Energy Exchange

Selected tag(s): Clean Energy

Innovative Strategies for Utilities in the Face of Increased On-Site, Distributed Generation

By Brad Copithorne / Published: January 22, 2014

Last year, the trade association for the utility industry, the Edison Electric Institute (EEI), published a whitepaper on the disruptive challenges facing the utility industry. In summary, EEI’s thesis was that the existing utility business model (centralized, fossil-fuel based generation) is under threat from on-site, distributed generation as more customers switch to cleaner, and often cheaper, solar power. The white paper poses an important question: How can utilities acquire the revenue needed to keep the electric grid humming and provide reliable power to all customers if a growing number of people are producing their own electricity?

In business, one of the most difficult problems that companies face is how to adapt a successful business model to technological or social changes that threaten that business model. Wang, Unisys, DEC and Amdahl were all big computer companies in the 1970’s that clung to an obsolete business model in the face of distributed computing. IBM and HP, on the other hand, adapted their business models and generally thrived.

Over the past year, we have seen several utilities tackling this challenge head-on by investing in distributed, renewable energy projects. In September, I wrote about how NextEra and NRG were voluntarily developing solar investments and how Direct Energy and Viridian were investing in solar installations developed by SolarCity. Read More »

Posted in Demand Response, Grid Modernization, On-bill repayment, Renewable Energy / Also tagged Hawaii, Utility Business Models | Read 3 Responses

Governor Cuomo Announces $40 Million in Post-Sandy Microgrid Competition

By Rory Christian / Published: January 14, 2014

Since Superstorm Sandy stranded thousands without power across the state of New York in 2012, it has become clear that infrastructure upgrades are a necessity for the state. The current, outdated energy system is not up to the challenges of the present day and a changing climate. A year after Sandy, New York has a plan. Last week during his State of the State Address, Governor Cuomo announced the allocation of $40 million to the new Community Grids NYPrize Competition, a program which promises to help New York achieve a more sustainable, resilient energy future.

The competition, aimed at jump-starting at least ten “independent, community-based electric distributions systems” across the state by the end of 2014, is a highlight of a larger $17 billion plan to prepare for future storms like Sandy. Upon full implementation, the NYPrize Competition Community Grids are expected to support approximately 40,000 New York residents.

A “community microgrid” is a new type of energy system that leverages decentralized, local, clean power sources such as solar and wind that are able to operate independently of the centralized electric system. Microgrids are small-scale distribution systems that link multiple distributed energy resources (DERs) into a network that can generate, store and control its own power. Microgrids can operate in tandem with the main power grid during normal conditions, but can disconnect and function as an independent “island” of stable power if the main grid fails. The use of microgrids greatly reduces the number of outages and allows more people to keep their lights on during (and in the wake of) extreme weather events. Read More »

Posted in Demand Response, Grid Modernization, New York / Also tagged Energy Efficiency | Read 1 Response

Cost Savings Aren’t the Only Benefit to Energy Efficiency

By Kate Zerrenner / Published: January 9, 2014

This commentary originally appeared on our Texas Clean Air Matters blog.

I often refer to energy efficiency as being cost effective, and it is. It is always cheaper not to use energy or to get the same result while using less energy. But monetary cost savings are just one of the many benefits associated with implementing energy efficiency measures. Reduced pollution, improved health and reduced strain on our water supply are other notable benefits of energy efficiency, though they are not always taken into consideration when a utility proposes a new energy efficiency project.

At the state regulatory level, Public Utility Commissions or similar entities are required to do a cost-benefit analysis for each energy efficiency project or program that a utility proposes, in order to determine how cost effective it may be. This analysis is called an ‘energy efficiency cost test,’ and although the concept may seem straight forward, its application is based on a varying set of pre-defined criteria that are not always consistent. Furthermore, the subject of cost-effectiveness tests is sensitive in the utility sector, because it’s at the core of how energy efficiency programs are valued.

There are several different types of energy efficiency cost tests that differ slightly and are often customized to reflect a state’s values. Before diving into the options, it’s important to note that a cost-effectiveness test of some sort is a necessary measure as more and more states implement ratepayer-funded energy efficiency programs. Customers need to know that the programs they’re paying for are delivering the promised benefits, and regulators need to ensure that the costs paid by the customers are justified. Read More »

Posted in Energy Efficiency, Texas / Tagged Clean Energy | Read 1 Response

New Sustainable FERC Website Charts Progress to Clean, Low-Carbon Energy

By Elizabeth B. Stein / Published: December 18, 2013

The Sustainable FERC Project, a coalition of environmental and clean energy organizations, launched its new website today: www.sustainableFERC.org. The site will inform the public and policymakers about the coalition’s efforts to increase the amount of clean, low-carbon energy powering the nation’s electric grid, which focus on the Federal Energy Regulatory Commission (FERC) and the regional entities regulated by FERC.

FERC is a federal agency whose activities include regulation of transmission and wholesale sales of electricity in interstate commerce. Working on behalf of its coalition partners, the Sustainable FERC Project develops and advocates for federal policies and regional implementation and practices that will give rise to a cleaner, more efficient energy system. The coalition’s top priorities include removing the barriers to getting clean energy on the transmission grid, maximizing the use of energy efficiency in planning and facilitating a transition to a cleaner energy future.

Source – Windpower Engineering Development

EDF’s work as a member of the Sustainable FERC Project coalition complements our own Smart Power Initiative, which is working, primarily through state-level advocacy, to change the trajectory of the U.S. electricity system to help avoid dangerous climate change through smart power policies and clean energy investments. The Smart Power Initiative focuses on ensuring that the right state policies are in place to allow for better integration of clean energy resources into the power grid.

Optimizing the environmental performance of the U.S. electric grid – which is sometimes called the “largest machine on the planet” – requires environmentally-sound policies and practices at all levels to drive system planning and operation. The new website (www.SustainableFERC.org) will feature issue analysis, coalition comments filed with FERC and regional grid organizations and links to blogs written by representatives from the coalition. It should become a go-to site for those wanting to deepen their understanding of environmentally-important smart grid developments in the federally-regulated portions of the U.S. electric system.

Posted in Energy Efficiency, Grid Modernization / Also tagged Electric Grid, FERC | Comments are closed

New ‘Smart Cities’ Guide Helps Leaders Plan for a Sustainable Future

By Kate Zerrenner / Published: December 9, 2013

On November 18^th, the Smart Cities Council released the Smart Cities Council Readiness Guide at the Smart City Expo World Congress in Barcelona, Spain. I am privileged to be a member of the Smart Cities Council Advisory Board, and in such a capacity, served as a review for the Guide.

The Smart Cities Council Readiness Guide is the first of its kind—a comprehensive, vendor-neutral handbook for city leaders and planners to help them assess their current state of technology and give them a roadmap for developing a smart city.

It was produced in collaboration with some of the world’s top smart city experts and includes technology recommendations for a city’s most important responsibilities: buildings, energy, telecommunications, transportation, water and wastewater, health and human services, public safety and payments.

My reviews were solely of the energy and water chapters, but the Guide as a whole offers a collection of guidelines, best practices and more than 50 case studies as well as 27 proven principles that will enable cities to achieve a smart city status. City planners will be able to identify the best path forward for their particular city, creating a customized plan that will work, even if development of the plan is gradual. Read More »

Posted in Energy Efficiency, Grid Modernization, Renewable Energy / Also tagged Energy-Water Nexus | Read 2 Responses

Verizon Invests Big in Clean Energy

By Rory Christian / Published: November 27, 2013

This commentary originally appeared on Verizon’s News Center.

Technology giant Verizon is making significant strides toward increasing the use of on-site green energy throughout its national portfolio with plans to finish more than $100 million in clean and renewable energy projects across facilities in seven states by the end of this year. The investment is estimated to reduce carbon emissions by over 15,000 metric tons each year, which is comparable to over 2,000 homes’ annual electricity use. Verizon’s video showcasing its plans includes an introduction by Environmental Defense Fund (EDF)’s very own Victoria Mills, managing director of Corporate Partnerships.

The move builds on the company’s earlier foray into clean technology, resulting in Verizon’s successful 2005 investment in a 1.4 megawatt fuel cell in Garden City, New York. Fuel cells use an electrochemical process in which oxygen and fuel (natural gas or biogas) react to produce amounts of electricity. The process produces less carbon emissions than more conventional sources of electricity, and enables the possibility of affordable on-site, user-owned power generation that is as constant and reliable as a utility and provides an attractive economic payback for customers.

When selecting locations for solar and fuel-cell energy projects, Verizon was careful to consider sites with favorable zoning requirements, utility partners and regulatory regimes. Despite being financially viable, identifying suitable projects was no simple task. Financing these projects without incentives at the federal and state levels proved impossible, and the incentives often came with conflicting timetables and were difficult to leverage. Read More »

Posted in EDF Climate Corps, General, Renewable Energy / Also tagged Green Bank, OBR, On Bill Repayment, Verizon | Read 2 Responses