Energy Exchange

EPA’s Greenhouse Gas Inventory Makes Progress but Misses Forest for Trees

In its draft 2017 GHG inventory, published this week, the EPA estimates methane emissions from the oil and gas industry were lower than their previous estimate in the 2016 inventory.

The vast majority of the decrease comes from methodological changes in how EPA does these estimates and does not represent actual reductions from improved industry practices. We expect to see fluctuation in EPA estimates in future inventories as the agency continues to revise their accounting methods; this inventory should not be viewed as the final answer. But, to see the actual trend in emissions, you should compare 2015 emissions to their updated estimate of 2014 emissions, not the estimate from last year’s inventory. EPA estimates a mere 2% reduction in actual emissions, largely attributable to reduced drilling activity and well completions, which is a result of lower oil and gas prices in 2015. This points to the importance of recently enacted regulations, like the EPA NSPS and BLM rule, to drive the much greater reductions needed to minimize waste and the climate impacts of oil and gas. Read More »

Posted in General, Methane, Natural Gas / Comments are closed

Aliso Canyon Decisions Must Be About More Than Just Near-Term Safety

openclosedAfter months of speculation, the California agency in charge of setting standards for oil and gas operations (“DOGGR”) this week announced a pair of meetings to take public comment on the reopening of the Aliso Canyon Natural Gas Storage Facility.

This development stems from legislation passed in 2016 (SB 380), and is expected to be among the final steps before Southern California Gas Corporation (SoCalGas) is allowed to restart limited use of the facility. So, while it’s critical for the state to get its decisions right for safety and near-term electric reliability related to Aliso, to fully comply with SB 380, the decisions being made also need to take into account the larger issues facing California today. Read More »

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

Utility Regulators Guided To Set New Rates Deliberately, Using Data

pecan-street-neighborhood-solarDistributed resources – like residential solar, storage, and electric cars – are becoming more mainstream every day. This presents new challenges for utilities and utility regulators who are struggling to capture their benefits, while balancing shareholder interests and reliability.

To help utility commissions around the U.S. navigate the challenges, considerations, and policy developments related to the emergence of distributed energy resources, the National Association of Utility Regulators Association (NARUC) board of directors accepted a rate manual written by its staff subcommittee at its annual meeting. The Distributed Energy Resource Compensation Manual supports a deliberate, reasoned approach to making rate design changes by providing practical guidance to its members. Read More »

Posted in Clean Energy, Electric Vehicles, Electricity Pricing, Solar Energy / Tagged | Comments are closed

The Killer App for The Internet of Things? Combating Climate Change.

graphicCo-authored by David Kirkpatrick, Techonomy’s CEO.

When Elon Musk announced his lower-priced Tesla 3 electric car in the spring of 2016, he opened the press conference with rhetorical questions. “Why does Tesla exist? Why are we making electric cars?” The audience of car fanatics and techies didn’t expect the answer he gave, though a clue came from the fact that Musk was already working to fold his other company, SolarCity, into Tesla. He continued: “Because it’s very important to accelerate the transition to sustainable transport…for the future of the world.”

Then Musk started talking about the world’s “record CO2 levels,” noting, “The chart looks like a vertical line, and it’s still climbing!” He sees Tesla as targeting climate change — the cars will connect to the solar systems and home storage batteries, so “every individual is their own utility,” and less carbon is emitted. Not what you’d expect from a car company.

Musk seldom uses the phrase, but what he was talking about was the Internet of Things (IoT) — putting computing intelligence into the objects and systems that surround us, connecting them to the network, and stitching it all into a digital ecosystem. Tesla’s cars, solar collectors and batteries all are connected, communicating via the internet. While the concept of IoT has been batted around the tech industry for a decade, with companies including Cisco and Intel placing hefty bets on its success, only now — suddenly — is it starting to make sense. Read More »

Posted in Clean Energy, Climate, Energy Innovation, Grid Modernization, Solar Energy, Time of Use, Utility Business Models, Wind Energy / Tagged | Comments are closed

Baseload Power is So Yesterday. A Cleaner, Modern Electric Grid Deserves Flexibility.

power-lines-unsplash2Coal-heavy utilities in the Midwest have mustered a new argument to secure subsidies for their uneconomic power plants. They used to suggest the plants were needed to maintain reliability, until regional grid operators declared there was plenty of generation to ensure the lights stayed on. They then attempted to argue the plants provided jobs and taxes to the local communities, until conservative economists highlighted the inefficiency of subsidies.

Now several utility executives, including the chief executive officer of American Electric Power (AEP), are trying to regale regulators with the importance of baseload generation. The argument goes something like this: Since some power plants – largely nuclear reactors and coal-fired power plants – have a hard time ramping up and down in response to changing electricity demand, the grid needs those units to operate all the time, to provide a “base” output of power.

Such last-century thinking, however, ignores the phenomenal advances provided by modern sensors, smart meters, and telecommunications. A combination of dynamic power options – like demand response (crediting homes and business for using less electricity when the power grid is stressed), renewable energy, and battery storage, among others – allow the grid to respond more nimbly than ever before. Rather than propping up old, lumbering baseload generators, we should prioritize a more modern, cleaner grid that focuses on flexibility and diversity. Read More »

Posted in Clean Energy, Utility Business Models / Read 4 Responses

4 Ways to Enhance Texas’ Approach to Electric Reliability

power-lines-pixabayFor one scorching week in August, Texas broke electricity-use records on three different days. And the main grid operator met that exceptional demand every time.

That’s because the grid operator’s top priority is right there in its name: the Electric Reliability Council of Texas (ERCOT). ERCOT deploys many tools to ensure the lights stay on, including Reliability Must-Run (RMR) agreements, which keep open a power plant – like a coal or natural gas plant – that otherwise planned to stop or suspend operations. Recently, there has been concern that the use of RMRs may increase due to market conditions, specifically low electricity prices that are forcing uneconomic plants to retire.

RMRs serve a critical purpose. But as technology transforms the way we power our lives, we need smart policies that recognize the unprecedented array of new energy options. ERCOT currently is in the process of revising its rules, and Environmental Defense Fund has a few recommendations on how the grid operator can improve its approach to reliability agreements, so Texans can enjoy a healthier, cleaner, and more affordable energy future. Read More »

Posted in Clean Energy / Comments are closed