NewEnergyNews

NewEnergyNews

Gleanings from the web and the world, condensed for convenience, illustrated for enlightenment, arranged for impact...

The challenge now: To make every day Earth Day.

YESTERDAY

  • Weekend Video: Ocean Wind On The Verge
  • Weekend Video: Big Funding To Long Duration Storage
  • Weekend Video: The Mighty Missip’ Runs Down
  • THE DAY BEFORE

  • FRIDAY WORLD HEADLINE-World’s Best Countries For Building New Energy
  • THE DAY BEFORE THE DAY BEFORE

    THINGS-TO-THINK-ABOUT WEDNESDAY, November 23:

  • TTTA Wednesday-ORIGINAL REPORTING: The New Energy Transition Needs Better Power System Regulation
  • TTTA Wednesday-EPA Proposes Quadrupling The Carbon Cost To $190/Tonne
  • THE DAY BEFORE THAT

  • Monday Study: The Benefits of Big Transmission Across The U.S. East
  • THE LAST DAY UP HERE

  • Weekend Video: The Biden-Granholm New Energy Achievements
  • Weekend Video: What Rising Methane Spews Mean
  • Weekend Video: The Rise Of Zombie Ice
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    Founding Editor Herman K. Trabish

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    Some details about NewEnergyNews and the man behind the curtain: Herman K. Trabish, Agua Dulce, CA., Doctor with my hands, Writer with my head, Student of New Energy and Human Experience with my heart

    email: herman@NewEnergyNews.net

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      A tip of the NewEnergyNews cap to Phillip Garcia for crucial assistance in the design implementation of this site. Thanks, Phillip.

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    Pay a visit to the HARRY BOYKOFF page at Basketball Reference, sponsored by NewEnergyNews and Oil In Their Blood.

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  • MONDAY’S STUDY AT NewEnergyNews, November 28:
  • The West’s Market Opportunity

    Monday, November 28, 2022

    Monday Study – The West’s Market Opportunity

    CAISO EDAM Benefits Study Estimating Savings for California and the West Under EDAM Market Scenarios

    Keegan Moyer and Daniel Ramirez, November 4, 2022 (Energy Strategies)

    Study Background>/span>

    • The CAISO engaged Energy Strategies to estimate the benefits associated with the CAISO’s Enhanced Day-Ahead Market (EDAM)

    o The purpose of the study was to estimate both operational and capacity savings that may accrue due to the formation of the CAISO’s new day-ahead market known as EDAM

    o The benefit estimates were calculated for (1) California; and (2) the Western US states in the Western Interconnection

    • The methodology and underlying databases used to perform the assessment were consistent with those adopted by Energy Strategies in performing the State-Led Market Study, which was an analysis conducted for the benefit of Western states with funding through a US Department of Energy grant

    o The State-Led Market Study was published in July 2021 and with the goal of helping Western states independently and jointly evaluate benefits of generic organized electricity market expansion options, while enhancing regional dialog on related regulatory and policy issues impacting states

    o The study featured detailed modeling that forecasted the operational benefits, as well as capacity savings, that could accrue to individual states under future market scenarios

    o The modeling explored generic representations of real-time, day-ahead, and RTO market constructs, assuming their implementation across a series of hypothetical footprints selected by the Western states

    o This EDAM assessment differs from this prior work in that it is designed to represent specific elements of a market proposal, whereas the State-Led Study was intentionally generic and not focused on representing a particular market proposal or design

    Study Goal

    Estimate savings for California and the aggregation of Western States assuming a Westwide EDAM footprint, considering both operational efficiencies and load diversity benefits that may accrue in the year 2030

    Operational Savings are Focus of Study

    • This CAISO EDAM study focuses on operational benefits of future regional wholesale power markets, featuring modeling intended to reflect specific aspects of the CAISO EDAM proposal

    o The study sources capacity savings directly from public State-Led Study results

    • Operational benefits reflect a relatively small portion of the benefits caused by organized wholesale energy markets

    Market Benefit Categories

    Operational Savings

    Savings due to more efficient dispatch (via SCED), more efficient management of transmission capacity, lower operating reserve requirements, removal of transmission wheeling costs within market footprint, decrease in trading friction

    Capacity Savings

    Savings due to lower and regionally shared planning reserve requirements caused by geographical diversity of loads (and generation)

    Other Energy Related Savings

    Savings due to more efficient planning of the transmission system, access to lower-cost public policy resources, environmental benefits of reduced emissions, new market products (e.g., hourly vs. block), increased automation of system operations

    Non-Energy Savings

    Savings due to lower electricity prices causing indirect economy-wide benefits such as new jobs, changes to household spending, and economic growth

    Adjusted Production Cost (APC) is Primary Metric to Measure Operational Savings

    • Adjusted Production Cost (APC) is a metric commonly used to estimate operational benefits in market studies as it accounts for power trading between buyers and sellers

    o APC represents the net costs for a given area to serve load, accounting for power generation costs, power purchase cost, and revenues from sales

    • A decrease in APC for an area from one market scenario to the next represents operational savings

    o This study calculates APC on a balancing area (BA) basis and allocates BA-level operational savings to states based on the amount of BA load in that state

    • By comparing changes in APCs, the study estimates how states might experience operational benefits from CAISO EDAM market configurations

    Modeling EDAM: Key Assumptions to Represent Market

    Wheeling costs: Transmission wheeling costs or “hurdle rate” between EDAM participants are removed. UC and DA dispatch are optimized together.

    Transmission available to market: 100% of inter-area transfer capability is available for EDAM day-ahead market optimization

    CAISO export limit: No MW cap on how much power CAISO can export under EDAM

    Contingency reserves: No change in BA and reserve sharing group obligations due to EDAM market formation – status quo modeling retained

    Regulating reserves: No change to assumption that BAs define and hold regulating reserves locally – Status Quo modeling retained

    Load following / imbalance reserves: Assumes EDAM imbalance reserve product causes imbalance reserves to be calculated and held for entire EDAM footprint (versus individual BAs under Status Quo)

    Carbon markets: No change to California carbon price or carbon cost applied to unspecified imports per AB32 – Status Quo modeling retained

    Real-time market representation: 100% of inter-area transfer is available for real-time dispatch with no hurdle rate, among market participants in EDAM

    Study Results: West-wide EDAM Scenario

    Scenario assumes that all Western balancing areas join EDAM market, which features a market-based imbalance reserve product, no transmission wheeling costs among market participants, and 100% transmission availability for market optimization

    • An EDAM footprint across WECC causes California operational costs to decline by 6.2% from the Status Quo o Due to increased load diversity across the market footprint, California achieves capacity savings of $95 million per year

    • In sum, California saves $309 million per year under a west-wide EDAM

    • States outside of California also see efficiencies, especially those caused by load diversity, collectively saving $886 million per year

    • Total savings for the region due to EDAM is nearly $1.2 billion per year

    Study Results: Change in Energy Transfers due to West-wide EDAM…Change in Renewable Output due to West-wide EDAM…Comparison of Energy Transfers and Renewable Curtailments for West-wide EDAM Scenario…

    Study Results: Comparison to RTO Futures

    • By comparing EDAM results to those estimated in the State-Led Market Study for equivalent RTO footprints, we see that the EDAM achieves 74% of RTO operational savings for California, and 81% of RTO operational savings for the remaining Western states

    • EDAM, as envisioned in this study, has a market design that removes transmission wheeling costs, consolidates imbalance reserves, and opens up inter-area transfers available for market optimization

    Sensitivities…Imbalance Reserves and Geographic Diversity…Imbalance Reserve Sensitivity…

    Key Takeaways

    The CAISO EDAM has the potential to reduce operational costs in California by $214 million per year if the market footprint covers the entire West

    o These savings represent a decrease in operational costs of 6.2% in California (from the Status Quo)

    o Other Western states, in aggregate, see $329 million in annual operational savings (↓ 4.5% from Status Quo)

    o In addition, the EDAM market could help avoid nearly 3 million tons of CO2 per year The inclusion of an imbalance reserve production in the CAISO EDAM is critical to the efficiency of the market as it drives 60% of California’s operational savings forecasted for EDAM

    o Removing the imbalance product from the EDAM market design causes California’s benefits to decrease by $128 million per year

    o Other Western States operational benefits are also similarly compromised when the imbalance product is removed (benefits ↓$229 million/year)

    EDAM is estimated to achieve 78% of operational savings forecasted for an RTO with the same WECC-wide footprint o The components of EDAM market design reflected in this study capture many of the efficiencies offered by an RTO If capacity savings are realized due to the formation of EDAM, total market benefits may reach $309 million per year for California, and $1.2 billion per year for all Western states (combined, including California)…

    Saturday, November 26, 2022

    Ocean Wind On The Verge Of Triumph

    This New Energy resource, long delayed in the U.S., will be a lynchpin to the fight against the climate crisis by mid-century. From American Clean Power via YouTube

    Big Funding To Long Duration Storage

    This funding means potential solutions for the critical post-2030 challenge to reaching 100% New Energy can be tested.From U.S. Dept. of Energy via YouTube

    The Mighty Missip’ Runs Down

    This is one half of the climate-crisis-driven cycle of increasingly extreme weather that also delivers floods across the river’s regions at the opposite end of the year. From PBS NewsHour via YouTube

    Friday, November 25, 2022

    Ukraine Soldiers On In The Dark

    Statement by NSC Spokesperson Adrienne Watson on Ukraine Power Outages from Russia’s Missile Strikes

    November 23, 2022 (White House)

    “As Russia struggles on the battlefield, it is increasingly turning to horrific attacks against the Ukrainian people with punishing strikes damaging energy grid infrastructure, and deliberately doing so as winter approaches. These strikes do not appear aimed at any military purpose and instead further the goal of the Putin regime to increase the suffering and death of Ukrainian men, women and children…[and risk a nuclear incident that could further harm Ukraine and] affect the entire region…

    The United States and our allies and partners will continue to provide Ukraine with what it needs to defend itself including air defense. Today, we announced an additional $400 million security assistance package that includes additional munitions for the National Advanced Surface-to-Air Missile System (NASAMS) and heavy machine guns…We are in constant touch with Ukraine on its energy infrastructure needs and are working with allies and partners to support Ukraine…

    …[The U.S. has delivered] $1.5 billion in humanitarian assistance since February with more than $250 million for winterization efforts to distribute heating fuel, generators, shelter repair materials, and blankets. Russia continues to underestimate the strength and resolve of the Ukrainian people and its attempt to demoralize them will fail yet again.” click here for more

    World’s Best Countries For Building New Energy

    No big changes at the top of EY index as countries step up renewables

    Plamena Tisheva, November 15, 2022 (Renewables Now)

    “The US and China continue to top the EY Renewable Energy Country Attractiveness Index (RECAI 60)…[With geopolitical tensions and high gas prices causing governments around the world to accelerate their renewables programmes, the] US remained number one in the index due to the Inflation Reduction Act passed in August…China, ranked second, retains its commitment to accelerating its renewable energy transition…It is expected to install a record 156 GW of wind and solar capacity by the end of 2022, a 25% rise on 2021 installations…

    Germany moves up one spot to the third position as its Easter package commitment is expected to bolster renewables expansion. The UK has ceded its leadership in offshore wind capacity to China and moved down to fourth place but still has a large pipeline…[RECAI added a ranking] normalised with the gross domestic product (GDP), which highlights markets performing above expectations for their GDP. This normalised index is headed by Morocco, followed by Greece, Denmark, Jordan and Chile…

    [P]ower generation committed through corporate power purchase agreements (PPAs) in 2022 is poised for a rare year-on-year decline in 2022 due to the current market volatility, although fundamentals remain strong…[The] PPA index is again led by Spain, which accounts for around one-third of new PPA capacity in Europe so far this year…India has climbed to the eighth position after policy changes giving more flexibility and clarity to offtakers…” click here for more

    Wednesday, November 23, 2022

    ORIGINAL REPORTING: The New Energy Transition Needs Better Power System Regulation

    ‘Dramatic shift’ in utility regulations, better pilot designs needed to propel energy transition, DOE report finds; Innovation in regulation can greenlight a more affordable, reliable clean power system, stakeholders report

    Herman K. Trabish, May 31, 2022 (Utility Dive)

    Editor’s note: Regulators can clear the way for a transition to New Energy or they can obstruct it.

    The speed of today’s power sector transition requires regulatory innovation that matches its pace, regulators, as well as utility and technology advocates, agreed in a new Department of Energy paper.

    New power system technologies and operations can no longer await regulatory approval in litigated multi-year rate cases, said co-authors of the report, The Role of Innovation in the Electric Utility Sector, published in April by the Department of Energy's Lawrence Berkeley National Laboratory. Such delays increase the risk that states will fail to meet the rapidly growing need for new reliable, affordable, clean and equitable electric service solutions, they added.

    “Regulatory innovation is needed to meet new decarbonization mandates and goals and the accelerating pressures of climate change,” Commissioner Tremaine Phillips of the Michigan Public Service Commission agreed. In response, Michigan and other states have initiated informal collaborative proceedings “to enable utilities to keep up with today’s energy transition.”

    But inertia is designed into regulatory processes to protect power sector stakeholders’ many different interests, the paper's contributions from the National Association of State Utility Consumer Advocates, the BlueGreen Alliance, the Institute for Electric Innovation, Sunrun and Build Edison showed.

    More informal and collaborative proceedings "that engage people in problem solving across different interests can be exhausting,” said Regulatory Assistance Project President and CEO, and former Vermont Department of Public Service Commissioner, Richard Sedano. But those proceedings have more time and latitude to address "the full dimension of innovative ideas and not just whether they are right or wrong" and "can drive solutions,” he added.

    New approaches to regulation could, however, unjustly shift the risk of failure from utilities to ratepayers, the paper's consumer advocates wrote. Yet answers to key questions about the costs and benefits of efforts like pilot projects to test solutions are already emerging from new regulatory initiatives, regulators and utility and technology advocates told Utility Dive.

    New regulatory approaches are needed where state commissions have discouraged utility investments to improve reliability and affordability and accelerate decarbonization, according to LBNL Electricity Markets and Policy Department Manager and Strategic Advisor Lisa Schwartz, the paper’s technical editor. But utilities invest only an estimated 3% of profits in research and development while more competitive industries invest 40% or more, Schwartz reported from click here for more

    EPA Proposes Quadrupling The Carbon Cost To $190/Tonne

    EPA floats sharply increased social cost of carbon

    Niina H. Farah and Lesley Clark, November 21, 2022 (EandE News)

    “EPA has proposed a new estimate for the social cost of carbon emissions, nearly quadrupling an interim figure that has already drawn legal challenges from a host of Republican-led states…The metric puts a price tag on the damages created by each metric ton of greenhouse gas emissions…from power plants and automobiles to the oil and gas sector…The Biden administration has been using the Interagency Working Group’s interim value of $51 per metric ton of CO2. But earlier this month, EPA quietly proposed increasing that number to $190…

    The administration’s use of the IWG’s interim social cost of greenhouse gases has been challenged in parallel lawsuits led by Louisiana Attorney General Jeff Landry and Missouri Attorney General Eric Schmitt, both Republicans… [It was] first developed by the Obama administration, adjusted for inflation. Environmental groups and others eager for more stringent climate action have pressed the administration to increase that value…[which] is far more than the Trump administration, which used a value of just $1 per metric ton…

    …[Landry and Schmitt argued] Biden lacked the authority to raise the key climate metric under the Constitution…[The Biden administration has scored] victories in court defending the current interim metric of $51 per metric ton… [EPA’s new proposal estimates the social cost of carbon as $120, $190 or $340 per metric ton of CO2, using discount rates of 2.5 percent, 2.0 percent and 1.5 percent. The higher rate means a lower dollar value is assigned to future impacts; a lower rate assigns more value to those future harms. It] will now have to undergo an independent peer-review process…” click here for more

    Monday, November 21, 2022

    Monday Study: The Benefits of Big Transmission Across The U.S. East

    Economic, Reliability, and Resiliency Benefits of Interregional Transmission Capacity Case Study Focusing on the Eastern United States in 2035

    September 2022 (General Electric Energy Consulting and Natural Resources Defense Council)

    Executive Summary

    The United States electric grid is in a state of transition. The country is shifting towards lower carbon sources while facing more frequent extreme weather events that challenge the ability to keep the lights on. Greater grid flexibility is the key to reliable decarbonization in the face of uncertainty. One of the most cost-efficient forms of flexibility while maintaining resiliency is greater reliance on interregional imports and exports of electricity.

    GE Energy Consulting (GE) knows the value of interregional flexibility from its own study experience. Back in our 2010 Western Wind and Solar Integration Study, GE and the National Renewable Energy Laboratory (NREL) identified the value of higher interregional flexibility to support California’s decarbonization goals. This work helped support the 2014 launch of the Western Energy Imbalance Market that is operating today and has enabled over $2B in gross benefits across its 17 members.

    In this study, we broaden our perspective to ask and illustrate the more general question: What are the benefits of interregional transmission? Answering this question should be based on the three types of ratepayer benefits:

    Resiliency

    Interregional transmission expansion can lower the overall capacity required given grid uncertainty. In the face of frequent and extreme weather events, interregional transmission expansion can allow access to generation that otherwise would not have been accessible and minimizes the likelihood (or in the worst case, the impact) of shedding load (i.e., blackouts). In addition, a reduction in overall generating capacity is needed as interregional capacity takes advantage of diversity in load shapes. Stability With the shifting generation mix comes increased reliance on inverterbased resources. Interregional capacity can strengthen voltage, which is especially important for regions with large amounts of high inverter-based resources. Interregional transmission can reduce the amount of generation capacity that is required for meeting such stability needs.

    Affordability

    Interregional transmission expansion allows ratepayers with expensive generation to access generation from areas with less expensive generation. By enabling greater transmission access to these low-cost resources, ratepayers with more expensive generation can benefit.

    Stability

    With the shifting generation mix comes increased reliance on inverterbased resources. Interregional capacity can strengthen voltage, which is especially important for regions with large amounts of high inverter-based resources. Interregional transmission can reduce the amount of generation capacity that is required for meeting such stability needs.

    In this study, GE modeled generation differences between a transmission-constrained and an unconstrained transmission grid to estimate the resiliency, economic and stability benefits. GE found that fully unconstraining the transmission system in the Eastern Interconnection (EI) would result in limited to no loss of load during extreme weather events and $12 billion in net benefits. GE believes these benefits are conservative due to a number of factors including:

    • Study evaluated average power flows between regions rather than maximum power flows;

    • Study assumed all regions maintained resource adequacy, and for estimating capacity and ancillary service savings, assumed a flat reserve margin rather than conducting a loss-of-load-expectation analysis;

    • Many assumptions in GE’s production cost model were locked in place in April 2022 to maintain the integrity of the comparative analysis conducted for this study. Had the study included 2022 updates to load forecasts, which incorporated more aggressive electrification assumptions by Independent System Operators, and most recent natural gas price forecasts, GE believes the benefits would have been higher. Nevertheless, the benefits of interregional transmission are significant and are highlighted in this study.

    GE also recognizes that the production cost modelling conducted for this study assumes rational economic behavior and that all stakeholders in the Eastern Interconnect would utilize the increased transmission capacity by increasing exports and imports to and from neighboring regions. There are a number of operational and planning limitations which could limit the realization of potential benefits of increased interregional transmission. Examples of limitations could include operational governance of the commitment and dispatch decisions of imports and exports in both dayahead and real-time markets; planning requirements limiting imports to serve a regional grid in all but the most limited circumstances; and sharing of resources to meet reserve margins across multiple jurisdictions. This study is designed to exemplify the benefits of increased interregional transmission and does not specifically address potential barriers to those benefits…

    Conclusions

    This report illustrates the broad range of benefits of expanded interregional transmission. GE determined the incremental interregional transmission needed via an increase in average power flows enabled by unconstraining transmission across normal and extreme weather events. These example simulations showed that:

    • Greater incremental interregional transmission can avoid load shedding during multiple types of extreme weather events. In the example cases presented, power losses due to extreme weather cost $875 million - $1 billion.

    • Greater incremental interregional transmission enabled ~$3-4 billion/year production cost savings under normal weather conditions.

    • More interregional transmission could result in upwards of $12 billion in net benefits. Although costs for more intra-regional transmission are not included in t his estimate, this net benefit estimate is likely low as noted earlier in this analysis.

    • Grid stability is increasingly a factor in grid resiliency. An AC interregional transmission capacity requirement can increase grid stability, but alternate technologies may provide greater stability benefit such as DC transmission ties

    Saturday, November 19, 2022

    The Biden-Granholm New Energy Achievements

    What legislative gridlock? (And the videos below explain why these achievements are so important.) From the U.S. Dept. of Energy via YouTube

    What Rising Methane Spews Mean

    This methane is ground zero for the climate crisis. From YaleClimateConnections via YouTube

    The Rise Of Zombie Ice

    Greenland’s melt will accelerate sea level rises everywhere. From Nick Breeze, ClimateGenn via YouTube

    Friday, November 18, 2022

    World Needs To Up New Energy Build

    New Report Warns World of Huge Untapped Renewable Energy Potential; At COP27, IRENA DG calls on global leaders to bridge renewables’ deployment gap.

    7 November 2022 (International Renewable Energy Agency)

    “…[O]f the 183 parties to the Paris Agreement with renewable energy components in their Nationally Determined Commitments (NDCs), only 143 have quantified targets with the vast majority focusing on the power sector. Only 12 countries had committed to a percentage of renewables in their overall energy mixes…[A new reportfrom the International Renewable Energy Agency (IRENA)] shows the collective level of energy transition ambition to date is not enough…

    …[IRENA forecasts that half of global energy consumed in 2050 will come from electricity and] 90 per cent of all decarbonisation will involve renewable energy through direct supply of low-cost power, efficiency, electrification, sustainable bioenergy and green hydrogen…

    IRENA’s new analysis finds that by 2030, countries are targeting to reach 5.4 terawatts (TW) of installed renewable power capacity…To achieve net zero, the targeted renewable power capacity by 2030 would have to double…This is readily achievable today as current renewable power targets lag recent deployment levels…

    ...[Countries would need to add] average yearly additions of 259 gigawatts (GW) in the next nine years. This is below the actual installed capacity added in the past two years…[The countries targeting 90 per cent] of deployment are all part of the G20…” click here for more

    Global Climate Fight Needs Demand Side Work

    Huge gap between energy demand and supply from renewables

    Herman K. Trabish, November 16, 2022 (NewEnergyNews)

    The world cannot achieve its climate goals without new technology to make its energy and heating systems more efficient, according to a new report from global efficiency system giant Danfoss. Even with huge build-outs of renewable energy, New Energy cannot] meet the demands of a growing world. The world’s one-sided approach to the energy crisis focuses too much on the supply, not enough on demand.

    But every dollar spent on energy efficiency avoids spending more than 2 dollars on energy supply. Without acting now to address the demand for energy it will be extremely difficult and more expensive to meet the Paris Agreement goal of staying below 1.5 degrees warming because energy demand for space cooling could more than triple by 2050, consuming as much as all of China today and technology is available to use energy efficiency solutions across all sectors.

    Even with a huge build-out of New Energy, the stranglehold of fossil fuels that generate climate crisis-causing greenhouse gas emissions makes reducing demand through energy efficiency imperative. Energy is being wasted daily in industry, in homes, and in transport and time to protect the climate is slipping away, but governments can enact policy to grow the efficient technologies available, Danfoss said. click here for more