Energy Exchange

Corporate Buyers Demonstrate Demand for Renewables. Now it’s Time for the Market to Catch Up.

By Victoria Mills / Published: August 14, 2014

Colin Krenitsky, 2014 EDF Climate Corps fellow for the Denver Housing Authority.

Last month, twelve major corporations announced a combined goal of buying 8.4 million megawatt hours of renewable energy each year, and called for market changes to make these large-scale purchases possible. Their commitment shows that demand for renewables has reached the big time.

We’re proud that eight of the twelve are EDF Climate Corps host organizations: Bloomberg, Facebook, General Motors, Hewlett Packard, Proctor & Gamble, REI, Sprint and Walmart. The coalition, brought together by the World Wildlife Fund and World Resources Institute, is demanding enough renewable energy to power 800,000 homes a year. And while it’s great to see these big names in the headlines, they’re not alone in calling for clean energy: 60 percent of the largest U.S. businesses have set public goals to increase their use of renewables, cut carbon pollution or both. Read More »

Posted in Clean Energy, Climate, EDF Climate Corps, Energy Financing, General, Renewable Energy, Utility Business Models / Comments are closed

To Opt-In or Opt-Out: What Works For Time-Variant Pricing

By Beia Spiller / Published: August 7, 2014

Source: Johannes Rössel, wikimedia commons

It would be logical to assume that we make decisions based on our needs, desires, and values regardless of how the choice is presented. For instance, we wouldn’t expect the choice to become an organ donor to depend on whether you must check a box to accept or decline donation. But we would be wrong: our decisions depend a great deal on how the choice is presented.

Choice architecture gets to the heart of the debate on whether it’s preferable to offer people the opportunity to opt-in or to opt-out, and this question has become crucial to the discussion about time-variant electricity pricing throughout the country.

Opt-out vs opt-in time-variant pricing

Currently, most electricity customers pay for electricity at a single flat rate (i.e., one price per kWh consumed). Such pricing is simple but doesn’t reflect actual system costs, which are higher during times of the day when overall energy demand peaks. Time-variant pricing instead allows utilities to charge more for electricity during periods of peak demand, and less during periods of lower demand. Read More »

Posted in Clean Energy, Demand Response, Electricity Pricing, Energy Efficiency, Grid Modernization / Read 3 Responses

Massachusetts Moves to Modernize its Electric Grid – What this Means for Customers, Utilities

By John Finnigan / Published: June 20, 2014

Source: Leatherndevil, via Wikimedia Commons

According to the Electric Power Research Institute, the U.S. will need to invest $124 billion between now and 2030 to upgrade its electric distribution system, and these upgrades will require state utility commissions to thoughtfully plan for and oversee the investments. Last week, Massachusetts became one of the first states to begin this process by taking a bold step to modernize its electric grid, joining states like New York and Hawaii, which recently introduced similar measures.

On June 12, 2014, the Massachusetts Department of Public Utilities (DPU) ordered utilities to file ten-year grid modernization plans. These plans will spell out how utilities plan to incorporate modern technology to improve electric service and connect clean energy resources to the grid. This will provide customers access to cleaner and higher quality electricity service at a lower cost. Read More »

Posted in Clean Energy, Grid Modernization, Utility Business Models / Comments are closed

Utilities: Your Monopoly Days are Numbered. (Yes, We’ve Heard this Before, but this Time…)

By Dick Munson / Published: May 7, 2014

Source: S. Sepp, Wikimedia Commons

Competition from new players will drive innovation in the changing electric utility market

The blogosphere is abuzz with plans to create a new electric utility business model, one that reduces energy costs and pollution. The power company of the future, many experts say, will feature new electricity rate structures that reward efficiency, finance and integrate local, on-site power generation (like rooftop solar), and put more smart meters in the system to help us better understand and control our energy use.

Such changes could indeed help reduce consumer costs and pollution, yet they ignore larger opportunities to advance innovation and efficiency. Missing in most Utility 2.0 discussions is any real debate about the emerging electricity-services market, filled with hundreds of innovative entrepreneurs who want to profitably provide consumer services that revolutionize how we use and interact with electricity. Instead, most experts simply assume the monopoly structure of the past several decades will continue. The introduction of new players into the electricity market, however, challenges that assumption. Read More »

Posted in Clean Energy, Demand Response, Electric Vehicles, Energy Efficiency, Grid Modernization, Renewable Energy, Utility Business Models / Comments are closed

Connecticut’s Green Bank Uses PACE to Accelerate Commercial Solar, California Expected to Follow

By Brad Copithorne / Published: April 28, 2014

Wayne National Forest

Up to now, the most popular and cost effective forms of financing solar projects have been leases and Power Purchase Agreements (‘PPAs’), which allow homeowners to install solar photovoltaic (PV) systems on their property and purchase power from the system’s output via a financial arrangement with a third-party developer who owns, operates, and maintains the solar panels.

Unfortunately, these creative financing mechanisms have not generally been available for commercial property owners. The only exceptions were buildings owned (or leased for a very long time) by investment-grade entities such as Google, Walmart, or a state or local government. Most small or medium businesses, office buildings, shopping centers, and apartment buildings could not access financing for money-saving solar projects as investors have been wary of extending 20-year solar financings for most commercial properties. Read More »

Posted in California, Energy Financing, Renewable Energy / Tagged Property Assessed Clean Energy | Authors: bcopithorne / Read 1 Response

Showtime Brings Realities of Texas Drought Home to Millions

By Kate Zerrenner / Published: April 11, 2014

Source: Jack Newton

It may seem like only yesterday that Texans were asked to conserve water after another scorching summer, but in reality it was four, dry years ago. The drought, which began in 2010 after La Niña altered sea level temperatures in the Pacific, continues to persist in the Lone Star State and promises to surpass the state’s record-setting multi-year drought from the 1950s. Ranchers have been forced to sell off cattle, town water supplies continue to go dry, and power plants struggle to provide a reliable supply of electricity due to water scarcity and long stretches of hot weather. Given these bleak conditions, it should not come as a surprise that 70 percent of Texans believe global warming is happening—and 52 percent said they have personally experienced the effects of global warming.

An all-star team of producers, including James Cameron, Jerry Weintraub and Arnold Schwarzenegger, intends to bring the Texas drought home to millions of televisions across the nation in the Years of Living Dangerously series premiering Sunday. Through this series, a host of celebrities, activists and journalists share the stories of those impacted most by our changing climate and what’s being done to save our planet. What is clear right now, in Texas and beyond, is that as climate change intensifies, we must adapt to more extreme weather conditions and make resilient changes that mitigate further stress. Read More »

Posted in Clean Energy, Climate, Energy-Water Nexus, Texas / Tagged Drought | Comments are closed