Texas Grid Operator Looks to Bolster Energy Prices Amid Renewables Influx

EnerKnol’s Visual Primer – Texas Grid Operator Looks to Bolster Energy Prices Amid Renewables Influx

EnerKnol Research Reports, EnerKnol Visual Primer, Power & Utilities, PRODUCTS, Wholesale Markets

The Public Utility Commission of Texas is examining reforms to price formation in the Electric Reliability Council of Texas (ERCOT) energy-only market over concerns of low prices. The proceeding stems from a whitepaper on shortcomings caused by subsidized renewables and other factors expected to interfere with investment decisions and undermine market sustainability. ERCOT proceeding highlights the ongoing national discussion over the role of organized electricity markets in ensuring fuel diversity and system reliability through pricing mechanisms.

Solar Set to Grow under Michigan's New Avoided Cost Rules for Consumers Energy

EnerKnol’s Visual Primer – Solar Set to Grow under Michigan’s New Avoided Cost Rules for Consumers Energy

EnerKnol Research Reports, EnerKnol Visual Primer, PRODUCTS, Renewables, Solar Power

The Michigan Public Service Commission has finalized a formula to determine the avoided cost that Consumers Energy Co. must pay to buy power from qualifying facilities under the federal Public Utilities Regulatory Policies Act (PURPA) of 1978. The new methodology extends the power purchase contract period to up to 20 years, and boosts the capacity of eligible projects to 2 megawatts, up from 100 kilowatts. While current contracts are based on the costs of running a coal plant, new contracts will be based on the energy and capacity costs of natural gas-fueled plants. The ruling, which marks the first update to avoided cost payments in almost 30 years, is expected to increase certainty for distributed energy resources, such as solar.

Virginia Approves Cap-and-Trade Plan and Moves to Join RGGI

EnerKnol’s Visual Primer – Virginia Approves Cap-and-Trade Plan and Moves to Join RGGI

Carbon Markets, EnerKnol Research Reports, EnerKnol Visual Primer, Environmental Markets, PRODUCTS

The Virginia Air Pollution Control Board has approved a proposal to reduce power sector carbon dioxide emissions by 30 percent between 2020 and 2030. The proposal would link Virginia with the Regional Greenhouse Gas Initiative (RGGI), the nation’s first mandatory cap-and-trade program. The proposal is consistent with RGGI’s recently announced proposed improvements that caused a rebound in allowance prices in the September auction. With member states in agreement over the program's post-2020 path, RGGI is likely in for a boost that could see both price increases in future auctions and additional states joining the group.

Ohio Net Metering Update Limits System Size but Opens Doors to Energy Marketers

EnerKnol’s Visual Primer – Ohio Net Metering Update Limits System Size but Opens Doors to Energy Marketers

EnerKnol Research Reports, EnerKnol Visual Primer, PRODUCTS, Renewables, Solar Power

The Public Utilities Commission of Ohio has revised its net metering rules requiring regulated electric utilities to offer a standard tariff to standard service offer customers, while competitive retail electric service providers can offer diverse net metering products and service to shopping customers. The Ohio rule comes after months of review and seeks to address the interests of distributed generation customers, electric utilities, and competitive providers. Importantly, the ruling opens doors to energy marketers, some of which might be able to offer better rates than the utilities.

Connecticut Passes Bill Paving Way to Subsidize Dominion Nuclear Plant

EnerKnol’s Visual Primer – Connecticut Passes Bill Paving Way to Subsidize Dominion Nuclear Plant

EnerKnol Research Reports, EnerKnol Visual Primer, Nuclear Power, PRODUCTS, Renewables

The Connecticut Governor has signed legislation that could allow the state’s only nuclear plant to compete for long-term contracts with renewables provided such rule change is corroborated by a currently ongoing study into the plant's viability. Recently, additional states including Pennsylvania and Ohio have joined in with policies supporting their nuclear facilities. These actions coincide with the Department of Energy’s recently-proposed grid resiliency pricing rule offering hope for financially struggling nuclear power plants.

New York Leads the Nation in Exploring Wholesale Market Design for Distributed Energy Resources

EnerKnol’s Visual Primer – New York Leads the Nation in Exploring Wholesale Market Design for Distributed Energy Resources

EnerKnol Research Reports, EnerKnol Visual Primer, Power & Utilities, PRODUCTS, Smart Grid

The New York Independent System Operator has launched a pilot program to examine how the integration of emerging distributed energy resource (DER) technologies will affect wholesale market systems. The pilot program aligns with the state’s objectives under the Reforming the Energy vision (REV) to expand retail markets for DER. Access to wholesale markets will be critical in integrating the growing share of DERs, and state and ISO-level policies will play a key role in this regard.

Cleared by Feds, $8.5 Billion in Pipeline Projects Now Face State Hurdles

EnerKnol’s Visual Primer – Cleared by Feds, $8.5 Billion in Pipeline Projects Now Face State Hurdles

EnerKnol Research Reports, EnerKnol Visual Primer, Fossil Fuels, Natural Gas, PRODUCTS

The Federal Energy Regulatory Commission (FERC) has approved the controversial Atlantic Coast and Mountain Valley pipeline projects denying requests for broader reviews and evidentiary hearings. Recent setbacks due to state decisions and court rulings have now drawn attention to state battlegrounds in pipeline approvals. FERC's apparent inclination to supplant state decisions adds to concerns over jurisdictional issues.

Trump's EPA Trashes Global Benefits of Carbon Cuts in Repeal of Obama Climate Rule

EnerKnol’s Visual Primer – Trump’s EPA Trashes Global Benefits of Carbon Cuts in Repeal of Obama Climate Rule

Emissions, EnerKnol Research Reports, EnerKnol Visual Primer, Environmental Markets, PRODUCTS

In its proposal to repeal the Clean Power Plan (CPP), the Environmental Protection Agency (EPA) has devalued the social cost of carbon (SCC) and disregarded the global benefits from the CPP. Following President Trump’s executive order rescinding the SCC, this approach could be used to revisit existing environmental rules. Despite the pushback on carbon pricing at the federal level, states are increasingly using the social cost of carbon as a metric to measure and reduce their climate impacts.

Massachusetts Among First to Consider Net Metering for Energy Storage amid Calls by Tesla

EnerKnol’s Visual Primer – Massachusetts Among First to Consider Net Metering for Energy Storage amid Calls by Tesla

Energy Storage, EnerKnol Research Reports, EnerKnol Visual Primer, Power & Utilities, PRODUCTS

The Massachusetts Department of Public Utilities has initiated a proceeding to investigate the eligibility of energy storage systems to net meter. Stakeholder comments in prior proceedings prompted the investigation, which comes at a time of boom for the storage industry which reflects in the policy realm. Multiple states have passed policies supporting storage, such as mandates, tax incentives, streamlined permitting processes, and research and development programs. While the spread of renewables will be one major driver for the growth of storage, grid resiliency efforts, especially in the wake of weather disasters, will provide another avenue for growth in the industry.

Hurricane-Battered U.S. Gives Momentum to Sweeping Push for Microgrids

EnerKnol’s Visual Primer – Hurricanes across Texas, Florida and Puerto Rico Test Resilience of Grid

EnerKnol Research Reports, EnerKnol Visual Primer, Power & Utilities, PRODUCTS, Smart Grid

Panelists at a House Energy and Commerce subcommittee hearing concurred that having more diversified resources would help the authorities manage outages in the wake of hurricanes such as Irma, Harvey, and Maria. The catastrophic storms have emphasized the need for significant investments in the nation’s grid to protect it from a major, long-lasting outage that has affected Puerto Rico. Policymakers are turning to battery storage and microgrids as they do not just strengthen the grid against inclement weather but bring an array of other benefits.

New York Approves Utility Proposals for Setting the Value of DER

EnerKnol’s Visual Primer – New York Approves Utility Proposals for Setting the Value of DER

EnerKnol Research Reports, EnerKnol Visual Primer, PRODUCTS, Renewables, Solar Power

The New York State Public Service Commission (NY PSC) has issued an order approving utility proposals to implement its Value of Distributed Energy Resources (VDER) compensation mechanism, a structure that values DER in a more accurate manner including locational and environmental benefits that were previously not quantified. However, solar advocates that have so far commended New York’s reforms said the approval was inadequately reviewed and could undercompensate DER. While studies on the costs and benefits of solar and other types of DERs will help other states set their policies, New York will provide invaluable real-life lessons for other states with emerging solar markets.

DOE's SunShot Initiative Reaches Utility Solar Cost Target Three Years ahead of Schedule

EnerKnol’s Visual Primer – DOE’s SunShot Initiative Reaches Utility Solar Cost Target Three Years ahead of Schedule

EnerKnol Research Reports, EnerKnol Visual Primer, PRODUCTS, Renewables, Solar Power

The U.S. Department of Energy has announced new priorities for its SunShot Initiative after it met the utility-scale solar cost target three years ahead of schedule. The new funding programs will prioritize research on grid reliability, reflecting the growing role of solar in the generation mix. In addition, over the coming years, DOE would examine the costs and benefits of net energy metering to utilities, ratepayers, and the grid.