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2012/12/19

| 12.19.12 | Utility PURPA pressure gets mixed results

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December 19, 2012
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Today's Top Stories
1. Idaho PUC addresses PURPA in new renewable energy rules
2. Utilities get high marks for demand-side management
3. Combined heat and power to double by 2022
4. Mass. utilities contesting millions in penalties over storm response
5. EU could find answers to energy and climate goals with nuclear power

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Has the day finally arrived for widespread adoption of high-voltage direct current (HVDC) transmission? As the U.S. electric grid continues to age, specifically in the Eastern Interconnect, there is an emerging need for additional transmission. Feature


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Today's Top News

1. Idaho PUC addresses PURPA in new renewable energy rules

By Travis Mitchell Comment | Forward | Twitter | Facebook | LinkedIn

Idaho energy regulators yesterday approved new regulations for sales agreements and rate structures between state renewable energy projects and regulated utilities.

The decision by the three-member commission came after pressure by state utilities, who felt that the Public Utilities Regulatory Policy Act (PURPA) was forcing them to buy power they didn't need and that the Act deserved adjustment.

Tuesday's decision set forth a number of rulings, including:

  • Setting a 100 MW cap for wind and solar projects seeking the PUCs published avoided cost rates.
  • Denying Idaho Power's proposal to curtail PURPA-mandated wind purchases during periods of reduced customer load.
  • Establishing a 20-year maximum contract agreement between utilities and qualifying facilities (QF) which utilities lobbied five years for.
  • Creating new standards for renewable projects who wish to retain their renewable energy credits (REC).

"With the changes adopted herein, we believe that PURPA development can continue to thrive in a way that holds ratepayers harmless," the Commission wrote in a statement. "QF projects that provide a utility with needed energy and capacity will be compensated accordingly. QF projects that are inconsistent and detrimental to a utility's load and resource balance will also be compensated at a rate that reflects the costs that the QF allows the utility to avoid by purchasing its generation."

While the Order is final, utilities have until January 8 to petition the rules.

For more:
-see the release

Related Articles:
Idaho PUC denies wind PPA petition
FERC: Idaho can't curtail wind purchases
 

Read more about: wind, PURPA Idaho
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This week's sponsor is Zpryme.

Zpryme's Smart Grid Insights and FierceSmartGrid are conducting a survey to assess the current sentiment and outlook for the Smart Grid industry on a monthly basis. We would like to invite utility, energy, and Smart Grid executives to participate in this month's survey. Click here to take the survey.



2. Utilities get high marks for demand-side management

By Barbara Vergetis Lundin Comment | Forward | Twitter | Facebook | LinkedIn

E Source benchmarked 40 utility demand-side management (DSM) portfolios using data from DSM annual reports, and found that 75 percent of program administrators achieved at least 90 percent of their electric or gas energy-savings goals.

Adam Maxwell, product manager for E Source Efficiency Services calls these numbers "truly astounding," considering the challenges of the current economic climate and an era of low natural gas prices.

"DSM goals have been exponentially increasing since 2009," Maxwell said. "When you put it in the context of these unprecedented DSM goals, the fact that a large majority of administrators achieved 90 percent or more of their goals is remarkable."

Pacific Gas and Electric Co. (PG&E), Southern California Edison, and BC Hydro all saved more than 1 million kilowatt-hours (kWh) of electricity; PG&E and Southern California Gas Co. both saved more than 3 million gross decatherms (Dth) of gas energy.

The absolute energy-savings figures don't tell the entire story: 18 electric utilities and four gas utilities achieved energy savings of at least 1 percent of their retail sales.

For more:
- see this article

Related Articles: 
Institute for Building Efficiency reveals findings of the future of demand response
BEMS to boost energy efficiency, DSM 
PG&E collaborates on retrofit using integrated DSM technology

Read more about: Pacific Gas and Electric, BC Hydro
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3. Combined heat and power to double by 2022

By Barbara Vergetis Lundin Comment | Forward | Twitter | Facebook | LinkedIn

Annual installations of combined heat and power (CHP) systems will reach nearly 39 GW in 2012 and more than double by 2022, according to Pike Research.

CHP uses multiple forms of useful energy (usually mechanical and thermal) in a single, integrated system, and can reduce the cost of heating, cooling, or providing power to a wide variety of commercial building types.

"The use of CHP can reduce a building's energy demand by up to 40 percent when compared to the separate production of heat and power," says Pike Senior Research Analyst Mackinnon Lawrence. "Although the high upfront cost of CHP systems and the challenge of finding suitable uses for the heat generated are key barriers, relatively short payback periods have allowed many major companies to invest in these energy saving technologies."

CHP is not a single technology, but an integrated energy system, most commonly using a gas turbine with a heat recovery unit or a steam boiler with a steam turbine, according to the U.S. Environmental Protection Agency's Combined Heat and Power Partnership. The systems are widely available for a range of applications, but difficult to market to potential end users.

Alstom, however, has recently signed a contract with the German utility, RheinEnergie, for the turnkey construction of a 450 MW combined-cycle heat and power plant. RheinEnergie is investing approximately €350 million into the project.

The plant will reach an overall efficiency of close to 85 percent, making it one of the most effective in the world.

For more:
- see this article
- see this article

Related Articles:
Rolling blackouts driving resCHP
Is CHP the answer to coal retirements?  
ERCOT needs CHP now more than ever

Read more about: combined heat and power
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4. Mass. utilities contesting millions in penalties over storm response

By Barbara Vergetis Lundin Comment | Forward | Twitter | Facebook | LinkedIn

Western Massachusetts Electric Company (WMECo) and NSTAR Electric intend to appeal a ruling issued by the Massachusetts Department of Public Utilities assessing millions of dollars in fines for their storm response in major disasters last fall.

WMECo contends it deployed more than a thousand resources to restore power around the clock, including hundreds of crews and other support personnel, completing its response to emergencies, damage assessment activities and power restoration in a safe, responsible and methodical way under extremely difficult conditions. NSTAR claims it was one of the first investor-owned utilities to restore power to its customers in both storms and was able to send 76 line workers to assist National Grid and WEMCo.

"The amount of devastation our system sustained last fall cannot be understated -- with an estimated 80 percent of our overheard circuits damaged after Irene alone," said Werner Schweiger, president of NSTAR. "We were essentially rebuilding the electric system as we restored power, and the penalties assessed today are simply not in line with the realities of getting the job done."

The PUC has said that the utilities followed their emergency response plans, but still assessed penalties for response times to municipal requests for assistance, which were not regulated by the plan.

"The penalties assessed by the department do not follow from any bona fide industry practice, or reasonable operating practice in storm conditions," said Schweiger. "Storms of the magnitude experienced in 2011 had not occurred for over 20 years in our service area, leaving hundreds of poles and transformers in need of replacement. There is no way to shield the overhead electric system from damage when these storms occur."

For more:
- see this article

Related Articles:
Utilities feel the wrath of hurricane season 
Mass. fines utilities $24.8M for sloppy storm response  
Compounding natural forces with man-made disaster

Read more about: National Grid
back to top



5. EU could find answers to energy and climate goals with nuclear power

By Barbara Vergetis Lundin Comment | Forward | Twitter | Facebook | LinkedIn

Frost & Sullivan research concludes that nuclear energy is the answer to meeting aggressive EU carbon emissions and fossil fuel targets and will be a major contributor to the European energy mix in 2020.

Nuclear power will play an active role in Europe's energy generation. Dependence on foreign imports, especially gas from Russia, is full of challenges. This leaves nuclear power among the few alternatives Europe is left with to meet its energy needs and climate change goals.

"It is difficult to envisage Europe phasing out nuclear power from its energy mix, despite the antagonistic stance of countries like Germany, Switzerland, Italy and Belgium where there are likely to be embargoes on further nuclear power development," said Neha Vikash, and energy & power supplies analyst with Frost & Sullivan.

France, Finland, the U.K. and Sweden have all expressed their commitment to nuclear power. Central and Eastern Europe, Poland, Romania, and the Czech Republic are also planning new units with increased safety assessments.

"While there will be shutdowns, member states like the United Kingdom and Finland will push through better safety standards and support new nuclear build over the next four to five years," said Vikash. "Apart from new builds, these states will also concentrate on increasing the share of electricity generation from renewables and decreasing their dependence on fossil fuels."

For more:
- see this article
- see this article

Related Articles: 
German renewable energy mix growing rapidly
France's reliance on nuclear power 77% and rising
Despite public and political criticism, nuclear will propagate

Read more about: Nuclear Energy
back to top



Also Noted

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See www.universitycleantech.com


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