Energy Exchange

Emerging Technologies Can Pave the Way for Time-Variant Electricity Pricing

By Ronny Sandoval / Published: March 23, 2015

The amount of energy we use at any given time is constantly changing. Lights are switched on and off by time of day – other appliances, such as air conditioners, might operate based on the season. In order to meet our dynamic energy demands, our system has to have the infrastructure and resources in place to respond when needed.

What may not be clear to many of us is that the costs associated with supplying this electricity also change with time, and during certain hours of the day and year these costs can be much higher. This isn’t readily apparent because the electricity rates we pay throughout the year are essentially flat.

Many, including Environmental Defense Fund (EDF), have made the case for electricity pricing that helps signal these fluctuating costs to customers. There are a variety of ways to design pricing that varies with time, while communicating to individuals and businesses the value of cutting back on electricity, or shifting use to other times. These options can take the form of paying a different amount for energy at different times, or perhaps being compensated for reducing use at times when the electric system is most constrained. Read More »

Posted in Clean Energy, Electricity Pricing, Grid Modernization / Read 1 Response

Ohio Pressed Pause on Economic Growth When It Froze Its Clean Energy Standards

By Dick Munson / Published: March 18, 2015

Ohio shot itself in the foot last year and we’re only now learning just how bad the damage is.

In May of 2014, the Ohio Legislature froze the state’s energy efficiency and renewable energy standards as a result of political pressure from Ohio’s largest power company, FirstEnergy, and other groups. This freeze came after efficiency measures led to more than $1 billion in savings for Ohioans, clean energy companies invested more than $660 million in 2012 alone, Ohio boasted the nation’s largest number of wind-component manufacturing facilities, and the state created 43,000 in-state jobs within the clean energy sector.

Needless to say, from 2008, when Ohio enacted its clean energy standards, to 2014, when it froze them, the Buckeye State was a clean energy powerhouse. But, as the Center for American Progress reports, when Ohio put a freeze on its clean energy economy, it hit the pause button on its entire economy.

According to the report, the freeze cost Ohio millions of dollars in energy investment. That equates to job losses, cancelled projects that would have brought sustained tax revenue to Ohio, and shifting operations to other, business-friendly states. Read More »

Posted in Clean Energy, Energy Efficiency, Ohio, Renewable Energy / Read 2 Responses

Sometimes it Takes a Community to Go Solar

By EDF Blogs / Published: March 3, 2015

By: Andrew Barbeau, EDF’s clean energy consultant

You don’t have a south-facing roof. You have too many trees in your yard. You may not be committed to staying in your house for the next ten to fifteen years. Or maybe you rent, or don’t have the upfront money to install.

These may be some of the reasons why you can’t go solar. You are not alone.

In fact, only 22 to 27 percent of residential rooftops are suitable for installing a solar PV system, due to structural, shading, or ownership issues, according to the National Renewable Energy Laboratory. These effects are even more prominent in densely-populated, urban areas, like Chicago, where viable project siting is limited and renters account for more than half (55 percent) of housing.

But in a new utility world of flowing electricity data and layered intelligence, we shouldn’t limit participation in the rapidly growing solar market to those inconvenienced by circumstance. We need to shift our thinking of distributed solar from the individual to the community. Read More »

Posted in Clean Energy, Illinois, Renewable Energy / Tagged Community Solar | Comments are closed

If Time-Variant Electricity Pricing Offers So Many Benefits, Why Don’t We Have More of It?

By Elizabeth B. Stein / Published: March 2, 2015

With time-variant pricing, people can choose to run their dishwashers at times of day when electricity is less expensive.

Today, most residential electricity customers are charged the same price regardless of when the electricity is actually being used. Charging customers a uniform price for electric service looks a bit like buying groceries by the cart instead of by the items purchased (e.g., apples versus filet mignon) – simple, to be sure, but so riddled with inefficiencies that no one would actually propose operating a supermarket that way. A cartful of filet mignon may weigh the same as a cartful of apples, but the value of these items and the cost of bringing them to market is drastically different. Similarly, electricity costs differ depending on the time of day power is produced and delivered.

Time-variant electric pricing addresses this issue by charging customers different prices depending on when electricity is used, reflecting the true costs of producing and delivering electricity. This gives customers greater control over their electricity bills by allowing them to reduce their energy use at higher-cost times. A recent blog post by my colleague, economist Beia Spiller, explained how time-variant electricity pricing can benefit customers, utilities, and the environment, and described several different types of time-variant pricing.

Given its compelling economics, one would think time-variant pricing would be widespread. Part of the reason it’s not is sheer inertia, but there’s more to it than that. Read More »

Posted in Clean Energy, Electricity Pricing, Grid Modernization, Utility Business Models / Comments are closed

All Electricity is Not Priced Equally: Time-Variant Pricing 101

By Beia Spiller / Published: January 27, 2015

In the U.S., the electricity sector accounts for over a third of the country’s yearly greenhouse gas emissions, contributing more to climate change than any other sector, including transportation.

Furthermore, electricity costs have increased dramatically over the years, and are projected to continue their upward trend. Utilities and regulators have made great strides in promoting renewable energy, increasing the efficiency of the power grid, and reducing harmful pollution. However, customers, too, can be part of the solution by better managing their use of electricity – especially during those times when it is most expensive and dirty to produce.

Electricity is more expensive during ‘critical peaks’

The cost of producing electricity – and the carbon emissions associated with it – varies significantly throughout the day, depending on electricity demand at any point in time. For example, when a heat wave occurs and many customers begin cooling their homes after work, demand skyrockets and creates what is known as a ‘critical peak.’ Read More »

Posted in Clean Energy, Electricity Pricing, Grid Modernization / Read 4 Responses

America Agrees That It’s Time to Act on Methane Pollution From Oil and Gas

By Jeremy Symons / Published: December 18, 2014

There’s not much in Washington these days that Americans can agree on. But a new poll released last week by the American Lung Association found that a large majority of voters would support EPA regulations requiring the oil and natural gas industry to cut methane pollution in half by 2020.

This comes as EPA nears a decision – likely in the coming weeks — on whether to tackle the growing problem of unregulated methane pollution from the oil and gas sector. It’s a big decision. Reducing methane pollution from the oil and gas sector by half would save close to $1 billion a year in wasted energy and, over a 20-year time frame, cut climate pollution equivalent to closing about 90 coal-fired power plants.

The new poll of 1,000 voters, conducted by a bipartisan team of pollsters, also shows that public support for the Environmental Protection Agency and for strong clean air laws are as high as ever. GOP leaders should take note as they take over in Congress: voters believe, by a 3-to-1 margin, that the EPA, not Congress, should be setting pollution standards. That includes a 2-to-1 margin among Republican voters. So while the polluter lobby clamors for more political interference from Congress, the public wants the non-partisan EPA to be left alone to do what it is supposed to do.

The reasons that Americans support these policies are not new. Read More »

Posted in Air Quality, Methane, Natural Gas / Read 1 Response