Grid Parity is the point at which renewables become cost-competitive with traditional grid power--making it the Holy Grail for clean technology. With that in mind, the Green Chip team presents the Grid Parity blog... chronicling the technology advancements and policies that will get us there.
"Cap and trade" is a term being used to define a bill passed by the House of Representatives last year.
Under the bill, Washington would impose steadily declining limits on the levels of carbon pollutions that companies are permitted to emit.
The pollution permits companies would be required to hold would be traded in a regulated financial market.
The bill, which is being met with resistance primarily by Republicans, has been stuck in Senate since last year.
Republicans refer to the controversial plan as "cap and tax" and are working to kill the bill.
Resistors argue that "cap and trade" will decrease employment rates and raise energy costs.
Senator Joseph Lieberman, an independent from Connecticut, is trying to dispel the negative connotation that comes with the title "cap and trade" by rephrasing the nickname of the bill.
Instead, Lieberman uses the term "pollution reduction targets."
In the past year, other ideas have been discussed for controlling carbon emissions.
Some options include a carbon tax, a "cap and dividend" plan, and a "cap and trade with training wheels" program, where an independent board would set a narrow price range for carbon for eight years in order to give markets experience in trading permits.
Although the bill remains stuck, Lieberman says it is still possible utilities may be subject to a cap and trade system.
However, rebranding "cap and trade" with the title "pollution reduction" probably won't be enough to sway stubborn conservatives in its favor.
Until next time,
Hilary
Assembly representative Nancy Skinner and California state Attorney General Jerry Brown are backing a bill that will require utilities to obtain 2.25% of their peak power from storage systems by 2014, and 5% of their peak power from storage by 2020.
Right now, peak energy demand for the state of California is 29,000 megawatts by grid operator California ISO.
That means that the state will need to store 1,450 megawatts in order to comply with the goals outlined in the new legislation.
The bill - AB 2514 - is the first of its kind to be introduced at the state level, though the state's Self Generation Incentive Program already offers incentives for energy storage at industrial and commercial sites.
The new legislation will help consumers cut back on their energy costs while at the same time supplying thousands of permanent new jobs.
Advanced energy storage solutions would also make other renewable sources of energy (such as wind farms and solar arrays) more useful by storing the electricity they generate.
Energy storage technologies vary in their power capacities and discharge durations. They also include mechanical, chemical, and thermal processes for storing energy for use at a later time.
Flywheels, for example, provide short-term storage - they only store energy for a few seconds or minutes. They are, however, already relatively economical.
Persistent storage systems that can store energy for hours (or store power generated during off peak hours for consumption during peak periods) are not as economical.
Right now, batteries used in persistent storage systems sell for $500 per kilowatt hour. In order to make persistent storage systems work long-term, the price needs to be lowered to $250 or below.
Pacific Gas & Electric is just one of a few utilities that are already moving forward with plans to develop energy storage systems.
PG&E is currently building a 4-megawatt sodium sulfur battery station in Silicon Valley and a 300-megawatt compressed air storage facility with a gigawatt-plus pumped hydro station.
The compressed air field being developed by PG&E will be able to store energy at $120 per kilowatt.
Another company, SustainX, is also building an industrial compressed air storage system, but it remains mostly in the experimental stage.
Ice Energy, a company located in southern California, has partnered with utilities to install 53 megawatts of its ice-powered air conditioners in the region.
Ice-powered air conditioners shift air conditioning - a peak power function - to nighttime.
By simply installing ice-powered air conditioners, some utilities will be able to hit their 2014 goals in the near term.
Worldwide, approximately a gigawatt of grid storage has been installed. In the U.S., storage has been primarily a theory. Until now.
If AB 2514 gets passed, energy storage may evolve from a theory into a reality.
Until next time,
Hilary
Information provided by Global Energy's Alternative Energy eTrack allows for a greater understanding of the renewable energy capacities of the global community. Below are the top ten countries' energy capacities, as they correlate to various renewable energy sources.
The United States leads the way in wind power capacity, with Germany and China following not far behind.
Wind Power
1. United States - 35,296 MW
2. Germany - 25,777 MW
3. China - 25,104 MW
4. Spain - 19,149 MW
5. India - 10,925 MW
6. Italy - 4,850 MW
7. France - 4,492 MW
8. United Kingdom - 4,051 MW
9. Portugal - 3,535 MW
10. Canada - 3,319 MW
Hydro power is most available in China by more than twice the MW of Brazil, the country with the second largest capacity. The United States has the third largest capacity for hydro power.
Hydro Power
1. China - 179,056 MW
2. Brazil - 81,955 MW
3. United States - 78,054 MW
4. Canada - 75,287 MW
5. Russia - 46,756 MW
6. India - 39,546 MW
7. Norway - 29,317 MW
8. Japan - 22,089 MW
9. France - 20,850 MW
10. Sweden - 16,266 MW
Germany's capacity for photovoltaic solar power is roughly 6 times larger than that of the U.S. However, the United States still has the largest capacity of concentrated solar power.
Solar (PV) Power
1. Germany - 6526.00 MW
2. Spain - 5504.76 MW
3. Japan - 2347.00 MW
4. United States - 1487.71 MW
5. Italy - 908.59 MW
6. Republic of Korea - 557.60 MW
7. France - 253.42 MW
8. China - 223.00 MW
9. India - 223.00 MW
10. Australia - 114.39 MW
Solar (CSP) Power
1. United States - 900.0 MW
2. Spain - 130.0 MW
3. Australia - 37.0 MW
4. Mexico - 25.0 MW
5. Algeria - 20.0 MW
6. Morocco - 20.0 MW
7. Italy - 5.0 MW
8. N/A
9. N/A
10. N/A
The range in capacities for geothermal power as a renewable energy resource is drastic. The United States has roughly 3000 more MWe of geothermal energy available than the Russian Federation, which ranks tenth on the list.
Geothermal Power
1. United States - 3153.0 MW
2. Philippines - 2195.3 MW
3. Indonesia - 1132.0 MW
4. Mexico - 965.0 MW
5. Italy - 810.0 MW
6. New Zealand - 577.0 MW
7. Japan - 535.0 MW
8. Kenya - 169.0 MW
9. Turkey - 83.0 MW
10. Russian Federation - 81.0 MW
Germany has by far the largest capacity for energy available from biogas, a type of biofuel that can be used as a low-cost fuel for any heating purpose. When compressed, biogas can also be used to power motor vehicles. In the UK alone, biogas is estimated to have the potential to replace 17% of vehicle fuel.
Biogas Power
1. Germany - 3,594 MW
2. United Kingdom - 1,425 MW
3. United States - 1,047 MW
4. Italy - 477 MW
5. Australia - 427 MW
6. Spain - 194 MW
7. Netherlands - 130 MW
8. France - 120 MW
9. Canada - 117 MW
10. Sweden - 64 MW
Biomass energy, derived from living or recently living organisms, is most heavily available in the United States. Several countries have large capacities for biomass as a renewable energy resource.
Biomass Power
1. United States - 9,391 MW
2. Germany - 5,890 MW
3. Sweden - 4,522 MW
4. Brazil - 3,970 MW
5. Japan - 2,834 MW
6. Netherlands - 2,531 MW
7. China - 2,381 MW
8. Finland - 2,352 MW
9. India - 2,117 MW
10. Canada - 1,885 MW
There are renewable energy resources available in countries around the world. The next step is figuring out how to utilize them...
Until next time,
-Hilary
Last Friday, the Colorado State Senate passed H.B.1001, increasing the state’s renewable portfolio standard (RPS) to 30% by 2020.
Governor Bill Ritter is expected to sign the bill when the House passes it through.
The bill also mandates that 3% of total electricity sales come from distributed generation systems such as distributed solar. These systems will allow energy consumers to lower their electricity bills and enable utilities to avoid expensive investments in new transmission systems.
Additionally, H.B.1001 requires that half of all solar projects developed by investor-owned utilities be located on rooftops or within the distribution network.In doing so, the bill is expected to deploy 700 MW of solar generation.
If that same requirement were expanded to include all state electricity producers, Colorado could see a total of 1,000 MW of solar power
That much solar power could create more than 33,500 jobs for the state’s renewable energy economy and produce $4.3 billion in total economic output.
Shortly after H.B.1001 passed the Senate, Governor Ritter announced the Colorado Clean Air-Clean Jobs Act. The act is primarily a move away from outdated coal-fired power plants.
Colorado isn’t the only state committed to a clean energy economy. Some 28 states and the District of Columbia have their own renewable portfolio standards.
Nevertheless, the long-term success of renewable energy depends on legislative action by Congress.
The push for a national standard that would increase the country’s RPS to 20% by 2020 is being met with resistance by legislators from coal producing states that claim their states don’t have the same renewable resources as other states.
However, certain bills are beginning to reflect the necessity for a boost in renewable energy standards.
The Waxman-Markley climate change bill, for example, contains provisions that would establish a national RPS. Still, controversy in Congress is holding up the process.
Perhaps Colorado’s H.B.1001 will provide some encouragement to those still holding out in D.C.
Until next time,
Hilary
After putting the plan on hold due to transmission issues, T. Boone is once again ready to proceed with the wind portion of his plan for U.S energy independence.
He says he'll disclose the location of a 500 megawatt plant in the next 30 days, though the Dallas Morning News has reported that approximately 300 General Electric (NYSE: GE) turbines are being sent north - to either Canada or Minnesota - for the proposed farm.
Pickens recently told the Wall Street Journal that "economics favor wind power with natural gas prices around $7 per BTU." But with natural gas seemingly in free fall - trading around $4.60 - the billionaire hasn't been pursuing wind as aggressively.
Perhaps his most recent move is a sign the industry is in for a good year. Stimulus funds should continue to be dispersed, and two large farms have already been announced - 845 MW in Oregon and 600 MW in Texas, supplied by GE and A-Power Energy Generation (NASDAQ: APWR), respectively.
If you're looking for broad exposure to the wind industry as it gets back in gear, an ETF like First Trust Global Wind (NYSE: FAN) or Power Shares Global Wind (NASDAQ: PWND) is a great way to go.
Call it like you see it,
Nick
President Obama is set to outline today the details of the "cash for caulkers" program.
With a price tag of about $6 billion, the program will provide incentives for folks to make their homes more energy efficient. Whether its new insulation, energy efficient windows (which I can tell you from personal experience can save you a small fortune in energy costs), or any other major or minor energy upgrade, the new program is designed to stimulate job growth and help consumers save a few bucks on energy costs.
There's no doubt that improving efficiency is one of the easiest and quickest solutions to our energy woes. And I suspect there will be few political obstacles on this one.
Of course, "cash for caulkers" isn't quite as sexy as "cash for clunkers." Consumers tend to be more interested in the cars they drive than the insulation in their attics. So it will be interesting to see how they promote it.
Nonetheless, this should provide a quick boost to those companies that will undoubtedly benefit from this program, like Owens Corning (NYSE:OC), Home Depot (NYSE:HD) and Lowes (NYSE:LOW). Of course, given the state of today's still very-fragile market, who knows if it will be enough to matter much. It really has become a never-ending battle of optimism versus broader market reality.
But the very real benefits of energy savings could still make this program worthwhile. Long-term economic sustainability depends on smart energy decisions today. Making our homes more energy efficient is definitely a step in the right direction.
Jeff
On Wednesday, I told you about a new Arizona bill (House Bill 2701) that was designed to essentially kill the state's solar industry. It was intended to allow nuclear and hydroelectric power to be included in the state's renewable energy standard, which requires 15 percent renewables by 2025. With nuclear and hydroelectric inlcuded, there would have been zero incentive to integrate solar or any other type of clean, renewable energy.
The new bill would've also done away with the state's distributed energy standard, which requires 30 percent of all renewable power produced by utilities to come from rooftop systems.
Well, it looks like that bill was killed on Thursday after a flood of opposition forced a few less-than honorable policy makers to backpedal.
One very influential opponent to the bill was Suntech Power (NYSE:STP), which made it crystal clear that the state could very well lose the company's new manufacturing facility that would ultimately end up creating a lot of jobs for currently-unemployed Arizona residents.
Of course, it didn't take long for one bureaucrat to complain that the Legislature was being unfairly criticized as being anti-solar. According to House Speaker Kirk Adams, the Legislature has done several things in the past year to bolster the solar industry's efforts. Particularly SB 1403 which provides incentives for bringing high-wage manufacturing to the state.
So the question is, if these guys are so pro-solar, why would any of them support a bill that would essentially gut the industry's progress in the Grand Canyon state?
It's all politics. It's always politics with these guys. But thankfully, enough folks were fired up enough to let these guys know that solar will not be an afterthought in the state's energy mix.
Jeff
What an absolute joke!
I have no other way to describe how I felt after reading about Arizona's House Bill 2701.
Essentially this bill would allow nuclear and hydroelectric power to be included in the state's renewable energy standard, which requires 15 percent renewables by 2025.
Now I'm not here to bash nuclear, but this is Arizona folks. The state has some of the most impressive solar resources in the world! If there's any state in the U.S. that should embrace solar, it's Arizona.
Of course, all of this clearly smells of politics.
There's absolutely no reason any honest policy maker in the Grand Canyon state should want to deter solar progress. It's a job creator, it's a source of clean energy, and it helps alleviate the need for rapidly depleting fossil fuels.
The new bill would also get rid of the state's distributed energy standard, which requires 30 percent of all renewable power produced by utilities to come from rooftop systems. What a great way to kill even more jobs!
This is an absolute travesty, and those who have introduced and supported this bill should be held accountable for their actions. Especially Representative Debbie Lesko, who apparently objected to a $4 per month fee for residential customers that supports Arizona's renewable energy standard.
My question is, does Lesko object to the millions of dollars that hard-working Americans shell out to subsidize oil, coal, natural gas and nuclear?
Don't urinate on my leg and tell me it's raining!
This is bureaucratic bullshit at it's finest. Somebody's getting a kickback here, and it ain't the good people of Arizona.
Jeff
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