Energy Exchange

Texas Electric Co-op At Forefront Of Customer Engagement

By Kate Zerrenner / Published: July 23, 2013

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

By Brad Copithorne / Published: July 19, 2013

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!

Posted in On-bill repayment, Utility Business Models / Tagged , , , | Read 1 Response

America’s Aging Energy Infrastructure Needs An Overhaul

By Jim Marston / Published: July 19, 2013

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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States Stand Up To ALEC’s Assault On Renewable Energy: Clean Energy – 26 ALEC – O

By Marita Mirzatuny / Published: July 18, 2013

Back in March, I wrote about the American Legislative Exchange Council’s (ALEC’s) state-by-state attack on renewable energy. The attacks contribute to ALEC’s growing reputation as a “shadowy right-wing front group,” funded by the likes of Koch Industries, ExxonMobil and Peabody Energy, the largest private-sector coal company in the world. ALEC’s legislative efforts were aided by the Heartland Institute, a “free-market think tank” and notorious climate change denier.

ALEC has a clear motive: to serve the interests of dirty fossil fuel power plants and block progress towards greater use of clean, homegrown energy.

I’m happy to announce that ALEC and the Heartland Institute’s efforts to roll-back individual state’s renewable energy goals decisively failed in legislatures spanning from West Virginia to Kansas. In total, 26 bills designed to remove renewable energy standards (RPS) for eight states were denied, according to a report from Colorado State University’s Center for the New Energy Economy.

Now, Kansas, Missouri, Ohio, North Carolina, Texas, West Virginia and Wisconsin will continue on the path towards a clean energy future. Even better, some states increased their energy guidelines, namely Colorado, Connecticut, Maryland and Minnesota.

This news comes as a resounding victory for the climate, consumers, and Americans who care to see the U.S. progress into the global $ 2 billion clean energy economy. Read More »

Posted in Climate, Renewable Energy, Texas / Tagged , , , | Read 1 Response

Financing Clean Energy: Innovations From The Nutmeg State

By Brad Copithorne / Published: July 17, 2013

Connecticut’s Clean Energy Finance and Investment Authority (“CEFIA”) was created in 2011 to help the state increase public and private investment in clean energy solutions that are cheaper and more reliable than traditional solutions.  I had the chance last week to catch up with Bryan Garcia, CEFIA’s CEO, and his impressive team.  I found three of their initiatives to be particularly innovative and impactful.

  • Commercial PACE (C-PACE) – Property Assessed Clean Energy (PACE) is an innovative, market-based approach that helps alleviate the steep, upfront costs that property owners generally incur for energy improvements by using loans that are seamlessly repaid through an additional charge on their property tax bills. While many jurisdictions have implemented PACE programs, CEFIA has had a particularly hands-on approach of working with property owners, contractors, lenders and mortgage holders to reach agreement on transactions that meet the needs of each party.  This strategy appears to be paying off as CEFIA has received 190 applications since the program was launched in April 2013.  Additionally, the Connecticut program appears to be the first PACE program that supports commercial solar installations with the lowest-cost financing structures such as leases and power purchase agreements.  I believe this could be a game changer for installing solar projects and plan to write about this in greater detail in a blog post coming soon. Read More »
Posted in Energy Efficiency, On-bill repayment / Tagged , , , , | Read 7 Responses

Investor Confidence Project Aims To Develop Multi-Billion Dollar Energy Efficiency Finance Market

By EDF Blogs / Published: July 17, 2013

This commentary, authored by James Lester, originally appeared on Cleantech Finance. 

Last month, we discussed an influential new report by Ceres and the Investor Network on Climate Risk (INCR), Power Factor: Institutional Investors’ Policy Priorities Can Bring Energy Efficiency to Scale. The report detailed several policies that if put in place, could unlock broad-based financing from institutional investors for energy efficiency, a potential several hundred billion dollar investment opportunity.

Among the issues that prevent large scale energy efficiency financing, Ceres and others have found that there is no systematic method to measure the accuracy of the initial predicted energy and financial savings of each project. There is not a robust fundamental way to make sure the upgrades are performing after they have been completed. The Environmental Defense Fund (EDF) and a collection of expert partners are working to change that.

EDF has worked with a variety of industry experts to design a straightforward set of protocols that define a clear road-map from efficiency opportunity to an investment quality project with reliable returns and access to markets. The project, known as the Investor Confidence Project (ICP) hopes to enable a market for investment quality energy efficiency projects, by reducing transaction costs and engineering overhead, while increasing the reliability and consistency of savings. Read More »

Posted in Energy Efficiency, Investor Confidence Project, On-bill repayment / Comments are closed