Alternative energy
The Colorado Public Utilities Commission adopted rules to incorporate energy storage procurement into utilities’ long-term planning processes, taking an important step towards harnessing the emerging technology, according to a Dec. 12 decision. The move follows legislation enacted in June 2018 directing the commission to establish a process by February 2019 for electric utilities to evaluate…...
The New York Public Service Commission on Dec. 14 approved phase III of the New York State Energy Research and Development Authority’s plan to implement the Clean Energy Standard or CES, adopted in August 2016, to achieve the state’s goal of obtaining half its electricity from renewable resources by 2030. The program includes a renewable…...
Virginia is striding towards a clean energy future by paving the way for faster and larger deployment of renewable energy and energy efficiency. The Grid Transformation and Security Act of 2018 declares that 5,000 megawatts of solar and wind energy are in the public interest, making it easier for these projects get regulatory approval. The state’s 10-year energy plan emphasizes grid modernization and innovative technologies, setting goals for renewable energy generation, energy efficiency, and electric vehicles.
The proliferation of customer-sited generation has prompted utilities to push for demand charges – a fee based on a customer’s peak consumption during a billing period – to recover fixed costs and address cross-subsidies. Utilities face the conundrum of losing revenue as customers installing distributed generation, such as rooftop solar, rely less on the utility for power needs while also shifting costs to other customers. Solar advocates argue that these fees impact customers’ ability to control their bill, potentially wiping out the incentive to install solar.
The political puzzle pieces are falling into place for nearly a dozen states to strengthen targets for the deployment of renewable generation following the Midterm elections, in what could serve as the latest driver for growth in solar- and wind-powered electricity. Newly elected Democratic governors in six states, ranging from Maine to New Mexico, ran on campaigns to pursue more ambitious renewable energy goals. Their rise to power not only boosts the prospect for more aggressive environmental mandates and targets, but will also mark a progressive shift in energy policy from their respective Republican predecessors, which had blocked renewable-friendly measures.
The continued growth in electric vehicle (EV) adoption has led state regulators to pay more attention to business models and rate designs that facilitate wider availability of charging infrastructure. Most recently, Pennsylvania took a big step towards innovative and dynamic pricing by clarifying that third party EV charging is not considered resale or redistribution of power. California is considering a utility proposal to replace demand charges with new subscription pricing, allowing customers to select the required amount of power for their stations. New York is analyzing the characteristics of charging systems to foster EV participation as a distributed resource. Iowa is examining business models for EV charging, while Illinois is exploring rate structures and charging practices to guide efficient integration of electric vehicles.
All six states in New England have Renewable Portfolio Standards (RPS) that drive the market for solar renewable energy credits (SRECs). Massachusetts installed 1.6 GW of solar as of December 2017, the most in the New England region, largely thanks to its SREC I and II programs. The state is currently implementing a long-term, sustainable solar incentive called the Solar Massachusetts Renewable Target (SMART) program, replacing the SREC II program set to conclude in 2018.
The Illinois Power Agency finalized its first long-term renewable procurement plan, mapping an ambitious path to reach the goal of 25 percent by 2025, following structural changes to the state’s Renewable Portfolio Standard to enable a reliable funding mechanism. The plan lays out a framework for a new adjustable block program, community solar generation, and a low-income solar program, outlining procurement of 666 megawatts of solar.
The U.S. offshore wind industry is picking up pace as eastern states are pushing aggressive wind energy procurement goals. Massachusetts, Rhode Island, and Connecticut recently contracted for offshore wind capacity totaling 1.4 gigawatts. New York and New Jersey are making progress towards project solicitations.
New Jersey has enacted legislation expanding the state’s renewable portfolio standard (RPS) to 50 percent by 2030 and phasing out the solar renewable energy certificate (SREC) program by 2021 to establish a new or modified framework to support solar development. The move addresses an impending oversupply of SRECs, providing a near-term boost to keep the solar industry growth while the state crafts a long-term plan.
The smart grid evolution has unleashed opportunities for electric vehicles thanks to technologies that allow them to feed power back into the grid. Utilities and grid regulators are eyeing plug-ins as a flexible resource class helping address the intermittency of renewables and reduce peak power demand.