Tag Archives: Power Grid

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

 

Renewables Threaten German Economy & Energy Supply, McKinsey Warns In New Report

By Michael Shellenberger (Contributor), Forbes

new report by consulting giant McKinsey finds that Germany’s Energiewende, or energy transition to renewables, poses a significant threat to the nation’s economy and energy supply.

One of Germany’s largest newspapers, Die Welt, summarized the findings of the McKinsey report in a single word: “disastrous.” “Problems are manifesting in all three dimensions of the energy industry triangle: climate protection, the security of supply and economic efficiency,” writes McKinsey.

In 2018, Germany produced 866 million metric tons of carbon dioxide, a far cry from its goal of 750 million tonnes by 2020. Thanks to a slightly warmer winter, emissions in Germany went down slightly in 2018, but not enough to change the overall trend. “If emissions reductions continue at the same pace as they did over the past decade, then CO2 targets for 2020 will only be reached eight years later, and 2030 targets will not be reached until 2046.”

Germany has failed to even come close to reducing its primary energy consumption to levels it hoped. McKinsey says Germany is just 39% toward its goal for primary energy reduction.

Read full article from Forbes

 

Should all houses in SLO switch to electric appliances? These experts think so

By Nick Wilson, The San Luis Obispo Tribune

What would it be like to live in a home that uses all electric appliances?

A panel of experts who spoke Thursday at an event hosted by the SLO Climate Coalition at the SLO library touched on questions around cost, safety and the ability of the grid to handle a transition from gas to electrically-powered homes.

The discussion comes in advance of a planned SLO City Council meeting Sept. 3 when a new policy around energy requirements for constructing new homes will be considered. The proposed changes to building codes would incentivize electrification by allowing construction with all-electric appliances to meet minimum state standards.

If the new policy is approved, those who choose to construct gas-powered systems would have to retrofit existing buildings to electric appliance systems or pay an in-lieu fee that will be used for the same purpose, according to city officials.

A panel of four state building and energy experts said they believe a transition to electrification is inevitable given California’s target of carbon neutrality in 2045. It makes good sense, they said, to start planning for a future in which communities will be faced with finding ways to reduce as much carbon dioxide and other greenhouse gases from the atmosphere as possible — a significant portion of those emissions now coming from use of gas appliances in homes.

Read full article in the San Luis Obispo Tribune

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

Distributed residential solar+storage takes a seat at the adult table

By John Weaver, pv magazine

We should thank Sunrun for continuing to break new ground, and for investing company resources in moving the industry forward. Now the industry has a new precedent that it will build upon; it has a piece of confidence to carry. And residential solar+storage is soon to be a fundamental building block of the Eastern Interconnection – argued to be the largest machine on the planet.

Sunrun has won a bid for 20 MW to participate in ISO New England’s 2022-2023 Forward Capacity Market. The bid means that Sunrun will be required to offer to the broader power grid 20 MW of power, 24 hours day for the single year period. The company will be paid $3.80/kW/month – totaling $76,000/mo, and $912,000 for the full year contract.

Sunrun notes that the capacity will be made possible by its Brightbox energy storage product line. Currently, this product is an LG Chem RESU. LG’s 48-volt battery comes with 3.3, 6.5 and 9.8 kilowatt-hour (kWh) ratings, and its 400-volt batteries offer 7.0 and 9.8 kWh ratings. Both AC- and DC-coupled versions are available. Sunrun noted they would need about 5,000 New England customers to meet the requirement – which would suggest somewhere between.

…This announcement comes of the heels of two very significant recent legislative victories for solar+storage. First, California is allowing DC coupled solar+storage to participate in net metering. And second, Massachusetts just ruled that energy storage that is in the SMART program has the right to sell its own energy into these same forward capacity markets that Sunrun just bid on. Sunrun was part of the negotiations with Massachusetts to push this legislation through.

Read full article from pv magazine

 

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

 

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

Utility-Scale Solar Surpasses Wind in California for First Time in 2015

Recent analysis from Vaisala, a global leader in environmental and industrial measurement, reveals that in 2015 energy from grid-connected, utility-scale solar plants surpassed wind for the first time in California. While this is an exciting milestone for the solar industry, the rise of solar also brings with it a demand for better forecasting information to cope with the challenges that the increase in variable generation poses to the regional energy system.

California has been a national leader in renewables since first establishing its Renewable Portfolio Standard (RPS) in 2002, and, with a 50% RPS mandate recently signed into law, it is likely to maintain its position for years to come. Today the state is still one of the largest U.S. wind markets in terms of capacity, but the exponential growth of large-scale solar in recent years has considerably altered the structure of the regional energy market.

Public records from CAISO (California Independent System Operator) indicate that over the past five years, grid-connected, utility-scale solar generation in California increased fifteen-fold. It went from a total of 1,000 GWh in 2011 to an impressive 15,592 GWh in 2015, composing 6.7% of the system total and surpassing wind for the first time, which made up 5.3% of the system total.

Read full press release from Vaisala

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