Energy Exchange

Pecan Street To Be Recognized At GridWeek 2012

By Marita Mirzatuny / Published: September 25, 2012

Next week, thousands will descend on Washington DC for GridWeek, the “only international conference focused on smart grid.” Now in its 6^th year, GridWeek “attracts the complete diversity of global electric-industry stakeholders to explore Smart Grid’s impact on the economy, utility infrastructure, consumers and the environment.”

The theme for this year is centered on deriving value for all stakeholders from an increased complexity, as “grid-modernization and smart grid efforts provide the energy industry with more information, a broader system view, and more efficiency and control.” Three key elements will be explored: stakeholder value, managing complexity and smart energy policy. EDF Economist Jamie Fine will be speaking on the “New Revenue Streams for Utilities” and “Smart Grid’s Role in New Air Quality Requirements” panel discussions at GridWeek.

At the center of all of these themes is Austin’s own Pecan Street Inc. (Pecan Street). Which is why it is no surprise that it is being recognized by the GridWeek Advisory Board for “significant achievements in “Extracting Smart Grid Value” — for all stakeholders, including utilities, consumers and society at large.” Also recognized are the Smart Grid Interoperability Panel (SGIP) and Green Button, a “voluntary effort and the result of a White House call to action: ‘provide electricity customers with easy access to their energy usage data in a consumer-friendly and computer-friendly format via a “Green Button” on electric utilities’ website.’” Read More »

Posted in Grid Modernization, Washington, DC / Comments are closed

EDF Provides Legal Support To Cities And Towns Fighting To Preserve Their Traditional Right To Zone Natural Gas Development

By Mark Brownstein / Published: September 19, 2012

A recent state court ruling in Pennsylvania was a huge win for local communities’ rights to make zoning decisions about natural gas development within their borders. As we’ve mentioned before, EDF fully supports the traditional rights of local communities to regulate this intensive industrial activity, much as they would any other commercial or industrial activity in their community.

Yesterday, EDF joined an amicus brief with Earthjustice and over a dozen other organizations to support a state court ruling, which recently overturned a state law curtailing local government regulation of natural gas development. The brief urges the Supreme Court of Pennsylvania to uphold the lower court’s decision in Robinson Township v. Commonwealth, which deemed a section of this year’s oil and gas omnibus Act 13 unconstitutional as to its preemption of local zoning control over oil and gas development. The state law would have stripped away local zoning laws, limited private property rights, and in the process, hampered towns’, cities’, municipalities’ and county governments’ ability to regulate shale gas development within their own, respective jurisdictions.

Act 13 of 2012 is a major legislative package that reforms Pennsylvania’s oil and gas laws to reflect the new realities of the shale gas boom in the Marcellus formation underlying much of the state. State agencies are conducting substantial rulemaking activities to implement sections of the law on topics including well site development, air quality, pipelines and wastewater management. EDF looks forward to working with state officials to ensure that these rules are fully protective of communities and the environment.

However, parts of Act 13 went in the wrong direction. In particular, section 3304 obligated all local zoning ordinances to conform to a list of requirements related to the siting and permitting of oil and gas development activities and infrastructure – altering pre-existing zoning arrangements where necessary. Several Pennsylvania townships and non-profits filed suit in the Commonwealth Court of Pennsylvania, arguing that this preemption of local zoning control violated several aspects of Pennsylvania’s constitution. Read More »

Chasing Red Herring On The Wind

By / Published: September 13, 2012

The saying goes that hunters used smoked red herrings to train their dogs, trying to throw them off the scent of the hunt with something that has a much stronger and tempting smell but ultimately wasn’t the real target. This is quite similar to recent discussions about resource adequacy – now that it’s become clear that the EPA isn’t the reason for power plants shutting down, some seem more focused on finding another scapegoat rather than addressing the real problems in the market.

There was a time, not too long ago, when the low marginal costs of technologies like wind and solar power were seen as a good thing. In 2009 the Public Utility Commission (PUC) said “renewable generation has reduced wholesale and retail energy prices during some periods and has been instrumental in moderating price increases during periods in which the cost of natural gas was increasing.” Back then, this was seen as a good thing because there was a need for a moderating influence on high natural gas prices at the time.

Times have changed though, and lately PUC commissioners have taken to blaming wind energy for their current troubles, even when their own paid experts tell them otherwise. In a Senate Natural Resources hearing last week, PUC Chairman Nelson stated that “the market distortions caused by renewable energy incentives are one of the primary causes, I believe, of our current resource adequacy issues.”

The problem with this claim is that it isn’t supported by the facts, and most industry experts agree that the real problem (if you want to call low energy prices a problem) is a combination of a market structure in need of reform and consistently low natural gas prices. In the Brattle Group’s report on resource adequacy issues in ERCOT they make a pretty strong case that gas, not wind, is responsible for setting the bulk of market prices. Perhaps the best way to look at it is this chart showing how electric rates lined up with gas prices over the last decade. Read More »

Posted in Renewable Energy, Texas / Comments are closed

Why EDF Is Working On Natural Gas

By Mark Brownstein / Published: September 10, 2012

Environmental Defense Fund (EDF) is often called upon by those opposed to natural gas development to support a ban or moratorium on drilling. They argue that fighting for tough regulations, as EDF is doing, helps ensure that natural gas development will take place. Some of our friends in the environmental community have questioned why we are working on natural gas at all. They suggest that we should simply oppose natural gas development, and focus solely on championing energy efficiency and renewables. We understand these concerns, and respect the people who share them. And for that reason, we want to be as clear as we can be as to why EDF is so deeply involved in championing strong regulation of natural gas.

Our view on natural gas is shaped by three basic facts. First, hydraulic fracturing is already a common practice in the oil and gas industry. Over 90 percent of new onshore oil and gas development taking place in the United States today involves some form of hydraulic fracturing, and shale gas accounts for a rapidly increasing percentage of total natural gas production—from 16% in 2009 to more than 30% today. In short, hydraulic fracturing is not going away any time soon.

Second, this fight is about much more than the role that natural gas may play in the future of electricity supply in the United States. Natural gas is currently playing an important role in driving out old coal plants, and we are glad to see these coal plants go. On balance, we think substituting natural gas for coal can provide net environmental value, including a lower greenhouse gas footprint. We are involved in an ambitious study to measure methane leakage across the value chain, and we’re advocating for leak reduction in order to maximize natural gas’ potential carbon benefit. We share the community’s concern that we not lose sight of the importance of energy efficiency and renewables, and are working hard to see that these options become preferred alternatives to natural gas over time.

But even if we were able to eliminate demand for natural gas-fired electricity, our economy would still depend heavily on this resource. Roughly two-thirds of natural gas produced in the U.S. is used as a feedstock for chemicals, pharmaceuticals and fertilizer, and for direct heating and cooling. Natural gas is entrenched in our economy, and championing renewables and energy efficiency alone is not enough to address the environmental impacts associated with producing it.

Third, current natural gas production practices impose unacceptable impacts on air, water, landscapes and communities. These impacts include exposure to toxic chemicals and potential groundwater contamination (due to faulty well construction or unsafe disposal of drilling wastewater), harmful local and regional air pollution, greenhouse gas emissions from unnecessary fugitive methane emissions and negative effects on communities and ecosystems. Whatever economic and environmental benefits natural gas may provide should never take precedence over or compromise the public’s right to clean water and clean air. Read More »

Posted in Natural Gas, New York / Tagged fracking | Read 53 Responses

Shut Down The Texas Government (Power)!

By Marita Mirzatuny / Published: September 7, 2012

Source: Jon Rogers

These days it seems “shutting down” the government is a popular rallying cry in Texas. So, why not do it…er…or at least shut down the electricity when it’s not being used!?

As many of us enjoy the shortened work week due to the Labor Day holiday on Monday, I thought it would be a good time to look into what kind of demand response (DR) government buildings can participate in during holiday and seasonal closings.

We have discussed the benefits of both residential and commercial DR and governments can represent large or small entities depending on their size. The Texas Facilities Commission (TFC), responsible for “planning, providing and managing facilities for more than one hundred state agencies in over 290 cities throughout Texas,” has a current inventory totaling “24 million square feet of leased and state-owned properties.” Of that, offices make up about 6 million square feet across eight different cities.

These state agencies annually “consume over $200 million in electricity, which is procured and billed on thousands of separate accounts through various providers. In an effort to reduce these expenditures, the Office of Energy Management (OEM) is looking at ways to aggregate the State’s electrical load into fewer accounts, perhaps into just one. This strategic initiative could take advantage of negotiation opportunities, economies of scale, consolidation of facility loads and load scheduling resulting in the TFC saving thousands of dollars a year on electricity alone.”

Furthermore, the “OEM is taking a more expansive look at its resources, including purchasing, producing and distributing, and actual consumption. For example, it recently proposed aggregating the States electrical load to benefit from economies of scale, wholesale rates, reduced peak demand charges, and to acquire a more sophisticated rate structure and is currently studying the possibility of incorporating combined heat and power in its production.”

The TFC is also working with the General Land Office (GLO) to aggregate smaller state agency accounts to provide volume discounts for these accounts. Currently, smaller state agencies procure gas supplies from the local gas companies or in amounts from the GLO that do not render the economies of scale capable with the aggregate consumption with the TFC. By aggregating these smaller amounts, the TFC gets a better deal for the buildings under the TFC’s control and the other agencies. Read More »

Posted in Demand Response, Texas / Comments are closed

Recycling That White Plume Of Smoke On I-95

By Jackie Roberts / Published: August 30, 2012

Today, President Obama signed an Executive Order to facilitate investments in capturing waste heat and developing combined heat and power at many of our industrial facilities (“CHP” projects). This energy efficiency strategy can save manufacturers as much as $100 billion in energy costs over the next decade, and offers a type of “renewable” energy as the heat is already available, but too often vented to the atmosphere. According to Oak Ridge National Labs, many industrial operations have an efficiency of 45% or less; waste heat recycling can increase the efficiency of these systems to 80% by capturing waste heat and putting it back to work.

You may have never thought about waste heat, but you’ve probably seen it many times: visualize driving through an industrial area and seeing white smoke coming out of smokestacks. These plumes often comprise heat and steam, and thus represent a wasted resource that we should be capturing and converting to useable energy.

The Executive Order should spur prompt actions by federal and state agencies to facilitate projects. Examples of possible actions are streamlining state permitting, crediting projects toward state clean air requirements, sharing state best practices, and working to better engage utilities in partnering on projects.

CHP projects will not only help our industrial facilities save money on energy costs, but investing in these projects create jobs across a wide variety of businesses engaged in making components, designing and constructing systems, and operating the new energy resources. For example, a recent study by Duke University on recycling industrial waste energy highlighted the six main components needed in each project: boiler/steam generators, steam turbines, generators, condenser/cooling tower, steel piping and electrical parts such as wires and switchgear.

These components represent standard, high value components made by businesses across the U.S., particularly the Midwest and Texas, but also companies in Oklahoma, Georgia, Illinois, and Arizona. All of these components use smaller parts such as basic bearings, valves, fans, rotors, and so on, not to mention the extensive steel piping used in each project. One project in Port Arthur, Texas used 2.5 miles of steam pipeline – good news for the steelworkers.

In addition to the job of manufacturing all these parts, CHP projects require workers to install the components on-site, such as welders, pipefitters, design engineers, and traditional construction workers. On completion, often 15-20 new workers are hired to run the new steam plant/power facility. The CHP project developer, Recycled Energy Development, notes that the cost savings and increased competitiveness at a project completed for West Virginia Alloys enabled the plant to retain its entire workforce, rather than face job cuts of 20%.

So, every time you pass a white plume of smoke on the highway, be glad that today’s Executive Order moves us one step closer to eliminating this waste and helping America’s industries be more competitive.

Posted in Energy Efficiency, Washington, DC / Read 3 Responses