Tag Archives: Grid Management

SDG&E looks to raise minimum bill 400%, citing solar-driven cost shift

By Robert Walton, Utility Dive

Dive Brief:

  • San Diego Gas & Electric earlier this summer said it wants to raise its minimum bills by almost 400%, along with a $10 fixed charge, a move the utility says is necessary to combat the $420 million annual cost shift between residential customers with and without solar panels.
  • By next spring, the utility wants to raise the minimum bill to $1.26/day, or $38.19 per bill based on a 30-day billing cycle, effective March 1, 2020. Some vulnerable groups of customers would be eligible for a 50% discount on the minimum bill, according to SDG&E.
  • Several groups want to keep the minimum bill where it is, around $10, with no fixed charge. According to The Utility Reform Network (TURN), a minimum bill charge should be crafted so that customers with lower usage don’t wind up paying higher bills.

Dive Insight:

As California adds more renewable and ​distributed energy, SDG&E told the state’s Public Utilities Commission (CPUC) that its proposal for a “modest” fixed charge for all residential customers “is a critical first step toward an evolving rate design.”

“For the California utilities to continue to evolve to provide the services that the commission and customers want, then all customers who use and benefit from the grid will need to start to share in the cost of building, maintaining and operating it,” SDG&E said in its June testimony.

That means rates that allow for a fixed charge to recover fixed costs from all customers, according to the utility. “The antiquated rate design model of recovering fixed costs in volumetric rates is no longer a viable option that can promote fairness to all customers.”

SDG&E says its work to overhaul rates is consistent with 2013 legislation that required utilities to reduce the number of energy pricing tiers, incorporate time-of-use pricing, allow for a fixed charge of up to $10/month and “provide solutions to the increasing cost burden on customers who do not have private rooftop solar.”

Read full article from Utility Dive

Related Article: San Diego Gas and Electric looks to quadruple customers’ minimum monthly bill (PV Magazine) – Sept. 3, 2019

 

Opinion: An uncertain path to a cleaner future – Zero carbon electricity legislation in New York and California

By Thomas R. Brill & Steven C. Russo (Greenberg Traurig), Utility Dive

Last month, New York passed the Climate Leadership and Community Protection Act, which calls for a carbon free electricity market by 2040. With passage of this law, New York became the sixth state to pass legislation calling for a carbon free electricity market. Just one year earlier, California passed similar legislation, SB100, adopting a state policy to achieve a zero-carbon electricity market by 2045.

These goals will have to be pursued notwithstanding the fact demand for electricity is projected to increase as other sectors pursue beneficial electrification to comply with ambitious emission reduction goals they face. Whether these goals can be achieved, and at what cost, will depend on technology advancements and how these laws are interpreted and implemented by regulators.

New York’s Climate Leadership and Community Protection Act requires 70% of electricity consumed in New York be generated by renewable resources by 2030 and the state must be carbon free by 2040. California’s SB100 requires 60% of electricity come from renewable resources by 2030 and adopts a state policy of a 100% zero carbon electricity by 2045.

The New York legislation explicitly conditions meeting these extraordinarily ambitious renewable energy mandates on maintaining reliability and affordability. This leads to obvious questions: Can a zero-carbon electricity market be achieved in a manner that maintains reliability and affordability, and if so, how? What flexibility exists under these laws to ensure these emission reduction goals can be achieved even if new technologies or significant price declines fail to materialize?

Read full article from Utility Dive

The $2.5 trillion reason we can’t rely on batteries to clean up the grid

By James Temple, MIT Technology Review

A pair of 500-foot smokestacks rise from a natural-gas power plant on the harbor of Moss Landing, California, casting an industrial pall over the pretty seaside town. If state regulators sign off, however, it could be the site of the world’s largest lithium-ion battery project by late 2020, helping to balance fluctuating wind and solar energy on the California grid.

The 300-megawatt facility is one of four giant lithium-ion storage projects that Pacific Gas and Electric, California’s largest utility, asked the California Public Utilities Commission to approve in late June. Collectively, they would add enough storage capacity to the grid to supply about 2,700 homes for a month (or to store about .0009 percent of the electricity the state uses each year).

The California projects are among a growing number of efforts around the world, including Tesla’s 100-megawatt battery array in South Australia, to build ever larger lithium-ion storage systems as prices decline and renewable generation increases. They’re fueling growing optimism that these giant batteries will allow wind and solar power to displace a growing share of fossil-fuel plants.

But there’s a problem with this rosy scenario. These batteries are far too expensive and don’t last nearly long enough, limiting the role they can play on the grid, experts say. If we plan to rely on them for massive amounts of storage as more renewables come online—rather than turning to a broader mix of low-carbon sources like nuclear and natural gas with carbon capture technology—we could be headed down a dangerously unaffordable path.

Read full article from MIT Technology Review

 

What this summer’s heat waves tell us about America’s electric grid

By Tim O’Connor, Environmental Defense Fund – Energy Exchange Blog

With another triple-digit heat wave scorching the Southwest this week, fears of widespread outages are back. California’s grid operator has urged homes and businesses to crank up thermostats and avoid running power-hungry appliances during evening peak hours – all in an effort to avoid disruptions like the ones we saw earlier this month.

The dangerous and expensive outages that left 80,000 Los Angeles residents in the dark then may have been limited to Southern California, but they should sound alarms nationwide. The world is changing, affecting how our grid works.

Utilities are taking steps to adapt and expand their power systems to maintain reliability and accommodate the growth of renewables, but they need to pick up the pace – and fast.

The most basic issue all electric grid operators grapple with is whether they’ll have enough capacity and supply to meet electricity demands of a growing population. Interestingly, California is expected to have enough electricity to go around this week – just like it did during the recent outage in LA.

What failed in early July was not the state’s power mix or supply, but the grid which – like an old car on the side of the road – had overheated and shut down in some places. Grid infrastructure investments and business models simply aren’t keeping up with technology advancements and changing consumer needs of today’s America.

Read full op-ed from EDF’s Energy Exchange blog

 

Solar is Generation of Choice in California

By Robert Mullin, RTO Insider

California’s second-largest publicly owned utility is “not buying anything other than solar right now,” said Arlen Orchard, CEO of Sacramento Municipal Utility District (SMUD). Orchard’s comment reflected prevailing opinion at the Infocast California Energy Summit last week: Solar is the generation of choice now in California — and its role will only grow.

For SMUD, the decision to go with solar is a financial one. Despite historically low natural gas prices, California’s environmental mandates — such as emissions caps and a ban on once-through cooling — make investment in even the most efficient new gas-fired generation less attractive than solar, even in the resource-constrained Los Angeles basin. “It sounds like for a lot of reasons, building more gas-fired generation in L.A. is not going to happen,” said Charles Adamson, principal manager with Southern California Edison, also pointing out the political unpopularity of building new gas generation in the state.

In Northern California, the alternatives to solar are other — more expensive — renewable resources. “Solar was once the most expensive — now it’s the lowest cost,” said Jan Smutny-Jones, CEO of the Independent Energy Producers Association, whose membership includes gas-fired and renewable merchant generators.

Declining solar costs are attracting the interest of more than just traditional utilities, according to Mark Fillinger, director of project development for First Solar. California’s investor-owned utilities have effectively met the state’s 33% by 2020 renewable portfolio standard. Fillinger said his company is now seeing a “huge shift” in demand from those customers to large “direct access” commercial and industrial clients who choose to purchase power from an independent electricity supplier rather than a regulated utility.

Read full article from RTO Insider

California Has Too Much Solar Power — And That’s a Good Thing

By Travis Hoium, The Motley Fool

No business wants to create a solution in search of a problem, particularly in the slow-changing energy industry. Instead, businesses want to find solutions for problems that exist and create ways to make money off their solutions.

Enter the exigent problem California is facing: it has too much solar energy. First, who thought that would be a problem in the country’s largest state? Second, why isn’t there a solution if utilities and regulators knew this problem was coming? The short answer is that energy innovators weren’t going to create and install solutions for solar energy’s variability until they knew the utilities and regulators had recognized the problem.

California has made a big push into renewable energy in an effort to meet a 50% renewable energy goal by 2030. It’s built wind and solar plants rapidly over the past decade, which combines with hydropower to provide clean energy to the state. The problem is that solar energy, in particular, isn’t created evenly throughout the day or year and that’s a challenge for the grid.

In March, before peak air conditioner season in the state, there was so much solar energy on the grid that the California Independent System Operator had to tell some solar farms to shut down because there was too much energy for the grid to handle. And that could lead to a blackout.

Read full article from The Motley Fool

How California Blackouts Will Make Solar and Batteries A National Story

By Bill Roth, Triple Pundit

California again faces potential blackouts. This time it is tied to a natural gas storage facility called Aliso Canyon owned by Sempra Energy’s Southern California Gas. The site’s ability to deliver energy was crippled by a natural gas leak described as an ecological disaster comparable to the BP oil rig explosion. State officials worry that this key facility will not be able to deliver sufficient supplies to California’s natural gas generating plants during summer peak electricity demands.

Here’s how solar and distributed generation could become national news this summer. It is 7 p.m., and Los Angeles is blacked out. It’s the third day of a blistering heat wave made more intense by global warming. People cut back on their air conditioning in the first two days in response to public service announcements to “save the grid.” But on that third evening, it was still over a 100 degrees from the valley to the beaches. Everyone decided they had to get cooler. Collectively they only moved their thermostats back down just a couple of degrees. But that was enough. The increased draw of electricity overwhelmed the grid. It automatically shut down because it just could not produce and deliver any more electricity.

But across LA, there are customers with power. They have lights. Even more importantly, they have air conditioning. Customers flock to these businesses. Neighbors walk over to ask their solar-powered neighbor about how they still have electricity.

The press see a media opportunity. Camera crews show up in front of the homes and businesses that have electricity because of solar systems connected to batteries. They ask questions about cost and find that these customers are actually saving money too. Then the reporters turn to the camera and ask, “Could this be the next iPhone-like technology breakthrough that California creates for all of us?”

Read full article from Triple Pundit

Too Much Solar in California? Not If You Bottle It

By Lauren Sommer, KQED

The cost of solar power has plummeted in recent years, which has led to a renewable energy boom in California.

But there’s a big hang-up: solar energy doesn’t provide a 24-hour supply. When the sun sets, the power from solar farms drops off, just as California needs it most. That’s sparked new interest in technology that stores electricity. And the energy storage technology race is going far beyond your typical battery.

Solar Peaking

“Pretty much everyday, we hit peak output,” says Michael Wheeler, a vice president at Recurrent Energy in San Francisco, looking at a screen showing the solar farms his company manages. But earlier this spring, something happened that, at first, doesn’t seem to make sense.

It was the middle of the day, when one of the solar farms was cranking out electricity, and his company got a message. There was too much electricity on the grid. The electric grid managers were telling solar farms to shut down. “The project went from almost peak output to zero for about two hours,” he says.

This happens on sunny, spring days when there is plenty of solar power but Californians aren’t using a lot of air conditioning yet, so demand for power is low. The solar and wind power comes in on top of what natural gas power plants are generating. Because renewable energy production goes up and down with passing clouds and wind conditions, grid operators say they need the continuous supply from natural gas to make up for those fluctuations.

Shutting down natural gas would leave the power supply less stable. Many gas plants can take between four and eight hours to restart, once they’re turned off. As more solar farms come online, the pressure to shut them down on mild, sunny days is only expected to become greater. California plans to get 50 percent of its electricity from renewable sources by 2030.

Read full article from KQED

Related article: What will California do with too much solar? (KQED) – April 4, 2016

Study: California could get 74% of power from rooftop solar

By Sammy Roth, The Desert Sun

Rooftop solar panels could meet three-quarters of California’s electricity needs and about 40 percent of the country’s electricity needs, according to a new study from the National Renewable Energy Laboratory.

Researchers at the federally funded lab, which is based in Colorado, had estimated in 2008 that rooftop solar could generate 800 terawatt-hours of electricity per year, supplying about 21 percent of the country’s current electricity demand. Now they’ve upped their estimate to 39 percent, in an analysis sure to be embraced by clean-energy advocates who see solar power as critical to fighting climate change.

It’s unlikely the United States will tap all the sunlight at its disposal, at least not soon. The study focuses only on rooftop solar’s theoretical potential, without considering which systems would make financial sense for the owners of homes, businesses and other commercial buildings. Dramatically scaling up rooftop solar would also require big investments in the electric grid, which was built to accommodate large, centralized power plants.

The research lab was particularly bullish on California, which has a lot of sunlight, many large buildings and low per-person energy use. Researchers estimated that California could generate 74 percent of its electricity from rooftop solar — far more than any other state. The next-highest percentages came from the six states of New England, which get relatively little sunlight but don’t use much energy to begin with. Unsurprisingly, large, sunny states such as California, Texas and Florida have the greatest overall generation potential.

Read full article in the Desert Sun

 

San Francisco braces for the Big One with microgrids

By Laurie Guevara-Stone, RMI Outlet

In 2008 the U.S. Geological Survey reported that California has a 99 percent chance of a magnitude 6.7 or larger earthquake in the next 30 years. Just last year, a 6.0 magnitude earthquake knocked out power to more than 40,000 people in the San Francisco Bay area. This was the fourth earthquake of magnitude 6 or greater to hit the Bay Area since 1979, including the 6.9 magnitude earthquake in 1989 that knocked out power to 1.4 million people. So the city of San Francisco is not taking any chances—it’s preparing for the (next) big one with microgrids.

“The whole western side of the city is built on sand; if we have a massive earthquake, the gas infrastructure will be shot, and we could face an extended power outage,” said Cal Broomhead, energy and climate program manager for San Francisco’s Department of the Environment (SF Environment). If the gas pipeline infrastructure is destroyed, it knocks out the natural gas-fired central thermal plants and prevents the use of distributed natural gas generators, so the city wanted to find a distributed solution to provide backup emergency power, one that didn’t rely on diesel.

In 2015 the city received funding from the U.S. Department of Energy’s Solar Market Pathways Program to integrate solar and energy storage into San Francisco’s emergency response plans. SF Environment is leading the project with the engineering firm ARUP acting as the primary subcontractor, and several consultants providing technical support and expertise. The local utility, Pacific Gas and Electric, one of California’s three major investor-owned utilities, is part of the grant as well.

Read full article from RMI Outlet