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 THINGS-TO-THINK-ABOUT WEDNESDAY, December 7:

  • TTTA Wednesday-ORIGINAL REPORTING: A Stakeholder-Driven Change In Thinking For Regulators
  • TTTA Wednesday-Linked Efficiency, Equity, Emissions Cutting Efforts Grow At The State Level
  • THE DAY BEFORE

  • Monday Study – California’s New Answer For Solar
  • THE DAY BEFORE THE DAY BEFORE

    THINGS-TO-THINK-ABOUT WEDNESDAY, November 30:

  • TTTA Wednesday-ORIGINAL REPORTING: New Power System Approaches To Customer-Owned Generation
  • TTTA Wednesday-New Tax Credits For New Energy
  • THE DAY BEFORE THAT

  • Monday Study – The West’s Market Opportunity
  • THE LAST DAY UP HERE

  • Weekend Video: Ocean Wind On The Verge
  • Weekend Video: Big Funding To Long Duration Storage
  • Weekend Video: The Mighty Missip’ Runs Down
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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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  • FRIDAY WORLD, December 9:
  • Global Climate Goal Rises To 1.7 C
  • Exploring The Potential Of Green H2

    Friday, December 09, 2022

    Global Climate Goal Rises To 1.7 C

    Climate Change Summit Leaves Hope for Limiting Global Warming: Governments at COP27 didn’t make deal for sharper cuts in greenhouse-gas emissions, but analysts say 1.7 degrees is achievable; Negotiators at the COP27 conference agreed to set up a fund to compensate poorer nations worst-hit by climate change. The historic deal concluded the U.N. climate summit, while broader commitments to cut CO2 emissions remain under negotiation.

    Matthew Dalton, November 28, 2022 (Wall Street Journal)

    Governments left the United Nations climate summit this month with new doubts that global temperature increases can be limited to 1.5 degrees Celsius from preindustrial levels—but also with hope that a more realistic goal, 1.7 degrees, is within reach…[The earth has already warmed around 1.1 degrees since 1850] largely due to an increase in greenhouse gases, such as carbon dioxide and methane, caused by industrialization… [Limiting the temperature increase to 1.5 degrees requires that global greenhouse-gas emissions fall] an average 5% every year, starting now…[but] fossil-fuel carbon-dioxide emissions alone this year are on track to rise 1% from last year…

    Big economies, however, have made longer-term plans to cut emissions that analysts say could limit warming… China, by far the world’s largest emitter, and India, the third-largest, last year pledged to become net-zero emitters of greenhouse gases by 2060 and 2070, respectively…[Getting to 1.7 would] require global investment in clean energy to rise from $1.3 trillion annually to $3 trillion by 2030. Hitting 1.5 degrees would require spending $4.2 trillion by 2030—effectively doubling the investment represented by the energy sector from 2% of global annual gross domestic product to 4%...

    …[T]here is a little-known scientific reason why 1.7 degrees is a lot easier than 1.5 degrees…[Sulfur dioxide and nitrogen oxides from burning coal] transform into tiny droplets called aerosols that have helped cool the earth—by an estimated 0.5 degrees—by reflecting sunlight back into space…[Limiting warming to 1.7 degrees would still significantly reduce damages from] rising sea levels, drought or heat waves…” click here for more

    Exploring The Potential Of Green H2

    Everything you need to know about hydrogen in the clean energy transition

    Johnny Wood, November 29, 2022 (World Economic Forum)

    “…[T]he growth of wind, solar and other renewables is vital for the global energy transition…[but] a base-load fuel is needed to generate power on demand to compensate when output from renewable sources is low or to boost supply during periods of peak electricity demand…[Clean hydrogen could also] help decarbonize hard-to-electrify heavy transport sectors like shipping, railways and buses…More than 100 pilot and demonstration projects are underway using hydrogen or its derivatives to fuel shipping…

    Some heavy industries are also eager to embrace the decarbonizing potential of hydrogen…[A flurry of new ‘green steel’] projects have been announced that will use emissions-free hydrogen in the direct reduction of iron…[Grey Hydrogen produced by combusting natural gas] emits CO2 into the atmosphere…[Blue Low-carbon Hydrogen produced by combusting fossil fuels but with carbon capture, utilization and storage technology removes] most CO2 emissions from flue gases…

    …[Green Emissions-free Hydrogen is] produced using an electrolyzer powered by renewable energy...In 2021, natural gas accounted for around 60% of total production with coal accounting for about 20%...[But by 2030 low-carbon hydrogen electrolyzer capacity] could reach 60 gigawatts annually by 2030…[and] the cost of electrolyzers could fall by 70%...[This would be] similar to the dramatic price falls that helped boost wind and solar power take-up…” click here for more

    Wednesday, December 07, 2022

    ORIGINAL REPORTING: A Stakeholder-Driven Change In Thinking For Regulators

    Upheaval in utility regulation emerging nationally as Hawaii proves a performance-based approach; Plans to reward utilities for what they do, not what they spend, are moving ahead in 13+ states

    Herman K. Trabish, July 5, 2022 (Utility Dive)

    Editor’s note: The basic idea is to replace rewarding utilities for building electric infrastructure with rewarding them for delivering it.

    Many states are working on regulatory reforms focused on utility performance, but some compromise approaches may be self-defeating, performance-based regulation, or PBR, consultants said.

    “A future power system that is affordable and optimally integrates clean energy requires changing the current incentives that reward utilities for spending,” said Strategen Consulting Managing Director, U.S. Consulting, Matt McDonnell, who helped lead Hawaii to the U.S.’s only full PBR implementation to date. “Recognition is emerging even in the utility industry of PBR as a solution to that spending bias.”

    New PBR incentives would align utility rewards with achieving public policy goals, advocates contend. But entrenched commitments by power system incumbents to traditional cost of service, or COS, regulation that rewards utilities with guaranteed profits for capital infrastructure investments is forcing compromised reforms in places like Illinois and North Carolina that worry regulatory analysts.

    COS “thinking and mechanisms are deeply entrenched” because utility returns based on spending “was reasonable when basic infrastructure was needed,” PBR consultant and former Texas utility executive and regulator Karl R. Rábago told Utility Dive. “Well-designed PBR can allow utilities to earn by meeting new needs like equity, decarbonization, and modernization with innovation instead of spending.”

    PBR can undo COS’s bias for capital expenditures and against new low-cost distributed technologies, but reforms must be carefully designed, regulatory analysts said. Limited PBR elements like performance incentives can align utility interests and societal goals, but without a full PBR process and framework, unintended consequences may drive regulators back to COS.

    Both full and limited approaches to PBR are being explored in current efforts around the country… click here for more

    Linked Efficiency, Equity, Emissions Cutting Efforts Grow At The State Level

    Scorecard: Leading States Cutting Costs for Residents With Energy Efficiency, But More Progress Needed; California Ranks #1; Maine is Most Improved; South Carolina and Ohio Fall Furthest

    December 6, 2022 (American Council for an Energy-Efficient Economy)

    “As Americans struggle to pay rising energy bills, leading states have instituted energy efficiency policies that cut utility bills—especially for those who need it most—while reducing greenhouse gas emissions, according to the 2022 State Energy Efficiency Scorecard These policies can serve as models for the dozens of states that have yet to prioritize energy-saving upgrades to reduce costs for disadvantaged households…

    …[California, which led,] centers equity in its energy policies and administers wide-reaching programs to reduce emissions from transportation, buildings, and industry…The scorecard is accompanied by one-page evaluations of each state’s performance, including possible ways to improve performance…[An expanded focus includes 12 equity-focused actions and] equitable energy efficiency policies that reduce energy burdens for low-income and disadvantaged households and historically underserved communities…Thirty-four states earned less than half the points on equity, showing there is significant room for improvement…

    In another key trend, the report found that as energy efficiency programs increasingly prioritize greenhouse gas (GHG) emissions reductions, four states (California, Massachusetts, New York, and Vermont) and DC have moved to align their energy and climate goals, with fuel-neutral energy savings targets that can encourage electrification with measures like installing heat pumps. Still, at least 12 states still do not even allow utility efficiency programs to provide incentives for switching from fossil fuel heaters to efficient electric systems…” click here for more

    Tuesday, December 06, 2022

    Monday Study – California’s New Answer For Solar

    What Happened: California NEM Disaster 3.0

    Crystal Soo, December 3, 2022 (Project Fair)

    Overview:

    Electricity is a basic human need whose accessibility and affordability expands through distributed energy resources (DERs). Traditionally, energy has been produced by electric utilities, which have had a monopoly by centralizing our energy resources. In contrast, DERs are sited at the consumer level, for example, the solar on a homeowner’s rooftop. As a result, DERs provide a host of benefits, including energy resilience, energy affordability, and human and environmental health. By establishing the DER adoption framework in frontline communities – those who have systemically shouldered the burdens of our current electricity system[1] – we prove the scalability of DERs and their benefits. In other words, if the method through which we implement DERs can economically scale at the frontlines, we have established a system effective at ameliorating systemic energy injustices. In turn, DERs become a valuable, viable, and equitable solution for climate adaptation and mitigation.

    A critical driver of DER adoption is net energy metering (NEM), a form of financial compensation for DERs where system owners are credited for providing the electric grid with excess electricity generated. This billing mechanism is a crucial driver of the financial feasibility for DER adoption. Shortened payback periods for DER investments can be achieved through compensation mechanisms for the electricity metered to the electric grid. Additionally, the DER can provide electricity onsite when utility electricity prices are high, lowering bills and increasing energy affordability. Net metering policy varies by state, but all should be guided by the fundamental Equity principles of transparency, access, and community engagement.

    Here, I present the California Net Metering 3.0 Proceeding as a case study to explore how frontline communities play a core role in DER technology adoption and policy. I demonstrate how the NEM 3.0 discourse can follow an alternative path to Equity by utilizing no-cost and open-access data to unlock critical factors in developing a net metering policy. A methodology that centers Equity results in comprehensive, convergent decision-making that expedites clean energy adoption.

    The California NEM 3.0 Proceeding

    A key aim of the California NEM 3.0 Proceeding, a net metering policy for single family residential homeowners, is to improve on the cost-effectiveness of NEM 2.0 (the second version of the net metering program) before it becomes official policy. California NEM 3.0 is a rework of NEM 2.0, resulting from findings that DERs were over-compensated for their electricity exports to the grid in comparison to the cost of services provided by the grid. As a result, NEM 3.0 foregrounds DER financial compensation mechanisms for electricity exports to the grid by introducing the Avoided Cost Calculator (ACC), which was not present during NEM 2.0.

    However, within both expert circles and frontline advocate groups, there is strong disagreement and inconclusiveness on the core findings of NEM 3.0. Consequently, the NEM 3.0 Proceeding has not resulted in a Final Decision, which was originally slated for February 2022. California is known as both a national and a global leader in clean energy. So, where did the NEM 3.0 Proceeding go so horribly wrong?

    The key red flag in the NEM 3.0 discourse is the ACC, a calculator developed by a third party consultant without the input, engagement, and evaluation of frontline communities. Even expert energy economists within the DER community were unaware that the ACC would be central to NEM 3.0. Because the ACC model focuses on single family residential homes, it doesn’t account for communities who reside in multi-family residential units, rental apartments, or work in the agricultural sector – i.e., those without intergenerational wealth to be homeowners or those in one of the largest CO2 emitting industries. Moreover, the ACC projections do not attempt to forecast DER adoption impacts based on strategies to increase adoption, especially among these communities as well as those that are under-participating.

    There is a lack of evaluation around the electricity system’s avoided costs under NEM policy that incorporates a variety of potential customers, ranging from apartment renters to the agricultural sector. The ACC – and the process whereby it was developed and implemented – is inadequate on all fronts of transparency, access, and community engagement; unsurprisingly, the result is ongoing contentiousness among frontline advocates, energy economists, and policymakers.

    Figure A. The Avoided Cost Calculator for California NEM 3.0

    A Transparent, Accessible, and Community-Engaged Framework and Method: Centering and Characterizing the Frontline Communities

    If the NEM 3.0 Proceeding is going to become a process that accelerates the clean energy transition through energy justice, then transparency, access, and community engagement must drive net metering reform. To start, a transparent and accessible method to analyze and present information must be utilized and a methodology to characterize frontline communities should be created. Where are these DER benefits most powerful and compelling?

    I used publicly available, no-cost, and open-access data from the federal CEJST tool, to demonstrate accelerated adoption of DERs by embedding energy justice into the development of NEM 3.0. Through the CEJST tool, I identified the California counties of San Joaquin, Fresno, and Merced as frontline communities who stand to benefit most from DER adoption and NEM participation. In these communities, we see that energy burden (the ratio of energy expenses to income) and PM2.5 (an air pollutant that causes asthma) are remarkable. Fresno County has 40% of its population at or above the 70th percentile of energy burden in the United States, the greatest percentage of the three frontline communities. At the 70th percentile of energy burden, all three counties are heavily impacted by air pollution, ranging from 97th to 99th percentile of PM2.5 exposure in the United States. By characterizing communities based on energy affordability and air quality metrics using open-access data, we are guided by accessible knowledge through transparency.

    Looking beyond percentiles to the wider social context of these regions, each county’s economy relies heavily on agriculture as a key economic driver. However, there is currently no pathway for agricultural participation under the current ACC and California NEM design. The NEM design should be inclusive of the various customer classes that exist in California, rather than solely single family residential homeowners, to include renters and farmers. Then, as the result of inclusive net metering, the avoided costs should be calculated and forecasted to reflect policy that condones equitable participation. Accessible data empowers communities, elevates their voices, and opens decision-making beyond esoteric groups, bringing the historically marginalized to the table where decisions are made while engaging them throughout the policy process.

    Figure B. Infographic containing CEJST tool data and mock survey results to demonstrate a potential community engagement strategy.

    Applying the Solution

    The proposed NEM 3.0 includes a $600 million Equity Fund* with the aim of scaling up low-income access to distributed clean energy. The allocation of its funds for technologies including distributed storage and community solar will be determined through a stakeholder engagement process.

    Building on the foundation for frontline community characterization, the next step is creating a framework and method for the crucial roles that they play in the clean energy transition and to account for the disproportionate health and economic burdens they have systemically and historically shouldered. In the context of the NEM 3.0 proceeding, this means leveraging the $600M Equity Fund in the counties of San Joaquin, Fresno, and Merced to study the scalability of DER adoption in these communities and the metrics that would inform equitable NEM rate design more broadly.

    Successful DER adoption requires that NEM policy be demonstrative of customer access and empowerment. Successful customer access and empowerment can be demonstrated through an investment framework that should:

    1. Streamline, standardize, and accelerate the DER adoption process, including engineering, permitting, and interconnection, in frontline communities.

    2. Continuously evaluate the project development process in frontline communities for project phase durations.

    3. In tandem with (2), proactively identify areas for project development process optimization while leveraging relevant funds, services, and software technologies in the market.

    4. In tandem with (2), proactively identify market players relevant to project development process optimization.

    *Update: After one year of delaying the NEM3 Final Decision, the latest version removes the $600M Equity Fund and externalizes the funding to a separate policy decision. This is yet another example of failure to understand and operationalize Equity, pushing Equity to the periphery and delaying justice. This has a direct negative impact on the deployment of clean energy that reaches our climate goals.

    Conclusion:

    The current NEM 3.0 proceeding fails to meet clean energy and Equity expectations.

    The introduction of the ACC in NEM 3.0 further gatekeeps distributed energy resources, centralizes infrastructure, and breaks down communication between policymakers and the communities they serve. Simultaneously, these proceedings cannot be repeated elsewhere, because it is untenable for the climate, the energy industry, and communities to wait when we need an accelerated clean energy transition that reverses the historic trends of climate, energy, and social injustice. Equity must be the fundamental through which we deploy clean energy, whether through the utility or DERs. The techno-heroic approach to climate centers the next latest and greatest technology as the driving force solving our most pertinent challenges – this has not and will not work for solving the climate crisis. In order for technology to drive a sustainable and just future, it must be part of an orchestrated effort to distribute that technology to those who stand to benefit most – and seek their engagement from the beginning.

    Wednesday, November 30, 2022

    ORIGINAL REPORTING: New Power System Approaches To Customer-Owned Generation

    Rethinking California distribution system operations and grid services markets for a high-DER future; California wants a cost-effective, reliable and equitable power system with well-compensated distributed resources to balance the bulk power system and meet local needs.

    Herman K. Trabish, June 7, 2022 (Utility Dive)

    Editor’s note: Integrating customer-owned resources into the power system requires settling the complex question of whether utilities or customers and their representatives will control them.

    To prepare California for a “high DER future” that could overstress the state’s distribution system, a series of regulatory workshops opened May 3. Distribution system reform is needed as California moves from “firm dispatchable one-way generation to variable two-way generation” that will accelerate the impacts of distributed energy resources, a white paper introducing the California Public Utilities Commission stakeholder-led workshops reported. The paper offered potential distribution system operator, or DSO, models that could meet coming needs.

    “By DSO or another name, a different model of the distribution utility is needed, because in the future every electricity user can have DER and participate in an open access distribution network,” Lorenzo Kristov, consultant for electric system policy, structure, and market design to climate and energy policy advocates, The Climate Center, told Utility Dive. But “right now, the need for a DSO is more concrete than the DSO concept,” he added.

    The workshops will develop “alternative roles and responsibilities of the distribution utility,” said Gridworks Executive Director Matthew Tisdale, who is leading the series of CPUC workshops. But those roles and responsibilities “are enormously financially and politically complicated” and “probably the most fundamental, contentious, and difficult issue in energy policy.”

    Two insights about California’s distribution system work emerged from the May 3 workshop, though neither identified the state’s eventual DSO model. First, it was clear there is strong contention between some power system incumbents and community representatives on critical proceeding points, including who can participate and how to define a DSO. And second, it appears major regulatory reforms that could impact utilities’ earnings, like performance-based regulation, are part of the discussion.

    Though rooftop solar is currently threatened by a Commerce Department inquiry and California’s net metering reconsideration, the state’s DER growth will accelerate, workshop participants agreed. Customer demand, the state’s zero emissions by 2045 goal, evolving technology, and falling prices will be key drivers, the white paper added. California installed distributed solar photovoltaic capacity is expected to increase from 2022’s 14,048 MW to 24,721 MW in 2030, according to California Energy Commission spokesperson Michael Ward’s review of the commission’s 2021 Integrated Energy Policy Report. Distributed energy storage capacity is projected to increase from 2022’s 740 MW to 2,587 MW in 2030, he added.

    California’s estimated 839,000 zero-emission vehicles at the end of 2021 are projected to reach 5.7 million light-duty passenger and medium- and heavy-duty vehicles by 2030, Ward added, citing CEC data. And an estimated 1.5 million households had smart thermostats in 2018, according to the commission’s 2019 Residential Appliance Saturation Study, though they were too few to count in its 2009 study. Gov. Gavin Newsom’s, D, Executive Order N-79-20 targeting 100% zero-emission new passenger vehicle sales by 2035 is expected to drive exponential growth, the CPUC white paper said. Assembly Bill 327, a 2013 provision that protects customer-owned resources, programs supporting battery storage and heat pumps, and utility and private sector policy-led rebates and initiatives, will all add to accelerating DER growth, it added… click here for more

    New Tax Credits For New Energy

    Renewable Energy Incentives from the Inflation Reduction Act

    November 29, 2022 (Marcum Accountants and Advisors)

    “…[The Inflation Reduction Act (IRA) signed into law by President Biden on August 16, 2022, is] the most significant piece of legislation for the renewable energy and storage space in almost 20 years…[Its extends federal tax incentives of] up to $369 billion for new solar, wind, thermal, and energy storage devices over the next decade…[It extends and expands] the Investment Tax Credit (ITC) through December 31, 2025, for solar, wind, geothermal, biogas, combined heat and power (CHP) facilities, and microgrid projects that begin construction before December 31, 2025…

    …[It also] includes other technologies, such as carbon capture sequestration (CCS), clean hydrogen, nuclear power, and biofuel…[It] also extends the Production Tax Credit (PTC) for wind, biomass, geothermal, solar, landfill gas, and other projects…To claim the [full value of the] enhanced 30% ITC and 2.6 cents kilowatt (kWh) PTC, solar developers and their sub-contractors must [provide apprenticeships and] use union labor or prevailing wages …

    ...[Credits can be increased if projects use] domestically produced materials, such as steel and iron (100% U.S.-made), and the total materials for the project are at least 40% U.S.-made…[and if they located at a brownfield] or a [low-income] environmental justice area…[Project developers] can transfer ITC or PTC to a third party [and make arrangements for use of them with tax-exempt entities]…This provision creates a new marketplace for tax credits…[The passage of the IRA will help] create more clean, renewable energy for our country.” click here for more

    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