Energy Exchange

Compensating distributed energy resources for environmental attributes

By EDF Blogs / Published: March 6, 2018

Small distributed energy resources, cutting carbon emissions, and making sure people pay appropriately for participating in the electric system: These have been pillars of Reforming the Energy Vision (REV), New York’s comprehensive initiative to re-think utility regulation and reduce carbon in the power sector.

Cutting carbon pollution – decarbonization – will be difficult as long as a carbon price is in effect only for large generators. That approach creates a risk of shifting emissions from large generators to small ones and creates a disincentive for environmentally-beneficial electrification.

Setting a robust price on carbon and applying it to fossil fuel users of all sizes and types would avoid such results and enable the market to drive down emissions efficiently. But in a world without such a broadly-applied price, designing an appropriate compensation mechanism for small generators that produce both environmental benefits and emissions is an interesting economic policy challenge.

There’s a lot to consider. Let’s unpack the issues. Read More »

Illinois has plenty of power, says new report. So, why bail out Dynegy’s coal plants?

By Christie Hicks / Published: March 5, 2018

Since last year, Dynegy has tried to strong-arm Illinois legislators and regulators into allowing it to pollute more. To add insult to injury, the Texas-based energy giant wants to charge customers more to do so. It’s a lose-lose for Illinoisans. And here’s the kicker: A new report just revealed that Illinois has more than enough power without Dynegy’s coal plants.

Dynegy has spent the past year targeting environmental protections at the Illinois Pollution Control Board, and has re-introduced legislation in Springfield that would give its uneconomic coal plants a $400 million per-year bailout. Meanwhile, Dynegy is raking in millions in profits. Moreover, Dynegy was acquired last week by Vistra Energy in a move that will generate $4 billion in equity.

There is more than enough power in Illinois (termed “resource adequacy” in energy parlance) to keep the lights on and then some, confirms the new report from the Illinois Commerce Commission (ICC). The report is further evidence that Illinoisans should not have to bail out Dynegy’s polluting plants. Read More »

Posted in Clean Energy, Illinois / Comments are closed

Report: LA County oil and gas sites require stronger oversight

By Irene Burga / Published: March 2, 2018

A new report from the Los Angeles County Department of Public Health (DPH) provides yet more evidence that greater oversight is needed to address health and safety concerns with the region’s oil and gas facilities.

Los Angeles sits directly on top of 68 active oil fields, meaning many of the city’s residents live in close proximity to harmful emissions associated with oil and gas development, including compounds that can cause cancer, respiratory diseases like asthma, severe headaches, neurological problems, and other health consequences.

LA DPH assessed the impact of urban drilling on communities in east and south LA and considered existing research to identify actions for regulators to reduce public health threats, including:

Posted in Air Quality, Aliso Canyon, California, Methane, Natural Gas / Comments are closed

Methane a potential blind spot for Canadian oil and gas industry, says investor

By Sean Wright / Published: March 1, 2018

While a growing number of global oil and gas companies step up to reduce methane emissions, many operators in Canada have hesitated to take concrete action, perhaps waiting instead for federal and provincial regulations to address the issue.

EDF’s Sean Wright recently sat down with Jamie Bonham, Manager of Corporate Engagement at NEI, a Canadian investment firm based in Toronto with $6 billion in assets under management. Bonham is concerned many Canadian operators do not understand the full scope of their oil and gas methane problem, but says there is considerable opportunity for Canadian companies to exert leadership.

Posted in Methane, Natural Gas / Comments are closed

Industry-backed white paper low-balls oil & gas methane impact

By Ilissa Ocko / Published: February 28, 2018

A white paper by the Gas Technology Institute’s Center for Methane Research is drawing attention in industry circles for arguing that methane emissions from the oil and gas sector have a much smaller impact on the global climate than virtually every other generally accepted scientific estimate.

That would be huge news if it were true. But unfortunately, the conclusion is rendered completely moot by a compounding series of fundamental errors. In fact, had the authors done their math accurately, their results would have been very much in line with mainstream research which shows that human-caused methane emissions are responsible for a quarter of the worldwide warming we’re experiencing today.

We can’t say whether the erroneous calculations were intentional or not. It’s worth noting, however, that EDF pointed out these mistakes to GTI staff when our scientists were asked to comment on a pre-publication draft. We will explain them again here, showing where the authors went wrong and what the numbers look like when they correctly reflect the underlying physics and chemistry.

Posted in Methane, Natural Gas / Comments are closed

The energy reality behind Cape Town’s water crisis – and why the U.S. should care

By Kate Zerrenner / Published: February 28, 2018

In Cape Town, South Africa, the countdown is on for Day Zero when water taps in the city of 4 million people are expected to run dry.

Yet, while this water crisis has been making headlines worldwide, nobody’s talking about the connection between water and energy. In a rapidly changing climate, we should.

Cape Town may be the first major city staring down a water scarcity crisis, but it’s not alone. One-quarter of the world’s large cities, including at least two in the United States, are “water-stressed,” a 2014 study found.

As it turns out, many of them also happen to rely on the world’s thirstiest energy source: coal. Read More »

Posted in Energy-Water Nexus / Read 2 Responses