Skip to content

Posts from the ‘Policy’ Category

A Clean Energy Paradise In The Pacific

When people think Hawaiian paradise, usually beaches, sun and trade winds come to mind. The price of energy? Not so much.

The state actually has the highest electric rates in the nation, approximately 2 to 3 times higher than the average price on the mainland. Given these high rates and the relatively mild climate, it makes sense that Hawaii’s customers are among the lowest monthly consumers of electricity at 585 kWh per month. However, despite low energy use, Hawaii’s customers still have the highest electric bills in the nation, at a whopping $203 per month on average. That’s 20 percent higher than the next highest state’s average bill!

It’s appropriate, then, that the Aloha State is on the forefront of policy measures intended to lower energy bills by looking to energy efficiency and renewable energy. Hawaii’s sunny days, coupled with its extraordinarily high cost of electricity, make going solar a relatively attractive option. And, not to mention, a much cleaner option given that the state relies on petroleum to generate over 75 percent of its electricity. In fact, Hawaii ranks third in the nation for total installed solar electric capacity per capita. However, the upfront cost of installation remains a significant barrier to widespread adoption of clean energy technologies. Access to financing is limited to those with stellar credit, and there is little incentive for renters to pay for energy upgrades to properties they don’t own. In Hawaii, solutions that work for renters are especially important since over 40 percent of the state’s residents rent.

via A Clean Energy Paradise In The Pacific.

An update from the ethanol/RINs battleground: hitting physical markets

A few updates from the intersection of RINs and ethanol. It’s starting to look like there have been physical market reactions to the rising price of RINs.

First of all, the price of RINs, after being enormously volatile a few weeks ago, has quieted down. The price of 2013 corn ethanol RINs has stabilized near 75-80 cents per RIN, though it moved up to almost 90 cents on Tuesday before an EIA report showing rising ethanol output — which if the RIN is ultimately separated from the ethanol by the latter being blended — was at a nine-month high. This is far less than the peak levels of more than a dollar of a few weeks ago, but obviously a lot more than the price of 2012 RINs at the start of the year (before 2013 started trading) of just a few cents. The expectation is that until the EPA finalizes its proposed Renewable Fuel Standard mandate for 2013, the market will mostly bide its time.

via An update from the ethanol/RINs battleground: hitting physical markets « The Barrel Blog.

EU on Track to Meet 2020 Solar, Wind, Renewables Targets, But…

EU on Track to Meet 2020 Solar, Wind, Renewables Targets, But…

The newest European Union (EU) statistics from Eurostat show its member nations are on track to meet their renewables targets but will need a new policy boost to keep up the pace.

Watching the EU’s cumulative progress toward its “triple twenty by 2020” targets is important because its leaders, especially Germany and Spain, set the benchmark for policy support of renewables internationally.

The EU’s “triple twenty by 2020” standard is aimed at getting 20 percent of their power from renewables, improving efficiency 20 percent, and cutting greenhouse gas emissions 20 percent.

The EU renewables mix is composed of onshore and offshore wind, photovoltaic solar, concentrating solar and solar hot water, hydro, wave, and tidal power, geothermal, and biomass used to generate electricity or produce biofuels.

The March 27 Report from the Commission to the European Parliament said policies to date have “resulted in strong growth.” Renewables accounted for 12.7 percent of the EU’s energy in 2010 and “the majority of Member States already reached their respective 2011/2012 interim target.”

One exception: The report found efforts to meet the EU’s requirement that each state’s transportation sector be 10 percent biofuel-powered by 2020 to be “too slow.” It added, however, that “further specific policy intervention” to drive that transition is not needed.

But because the policies that have driven progress to date require a ramping growth trajectory, it said, “current policies alone will be insufficient to trigger the required renewable energy deployment.”

The report recommended policy advances in three areas:

Falling short of the 2020 renewables targets will have “major consequences,” the report said, because

  • Renewables are the foundation on which emissions reductions and efficiency advances will be built
  • Only with renewables can the EU transition from fossil fuel dependence to energy supply security and sustainability
  • Falling short of binding targets could trigger European Commission infringement procedures against individual states
  • Impeding renewables deployment would slow innovation and scaling and prevent EU technologies from achieving the competitive pricing necessary to win a place in the international market.

Austin Energy’s Value of Solar Tariff: Could It Work Anywhere Else?

Last fall, Austin Energy become the first utility in the U.S. to offer a “Value of Solar Tariff” (VOST) to its residential electricity customers.

The VOST rate is presented as an alternative to net metering, the bill credit mechanism that has driven most customer adoption of solar in the U.S. today. Some utilities elsewhere in the country are looking to ditch net metering and jump on the VOST bandwagon. But will that be a good tradeoff for current and future solar customers?

Let’s take a look at Austin Energy’s VOST and see how it might work in places that’s aren’t as, well, “weird.”

Here’s how the Austin VOST works: When a residential customer, let’s call her Sally, goes solar in Austin Energy’s service area, she is automatically signed up for the VOST.  Sally continues to pay a monthly energy bill based on how many kilowatt-hours of electricity she and her family consume.  However, now that she has a solar energy system, she is also given a credit for each and every kilowatt-hour her system generates. That credit is subtracted off Sally’s total monthly electricity bill. According to Austin Energy, the VOST rate is set up to more fairly reward solar system operators for the energy they produce. A VOST may soon be developed for commercial customers as well.

via Austin Energy’s Value of Solar Tariff: Could It Work Anywhere Else? : Greentech Media.

Time of the essence for Germany’s energy switch-Merkel | Reuters

German Chancellor Angela Merkel warned on Thursday time was of the essence if Germany was to realise a shift to renewable energy, while her environment minister vowed to make energy-intensive companies contribute more to the transition.

Merkel’s ambitious switch to green energy from nuclear, known as the ‘Energiewende’, is seen as the most significant domestic policy of her second term. Renewables are due to account for 35 percent of German power in 2020 and 80 percent by 2050.

Six months before a federal election, however, questions remain to be solved, not least the thorny question of how to pay for the shift. Consumers are wary over the extent to which they will foot the bill.

Merkel, ministers, environmental and industry groups and unions discussed on Thursday the transition and expansion of the power grid to transport energy from new sources.

“There was no doubt that we want a successful Energiewende. That does not mean that all problems have been solved, but we agreed it is a process … and that time is pressing to get the necessary tasks done,” Merkel said.

via UPDATE 1-Time of the essence for Germany’s energy switch-Merkel | Reuters.

Wind industry installs almost 5,300 MW of capacity in December

Approximately 40% of the total 2012 wind capacity additions (12,620 MW) came online in December, just before the scheduled expiration of the wind production tax credit (PTC). During December 2012, 59 new wind projects totaling 5,253 MW began commercial operation, the largest-ever single-month capacity increase for U.S. wind energy. About 50% of the total December wind capacity additions were installed in three states: Texas (1,120MW), Oklahoma (794 MW), and California (730 MW).

Wind plant developers reported throughout 2012 increasing amounts of new capacity scheduled to enter commercial operation before the end of the year. To qualify for the PTC last year, wind projects had to begin commercial operation by December 31.

On New Year’s Day, Congress enacted a one-year extension of the PTC and also relaxed the rules. Under this extension, projects that begin construction before the end of 2013 are eligible to receive a 2.2 ¢/kWh PTC for generation over a 10-year period.

via Wind industry installs almost 5,300 MW of capacity in December – Today in Energy – U.S. Energy Information Administration (EIA).

Hobbled on Energy, India Ponders a Multitude of Dams

As we noted here last week, over 600 million people lost power in India last summer, setting a modern record for the number of people affected by a blackout. Well before that, though, India’s government was grappling with growing pressure to increase the dependability of its electricity service — for the growing numbers who have intermittent power and the 400 million who live without it.

As a solution, the government proposed constructing 292 dams throughout the Indian Himalayas — roughly a dam every 20 miles. If completed, the 7,000- to 11,000-megawatt dams would double the country’s hydropower capacity and meet about 6 percent of the national energy needs projected for 2030 (based upon 8 percent annual growth of the nation’s domestic product). The dams, the reasoning goes, would provide electricity to needy people as well as offset carbon dioxide emissions from coal-fired power plants.

Scientists and citizens alike are crying foul, however, pointing out that the dams will probably displace millions and wreck ecosystems throughout the Himalayas.

via Hobbled on Energy, India Ponders a Multitude of Dams – NYTimes.com.

Fighting the ‘Resource Curse’

About a  year ago, in the aftermath of the revolution that drove Muammar el-Qaddafi from power in Libya, journalists crowded into a press conference called by the transitional government’s Oil Ministry. Among the reporters was a small contingent of Libyan journalists. Yet it was only the foreigners who peppered a government minister with questions about when production would resume and other issues; the Libyans remained silent.

When colleagues asked the Libyans why they didn’t speak up, the general reply was, “Well, we don’t know what to ask,” said Zara Rahman, a freedom of information expert from the organization OpenOil who attended the event that day. It seems that information about Libya’s oil industry had long been hard to come by locally, leaving the reporters unprepared.

This information deficit, which often works to the benefit of oil companies, is what OpenOil seeks to remedy. Part energy consultancy, part publishing house, the Berlin-based organization focuses on countries with a so-called “resource curse,” meaning that  most of their citizens remain poor despite plentiful local oil resources. Information about the dealings between governments and oil companies in such nations is often scarce.

via Fighting the ‘Resource Curse’ – NYTimes.com.

Policy Shifts Signal Growth Ahead for Advanced Biofuels

This has been a tough year for the U.S. biofuels industry: drought curtailed corn starch ethanol production and investment in the industry shrank to its lowest level in nearly a decade.  Headed into 2013, though, industry momentum appears to be regaining steam.  Led by advanced biofuels, the potential for expanding biofuels production has improved dramatically as Washington offers clarity on key policy issues.

Last week, in a vote on partisan lines, the U.S. Senate extended support for the military’s efforts to scale up advanced biofuels production.  As reported in Biofuels Digest, it approved an amendment offered by Senator Kay Hagan of North Carolina to repeal a section of the annual Defense appropriations bill that would have prohibited “the Secretary of Defense or any other official from the Department of Defense (DoD) from entering into a contract to plan, design, refurbish, or construct a biofuels refinery or any other facility or infrastructure used to refine biofuels unless such planning, design, refurbishment, or construction is specifically authorized by law.”

via Policy Shifts Signal Growth Ahead for Advanced Biofuels – Forbes.

Obama Signs Energy Efficiency Legislation

President Obama signed the American Energy Manufacturing Technical Corrections Act (H.R. 6582) on Wednesday after the bill received bipartisan support in Congress.

The law is a modification of the Enabling Energy Savings Innovations Act (H.R. 4850) and includes elements of the Shaheen-Portman Senate bill.

Energy efficiency enthusiasts hailed the move, but also cautioned that there is far more work to be done.

“At a time that Washington is gridlocked, it is notable that the only energy bill with enough bipartisan support to pass is one that targets energy efficiency,” noted Steven Nadel, Executive Director of the American Council for an Energy-Efficient Economy. “This bill is a modest but bipartisan step forward, one we hope the next Congress can build upon.”

The bill had mostly minor changes to the current way of doing business. The highlights of the bill, which were listed by the Alliance to Save Energy, include:

  • Coordination of research and development of efficiency technologies for industry;
  • A study of barriers to industrial electrical efficiency;
  • Best practices for advanced metering in the federal government;
  • Disclosure of energy and water usage by federal facilities;
  • Technical corrections and specific fixes to recently-enacted standards;
  • Uniform treatment of conventional and tankless water heaters;
  • Clarification of periodic review of commercial equipment standards and of DOE’s response to petitions regarding standards.

The bill also relaxes some standards, including rules for walk-in coolers, over-the-counter refrigerators and water heaters.

via Obama Signs Energy Efficiency Legislation : Greentech Media.

Follow

Get every new post delivered to your Inbox.

Join 58 other followers