Energy Exchange

Innovative Strategies for Utilities in the Face of Increased On-Site, Distributed Generation

By Brad Copithorne / Published: January 22, 2014

Brad CopithorneLast year, the trade association for the utility industry, the Edison Electric Institute (EEI), published a whitepaper on the disruptive challenges facing the utility industry.  In summary, EEI’s thesis was that the existing utility business model (centralized, fossil-fuel based generation) is under threat from on-site, distributed generation as more customers switch to cleaner, and often cheaper, solar power.  The white paper poses an important question: How can utilities acquire the revenue needed to keep the electric grid humming and provide reliable power to all customers if a growing number of people are producing their own electricity?

In business, one of the most difficult problems that companies face is how to adapt a successful business model to technological or social changes that threaten that business model.  Wang, Unisys, DEC and Amdahl were all big computer companies in the 1970’s that clung to an obsolete business model in the face of distributed computing.  IBM and HP, on the other hand, adapted their business models and generally thrived.

Over the past year, we have seen several utilities tackling this challenge head-on by investing in distributed, renewable energy projects.  In September, I wrote about how NextEra and NRG were voluntarily developing solar investments and how Direct Energy and Viridian were investing in solar installations developed by SolarCity. Read More »

Posted in Demand Response, Grid Modernization, On-bill repayment, Renewable Energy / Tagged , , | Read 3 Responses

Governor Cuomo Announces $40 Million in Post-Sandy Microgrid Competition

By Rory Christian / Published: January 14, 2014

Rory Christian PhotoSince Superstorm Sandy stranded thousands without power across the state of New York in 2012, it has become clear that infrastructure upgrades are a necessity for the state. The current, outdated energy system is not up to the challenges of the present day and a changing climate. A year after Sandy, New York has a plan. Last week during his State of the State Address, Governor Cuomo announced the allocation of $40 million to the new Community Grids NYPrize Competition, a program which promises to help New York achieve a more sustainable, resilient energy future.

The competition, aimed at jump-starting at least ten “independent, community-based electric distributions systems” across the state by the end of 2014, is a highlight of a larger $17 billion plan to prepare for future storms like Sandy. Upon full implementation, the NYPrize Competition Community Grids are expected to support approximately 40,000 New York residents.

A “community microgrid” is a new type of energy system that leverages decentralized, local, clean power sources such as solar and wind that are able to operate independently of the centralized electric system. Microgrids are small-scale distribution systems that link multiple distributed energy resources (DERs) into a network that can generate, store and control its own power. Microgrids can operate in tandem with the main power grid during normal conditions, but can disconnect and function as an independent “island” of stable power if the main grid fails. The use of microgrids greatly reduces the number of outages and allows more people to keep their lights on during (and in the wake of) extreme weather events.  Read More »

Posted in Demand Response, Grid Modernization, New York / Tagged , | Read 1 Response

Demand Response Helps Texas Avoid Rolling Blackouts in the Face of Polar Vortex

By Marita Mirzatuny / Published: January 8, 2014

MaritaHeadshot

This commentary originally appeared on our Texas Clean Air Matters blog. 

As we begin a new year, the outlook for 2014 looks bright.  But as the Polar Vortex has descended upon the U.S. over the last few days, we have been reminded of the past, specifically the winter of 2011 when Texas’ electricity grid stuttered under the extreme cold.

Monday, as a record-breaking cold snap whisked over the U.S., the Electric Reliability Council of Texas (ERCOT), the state’s grid operator, warned of possible blackouts, just as they did in 2011.  We were lucky this time, but in February of 2011 we were not, and blackouts occurred throughout the state.

ERCOT’s warning meant that the grid’s power reserves “dropped below a comfortable threshold,” and the “system was just one step away from rolling blackouts” as the need for energy outpaced supply.  As these blackout threats loomed, two power plants succumbed to the cold and went down.  The loss in capacity amounted to about 3700 megawatts (MW), with 1800 MW lost due to the cold.  According to Dan Woodfin, ERCOT’s Director of System Operations, “if we had lost another unit it would have put us into an Energy Emergency Alert Three” – the stage that prompts rolling blackouts.  This is unnecessary and unacceptable. Read More »

Posted in Demand Response, Renewable Energy, Texas / Tagged , , , , | Read 2 Responses

80% Electricity from Renewables? It’s Possible, but Policy Prevents It

By Paul Stinson / Published: December 18, 2013

Paul Stinson

This commentary originally appeared on our EDF Voices blog.

If renewable energy is a good thing, then a lot of renewable energy is a very good thing, right? Not exactly, according to recent articles in the L.A. Times and Forbes about challenges posed by the growth of renewables.  But, as we’ve pointed out, the issue here is not too much renewable energy, but rather a vulnerable U.S. electric grid built for the last century.

It’s essential to remember the bigger picture in order to arrive at the truth of the matter: If we are to avoid catastrophic climate change, renewable energy is a vital part of the solution.  And while an unprecedented abundance of renewable power may raise complex questions about how to integrate these resources, it also underscores the need – and vast opportunity – for critical energy infrastructure improvements.  Our response as a nation should not be to shrink from the challenges of renewables, but rather to keep working toward a smarter, more resilient energy system to meet the needs of the 21st century and beyond.  Read More »

Posted in Demand Response, Energy Efficiency, Grid Modernization, Renewable Energy / Tagged , | Comments are closed

Austin’s Own Pecan Street Inc. Launches The Pike Powers Lab

By Marita Mirzatuny / Published: July 16, 2013

Last month, while I was speaking at the 7th Annual Platts Texas Energy Markets Conference in Houston, I missed out on celebrating a very important milestone here in Austin: The grand opening of the Pike Powers Laboratory & Center for Commercialization! The ribbon cutting on June 11th brought over 150 people, including “leaders from major technology firms, like Dell, Intel Corporation, Schneider Electric and National Instruments, along with representatives from the U.S. Department of Energy.” Named after the godfather of Austin’s technology scene, Pike Powers is located in the Mueller community in the shadow of the former air traffic control tower. As the research arm of Pecan Street Inc., the lab will be the “nation’s first non-profit smart grid research laboratory, serving as an elite industry-caliber facility for members of the Pecan Street Research Consortium.”

Priorities

Pecan Street is inviting startup firms to take their questions and challenges and incorporate them into the mission of the lab, which is driven by three priorities: commercialization, research and education.

Commercialization: Pecan Street provides a pathway for companies and utilities to test and demonstrate innovative technologies in a controlled environment and bring advanced products to market, such as new electric vehicle chargers. The lab will also conduct field-testing on technologies, such as set-and-forget home energy management tools, to ensure that products are properly evaluated before hitting the shelves. Read More »

Posted in Grid Modernization, Texas / Comments are closed

Consumers At The Heart Of Illinois Smart Grid Revitalization Project

By Raya Salter / Published: April 3, 2013

On April 1, Illinois’ largest utilities, ComEd and Ameren Illinois (Ameren), updated their plans to launch one of the nation’s largest electrical grid upgrades, a $3.2 billion project that will set the stage in Illinois for how utilities and customers interact in the future.  The ComEd and Ameren plans provide new detail on how they intend to replace the aging Illinois grid and begin to transform it into a digital smart grid capable of monitoring customer and environmental benefits.  EDF and Citizens Utility Board (CUB) teamed up with both utilities to create twenty new benchmarking metrics that will measure how the utilities deliver benefits to consumers and improve their performance annually. 

To elaborate, such metrics include reductions in peak energy demand, increased adoption of renewable energy, such as solar power, wide-spread implementation of smart energy devices and diminished greenhouse gas (GHG) emissions, among others.  In addition, ComEd and Ameren have elected to work with EDF and CUB to develop new and better ways to measure how smart grid technology can help reduce GHG emissions and electrical inefficiencies.  Using smart grid devices to precisely measure GHG and line loss is technically challenging, but key to unlocking the promise of smart grid technology.

When customers are empowered with the knowledge and tools to control their own energy usage, they are also empowered to save money on their utility bills.  As CUB Executive Director David Kolata points out, “A smart grid begins with smart policy. These new metrics will help bring the power grid into the 21st century more quickly and cost-effectively, ensuring that consumers see the benefits in the form of lower electric bills.”

To take full advantage of the $3.2 billion project, born out of the Illinois Energy Infrastructure Modernization Act of 2011, ComEd and Ameren must go above and beyond the business-as-usual utility metrics.  Utility metrics to date have commonly focused on general measures to gauge customer benefits, such as customer awareness survey completions and number of customer outreach events attended.  These new tracking mechanisms go further in that they will allow the utilities to track and report where customers are realizing the benefits of electric grid improvements, and the extent to which they are participating in these opportunities.  This includes measures like the number of customers who can directly access their own energy usage data and the time it takes to connect renewable energy resources, like solar power, to the electric grid. Read More »

Posted in Grid Modernization, Renewable Energy, Utility Business Models / Tagged , | Comments are closed