Energy Exchange

How FERC’s flawed definition of “subsidy” could reshape the energy future for 65 million Americans

By Imelda Foley / Published: May 27, 2020

The Federal Energy Regulatory Commission issued an order last December that could force many clean energy resources to bid into the nation’s largest wholesale electricity market, PJM, at artificially high prices. State policy makers, consumer and environmental advocates and the clean energy industry alike spoke out in vigorous opposition. Now, that order is being challenged in the courts. In the meantime, PJM must implement its directives in a process that will shape the future energy system for 65 million Americans in a region that spans 13 mid-Atlantic states and the District of Columbia.

While FERC’s December order was already bad policy — replacing competitive bidding with administrative pricing — many aspects of their mid-April order clarifying that policy are illogical and unworkable. As well as threatening competitive markets, these orders undermine state clean energy choices and, if FERC ignores PJM’s latest proposal attempting to soften the impact of the orders, could increase customer costs by billions.

Posted in Clean Energy, Market resilience, New Jersey, New York, Regional Grid, Renewable Energy / Comments are closed

A zero flaring policy is long overdue, and investors can help make it reality

By Ben Ratner / Published: May 27, 2020

As investors take a hard look at the U.S. energy sector during this time of volatility, natural gas flaring is one of the most important and immediate risks to manage.

The eyesore of the oilfield, flaring natural gas destroys shareholder value and creates environmental, social and governance risk — exactly the kind of problem that an increasing number of asset managers, investment banks, and even private equity firms have promised to address.

Routine flaring is damaging the environment in several ways. In addition to the CO2 emissions from combusted gas, flares can release significant amounts of methane into the atmosphere. EDF’s recent helicopter survey found that more than one in every 10 flares at oil and gas sites across the Permian Basin was either unlit — venting uncombusted methane straight to the atmosphere — or only partially burning the gas they were releasing. In fact, the survey suggests that flaring could be among the region’s largest sources of fugitive methane and a troublesome contributor to local air pollution.

Posted in Air Quality, Climate, Methane, Natural Gas, PermianMAP, Texas / Tagged New Mexico | Comments are closed

A bright future for continuous methane detection

By Ben Ratner / Published: May 20, 2020

Over the last decade, a trove of scientific studies has established that not only are methane emissions from oil and gas operations a major contributor to climate change, but also that they are severely underestimated and underreported.

EDF has been at the forefront of research to detect and quantify the magnitude of oil and gas methane emissions. And we’ve also helped develop solutions that make large-scale emission reductions easier, faster and cheaper. A new initiative led by The University of Texas at Austin called Project ASTRA is a promising, multi-year experiment with the potential to build on and complement other efforts aimed at scaling global reductions of oil and gas methane emissions.

Posted in Methane, PermianMAP / Comments are closed

Canada’s Trudeau exemplifies climate leadership in the face of COVID-19 crisis

By Sam Kotis / Published: May 19, 2020

As countries everywhere struggle to balance crucial long term priorities like climate change with the urgent health and economic issues faced by millions suffering the effects of a viral pandemic, the government of Canada has distinguished itself with a new policy designed to address both sets of challenges without shortchanging either.

Prime Minister Justin Trudeau on Canada’s Energy Stimulus Plan offers a standout example of how world leaders can carefully meet society’s immediate needs while simultaneously reducing the greenhouse gas pollution that is destabilizing our climate. Trudeau’s response demonstrates that it is possible to protect and preserve jobs — even in the oil and gas sector — while still cutting emissions.

The plan, announced in April, includes over CA$2 billion to help offset the crisis in the energy sector, while keeping a sharp focus on the economy and the environment. It includes CA$1.7 billion to clean up old, so-called orphan wells across Alberta, Saskatchewan and British Columbia, which the government estimates will preserve more than 5,000 jobs in Alberta alone.

Posted in Climate, Methane, Methane regulatons, Natural Gas / Tagged Canada | Comments are closed

ERCOT forecast and new analysis show the Texas grid moving away from fossil fuels

By John Hall / Published: May 15, 2020

A duo of recent announcements underscore the clear direction the Texas grid is headed: toward more renewable energy, storage, energy efficiency and sophisticated demand-side management resources and away from coal.

That means less climate and local air pollution, of course. But it also means more local jobs, less volatile energy costs, a more stable and reliable grid and yet another opportunity for Texas to reap the economic benefits that come with being an energy pioneer.

Posted in Clean Energy, Demand Response, Energy Efficiency, Grid Modernization, Market resilience, Solar Energy, Texas / Tagged Energy Storage | Comments are closed

New report offers insights to improve environmental integrity and safety of underground gas storage facilities

By EDF Blogs / Published: May 15, 2020

By Dan Mueller and Hanling Yang

点击这里用中文阅读

For more than a century, the United States has been storing vast amounts of natural gas in large, underground storage facilities. Underground gas storage is an essential tool for providing reliable natural gas supply, but these facilities must be rigorously designed, maintained and managed to minimize potential failures that can significantly impact our health and environment. This was made abundantly clear in 2015 when a failure at an underground gas storage facility in Southern California sent massive amounts of methane and other toxic chemicals into the air for months on end, resulting in the largest gas leak in modern history.

U.S. UGS regulatory programs and practices continue to improve, drawing on recent lessons learned, and that has important implications for other countries looking to develop and enhance their own gas storage programs.

Posted in Methane, Natural Gas / Tagged China, Gas storage | Comments are closed