Energy Exchange

Latest Brattle Group Report Points To Solar Power To Lessen Energy Crunch In Texas

Is there a way for Texas to keep the lights on in the face of our energy crunch and manage to save electric customers some money at the same time?  According to a new report from Brattle Group, solar power needs to be a big part of the answer if the Public Utilities Commission (PUC) plans to reduce the financial impact of their decisions on consumers.  Fresh on the heels of their report detailing changes that could be made by ERCOT to keep our electric grid reliable, comes a new report from The Brattle Group showing the important role solar power can play in solving our long-term energy problems.

The difference between the reports is really focused on whether short-term fixes to help build new fossil-fueled power plants are enough, or if Texas should be looking at long-term solutions for the whole market (not just power companies, but customers too).  The report couldn’t be more timely either: over the past few years, Texas has relied on the few forward thinking municipal utilities like San Antonio’s CPS, El Paso Electric and Austin Energy to attract solar companies to the state.  Until now, the approach has worked. Because of those three cities, as recently as last year, the Solar Foundation ranked Texas #7 for solar jobs in the country and #9 for solar installations but as solar markets continue to grow throughout the U.S., Texas may be left behind. 

The market is changing quickly.  With panel prices declining 47 percent over the last year, many other states have entered the solar market – which means Texas can no longer rely on a few utilities to keep the state on the solar industry’s radar.  In fact, according to the latest report from GTM Research, Texas has fallen from a ranking of #9 in the nation for new solar installations to #15.

As the Brattle Group’s new report shows, the importance of this shift relates not only to growing jobs in Texas, but also to the state’s ability to provide homeowners and businesses with reliable electricity. As we come off of the warmest spring on record in Texas, with triple digit temperatures making us all thankful for our air conditioners, reliable electricity will remain a critical issue. The new rules proposed by the PUC will help companies build new power plants, but these rules cannot focus solely on power companies.  As the Brattle Report shows, we can meet the energy crunch head-on with policies that help Texans invest in solar to meet our growing energy demand in a way that relies less on water to operate.

Posted in Renewable Energy, Texas / Read 1 Response

Postcard From Mark Brownstein In Sderot, Israel

(Credit: www.allnumis.com)

“Remember, when you hear the siren, you have 15 seconds to find cover.”  Such is life in the southern Israel town of Sderot only a few kilometers away from the Gaza Strip.  Fortunately, for my tour, today’s rocket attacks fell on the outskirts of town and did not affect our visit.  Israelis often point to such events as the reason why environmental issues are often not very high on the public policy agenda.  How hard is it to spend any time thinking about global warming, when there are more tangible and immediate threats confronting you?

And yet, global warming is having an immediate and tangible impact here as well.  Our visit to Sderot came after a tour of Israel’s largest desalination plant located in the neighboring town of Ashkelon on Israel’s Mediterranean coast.  Israel is chronically short of water, consuming 2 billion cubic meters of water per year where the nation’s natural hydrology is capable of producing, on average, 1.2 billion cubic meters per year, according to Abraham Tenne, head of the Desalination Division of the Israel Water Authority.  Mr. Tenne was blunt in reporting the facts.  The Israel Water Authority expects average rainfall to decline by 15 percent by 2040, while Israel’s population is expected to continue to grow by 1.7 percent each year.  The drought of 2008, where rainfall was only 65 percent of the current average, was a powerful reminder that today’s water situation is bad, and unchecked, it will only get worse. 

Mr. Tenne is understandably proud of the building or upgrades to Israel’s three desalination facilities, which are key to solving the problem, but he is quick to remind us that, as important as this technology is to Israel’s future, it is a last resort.  Israel’s consumption of 2 billion cubic meters of water by a population of roughly 8 million stands in sharp contrast to Arizona’s consumption of 8 billion cubic meters of water by a population of roughly 7 million.  He visited Arizona last year for an international water conference where he was asked to speak on desalination, and was shocked to see flood irrigation – the practice of watering crops by flooding the field – commonly practiced.  He contrasts this with Israel, where drip irrigation is standard practice for 95 percent of all agricultural production, and where the amount of water used is precisely controlled by technology that monitors the moisture at the root of the plant, delivering only what is required to maintain healthy growth.  He then tells us about London, which just inaugurated its first desalination plant, while doing little to fix the local water system where 40 percent of the water flowing through the system is lost to leaks.  And then, for the second time in two days, I hear of smart grid technology being deployed in Israel to pinpoint leaks.

Although recent discoveries of significant natural gas reserves off the Israeli coast suggest that Israel may be able to completely wean itself off coal, over 35 percent of the nation’s installed electric generation capacity comes from coal-fired power plants, including one right next door to the Ashkelon desalination plant we visited today.  But even when the desalination process is driven by natural gas-fired power plants, as this facility is (it generates its own electricity and actually sells some excess production back to the grid) the fact of the matter is that Israel’s total water system – not just desalination, but the pumps necessary to move water around the country – consumers 6 percent of the total electricity produced in Israel.  Thus, the battle to conserve water is also a battle to save energy, which in turn is a battle to avoid carbon emissions that contribute to global warming, and make Israel’s water situation worse.

We are spending tomorrow with some of Israel’s leading experts in solar energy, but already I am wondering why a nation so obviously blessed with ample, strong sunlight, seems to have so little invested in deploying solar power.  Solar hot water heaters have been required here since 1980, and as my friend, and EDF consultant, Roger Duncan, often reminds me, solar hot water heating is often the most overlooked cost-effective solar technology, but given Israel’s pressing challenge of finding both secure and sustainable supplies of electricity, the government’s policy of 10 percent renewable energy by 2020 seems incredibly modest.  A nation with the determination and technological prowess to erect the world’s most sophisticated missile defense system surely should be able to do better and tomorrow will be about finding out why not.

Posted in Grid Modernization, Natural Gas, Renewable Energy / Comments are closed

Postcard From Mark Brownstein In Tel Aviv, Israel

Source: Trekkie Gal

A lumber yard in the middle of Tel Aviv is an unlikely place to discover innovative new technology to transform ocean waves into energy, but there I was watching a demonstration of wave-to-energy technology in a makeshift wave tank constructed by Shmuel Ovadia.  Ovadia is a talented engineer passionate about harnessing the power of the ocean when he is not otherwise engaged in running his successful high-end lumber business.  See for yourself at:  http://www.sde.co.il/.

I suppose I shouldn’t have been surprised.  I am on the first day of a seven trip for U.S. energy leaders sponsored by Project Interchange, an educational institute of the American Jewish Committee, and by the time I arrived at Ovadia’s lumber yard in the late afternoon, I had already seen tremendous creativity in the unlikeliest places.  Our morning was spent walking down Tel Aviv’s Rothschild Boulevard, Israel’s equivalent of Silicon Valley, dropping by several of the technology incubators that are a large part of the reason why Israel is known as the “start-up nation.”  

Here, 20-somethings only a few years out of Israel’s army – where technology and project management skills are acquired and honed – are developing innovative software at a furious pace.  The aging, somewhat decrepit buildings dating back to Israel’s socialist early years, are brimming with entrepreneurial drive and youthful spirit.  Most interesting to me was a visit to the IDC Elevator, where Shmuel Chafets, Director of Business Development for Giza Venture Capital, described a recent investment in a start-up that is applying sophisticated software and smart grid technology to improve the efficiency of water delivery systems, which – among other things – anticipates leaks before they happen. 

In Israel, a nation increasingly reliant on energy-intensive desalination, saving water is also saving energy, a lesson at the heart of our report two years ago on the Energy-Water Nexus in Texas.  This visit got me wondering whether this same technology might be helpful in EDF’s efforts to partner with gas utilities to reduce methane leaks along their distribution systems.  Surely such smart grid ingenuity can be used to help fight the causes of global warming and not just the fresh water scarcity that is one of its many symptoms?

While software companies in Israel do well in attracting venture capital from the United States, Europe and, more recently, Southeast Asia, guys like Shmuel Ovadia struggle to attract capital to their bright ideas.  Even venture capitalists like to see commercial scale prototypes before investing major dollars, and good-old fashioned mechanical technologies are a whole lot more physically difficult and expensive to get to commercial scale than software solutions.  So it takes a special type of investor to risk the serious capital it takes to bring a hardware solution to market. 

It is a challenge, but not impossible, as our visit to Better Place’s Tel Aviv showroom demonstrated.  Here, we were treated to a test drive of the Renault Fluence ZE, an all-electric four passenger sedan, that has a range of approximately 100 miles and a battery that can either be recharged at home or our work or swapped out in a 5-minute visit to a Better Place ‘refueling’ station.  When you buy the car (and had we been Israelis, sales people were there ready to take our order), you buy a contract for miles to go with it.  Included in that contract are up to two charging stations, the electricity they supply, and access to any of Better Place’s battery swapping stations now being constructed throughout Israel. 

In short, the Better Place’s Renault Fluence is like the cell phone I have carried with me to Israel.  It is my phone, but I purchase the international sym card and the corresponding minutes of voice and data from Orange, a local carrier, which is easily slipped into the phone and recharged with new minutes as needed. 

Tomorrow we head down south to the Negev to see what is brewing in the world of solar energy.  I can only imagine what surprises await us.  I’ll keep you posted.

Posted in Natural Gas / Comments are closed

Let’s Improve Texas’ Energy Efficiency Programs Instead Of Adding More Red Tape

Summer is upon us: in Austin on Monday the mercury hit 101 degrees, with the humidity it felt like 110; this can be compared to a historical average high of 92 degrees this time of year.  This weather report won’t surprise anyone that follows global warming trends: according to a report earlier this week, Texas is one of the 10 fastest warming states in the U.S. Since 1970, average temperatures have risen 2.3 degrees in the Lone Star state.  Rising temperatures mean rising demand and more stress on our already strained electric grid, so you would think the state would be focused on near term solutions for rising energy demand, specifically energy efficiency and conservation.

(Credit: www.poonamsagar.com)

The timing couldn’t be better either: last year, the state of Texas passed legislation to increase and strengthen energy efficiency programs and the Public Utility Commission (PUC) is currently developing a new rule around that legislation.  While this appears to be good news, some parts of the PUC’s proposed rule actually would hurt energy efficiency programs and decrease the effectiveness of current programs by adding unnecessary red tape and discouraging efficiency.  At the same time, the PUC has contracted with outside consultants to ask citizens to turn up their thermostats during the hottest days of the summer.  Such public appeals are commendable, but it doesn’t make sense to add red tape to proven programs that allow customers to reduce energy use without turning up their thermostats, while at the same time spending money on unproven programs that are difficult to verify.

At a PUC workshop last week, stakeholders voiced many of the concerns around proposed changes that would weaken energy efficiency programs.  Most stakeholders seemed to agree that the PUC proposal creates new problems without resolving existing ones, like better monitoring of existing programs to ensure they are working.  With temperatures rising and our electric grid already strained, we can’t afford those kinds of fixes. Given the broad stakeholder agreement, we hope the PUC will remember “if it ain’t broke, don’t fix it.”

Posted in Energy Efficiency, Texas / Comments are closed

When Utilities Embrace The Smart Grid, Customers And The Environment Win

By: Scott Robinson, EDF Energy Intern and Energy & Earth Resources Fellow at The University of Texas at Austin, Jackson School of Geosciences

Source: Greentech Media

Earlier this month, Greentech Media released their “Top Ten Utility Smart Grid Deployments in North America.”  These are utilities that deserve recognition—while most experts agree that bringing the transformative power of information technology to the grid is critical to achieving a clean, low-carbon economy,  being an early adopter means carrying a certain amount of risk.  A utility’s willingness to take on this risk demonstrates a long-term commitment to its customers.  EDF is championing well-designed smart grids as the path to abundant, cheaper and cleaner energy.  Because utilities will be responsible for building and operating this new “energy internet,” our push for smart grid innovation has led to productive partnerships with several of Greentech Media’s top ten.

In Austin, Texas, we are working with Austin Energy and the University of Texas, among others, to develop the Pecan Street smart grid demonstration project in the Mueller community: a real neighborhood and living laboratory that will allow researchers to better understand what smart grid will look like on the ground, as well as how individual technologies—from smart appliances to residential solar PV to electric vehicles—will interact to enable greater reliance on renewable and community-based resources.  For consumers, this means real-time insight into how they’re using energy and its true cost: understanding its source and emissions to help them make decisions that save money and shrink their environmental footprint.

In Charlotte, North Carolina, EDF is working with Duke Energy and others on the Envision Charlotte project to increase energy management in big downtown buildings, improve local air quality and reduce water consumption and waste in a concentrated urban area. We are helping to implement the use of smart grid technologies with the ultimate goal of reducing energy consumption by 20 percent in 60 high-rises over five years: through better information for building occupants about their energy use and tools enabling them to act on that insight.  Also, during the summer of 2011, two EDF Climate Corps fellows reviewed three buildings in Mecklenburg County (where Charlotte is located) and found energy efficiency measures that could save the county more than $500,000 in just five years.

In California, EDF has worked on multiple cutting-edge projects, including working directly with San Diego Gas and Electric (SDG&E) – the nation’s most intelligent utility  – and developing a “scorecard ” to evaluate the Smart Grid Deployment Plans of California’s three largest investor-owned utilities’ – SDG&E, Pacific Gas & Electric (PG&E) and Southern California Edison (SCE) for their overall direction in meeting environmental and savings goals.  We will continue to drive the benefits from the smart grid for Californian’s utility bills, health and environment. 

To maximize environmental returns on these multi-billion dollar investments in grid modernization, it is critical that utilities develop holistic plans and build open platforms that give customers access to new energy saving technologies and “apps” and enable scale integration of renewables and electric vehicles.  Done right, the smart grid will drive the clean energy revolution we need—helping utilities reliably deliver power, securing our energy independence, increasing our ability to compete in the global clean energy market, growing our economy and empowering consumers—all while protecting our air, water, and health.  EDF is committed to finding ways that allow utilities and consumers to reap the benefits of their investment in the future.

Our partnerships with utilities have led to a greater understanding of the smart grid as an emerging solution to today’s environmental and electricity problems.  We look forward to continuing our work with these energy pioneers and expanding our partnerships to help other utilities get their projects off the ground.

Posted in Grid Modernization / Read 2 Responses

Energy Innovation Series Feature #5: Data Analytics From GridGlo

Throughout 2012, EDF’s Energy Innovation Series will highlight more than 20 innovations across a broad range of energy categories, including smart grid and renewable energy technologies, energy efficiency financing, and progressive utilities, to name a few. This series will demonstrate that cost-effective, clean energy solutions are available now and imperative to lowering our dependence on fossil fuels.
 
GridGlo uses “data fusion” to analyze and predict energy consumption behavior.  Find more information on this featured innovation here. 
 

The smart grid industry is more than a foundation for solar energy and electric vehicles. It is also a treasure trove of information that requires a much more sophisticated way to capture, analyze and use the billions of bytes of information that a modernized grid and its many components will generate.

Add to that the massive amounts of weather, social, emissions and other kinds of data already being collected and you can see that a smarter grid is going offer lots of job opportunities to data geeks and software engineers.

Media and analysts predict that the smart grid information sector will be a multi-billion dollar market and companies are already jockeying for big data market leadership, from established IT giants like IBM and energy hardware companies like Landys+Gyr, to tech-driven start-ups like Florida-based GridGlo.

GridGlo works with utilities to integrate energy usage and behavioral data using its unique software platform to identify, score and predict energy consumption behavior. One of its products, Energy People Meter™ (EPM), provides a real-time digital fingerprint of energy behavior patterns and creates score that helps utilities (and consumers) save energy and money.

“Utilities have spent billions upgrading their metering infrastructure,” said GridGlo’s founder and CEO Isaias Sudit. “But those systems are now generating a lot of data and the utilities need help figuring out how to use it effectively. Our software allows them to save money on the infrastructure side, while providing new and exciting services to their customers.”

Utilities have long used data as a forensic tool to help pinpoint problems that happened in the past, such as blackouts. The real opportunity and challenge, according to Sudit, is moving from using energy data to tell us what has happened, to using it to tell us what is happening right now – and eventually, helping us predict what will happen in the future.

That kind of predictive analysis requires merging energy data with other data sets, like weather, lifestyle trends or demographics – a process GridGlo calls “data fusion.” For example, utilities could use known demographics of likely electric vehicle buyers to better plan where infrastructure improvements are needed – before the grid is overstressed. Or national or regional demographic shifts could help utilities or regulators better plan transmission construction.

“Ultimately, all of this has to show value to the customer,” Sudit said. Eventually, he thinks data fusion will be used by third party service providers and app makers, much like mobile, location and social data is used to power some of today’s most popular products.

“But our most urgent need is to show how utilities can use this information to provide value directly to customers,” he said. “If we can do that, the secondary markets will follow.”

 

Posted in Energy Innovation, General / Comments are closed