SPECIAL THING TO THINK ABOUT

Clean energy means more jobs, not less

Nancy LaPlaca, May 20, 2013 (AZ Capitol Times)

The Arizona Republican Party recently issued a press release stating that I want to “eliminate 1,000 coal jobs” on Navajo land. That statement is so far removed from reality that it warrants a direct response.

The issue that raised their ire was my asking whether spending $1.1 billion to $1.6 billion of ratepayer money to purchase the departing ownership shares of the Los Angeles Department of Water and Power (LADWP) and NV Energy, and update the air quality systems at the Navajo Generating Station (NGS) is a wise investment. Given that our neighboring states and utilities around the country are abandoning coal and investing heavily in natural gas and renewable energy generation, is sinking good money into a 40-year-old plant our only choice?

When studies show that for every $1 spent, clean energy creates three times more jobs than fossil fuels, what’s wrong with looking into alternative investments? Clean energy can increase the number of available jobs and address environmental and health issues people are concerned about. We know that coal fuel and compliance costs are going to continue to increase as time goes on, so why invest in technologies that only increase the cost of electricity? Why restrict the Navajo economy when diversifying the energy mix at NGS by adding wind, solar PV or solar CSP could create 3,000 new jobs?

click to enlarge

What I want, along with many others, is to diversify and transform the Navajo economy by expanding the mix of energy and create even more jobs that could be filled by Navajo and Hopi people. I want them to earn higher wages, enjoy better working conditions, lead healthier lives and have better career options for generations to come.

Leave it to the Arizona Republican leadership to want to continue to limit the economic, employment and investment opportunities in Native American lands by willfully ignoring new opportunities and energy trends.

One thing that has been sorely missing from Arizona in recent years is an open and honest dialogue about our energy future. The free market in the U.S. is moving away from coal and toward other forms of generation, including renewables and natural gas. A diversified energy portfolio that employs renewable energy at NGS will employ more people at higher wages than work there now. We should explore and discuss this opportunity rather than dismissing it out-of-hand for purely political purposes.

Think about it: Arizona has far more to gain from increasing clean energy than it has to lose from reducing coal-fired power. As the sunniest state in the U.S., let’s lead the way — and have an open discussion.

Nancy LaPlaca is exploring a 2014 candidacy for the Arizona Corporation Commission.

Tweet

WHAT THE U.S. CAN LEARN FROM GERMAN SOLAR SUCCESS

Germany Has More Solar Power Because Everyone Wins

John Farrell, February 8 and May 20, 2013 (Institute for Local Self-Reliance)

“…[Most have figured out it is not the Germany’s solar resource or policies make it a world solar industry force. There is also a] ‘Germans pay a lot extra’ meme. Germans do, and are perfectly happy with it, but…[the] real reason Germany dominates in solar (and wind) is their commitment to democratizing energy.

“Half of their renewable power is owned by ordinary Germans, because that wonky sounding feed-in tariff (often known as a CLEAN Contract Program in America) makes it ridiculously simple and safe for someone to park their money in generating solar electricity on their roof instead of making pennies in interest at the bank.”

click to enlarge

“It also makes their “energy change” movement politically bulletproof. Germans aren’t tree-hugging wackos…[T]hey are investing by the tens of thousand in a clean energy future that is putting money back in their pockets and creating well over 300,000 new jobs (at last count). Their policy makes solar cost half as much to install as it does in America, where the free market’s red tape…

“…In a country founded on the concept of self-reliance (goodbye, tea imports!), we finance clean energy with tax credits that make wind and solar reliant on Wall Street instead of Main Street. We largely preclude participation by the ordinary citizen unless they give up ownership of their renewable energy system to a leasing company. We make clean energy a complicated alternative to business as usual, while the cloudy, windless Germans make the energy system of the future by making it stupid easy and financially rewarding…[L]et’s learn the real secret to German energy engineering and start making democratic energy in America.”

Tweet

EARLY RESULTS SHOW WIND CAN PROTECT EAGLES

As U.S. DOJ Investigates, Duke Works Adaptive Management Plan

Mark Del Franco, 16 May 2013 (North American Windpower)

“Duke Energy Renewables has confirmed that it is a subject of a U.S. Department of Justice (DOJ) preliminary investigation resulting from…10 golden eagle deaths…at its 200 MW Top of the World wind farm since the wind farm began operating in October 2010…[and] three golden eagle fatalities at its 99 MW Campbell Hill wind farm since December 2009.

“Golden eagles receive federal protection under the Bald and Golden Eagle Protection Act (BGEPA)…[Duke Energy Renewables] has employed several adaptive management techniques…[T]he company has taken to removing objects and debris from its Wyoming sites, such as animal carcasses, to clear anything that birds and other avian species…find attractive…”

click to enlarge

“The company also employs biologists to watch for birds at the sites…If eagles are spotted…[the biologists notify Duke's] Renewable Energy Monitoring Center (REMC) to stop the turbines…Duke went so far as to employ a radar surveillance system featuring the same technology used by the U.S. military to detect missiles in Afghanistan…

“Thus far, Duke's adaptive management efforts have resulted in zero golden eagle fatalities at either wind farm since September 2012…Duke is in a much better position to understand - and therefore protect - avian species, such as golden eagles…”

Tweet

TEXAS GROWING NEW ENERGY, QUADRUPLES SUN

Renewable energy generation in Texas continues to grow, up 7 percent from 2011; Wind power continues to lead, with notable gains in solar generation

May 16, 2013 (Electricity Reliability Council of Texas)

“Electric generation from renewable resources in Texas increased 7 percent in 2012, compared to 2011, with capacity up by about 16 percent…[according to The Electric Reliability Council of Texas (ERCOT)…2012 Annual Report on the Renewable Energy Credit Trading Program.

“Generators participating in the state’s renewable energy credit trading program reported 33.9 million megawatt-hours (MWh) of renewable generation in 2012, compared to 31.7 million MWh in 2011 — a 7 percent overall increase. At more than 32.5 million MWh in total generation, wind power continued to lead the pack, with solar generation representing the largest rate of growth, nearly quadrupling last year’s output, and energy from biomass sources more than doubling the 2011 total.”

click to enlarge

“A renewable energy credit (REC) is a tradable instrument that represents one megawatt-hour, or MWh, of renewable energy produced. That is roughly the amount of power consumed by an average home in a month. Competitive retail electric providers must acquire and retire renewable energy credits annually based on their load-ratio share of the state’s renewable portfolio standard mandate. Any electric provider may voluntarily retire renewable energy credits to substantiate claims that power they are selling comes from renewable resources.

“The Texas Legislature established the renewable portfolio standard as part of the restructuring of the state’s electricity market in 1999 to increase incentives for renewable energy production. The PUC implemented the REC program in 2001 and established ERCOT as the administrator…”

Tweet

U.S. EMISSIONS DROP AS ELECTRICITY OUTPUT RISES

Groups credit natural gas, renewables with steep emissions cuts in power sector

Dan Lowry, May 15, 2013 (SNL)

“U.S. power plant emissions from the nation's largest generators continued to fall in 2011 even as overall electricity output rose…Since Congress passed major amendments to the Clean Air Act in 1990, power plant NOx emissions have fallen 70% and SO2 emissions have dropped 72%. Carbon dioxide emissions have declined 7% from 2008 to 2011…The highest CO2 emission rates came from states that are heavily reliant on coal, including Wyoming and Kentucky…

“…[T]he steep emissions cuts [were due] to a shift away from coal-fired generation toward lower-emitting energy sources, such as renewables and natural gas. Between 2000 and 2011, natural gas generation rose 69% in the U.S. and renewable generation grew 44%. Coal generation dropped 12%, but still represented 44% of the power generated by the 100 largest generators, by far the largest…”

click to enlarge

“The top 100 power producers own more than 2,600 power plants and account for 86% of domestic electricity generation…Air pollution emissions from power plants, while declining overall, are highly concentrated primarily among three power producers: Southern Co., American Electric Power Co. Inc. and NextEra Energy Inc...

“…AEP and Southern have been preparing to retire thousands of megawatts of coal-fired capacity, convert coal units to natural gas or installing emission control equipment on certain units, in order to reduce emissions and meet new federal air regulations…AEP plans to retire about 6,000 MW of coal-fired capacity and install additional pollution controls on more than 10,000 MW of capacity by 2020…[Cuts in] NOx and SO2 emissions…[are ahead of cuts in] mercury and CO2 emissions. Coal-fired plants were responsible for 81% of CO2 emissions, compared to 18% for gas-fired plants…Texas was the leading emitter of CO2, followed by Pennsylvania, Florida, Ohio and Indiana.”

Tweet

THE SPACES BETWEEN THE WINDS

Wind Energy’s Shadow: Turbines Drag Down Power Potential; Renewable-energy experts maintain the world is far from reaching a saturation point.

David LaGesse, May 16, 2013 (National Geographic)

“…[S]ome scientists are…arguing that the laws of physics will limit wind's potential for meeting the world's energy needs. The controversy arises from the turbines themselves…[R]esearchers have explored the issue of turbines stealing energy from the wind, creating drag or a ‘wind shadow’ of air slowed by the spinning blades. Each turbine added to a particular landscape captures less energy…[At a point, more turbines may produce] no more energy…

“…[But the potential of wind] is far above the levels we are seeing harvested in even the most aggressive wind-energy countries today…Many proponents of replacing fossil fuels count on wind power as the single biggest source of renewable energy for the nation's future. Industry experts, for example, have predicted wind could supply a third of the world's electricity by 2050…[and it would take billions of turbines worldwide] for wind energy to become oversaturated to the point that it undermines its own effectiveness…”

click to enlarge

“…[The Jacobson and Archer] study projected that producing half the world's energy needs in 2030, or six terawatts of energy, would take some four million 5-megawatt (MW) turbines…Jacobson contends that even that large number of turbines could be spaced in such a way to keep them from robbing each other of efficiency…Even eight megasize wind farms, each with a half-million turbines, would prove efficient enough to output a total of four terawatts, or about a third of the world's projected energy needs in 2030, according to his paper…[Four million turbines] spread among thousands of wind farms…would boost the turbines' efficiency enough…[to] provide at least half the world's energy needs, Jacobson said…

“Geography and politics will combine to limit turbine placement to certain areas, and the question of diminishing returns from dense arrays will become a significant factor [other researchers say]…No doubt, the models will be refined as research continues [they argue]…”

Tweet

WTO RULES FOR IMPORTED SUN

World Trade Organization Delivers Blow to Solar PV Domestic Content Proponents

Michael Barker, May 15, 2013 (SolarBuzz)

“…[T]he World Trade Organization (WTO) released its final ruling in the dispute concerning Ontario, Canada’s local content requirements (LCRs) for its internal FIT program…[T]his ruling ends a process that was initiated almost three years ago when Japan first filed a complaint – in September 2010 – alleging that Ontario’s LCRs violated trade agreements. It then took more than two years for a decision upholding the complaint…

“The ruling immediately affects the Canadian market…[L]ess than 50% of [the PV project application pipeline in Ontario of almost 1 GW] has actually received notice to proceed. This means that the Ontario market – which is almost wholly responsible for Canadian market demand – could become moribund within a few years as the PV project pipeline is exhausted and not renewed…[The] ruling could also have implications beyond Canada, as domestic content requirements (DCRs) exist…[in eight of the top 30 global markets] representing almost 60 GW of PV demand over the next five years.”

click to enlarge

“…[The ruling means] many of the content requirements in place will be found to be in violation of WTO rules. In fact, there are currently several cases very similar to the Ontario dispute already under investigation by the WTO; concerning countries such as India, Italy, and Greece.

“The current ruling against such policies may drive more complaints being filed…increasing the scope of the current global trade disputes. Also, many PV incentive programs are being implemented as a broad economic policy, intended to stimulate both upstream and downstream PV industry activity. If countries are forced to abandon the former part of this strategy, it is possible that they will also remove the latter, thus jeopardizing future demand…”

Tweet

INSURANCE COMPANIES PREPARE FOR CLIMATE CHANGE

For Insurers, No Doubts on Climate Change

Eduardo Porter, May 14 2013 (NY Times)

“…[N]atural catastrophes across the United States pounded insurers last year, generating$35 billion in privately insured property losses, $11 billion more than the average over the last decade…And the industry expects the situation will get worse…Most insurers, including the reinsurance companies that bear much of the ultimate risk in the industry, have little time for the arguments heard in some right-wing circles that climate change isn’t happening…[and accept that it is caused by humans. But]…the focus of insurers’ advocacy efforts is zoning rules and disaster mitigation [instead of prevention].

…[The concentration of heat-trapping carbon dioxide in the atmosphere [recently] reached 400 parts per million…The milestone puts the earth nearer a point of no return, many scientists think, when vast, disruptive climate change is baked into our future…[So] why hasn’t corporate America done more to sway its allies in the Republican Party to try to avert a disaster that would clearly be devastating to its own interests?”

click to enlarge

“…[The insurance industry may want to avoid] controversies over energy policy. But perhaps its executives simply don’t feel so vulnerable. Like farmers, who are largely protected from the ravages of climate change by government-financed crop insurance, insurers also have less to fear than it might at first appear…The federal government covers flood insurance, among the riskiest kind in this time of crazy weather. And insurers can raise premiums or even drop coverage to adjust to higher risks. Indeed, despite Sandy and drought, property and casualty insurance in the United States was more profitable in 2012 than in 2011, according to the Property Casualty Insurers Association of America.

“But the industry…[is evolving. Insurance companies] dropped their support for [the Heartland Institute, and Heartland VP Eli Lehrer, who led an insurance-financed project, left to help]…start the R Street Institute, a standard conservative organization…[that] believes in climate change and supports a carbon tax…[I]t is financed largely with insurance industry money…[Some Republicans in the House and Senate] would be open to legislation to help avert climate change…[and Exelon is sympathetic, probably] because a carbon tax would give an edge to gas over its dirtier rival, coal…[but] with the exception of 2004 and 2005, when a string of hurricanes from Ivan to Katrina caused damage worth more than $200 billion…they haven’t yet experienced hefty, sustained losses attributable to climate change…[T]he best hope for those concerned about climate change…[is] that global warming isn’t just devastating for society, but also bad for business.”

Tweet

UK’S GREEN BANK BRINGS THE BIG BUCKS

UK Green Investment Bank mobilises £2.3bn investment in UK’s low-carbon infrastructure

09 May 2013 (Green Investment Bank)

“The UK Green Investment Bank plc (GIB)…investment impact of its first five months of operation (up to 31st March 2013)…[1] Committed funds to 11 transactions with a total value of £2.3 billion…[2] Directly committed £635 million, resulting in a funding ratio that sees £1 from GIB mobilising almost £3 of private sector money…[3] Supported transactions in all of its priority sectors: offshore wind, energy efficiency and waste; and…[4] Completed all transactions on fully commercial terms in line with co-investors.

“…[P]rovisional results indicate that, once operational, these investments will, on an annualised basis…[1] Save over 2.5 million tonnes of greenhouse gas emissions; the equivalent today of taking around 1 million cars off UK roads; and…[2] Generate around 10TWh of renewable electricity; the equivalent today of the annual domestic electricity consumption of around 2.3m UK homes.”

click to enlarge

“Projects that have been backed include…[1] A new clean energy centre at Addenbrookes Hospital, Cambridge to help the NHS Trust reduce their emissions and save money…[2] An equity stake in an offshore wind farm; and…[3] A local authority managed recycling centre in Wakefield, West Yorkshire to reduce waste sent to landfill and capture energy from waste.

“GIB has also made progress in building an enduring institution…[1, The] Bank will move into a new permanent home [in Edinburgh] in August…[2] A team of 74 people has been recruited and…[it] rise to 100 by the end of this calendar year…[3] A strong transaction pipeline is in place…[and, 4] An investment alliance with Abu Dhabi backed clean energy firm, Masdar has been signed to bring in additional funding…over the next seven years…”

Tweet

UTILITY GOES FOR BETTER SUN, WIND FORECASTS

Xcel Energy and NCAR power up renewable energy forecasts

2013 May 8 (Xcel Energy)

“Xcel Energy…expanded [its] agreement with the National Center for Atmospheric Research for sophisticated renewable energy forecasting…[A]n existing relationship… has saved Xcel Energy’s 3.4 million electricity customers in eight states millions of dollars [including more than $6 million in 2010]…

“In the next two years, NCAR scientists and engineers will develop custom forecasting systems to enable Xcel Energy control centers in Minneapolis, Denver, Golden, Colo., and Amarillo, Tex., to anticipate sudden changes in wind, shut down turbines ahead of potentially damaging icing events and even predict the amount of energy generated by private solar panels [and it will eventually publish the results]…”

click to enlarge

“The new project represents the latest venture by NCAR into renewable energy, which includes a three-year, nationwide project to create 36-hour forecasts of incoming energy from the sun for solar energy power plants…The systems will help Xcel Energy provide reliable power…and reduce costs while…[using more] wind and solar…in its territories served by Public Service Co. of Colorado, Northern States Power Co.-Minnesota, NSP-Wisconsin and Southwestern Public Service Co…

“…The specialized system relies on a suite of tools, including highly detailed observations of atmospheric conditions, an ensemble of powerful computer models, and artificial intelligence techniques to issue high-resolution forecasts for wind farm sites…[They] will provide ‘probabilistic forecasts,’ estimating the chances that a particular weather event will occur. This means that utility managers will be able to make decisions based on whether there is an 80 percent chance of certain weather events at a wind farm the next day or a 20 percent chance…Ultimately, Xcel Energy will control the systems…”

Tweet

MINNESOTA’S SOLAR AMBITIONS IN CONTEXT

Minnesota’s Proposed Solar Standard in Comparison

John Farrell, April 25, 2013 (Institute for Local Self-Reliance)

“Some Minnesota legislators are getting a little weak-kneed listening to utility lobbyists make hugely ironic claims about the cost of the proposed solar standard and thinking about how much solar this is…Time for some context.

“The originally proposed 10% solar energy standard might have been ambitious by national standards, but the current 4% by 2025 target (with municipal utilities and cooperatives exempted – boo) might earn Minnesota the rank of #5 in solar sometime after 2020, if no one else joins the fray…”

click to enlarge

“…California and Hawai’i aren’t pictured because the former is already at 1.7% solar and the latter is approaching 3%, with such favorable economics that they don’t need a standard to drive adoption.

“Minnesota’s solar economics will be similarly robust in about eight years, but it’s the near term opportunity to establish a market and build manufacturing capacity to serve the Midwest that makes the standard a crucial piece of the state’s energy future.”

Tweet

RHODE ISLAND’S FIGHT OVER OCEAN WIND

Block Island Gets First Chance To Weigh In On Wind Turbines

Judy Benson, May 10, 2013 (McClatchy News Service via Hartford Courant)

“...[A public meeting] offered the first chance in two years for [Block Island] residents to publicly take a side on the 30-megawatt turbine wind farm proposed for a site 3 miles off the southeast shore. It also was the first litmus test of island support since the $300 million project to erect five 650-foot turbines entered the permitting phase…The project is on track to be the nation's first offshore wind farm, though similar turbines have been operating in Denmark, Germany and elsewhere for several years…

“With an audience of about 100 of their neighbors, 24 speakers said Providence-based Deepwater Wind's proposal would benefit the island economically and environmentally, while setting an example for the rest of the country…Another 12 speakers argued that the turbines would compromise the views that are a main asset of the island's tourism-based economy and expressed skepticism and mistrust of Deepwater Wind. Three others did not express outright support or opposition but instead urged caution as the process proceeds…Several speakers qualified their support with admonitions that decision-makers ensure the company sets aside adequate funds to decommission the turbines when they no longer produce power…That point also was made by the Town Council in its letters of support…The five-member council supports the project 3-2…”

click to enlarge

“The hearing was called by the state's Department of Environmental Management, which is considering an application from Deepwater to dredge about 20 miles of trenches for cables connecting the five turbines to Block Island, and from there to landfall at Narragansett Town Beach and on to a National Grid substation…[A Narragansett hearing] drew a similar turnout, but more of the speakers were opposed…The cable to Narragansett would be Block Island's first power connection to the mainland, a $20 million to $40 million infrastructure upgrade the island has been seeking for 20 years.

“…[T]he Narragansett Town Council voted to put off until June 3 negotiations with Deepwater over easements..for the cable…[Deepwater] said that in response to concerns raised in Narragansett, it will propose [to underground the proposed cable]…Several Block Islanders supporting the wind farm said the reality of climate change convinces them that the island must do its part…[and] urged opponents to look beyond their concerns about views to the bigger picture…Maya Veldman Wilson, a school-aged resident…read a poem calling the turbines ‘heroes of the future’ and ‘giants’ that speak through the wind…’They only spin. They don't hurt anybody,’ she said…”

Tweet

VC MONEY FOR SMART GRID STEADY

VC Funding in Smart Grid Sector Remains Flat in Q1 2013 with $62 Million…Pace of funding largely unchanged for last five quarters

May 2013 (Mercom Capital Group)

“…Smart grid venture capital (VC) funding in Q1 2013 totaled $62 million in nine deals. The quarter’s funding was nearly identical to the first quarter of 2012, when the same amount was raised by smart grid companies but in 10 deals instead of nine. With the lone exception of home security and automation company Alarm.com’s $136 million raise in Q3 2012, the pace of funding has remained largely unchanged for the past five quarters…

“The Top 5 VC deals in Q1 2013 raised a combined $52 million. The top two VC deals each raised $15 million. Cylance, a provider of cyber security products for the infrastructure industry, raised $15 million from Khosla Ventures and Fairhaven Capital in a Series A round, and Sentient Energy, a developer of advanced grid monitoring solutions…raised $15 million in an undisclosed round from Foundation Capital…”

click to enlarge

“There were only four M&A transactions in Q1 2013. One of the transactions; Toshiba Corporation’s acquisition of privately-held energy management company Consert, was disclosed for a total of $11 million. Last quarter, $22 million in M&A activity was disclosed in the same number of transactions.

“Despite a rather slow quarter, the smart grid sector saw a rare IPO. Silver Spring Networks, a provider of smart grid products and services to utilities, raised $81 million by offering 4.75 million shares at $17.”

Tweet

HUGE BUFFETT WIND BUY IN IOWA

MidAmerican Energy will invest $1.9 billion in wind projects in Iowa

William Petroski, May 8, 2013 (Iowa Politics)

“…MidAmerican Energy will make a $1.9 billion investment in Iowa for wind energy projects that will be the biggest single economic investment ever in the state…MidAmerican officials said no sites have been selected yet…MidAmerican Energy Co. will add up to 1,050 megawatts of wind generation, consisting of up to 656 new wind turbines, in Iowa by year-end 2015…The wind expansion will enhance economic development and provide in excess of $360 million in additional property tax revenues over the next 30 years…Landowner payments totaling $3.2 million per year also are expected…

“…[T]he expansion is planned to be built at no net cost to the company’s customers and will help stabilize electric rates over the long term by providing a rate reduction totaling $10 million per year by 2017, commencing with a $3.3 million reduction in 2015, MidAmerican officials said…MidAmerican Energy began building wind projects in 2004. To date, 1,267 wind turbines [and 2,285 megawatts of wind generation capacity] have been installed in Iowa, representing a total investment of approximately $4 billion. [It is No. 1 in wind ownership among rate-regulated utilities] In light of the recent federal wind production tax credit extension, the company said it is asking to expand its wind generation capacity…”

click to enlarge

“MidAmerican Energy estimates that by January 2016, when all new wind generation is expected to be operating, it may be capable of generating approximately 39 percent of its retail generation output through wind generation during that month…If the expansion is approved by the Iowa Utilities Board, MidAmerican Energy will own and operate approximately 3,335 megawatts of wind generation capacity in Iowa by year-end 2015, officials said…

“…[C]ompanies such as Facebook and Google want clean energy, so the move also could attract new developments…[T]he project will keep Iowa on track to generate 10,000 megawatts of wind power by 2020, and will help support jobs at turbine-component businesses and blade manufacturers…The utility’s project will boost Iowa’s overall nameplate wind generation, from all sources, by 20 percent, to 6,000 megawatts from 5,000 megawatts currently…The U.S. Department of Energy has estimated that Iowa would have to produce 10,000 megawatts of wind energy by 2020, and 20,000 by 2030 to meet environmental groups’ goal to have the country produce 20 percent of its power from wind by 2030.”

Tweet