomed and population increased.

Efficiency may be good and effective, but it is inherently hard to calculate. How do you prove the negative? Virtually every state has wrestled with the same questions of how and why electricity use didn’t happen. States with energy efficiency standards – requirements for local utilities to incentivize customers to reduce their energy use year after year – want to know if the investments are cost-effective. With new approaches to calculating energy efficiency, Illinois is tackling that question head on. Read More »

Also posted in Energy Efficiency, Illinois / Read 6 Responses

Why We Still Need America’s Nuclear Power Plants — At Least for Now

By John Finnigan / Published: April 17, 2017

Today’s American nuclear power industry is in a state of upheaval. Four new, large-scale nuclear power plants are under construction in the United States, helped by large federal subsidies. All are being built by Westinghouse, and all have faced massive cost overruns and delays. Westinghouse’s parent company, Toshiba, recently posted a $6 billion loss due to Westinghouse’s nuclear woes. (For context, that loss is half a billion more than Toshiba spent to buy Westinghouse a decade ago.) Westinghouse filed for bankruptcy protection on March 29.

Westinghouse’s bankruptcy shines a spotlight on nuclear power’s role as an electricity source – currently providing about 17 percent of our electricity in the U.S. – and raises issues concerning whether we can count on low-carbon electricity from nuclear power. The Energy Information Administration projects nuclear power’s share of electricity generation will decline slightly through 2040, but these projections don’t reflect current trends.

Existing plants face challenging economics

Nuclear plants have long been very expensive to build, and the continued low price of natural gas has only increased cost pressure. Many nuclear plants are losing money, leading utilities to consider retiring them. Total nuclear capacity is declining, and will continue to decline in the near future as plant retirements exceed the capacity of Westinghouse’s Vogtle and Summer plants, expected to come online in 2019-2020. Read More »

Also posted in Clean Energy, Illinois, New York, Utility Business Models / Read 7 Responses

Who Pays for the Hidden Costs of Coal?

By John Finnigan / Published: April 13, 2017

The Public Utilities Commission of Ohio is still deciding whether to approve bailouts for FirstEnergy’s and Dayton Power & Light’s (DP&L) old, inefficient coal plants. The Ohio-based utilities want their customers to shoulder the costs of keeping these unprofitable coal plants running.

Coal plants aren’t cheap to operate. And as natural gas, wind energy, and solar energy have become increasingly affordable in recent years, coal can’t compete anymore. Moreover, subsidizing coal plants is not just a matter of higher electricity bills. We need to take into account the hidden costs of coal, which we all have to pay. Read More »

Also posted in FirstEnergy, Ohio / Read 1 Response

More Subsidies than You Think Influence the Cost of Electricity

By Lenae Shirley / Published: April 10, 2017

The Texas electricity market is evolving. Low prices have helped natural gas become the dominant electricity generation resource, surpassing coal for the first time. The state’s unique competitive wholesale market, along with recently built transmission lines, have led to exciting opportunities for the rapid development of wind and solar generation. But in looking at the cost of various fuel sources and Texas’ energy future, confusion about electricity subsidies needs to be addressed.

Yes, wind and solar power have recently benefitted from the federal Production Tax Credit and Investment Tax Credit. That said, it’s important to recognize that natural gas and coal generation have enjoyed state and federal incentives for a century, and continue to do so.

The tax benefits for wind and solar generation are not the same as those for fossil fuel generation, but each plays a similar role: Tax benefits affect the final cost of electricity. Read More »

Also posted in Natural Gas, Solar Energy, Texas, Wind Energy / Comments are closed

How One Clean Energy Solution Can Help Fix Both Price Shocks and Energy Waste

By Jamie Fine / Published: March 30, 2017

Andrew Bilich, Clean Energy Analyst, contributed to this post.

Here in California, we know a thriving economy and forward-thinking clean energy policy go hand in hand. An important way for us to do this is to keep using cost-competitive renewable sources of energy to power our economy.

Transitioning California to a clean energy economy is good for our wallets, our lungs, and our workforce. Today, electricity from renewable sources like solar and wind are far cheaper than fossil fuel-based generation, and in California we’re powering our homes with nearly 30 percent clean resources. In fact, as the sun shined brightly last week more than half of California’s electricity was powered by renewable sources.

Yet, recent spikes in natural gas bills remind us why alongside renewables, we need to thoroughly green the grid and bring down costs for everybody. One way to accomplish these dual goals is to use our clean energy optimally by deploying efficient tools like TOU, or time-of-use pricing. Read More »

Also posted in California, Clean Energy, Electricity Pricing, Time of Use / Read 1 Response