How Can We Make Renewable Energy Affordable?

Morgan, the biggest (0.00 / 0)

problem is that the consumer gets no credit for unloading the system. Did analysis for the six major utilities back in 2004 that showed that almost 35% of the "value" to the grid is not captured by the investor but rather by the rest of the grid consumers.

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by: tjlord @ Tue Jan 06, 2009 at 19:29:12 PM CST

That's a really good point ... (4.00 / 1)

... if transmission bottlenecks are a problem, the general response is to plan additional transmission capacity.  But, it should be possible to put a value on the reduced grid demand that results from efficiency or on-site generation.

It would be complicated to figure out -- given that peak demand tends to happen at certain times more than others, and given that on-site generation may or may not be able to relieve demand from the grid at that time (e.g. day vs. night for photovoltaics).  Then there's the issue of where one lives relative to various transmission lines ...

Proper valuation would tend to offset somewhat the cost of the Amendment 37 rebates, which are funded by ratepayers.  To some extent, ratepayers are 'paying less' for the rebates because they reduce the need for additional (ratepayer-funded) transmission.

Setting renewables aside for a moment, implementing efficiency measures is even cheaper and can have a similar effect.  Xcel already does this during peak demand with its residential air conditioner program, in which A/C units of participating customers are turned off for a short period of time in rotation with other participants.  

That program takes a whack at peak generation and transmission problems ... when electricity is most expensive to provide.  Of course, it's actually not efficiency per se.

There are enormous untapped opportunities for peak and base load demand reduction through efficiency measures that are transparent/unseen to the end user.  (well, not totally -- there are savings that show up in smaller electricity bills)

I'm sure glad to see this bill introduced ... it makes it easier to implement renewables and efficiency, which really need to be pursued agressively, given climate change.

All of this stuff is probably already known by many S2 readers ... I just got to typing and it all came out.

    -- Eric Johnson

Make sure your voter registration is up to date!

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by: by foot @ Tue Jan 06, 2009 at 22:23:36 PM CST

[ Parent ]

Forgot to say: (0.00 / 0)

I'd be interested in learning more about the 2004 analysis.  Are there any documents available to the public that came out of it?

    -- Eric Johnson

Make sure your voter registration is up to date!

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by: by foot @ Tue Jan 06, 2009 at 22:27:39 PM CST

[ Parent ]

No, that was a consulting (0.00 / 0)

engagement for a benchmarking study.

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by: tjlord @ Wed Jan 07, 2009 at 09:57:02 AM CST

[ Parent ]

how about (4.00 / 1)

incentives for renewable technologies built into new homes?  The cost of a solar or geothermal system is relatively small when it's rolled into the entire price of a house.  Incentive to lower interest rates on refinancing if X% is used for renewable energy improvements.

And, this is a small step, but how about mandating a certain efficiency for lighting?  Perhaps a tax rebate when providing receipts for Y bulbs that are efficient.  I don't like mandating or legislating technology.  Set the bar where compact fluorescents are now.  LED lighting will eventually get there.
That's just off the top of my head.

revolution from within

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by: johne @ Tue Jan 06, 2009 at 22:57:05 PM CST

Very encouraging (0.00 / 0)

to see both this bill being introduced and the sponsor interact with SquareState on it.

Energy efficiency is cheaper in comparison to new solar, geothermal and wind generation and transmission projects.  Technologies exist today and are readily available for implementation - it's likely that people need some incentive to implement them.  Making affordable loans available is certainly a good approach to take care of this.  It allows each consumer to choose which upgrade they want assistance to fund, which is a desirable feature.

Being able to sell energy to the utilities seems to be an obvious step in renewable energy market penetration.  There should be no difference in who generates the electrons, whether it be Xcel (for example) or a citizen.  Smart metering is the buzz-word, I believe.  I think this tangentially ties in with what tjlord and by foot discussed above, as well.

Plug-in vehicles.  Hybrids and all-electrics of all sizes, makes and models.  One disadvantage of solar and wind is the lack of storage capacity for energy when it's either really sunny or really windy.  More energy is potentially available for use than we can possibly use for a given time.  If hundreds, then thousands, then hundreds of thousands of plug-in vehicles were in the system, the energy storage problem would be robustly addressed.  The problem?  Technology availability and cost.  Plug-ins and renewable energy need to be developed at the same time so that they can put downward pressure on each other's currently high costs.  Incentives to buy plug-ins would go a long way toward helping both industries to maturity.  That's even more jobs and more future revenue.

As by foot mentioned above, the economy isn't the only factor that should drive this effort.  Morgan, you correctly identify 'greening the grid' as a worthy goal.  We have to start reducing our climate system forcing - today, not tomorrow.  I would ask that you and others be as aggressive as possible when coming up with these potential solutions.  Every dollar we spend today is a savings over many dollars that will have to be spent tomorrow as the effects of climate change take hold.

A Responsible Plan for Iraq: endorsed by Jared Polis

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by: WeatherDem @ Wed Jan 07, 2009 at 18:07:45 PM CST