Energy Exchange

What if gadgets talked to the grid to cut carbon? With this new technology, they can.

By Andy Bilich / Published: November 8, 2018

Having breakfast at a local restaurant last weekend, I was sitting next to parents who were desperately trying to get their toddler to eat the pancakes he had ordered a few minutes earlier. Watching the high-stakes drama, it occurred to me that toddlers are a bit like our electric grid: They can change drastically at a moment’s notice.

The better we are at reacting to the sudden outburst of “I hate pancakes” – or in the case of the grid, rapid changes in demand, price and emissions – the better off we’ll be.

For emissions at least, we can. Automated Emissions Reductions, or AER, is a new technology helping us to more precisely measure and proactively reduce the carbon emissions impact from our electricity use, in real time. A growing number of grid operators, businesses and energy managers nationwide are lining up to invest in this technology as an efficient way to cut their carbon footprint.

Posted in Electricity Pricing, Energy Innovation, Fourth Wave / Comments are closed

3 reasons Texas’ electric grid survived a summer that pushed its limits

By Kim Rainwater / Published: October 31, 2018

As the hot summer approached, Texas leaders expressed concern about potential blackouts and brownouts. Yet, thoughtful planning, a functional electricity market and clean energy helped ensure the lights stayed on.

Power outage concerns

Hotter temperatures and continued population and commercial growth drove record electricity demand this past summer. Additionally, in early 2018, Luminant (now Vistra) shut down three large coal plants – all inefficient and highly-polluting – with a combined capacity of 4,200 megawatts (MW).

The shutdown of these power plants and other changes in the electricity market initially led the state’s electric grid operator, the Electric Reliability Council of Texas (ERCOT), to forecast few electricity-making resources would be available beyond the amount customers would likely demand.

Posted in Clean Energy, Electricity Pricing, Grid Modernization, Regional Grid, Texas / Comments are closed

FERC approves pipeline despite concern over controversial business arrangement

By Natalie Karas / Published: August 10, 2018

Last week, the Federal Energy Regulatory Commission (FERC) approved the proposed Spire STL Pipeline. Blessings for the controversial 66-mile project come even though St. Louis already enjoys excess capacity from other pipelines, and despite the fact that the only customer of the pipeline, Spire Missouri, does not actually have any growth in customer demand. It is estimated that the project will cost ratepayers $30 million annually over the next twenty years.

The proceeding reveals much about how the agency assesses the legally-required “market need” for new pipelines when both buyer and seller in the contract used to demonstrate that market need are two different arms of the same company. These so-called affiliate transactions are a growing trend as retail gas utilities seek new revenue to offset stagnating demand.

The risk with these types of transactions is that we could end up with expensive new pipelines that aren’t needed. What’s more, these deals are specifically engineered to shift financial responsibility for these costly projects away from private shareholders and onto retail ratepayers (i.e., the public). They can also lock utility customers into decades-long gas contracts at precisely the time when competitive alternatives – from renewables to energy storage – are transforming the market. Spire presents a textbook example of these concerns.

Posted in Natural Gas, Utility Business Models / Comments are closed

Recommendations for a resilient grid, no federal coal bailout required

By EDF Blogs / Published: May 9, 2018

By Michael Panfil, Rama Zakaria

In the past year, the U.S. Department of Energy (DOE) has used the issue of grid resilience as cover for an aggressive campaign to funnel a multi-billion-dollar yearly bailout to the owners of old, uneconomic coal and nuclear power plants. Although this DOE effort was rightly rejected by the Federal Energy Regulatory Commission (FERC) in January, the issue of resilience remains.

In denying DOE’s proposal, FERC (the agency responsible for overseeing our nation’s electric grid) asked regional grid operators to report practices they are currently implementing to ensure a reliable, resilient electric grid. In March, grid operators filed their reports, which generally concluded that the grid is resilient and we don’t need uneconomic coal and nuclear plants to keep the lights on.

Today, Environmental Defense Fund (EDF) – alongside numerous other stakeholders from business, academia, industry, and public interest organizations – submitted to FERC individual and joint comments on these grid operator reports and the topic of grid resilience. Read More »

Posted in Clean Energy, Electricity Pricing, Market resilience / Read 2 Responses

New study answers the question, ‘What is grid resilience?’

By EDF Blogs / Published: May 2, 2018

By Rama Zakaria, Michael Panfil

Whether or not our electric grid is “resilient,” and what if anything should be done to make the grid more resilient, has been a topic of intense scrutiny in the past year.

The stakes in this debate reached new dimensions last fall with a highly controversial proposal by Sec. Rick Perry and the U.S. Department of Energy (DOE), which claimed that the resilience of the electric grid is threatened by the premature retirement of uneconomic coal and nuclear plants. DOE’s flawed proposal – to bail out these plants through a profit-guarantee mechanism – was considered and unanimously rejected in January by the Federal Energy Regulatory Commission (FERC), the agency charged with overseeing our nation’s electric grid. DOE’s proposal, in short, was an incredibly bad idea.

When FERC dismissed DOE’s proposal it opened a new proceeding, asking a series of questions around the topic of grid resilience.

A Customer-focused Framework for Electric System Resilience, a new report authored by Alison Silverstein and Grid Strategies, aims to answer these questions. The report, commissioned by Environmental Defense Fund and Natural Resources Defense Council, recommends a customer-centric framework for evaluating electric system resilience and concludes that the most effective resilience solutions center upon the wires connecting the grid: distribution, and to a lesser extent transmission. By contrast, generation-related solutions – like keeping dirty coal and uneconomic nuclear plants online past their retirement dates – are the least effective for improving resilience. Read More »

Posted in Clean Energy, Electricity Pricing, FirstEnergy, Grid Modernization, Market resilience, Utility Business Models / Comments are closed

California’s legislative session could be huge for state economy and world climate

By Lauren Navarro / Published: April 26, 2018

This year’s legislative session here in California is poised to be a wild ride in clean energy – more ideas, intertwining issues, and intrigue are developing than in the last 10 years. A signal that the state’s clean energy policy is coming of age, leaders and significant players are weaving all of the separate programs together and answering major policy questions. This progress can have a major impact on both California and the world around us. It’s like Pangea, spreading apart and creating the new world – only much faster.

A game-changer for the West

Take AB 813 by Assemblymember Chris Holden, for example. The bill would create a regional electricity market in the West – something that would combine the state’s desire to expand its clean energy and climate policy and the need for all states, including California (with its high expectation for renewable resources), to balance and run their grids more affordably and effectively.

It is a policy solution that thinks large and small – taking into account the out-of-state pollution reductions necessary in order for California to move the needle on its climate goals while preserving participating states’ and communities’ control over their resource choices. Read More »

Posted in California, Clean Energy / Read 1 Response