Energy Exchange

Study Intends To Determine Methane Leakage Associated With A Growing Natural Gas Transportation Sector

By EDF Blogs / Published: March 4, 2013

This blog post was written by Jason Mathers, Senior Manager of EDF’s Corporate Partnerships Program.

Source: Waste Management

The use of natural gas to power our nation’s freight fleet vehicles is a hot topic in these days of rising diesel and falling natural gas prices. There are several reasons to be excited about this opportunity, including operating cost savings, use of a domestic fuel source, and the potential for a reduction in greenhouse gas (GHG) emissions compared to diesel heavy-duty trucks. However, significant concerns remain with the development of new gas supplies, including the threat of fugitive methane emissions from natural gas vehicles and the fuel supply chain.

Methane is the main ingredient in natural gas and a GHG pollutant many times more potent than carbon dioxide (CO2), the principal contributor to man-made climate change. Even small amounts of methane leakage across the natural gas supply chain can undermine the climate benefit of switching to natural gas from other fossil fuels for some period of time.

In a paper published last year, EDF scientists and other leading researchers examined the impact of potential fugitive emissions on the climate benefits of a switch from diesel to natural gas heavy-duty trucks. The study found that, according to the best available data, methane leak rates would need to be below 1% of gas produced in order to ensure that switching from diesel to natural gas produces climate benefits at all points in time. They also found that – using the EPA leakage rate estimates at that time – converting a fleet of heavy duty diesel vehicles to natural gas would result in increased climate warming for more than 250 years before any climate benefits were achieved.

EDF is working with leading researchers and companies in a series of studies designed to better understand and characterize the methane leak rate across the natural gas supply chain. The studies will take direct measurements at various points across the production, gathering and processing, long distance transmission and storage, local distribution, and transportation. The first study, led by researchers at the University of Texas, is measuring emissions from natural gas production. Results will be released in the coming months. Read More »

Clean Energy Market Poised For Rapid Growth In California

By Brad Copithorne / Published: March 1, 2013

Environmentalists and other policy makers have long touted the economic benefits of investing in energy efficiency and renewable projects. For California, that vision is on course to being realized.

Yesterday, EDF, Citi and Wilson Sonsini held Innovations in Energy Efficiency Finance II, a sequel to the successful conference we hosted in 2011. That year, we discussed several interesting ideas about how we might finance projects. Yesterday we heard from sector leaders on how those ideas are being implemented in California and beyond.

Citi and EDF conceived of this event as an opportunity to bring the energy efficiency and renewable industries together to discuss these opportunities and to build momentum for increased transaction flow. Judging by the makeup of the audience, I think we succeeded. I attend quite a few conferences to discuss energy efficiency and most of them are dominated by fellow public policy types. Yesterday, however, was a different story. Of the 185 attendees, over 2/3 were representing private sector companies in the clean energy or financing business.

As former Governor of Colorado, Bill Ritter noted, “California continues to take bold steps toward clean energy and provide the private sector with clear opportunities to invest in energy efficiency and renewables, critical components of our nation’s economic growth. A key part of achieving our clean energy potential, and creating jobs in America, is ensuring access to quality financing for homes and businesses that want to participate in the new energy economy.”

Posted in California, Energy Efficiency, On-bill repayment, Renewable Energy / Tagged Finance | Read 2 Responses

Results Are In: Auction Continues California’s Winning Streak to Fight Climate Change

By Tim O'Connor / Published: February 22, 2013

Three months ago California officially opened its world class cap-and-trade program for greenhouse gas pollution – establishing the first ever carbon price in the Golden State and leading the nation on a path toward true climate change action.

Earlier this week, California’s march toward meeting emissions reduction goals was bolstered with a second auction of carbon allowances in the cap-and-trade program, and just today, the results of that auction were released. All signs point to marked success for the program in the second auction, and suggest California is on its way toward fully realizing the goals of the Global Warming Solutions Act of 2006 (AB 32).

As shown by the results released at noon today, overall participation in the February 19, 2013 auction was high, with almost 2 ½ times more credits bid on than were sold. Initial reports show this has beaten all market expectations, and the clearing price of $13.62 suggests a strong belief in the longevity of the overall program.

By selling more than 7 million state-controlled carbon allowances, California’s second auction also raised about $83.5 million – money that will be used to advance the goals of AB 32. Furthermore, since recent legislation was passed in 2012 that requires at least 25% of the auction proceeds to benefit disadvantaged communities, this auction will inspire more than $20 million in investments that can benefit Californians in need.

With respect to who participated in the auction, market statistics show there was approximately a 25% increase in the number of qualified auction participants as compared to the last auction. This increased participation was no doubt partly responsible for the fact that 2013 credits were purchased by a diverse array of bidders (as opposed to credit purchases being concentrated in a few entities). This diversity of participation, coupled with the strong regulatory oversight being used by state agencies and expert market monitors is an important guard against market manipulation and is yet another example of how this market looks to be strong and diverse, a good sign moving forward.

In addition to auctioning off credits that can be used for emissions obligations in 2013, California’s second auction also offered advance vintage credits that can be used for compliance starting in three years (2016). Based on the sales volume of these credits (greater than 4.4 million sold), there continues to be moderate demand going forward for future vintage credits, another indication of the belief of the programs longevity.

A California carbon price opens the door for cleaner energy and clean air, as the State finally has an ongoing cost that can be attributed to carbon pollution. California’s next auction will occur in 3 months, though investments made now can be assured their carbon reduction value can be both calculated and counted on. As shown by today’s auction results, while much of the nation has waited to take concrete action against climate change, California’s train is out of the station and picking up steam every day.

Posted in General / Comments are closed

Bipartisan Consensus: Wasting Energy Is Senseless

By Isabelle Silverman / Published: February 20, 2013

In his State of the Union address, President Obama announced the goal of cutting energy waste in buildings and homes in half over the next 20 years. House Speaker John Boehner clapped approvingly. U.S. buildings and homes waste so much energy that a 50% reduction of such energy waste would save businesses and individuals billions of dollars, would deliver healthier air to all Americans and would put us on the path of energy independence. Most of our energy comes from burning fossil fuels; so, consuming less fossil fuel will reduce toxic emissions and improve air quality. Cleaner air will save lives. Studies estimate that over 35,000 Americans die every year due to air pollution related illnesses.

Cutting energy waste in half won’t just happen on its own, though, and it won’t be easy. We need to identify the opportunities where we can eliminate energy waste, and then invest in the types of technologies that lead to more energy efficient buildings and homes. The good news is that these modern, cost-effective technologies are available now.

Clearly, opening windows when a building is overheated is not the solution. For example, building owners will need to invest in control technologies that cut overheating and turn off lights and equipment when not needed. These are smart energy efficiency investments with typically short pay-back periods. And, in reducing the energy we waste, we improve our quality of life with more money in our pockets and fresher air in our lungs.

Finally, let’s not forget about the environmental impacts of energy exploration, which is another reason why we shouldn’t waste the energy that was so hard to get out of the ground in the first place. The actual extraction of fossil fuels is the second biggest source of U.S. greenhouse gas emissions, and – if developed irresponsibly – can pollute our water, air and oceans — jeopardizing our health, livelihoods and quality of life. When you consider the whole range of health and environmental impacts involved with using, and (of course) wasting, energy –it is blatantly obvious that wasting energy is already coming back to hurt us.

If Washington can agree that wasting energy is senseless, let’s keep the momentum going and support smart efforts, policies and investment tools that will help energy efficiency reach its full potential. Cutting energy waste is a win for our wallets, our health and our children’s’ future.

Posted in Energy Efficiency, On-bill repayment / Tagged SOTU, State of the Union | Comments are closed

Bloomberg’s State Of The City Ideas Good For Health And The Environment

By Andy Darrell / Published: February 15, 2013

Source: CBS New York

A lot happened yesterday: Brooklyn Nets cheerleaders. Jay-z soundtrack. Kids dancing on stage. The new stadium at Barclays Center. Popcorn. Valentine’s Day. Mayor Bloomberg’s birthday? Yes. But also his last State of the City speech.

In his speech and a small briefing in advance, he identified recent environmental wins: clean heat’s 170 tons of soot per year gone so far, a 16 percent cut in GHG pollution since 2005, the monumental third water tunnel under city streets, new waterfront parks underway at Fresh Kills, Governors Island and Brooklyn Bridge Park.

Mindful of 320 days left in his term (this guy counts data), he announced some ideas that can get done now:

Electric vehicles. A network of charging units citywide with 30-minute charges — one third of NYC’s taxi fleet to be electric. New York City could become a great place to charge a Tesla, a Leaf or a Volt. With traffic just behind heating oil as the main reason why some neighborhoods have unusually high pollution, that’s a good idea for health and climate. It also opens a conversation about the electric grid that extends well past his term. Will those cars run on electricity created by solar, hydro, wind, nuclear, natural gas, coal? Here’s an example of how to get it right: Pecan Street Inc.
Recycling. Expanded recycling for plastic, including those take-out containers so familiar to New Yorkers. And – an issue that’s getting a bit of press – ridding our city of styrofoam cups used in schools, delis and restaurants. This reminds me of EDF’s work with McDonald’s many years ago, getting rid of the Styrofoam clamshell.
Third, a citywide bike share program, to launch this summer. This could end up being one of the largest bike share programs in the world.

Equally interesting are some of the ideas not explicitly framed as “environmental,” for instance:

A post-Sandy commitment to “rebuilding here,” on the waterfront — but doing so sustainably, in a way that “keeps the lights on” in a storm. That will take unprecedented collaboration with state and federal policy makers, tech innovation, architecture and design and efficiency finance. A first step is to make sure that federal dollars flowing in to the region after Sandy are spent in a way that helps local communities make fully informed choices about not just “where” to rebuild, but “how” to rebuild.
And an idea that could reshape the skyline for a long time: “Midtown rezoning.” Sound boring? Could be. But imagine midtown Manhattan with buildings that are far at the forefront of resilience and clean energy – taking full advantage of the latest technologies to generate clean electricity and waste as little as possible. Could Manhattan be the next Pecan Street? This is an opportunity not yet fully-seized. Read More »

Posted in Grid Modernization, New York / Tagged Mayor Bloomberg, Superstorm Sandy | Comments are closed

President’s Vision Encompasses A Next-Generation Energy System

By Elizabeth B. Stein / Published: February 14, 2013

Tuesday’s State of the Union (SOTU) speech included much that was music to environmentalists’ ears. The headline, of course, is the commitment to take serious action to address the most significant challenge our generation faces – climate change. And, with it, the extreme weather and public health burdens that are already making life harder for vulnerable regions and people nationwide, and that stand to become so much worse as the root cause remains unaddressed.

But some of the most exciting aspects of the SOTU message are the nuts and bolts that underlie the top-line goal. Specifically, the President’s speech recognizes that Americans have an opportunity to achieve many of the carbon reductions we need through actions that create new business opportunities, increase national security and drive economic growth. In fact, we already are. As the President noted, the past four years have seen the beginnings of a revolution in American energy production and use – technological innovations have put us on track to energy independence and renewable resources constitute a growing share of electric generation capacity.

The President’s vision, as outlined in the SOTU, encompasses a next-generation energy system – one where the system that was revolutionary in Thomas Edison’s time is finally supplanted by a system that meets the needs of our time. Technological change can bring full-scale transformation, and government can play a role by accelerating technological development. A future where cars and trucks no longer depend on oil can finally be imagined – and government efforts can help bring that future into the present more quickly.

Carbon-free wind and solar energy represent a growing share of our resource mix, and they can grow to serve a larger and larger share of load. And energy waste in buildings can be cut substantially – but doing so requires innovations in energy retrofits, building operations and finance, which government can also help to foster.

Finally, President Obama referred to fostering a ‘self-healing power grid,’ which is extremely important. Modernizing our outdated, aging electric grid and how it is operated (as well as customer-side technology and practices) will help minimize problems that arise from extreme weather events and other disruptions, while also allowing for greater shares of electric demand to be served by resources whose output depends (literally) on something as fickle as the weather.

Posted in Energy Efficiency, Grid Modernization, On-bill repayment, Renewable Energy, Washington, DC / Tagged SOTU, State of the Union | Comments are closed