Energy Exchange

Where Is All Of The Water Going? A Look At Which Energy Resources Are Gulping Down Our Water

If you’re like so many conscientious consumers, you’ve experienced the disappointment that comes when you realize the lean turkey breast you bought has 300% of your daily value of sodium, negating the benefits of its high-protein and low-fat content.  Instantly, food choices feel more complex; you’ve learned the hard way that the pursuit of a low-fat diet is not the same as a healthy diet.

The Energy-Water Nexus shows us that our energy choices are much like our food choices: The environmental benefits of an energy diet low in carbon emissions might be diminished by increased water consumption (or waste), and the unforeseen tradeoffs between the two resources (i.e. more sodium in lieu of less fat, can hurt us in the long run).

Water Intensity

As we have mentioned before, roughly 90% of the energy we use today comes from nuclear or fossil fuel power plants, which require 190 billion gallons of water per day, or 39% of all U.S. freshwater withdrawals (water “withdrawal” indicates the water withdrawn from ground level water sources; not to be confused with “consumption,” which indicates the amount of water lost to evaporation.)

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Plastic And Chemicals Can’t Take The LEED On Green Construction

If it’s not power plants fighting carbon pollution reduction, it’s plastic companies fighting against voluntary standards to make buildings less wasteful.  The Leadership in Energy & Environmental Design (LEED) building certification system, developed in 2000 by the U.S. Green Building Council (USGBC), provides third-party verification for buildings striving to reduce environmental impact.  The system gives credits to builders who eliminate the use of certain plastics and chemicals in building construction, such as PVC and vinyl that are known to be hazardous to workers and occupants.  However, these credits, which once seemed like apple pie, have now been met with opposition from plastic and chemical industries lobbyists.

Recently, these polluting industries have “slipped wording” into the 2014 Financial Services and General Government Appropriation bill, to undermine the federal government’s ability to use the popular and successful LEED standards when building or renovating its office buildings.  The lobbyists claim that LEED standards are not open and transparent, and through a bit of sophistry they have used this appropriation amendment to cast doubt on the legitimacy of the LEED system.

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Net Metering And Rooftop Solar For The Utility Of The Future

John FinniganLike the tide washing upon the shore, new technologies are gradually eroding electric utility revenues.  These new products enable consumers to use cleaner energy and use it more efficiently.  Electric utilities worry this trend will ravage their industry just as wireless technology convulsed the telecommunications industry.  The utility industry urges its members to stem the tide by, among other things, increasing consumers’ net metering costs.

Net metering makes small-scale renewable energy, such as rooftop solar panels, more affordable by crediting the “distributed generation” owners for the excess energy they produce.  The electric meter measures how much electricity flows back to the grid from the distributed generation unit.  A corresponding credit is applied to the consumer’s monthly energy bill.  The Energy Policy Act of 2005 requires public utilities to offer net metering to all consumers upon request.

Why the new focus on net metering?  The cost for rooftop solar panels has fallen 80% since 2008, including 20% in 2012 alone.  Installed rooftop solar energy has increased by 900% between 2000 and 2011.  As consumers install more rooftop solar panels and net meter them, utility revenues will decrease. Read More »

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Texas Electric Co-op At Forefront Of Customer Engagement

This commentary originally appeared on EDF’s Texas Clean Air Matters blog.

(Source: Bluebonnet Electric Co-op)

Everywhere you turn these days, you hear someone mention the emergence of big data and how our lives will be more and more reliant on numbers.  Well the world of electric cooperatives (co-ops) is no exception.  Originally emerging out of the establishment of the Rural Electrification Administration, co-ops enabled rural farmers and ranchers to create customer-owned electric utilities in areas that are not serviced by traditional utilities.

I recently visited the Bluebonnet Electric Cooperative (Bluebonnet), one of the Texas’ largest co-ops providing energy to 14 counties, spanning the outskirts of Austin to Houston and boasting an impressive 11,000 miles of electric lines, 83,000 electric meters and 63,000 members.  Who would have thought so much big data is coming out of rural Texas?

What makes this co-op particularly unique is its smart grid, which is attracting some serious attention.

Unlike other traditional utilities, Bluebonnet does not generate any of its own electricity.  Instead, it buys electricity from the Lower Colorado River Authority and CPS Energy, both pioneers for clean, renewable energy.  Because of this, Bluebonnet is able to concentrate its energy (pun intended) on using new technologies to provide reliable power and enhance customer satisfaction. Read More »

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Combining Solar And PACE In Connecticut: A Potential Game Changer For Commercial Properties

In my last post about Connecticut’s clean energy finance efforts, I alluded to an important innovation in their Property Assessed Clean Energy (“PACE”) financing program for commercial properties.  PACE programs have been in place for several years, and the basic concept is that property owners are able to pay back clean energy financing through their property tax bill over time.  Rates tend to be low because property taxes are almost always paid back and the PACE assessment will survive foreclosures.

To date, PACE transactions have generally been structured as a set of fixed payments to finance retrofits managed by the property owner.  Functionally, these transactions have been quite similar to loans.  In the solar industry, however, the vast majority of financings have been structured as leases or power purchase agreements (PPAs) in order to fully capture the tax benefits associated with solar investments.  This has generally resulted in fairly low use of PACE by solar installers and limited installations of solar on commercial properties.  (Most commercial properties have large mortgages and are not good candidates for additional financing unless PACE or On-Bill Repayment (OBR) can be used to improve credit quality.  The exceptions are buildings that are owned or occupied by very high quality credits, such as a large corporation or city.)

Connecticut is breaking new ground by allowing leases and PPAs to participate.  The lease or PPA payments would simply become part of the property tax bill.  If necessary, true-up mechanisms could be used to adjust payments and ensure that customers are not overbilled.  Additionally, we understand that this flexibility will likely be available for innovative energy efficiency financing for commercial properties.  EDF has long advocated for this type of flexibility (and we see this as a major benefit of OBR), but – to date – PACE programs have not incorporated this feature.

Hats off to Connecticut for once again showing us how to get things done!

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America’s Aging Energy Infrastructure Needs An Overhaul

No one likes being told “I told you so.”  But since DOE released its report last week, I’ve been tempted.

The report warns that the existing American energy infrastructure is highly vulnerable to climate change.  That increasing temperatures will stress the U.S. water system and enhance the likelihood of drought. That because conventional power plants require huge volumes of water to operate, lower water availability will mean less reliable power.  And that the changing climate will prompt more extreme and frequent storms, increasing energy demand due to extreme temperature changes and threatening our aging and already stressed electric grid with potential blackouts.

In essence, the affirms the many the calls-to-action that EDF and many other groups have been leading for years and the lessons we learned from Superstorm Sandy made painfully real and salient:  Our existing energy technologies and policies were designed for a 20th century climate.  To weather the extremes of a 21st century climate, we need to a 21st century energy system – one  that promotes energy efficiency, enables widespread adoption of homegrown, renewable sources of power and allows people to control their own energy use and reduce their electricity costs.

I have been very encouraged by President Obama’s recent movement on climate change, and the DOE report provides research backing the urgency of his Climate Action Plan.  Hopefully, this recent movement will translate into real national momentum, as our national approach to energy truly needs an overhaul. Read More »

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