by jboullion | Aug 23, 2013 | Uncategorized
The FERC, GTM and SEIA predict that solar installations will double every year as prices continue to decline. Herman Trabish’s article for the GTM Newsletter below notes that solar’s continuing growth will require a reformulation of distributed generation rate structures.By Herman Trabish
If anybody doubts that federal energy regulators are aware of the rapidly changing electricity landscape, they should talk to Jon Wellinghoff, chairman of the Federal Energy Regulatory Commission (FERC).
“Solar is growing so fast it is going to overtake everything,” Wellinghoff told GTM last week in a sideline conversation at the National Clean Energy Summit in Las Vegas.
If a single drop of water on the pitcher’s mound at Dodger Stadium is doubled every minute, Wellinghoff said, a person chained to the highest seat would be in danger of drowning in an hour.
“That’s what is happening in solar. It could double every two years,” he said.
Indeed, as GTM Research’s MJ Shiao recently pointed out, in the next 2 1/2 years the U.S. will double its entire cumulative capacity of distributed solar — repeating in the span of a few short years what it originally took four decades to deploy.
Geothermal, wind, and other resources will supplement solar, Wellinghoff said. “But at its present growth rate, solar will overtake wind in about ten years. It is going to be the dominant player. Everybody’s roof is out there.”
And those other resources have not seen declining prices like solar has. “Solar PV is $0.70 or $0.80 per watt to manufacture. Residential rooftop is $4 to $5 per watt. But they are going to drive that down to $2 and then to $1 per watt.”
Advanced storage technologies also promise lower costs, he said. “Once it is more cost-effective to build solar with storage than to build a combustion turbine or wind for power at night, that is ‘game over.’ At that point, it will be all about consumer-driven markets.”
Wellinghoff was a consumer advocate early in his career and has not changed sides. “Even though the FERC oversees wholesale markets, utilities, and other jurisdictional entities at the wholesale level, the consumer needs to be our major concern,” he said.
If FERC does not ensure the grid is ready to integrate the growing marketplace demand for distributed solar and other distributed resources, Wellinghoff said, “We are going to have problems with grid reliability and overall grid costs.”
Transmission infrastructure will be able to keep up with solar growth. The big changes will be at the distribution level where FERC has less influence, he explained. But the commission has been examining the costs and benefits of distributed generation (DG) in wholesale markets.
[READ MORE]
by jboullion | Aug 21, 2013 | Uncategorized
Midwest Energy News interviews Dr. Jeff Thompson of Gundersen Health System. Dr. Thompson, who was a guest speaker at RENEW’s 2013 Policy Summit calls attention to the need to improve environmental health and sustainability in the healthcare sector.
By Bob Herman
Midwest Energy News: The White House event honored several diverse voices within healthcare sustainability. What were you able to learn from it?
Thompson: I was amazed by some of the stories that people had accomplished. Kizzy Charles-Guzman,
the young woman who is responsible for sustainability efforts in New
York City, came up to me and said, “It’s so amazing what you’ve done and
how close you are to your goals.” And I said, “Kizzy, I’m responsible
for a number of rural counties that have a population equal to one-tenth
of one of your boroughs!”
Even though we have accomplished a lot, I still learn from individuals like her. And I also enjoy working with Gary
and the Healthier Hospitals Initiative because of his ability to
encapsulate what the big picture is and where [healthcare] needs to go.
It is a great, free program for all hospitals that can give any
organization a starting point.
Gundersen’s plan to be energy independent in 2014 is one of
the most unique among U.S. hospitals and health systems. Can you give
some examples of how Gundersen is trying to reach this goal, and is it
saving your organization money along the way?
The first example I always use — because everyone worries it’s going
to take a huge amount of money — is conservation. Our first investment
was in conservation. I recommend all CEOs to go for this. In the first
year and a half, we spent $2 million. That’s a lot of money, but every
year thereafter, we’ve saved $1.2 million in energy expenditures related
to that activity. Right now, I don’t know anything in the organization
that can get that rate of return.
When you say “conservation,” what did you and Gundersen focus on specifically?
We started with an energy audit. We looked around all the places
where we use energy — lights, motors, pumps, all the non-sexy things
people don’t think about when it comes to energy issues. For example,
there was a five-year-old, six-story outpatient building. It is very
busy during the days, but nobody is there at nights, weekends and
holidays. Its exhaust fans, though, were set to run 24/7/365. So we just
switched that to run only when people were in the building. We saved
$19,000 right there.
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by jboullion | Aug 20, 2013 | Uncategorized
Paralleling Tom Content’s article for the Milwaukee Journal Sentinel, Mike Ivey’s story for the Capital Times offers his interpretation of the opinions and events influencing the PSC’s deliberation over whether or not to finalize the decision to suspend Focus on Energy incentives for wind and solar. Commenting in this article, RENEW’s Tyler Huebner notes that “Judging by the extraordinary outpouring of support for continuing
incentives to solar and small wind, it’s clear that the PSC’s move to
suspend incentives struck a nerve with the public”.
By Mike Ivey
Will Gov. Scott Walker’s Public Service Commission reverse course on renewable energy development in the state?
Clean
energy advocates hope so and are reporting a “massive outpouring” of
support for continuing incentives for residential solar or wind projects
in Wisconsin.
Under its Focus on Energy Program, the state is authorized to spend up to $10 million per year on renewable energy incentives.
But the PSC voted 2-1 in July to suspend the incentives through the end of 2013.
The
move stems from a previous directive from the commission to shift more
renewable energy incentives to biofuel projects — such as manure
digesters or waste wood burning — which some analysts say offer greater
energy savings.
A final ruling is expected in the coming weeks,
but since July, more than 630 comments were submitted to the PSC urging
the panel to maintain the incentives. The three-member commission has
two Walker appointees and one holdover from former Gov. Jim Doyle.
“Judging
by the extraordinary outpouring of support for continuing incentives to
solar and small wind, it’s clear that the PSC’s move to suspend
incentives struck a nerve with the public,” says Tyler Huebner,
executive director of RENEW Wisconsin.
[READ MORE]
by jboullion | Aug 19, 2013 | Uncategorized
State Renewable Energy Initiative Picking Up Momentum
Statement by RENEW Wisconsin Program and Policy Director Michael Vickerman
RENEW Wisconsin is pleased to announce that our Clean Energy Choice initiative has earned the endorsement of the Libertarian Party of Wisconsin. By its action, the Libertarian Party of Wisconsin joins more than 90 other organizations, businesses and local governments across the state that believe that customers should have the legal right to purchase renewable energy produced on their premises, regardless of who owns the energy system.
Most energy customers cannot afford the installed cost of a brand-new renewable energy generator to supply them with electricity. But most could afford to have a renewable electricity service if the equipment were owned by someone else. We thank the Libertarian Party of Wisconsin for standing up for the right of customers to enter into long-term contracts to access clean energy produced on-site.
In the 22 states that have affirmed this policy, you’ll find many citizens, businesses and nonprofit entities working with local contractors to supply their buildings with renewable electricity produced on-site. Clean Energy Choice provides the financing flexibility that enables these citizens to supply themselves with the technologies they prefer. Because of that flexibility, those 22 states have some of the healthiest renewable energy markets in the country, and they are happily reaping the economic and environmental benefits associated with that policy.
Wisconsin’s energy policy should aim to make it easier for customers to host clean energy systems on their premises. It should also aim to create jobs and expand business and investment opportunities for local firms. By adopting Clean Energy Choice, Wisconsin policymakers would in a single stroke affirm their commitment to freedom of choice, economic development, environmental protection and property rights. We call upon the Legislature to seize this opportunity when it reconvenes next month and start working to adopt this policy.
A full list of organizations, companies and local governments supporting Clean Energy Choice can be accessed at the link below. http://renewwisconsin.org/action/CleanEnergyChoice.htm
by jboullion | Aug 16, 2013 | Uncategorized
In his article for the Quartz Daily Brief, Tim Fernholz debunks electrical utility claims that increased solar panel reliance to off-set electrical costs will lead to increased rates for all customers. While the “death spiral” of increased solar energy use leading to increased electrical rates is revealed to be little more than a panicked response from power companies, Fernholz identifies that a regulatory solution must be crafted to facilitate our transition to a solar powered future.
By Tim Fernholz
In the US, electrical utilities are in a charged battle—complete with negative political ads—against solar panel distributors over rules that both sides say could put them out of business. Consumers are caught in the middle.
A relatively new swathe of companies like Verengo, Sunrun, Sungevity and SolarCity have spent millions leasing solar equipment to homeowners and businesses. The cost of the lease is offset by savings on their electrical bill. Those savings come not just because of free power from the sun, but also through tax credits—and, most importantly today, because states allow those who have solar panels to sell any excess power back to the grid.
The more than 200,000 “distributed solar generators” in the US produce less than 1% of the country’s electricity. But that’s growing thanks to the falling cost of photovoltaics and financing from investors like Google. And this worries the big power companies, particularly two of the country’s largest, Pacific Gas & Electric and Southern California Edison.
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by jboullion | Aug 15, 2013 | Uncategorized
Tom Content’s article for the Milwaukee Journal Sentinel provides an informative summary of the events and motivations leading up the outpouring of comments submitted to the PSC on behalf of Wisconsin businesses in the wind and solar industry. Comments from RENEW, local solar installers and utility customers emphasize the negative economic repercussions that Wisconsin will experience if this decision is finalized.
By Tom Content
Supporters of renewable energy are weighing in urging the state Public Service Commission to reverse course and rethink a decision that suspended incentives for business and homeowners to install solar power systems.
The state Focus on Energy program announced last month that it would suspend the granting of renewable incentives for the second time in three years.
Program administrators cited a recent ruling by the PSC that gives preference to renewable energy projects that use biomass or biogas, which are more cost-effective than wind and solar projects. The PSC’s decision ties funding of any solar projects to biomass projects, which take longer to develop. Because of the longer lead times, solar funding will stop while more biomass projects get closer to being built, according to Focus.
The PSC was initially considering a final decision on the matter this week but that decision is now expected later this month. Instead, the agency asked for public comments, and the response was significant.
Renew Wisconsin, an advocacy group, says 630 people or businesses have weighed with comments on the matter,
“It’s really an impressive outpouring of support to continue these incentives,” said Tyler Huebner, who joined Renew Wisconsin as executive director earlier this year. “It’s clear that the PSC’s move to suspend incentives struck a nerve with the public.”
The incentives are provided by the state Focus on Energy program, an initiative that’s overseen by the state PSC as well as the state’s utilities. Focus on Energy was created to help utility customers receive incentives to make homes and businesses more energy-efficient and install renewable energy systems.
The PSC’s rationale is to ensure ratepayers’ dollars are spent wisely. Most of the Focus on Energy program’s budget is allocated toward energy efficiency projects, which deliver a stronger payback than renewable energy systems.
The move comes as utilities are also scaling back their commitment to customer-sited renewable generation. We Energies of Milwaukee in 2011 suspended a $6 million a year commitment to renewable energy, saying it was focusing its renewables spending on large projects like the state’s two biggest wind farms and a biomass power plant set to open this year in north-central Wisconsin.
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