Archive for the ‘Energy Innovation’ Category

How ISOs and RTOs can create a more nimble, robust bulk electricity system and accelerate renewable energy.

Its no secret that the limiting factor for renewable energy growth is the lack of robust and coordinated transmission and the tools to control intermittency. This ISO/RTO Council report is probably the best update on the subject available. A great read and well worth time.

From the executive summary:

“. . . . specifically, the task force seeks to identify where technological deployment intersects with operational and policy considerations. This report is the culmination of that effort.

Source: ISO.RTO Council

In the course of developing this report, three key priorities emerged as imperatives to continuously ensure the reliability and efficiency of the

Bulk Electric System as the penetration of emerging technologies continue to expand. Those identified priorities are as follows:

1. Renewable supply and integration: Many breakthroughs are being made in individual technologies such as renewable generation, grid-scale energy storage and microgrids, for example. However, is there enough innovative activity happening cohesively to integrate all of these disparate components into the overall electricity system?

2. Greater situational awareness: Several technological options are presenting themselves, but are they being exploited to their maximum potential and will they be enough to maintain adequate awareness over a changing system?

3. Controlling an increasingly distributed electricity system: As Distributed Energy Resources (DER)3 increasingly connect to the distribution system, their aggregate impact on the bulk electricity system4 is already evident. To what extent should operation of DERs be ‘controlled’ or influenced by the bulk system operator and what should that relationship look like? What technologies will best assist that framework.”

As this report demonstrates, we have the technology and the knowledge to speed this clean energy transition but we need the political will. It’s time for leadership at all levels to embrace what it is the greatest economic and environmental opportunity of our lifetime.

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Solar+Storage: Capturing Opportunities and Overcoming Challenges

 

solar energy & energy storageThe solar + energy storage model is widely cited and somewhat hyped beyond the reality of where pricing and business models stand today.

This archived webinar from my friend Terry Schuyler and his colleagues at DNV GL provides a clear picture of the challenges and the coming opportunities as the storage technologies decrease in cost and increase in performance.

Click here for webinar access. 

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Lazard 2014 LCOE Research Report

Lazard Ltd. puts out their annual Levelized Cost of Energy (LCOE) Analysis in Q4 every year, and I always greet it as a worthy piece of market research. Others, however, shower it with critique – some dubious, some accurate. (2014 post on this research here) While there are significant variables that affect the effort to quantify LCOE in one metric, this annual research is quite accurate and appropriately footnoted regarding these variables.

LCOE is defined as all the expense line items of a PV system’s installed cost + the total lifetime cost of the PV system divided by the total amount of energy output in kW hours that the system will put out over its lifetime. (A simple LCOE calculator here).

Lazard LCOE Chart from 2014 Research

Lazard LCOE Chart from 2014 Research

The latest Lazard research reveals what others including Deutche Bank, UBS, NREL and other analysts have been saying over the past year: utility-scale solar and wind power are increasingly cost-competitive on the wholesale level with traditional energy sources such as coal and nuclear, even in the absence of subsidies. At the retail level cost comparison, its widely competitive unsubsidized with highly subsidized traditional fossil fuel generated power.

The research also shows the all-important progress of energy storage cost reduction and the large benefits of coupling storage with PV to reduce the demand charges and/or provide instant grid frequency stabilization. (A great list of all the energy storage benefits can be found here.) 

As a long-term participant in the utility and solar energy industries, it’s breathtaking to see the progress of the PV industry and its market penetration in the last 3 years. The industry has continually had to compete with highly subsidized fossil fuel generation while consistently improving LCOE through hardware, process and regulatory efforts to name a few. Significantly, all of this market penetration progress was achieved with 10X less in government subsidies than traditional fossil fuel-based industries. And with current cost reduction roadmaps throughout the supply chain showing continual lowering of cost’s, the future looks bright.

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Creating Climate Wealth, Unlocking the Impact Economy

Everything you need to know about attracting mainstream capital to clean energy solutions.

A great read by Jigar Shah, founder of SunEdison, innovator of the solar power purchase agreement model and former CEO of the Carbon War Room. With real world examples in many energy related industries, Jigar outlines how entrepreneurs and investors can unlock the enormous potential that climate change represents. And how this can be done utilizing existing, commercial off-the-shelf technologies combined with new and innovative business models.

A how to on financing your Climate Change Solution

A how-to on financing your Climate Change Solution

According to the International Energy Agency, $10 trillion can be invested profitably—today—in the world’s existing technologies, making Jigar’s plan of 100,000 companies each generating $100 million in sales a reality in catalyzing a new economy in the process.

A quote from the book that sums a large issue facing the solar industry, ““The utilities are playing this wrong, saying you’re with us or against us. It’s not the solar industry that’s the problem — it’s their refusal to recognize the benefits of new technologies.” I remember Jigar telling me years ago that the utilities where in trouble as distributed generation plants like solar are going to put an enormous pressure on them in the very near future. I was skeptical that the utility monopoly would be in trouble anytime soon.

Fast forward today and the writing is on the wall. With the exception of few forward thinking utilities, the majority are fighting back instead of embracing distributed generation and morphing their models to this new technological and business model. But this makes sense as the electric utilities have made large capital infrastructure and business investments with long amortization horizons and would of course fight for their profitability. Government regulators and the utility industry need to work on a coordinated and long road map fashion to transition to the rapidly evolving distributed generation model.Utility business model innovation can’t happen in a vacuum or without government guidance as its always been highly regulated contrary to the free market fundamentalist’s claims.

 

 

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“Imagine fuel without fear. No climate change. No oil spills, no dead coalminers, no dirty air . . . .

. . . . no devastated lands, no lost wildlife. No energy poverty. No oil-fed wars, tyrannies, or terrorists. No leaking nuclear wastes or Lovins firespreading nuclear weapons. Nothing to run out. Nothing to cut off. Nothing to worry about. Just energy abundance, benign and affordable, for all, forever.

That richer, fairer, cooler, safer world is possible, practical, even profitable-because saving and replacing fossil fuels now works better and costs no more than buying and burning them.”

This is the lead in from the book  “Reinventing Fire – Bold Business Solutions for the New Energy Era” by Amory Lovins and the Rocky Mountain Institute. Mr. Lovins is a noted and award winning physicist and leading authority on energy. With this book, he provides a compelling road map for transitioning the energy mix in transportation, industry, residential and commercial buildings profitably and with great societal and economic gain. He demonstrates that it’s not just dreaming but its already happening with technology, business models  large amounts of willing finance capital already established. As a global society we just need the political and economic will to make it happen. A great read. A TED talk by Amory Lovins on this book can be found here.

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