Energy Exchange

Changing Times for Electric Utilities

By John Finnigan / Published: March 6, 2014
Source: Edison International

Source: Edison International

Two seemingly unrelated announcements drew much attention in the electric utility industry recently. First, the Edison Electric Institute (EEI) (the trade group for the U.S. electric utility industry) and the Natural Resources Defense Council (NRDC) jointly recommended changing how utilities should be regulated. Second, Duke Energy announced it will sell 13 Midwest merchant power plants. These announcements are actually related because they both result from the same dramatic changes affecting the electric utility industry. As Bob Dylan aptly noted, “the times they are a-changin’.” Regulators and other stakeholders must be prepared to address these changes.

Under the traditional business model, electricity usage grew steadily. Utilities built ever-larger plants to serve this growing load. The bigger plants were more efficient than existing plants, so the unit cost for electricity steadily declined. Utilities benefited by steadily increasing their revenues. Customers benefited from declining unit costs. For utility customers, it was like paying a lower price per gallon of gasoline every time you filled your tank.

But this traditional model is crumbling, due to several factors: Read More »

Posted in Clean Energy, Demand Response, Electricity Pricing, Grid Modernization, Renewable Energy, Utility Business Models / Tagged , | Comments are closed

EDF Energy Innovation Series Feature: Treehouse’s One-Stop Shop for Solar

By Jim Marston / Published: November 12, 2013

EDF’s Energy Innovation Series highlights innovations across a broad range of energy categories, including smart grid and renewable energy technologies, energy efficiency financing and progressive utilities, to name a few. This Series helps illustrate that cost-effective, clean energy solutions are available now and imperative to lowering our dependence on fossil fuels.

Find more information on this featured innovation here.

Few people walk into a car dealership and ask to see all of the 2.0 liter engines or only the 200 horsepower cars. Those technical specs are important, but most people shop by model, price or features.

Yet homeowners that want to install solar panels often find themselves buried in a mound of technical details that are not only confusing, but intimidating. And expensive. Austin-based sustainable living retailer Treehouse is changing that and proving that energy innovation is sometimes less about technology and policy and more about thinking like customers.

“The solar industry has done a great job educating people about the benefits of solar energy,” said Treehouse founder and president Jason Ballard. “But it’s done a bad job of making solar easy to buy.” Read More »

Posted in Energy Innovation, Texas / Read 1 Response

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.

Read More »

Posted in California, Grid Modernization / Tagged , | Read 1 Response

Austin Energy + Nest: Empowering Texans To Take Control Over Their Own Energy Use And Electric Bills

By Marita Mirzatuny / Published: September 4, 2013

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.

Read More »

Posted in Demand Response, Energy Efficiency, Texas / Tagged , , , , , | Read 1 Response

House Cuts Clean Energy Funding, Dragging Down An Entire Community Of American Innovators

By EDF Blogs / Published: July 15, 2013

This commentary, authored by Robert Fares, originally appeared on Scientific American’s “Plugged In” blog.

The U.S. Department of Energy recently partnered with Texas Tech University to commission a Scaled Wind Farm Technology (SwiFT) laboratory, which helps researchers understand how wind turbine placement affects performance. (Source: Texas Tech University)

In my last post, I discussed a House subcommittee’s shortsighted vote to slash funding for the U.S. Department of Energy’s (DOE’s) innovative Advanced Research Projects Agency – Energy (ARPA-E). I’m sorry to report that the rest of the House has now followed suit, passing a $30 billion energy spending bill that cuts a huge chunk out of clean energy programs.

Not only does the bill contain the subcommittee’s 81 percent cut to ARPA-E, it also guts energy efficiency programs and even rolls back progress in energy efficient lighting. The House’s embargo on funding for clean energy doesn’t just hurt our footing in the international race towards a new energy economy, it also drags down an entire community of American innovators working to achieve a sustainable future.

We deserve more than political posturing and moves as antiquated as the incandescent bulb. Right now, a convergence of environmental, economic and technological forces is transforming the global energy landscape. Just last month, the International Energy Agency (IEA) projected that renewable energy sources would eclipse nuclear and gas generation by 2016, and provide a quarter of the world’s energy supply by 2018. Renewable energy is unequivocally a major component of the energy landscape. Read More »

Posted in Energy Efficiency, Grid Modernization, Renewable Energy / Read 2 Responses

It’s Time Our Policies Reflect The Fact That Energy And Water Are Fundamentally Intertwined

By Kate Zerrenner / Published: July 11, 2013

When I tell people that the best way to conserve energy is to conserve water, I am often faced with a confused response.  I’m not surprised really.  Energy and water policies are rarely discussed in the same forum.  For a long time, we’ve overlooked the inextricable relationship between water and energy use.  Coal, nuclear and natural gas plants use enormous amounts of water for cooling purposes.  In 2005, 41% of all freshwater withdrawals in the nation was used in the thermoelectric power industry for cooling.

Connection between energy and water

The longstanding division between energy and water considerations is particularly evident in the case of energy and water management.  These resources are fundamentally intertwined: Energy is used to secure, deliver, treat and distribute water, while water is used (and often degraded) to develop, process and deliver energy.  Despite the inherent connection between the two sectors, energy and water planners routinely make decisions that impact one another without adequately understanding the scientific or policy complexities of the other sector.  This miscommunication often hides joint opportunities for conservation to the detriment of budgets, efficiency, the environment and public health, and inhibits both sectors from fully accounting for the financial, environmental or social effects they have on each other.

This lack of collaboration between energy and water planners is especially dire considering Texas is in midst of an energy shortage that is exacerbated by the multi-year drought.  Without adequate planning, we could someday have to choose between keeping our lights on and turning on the faucet. Read More »

Posted in Climate, Energy-Water Nexus, Texas / Tagged , , | Read 2 Responses