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Also Noted: A. Cullen & Associates, Inc.
Inside Iceland's newest data center and much more... San Diego pilots first street light energy grid
One of the biggest energy cost centers in any given city is often the street light network. But imagine a city where the street lights are not only cost- and energy-efficient, but serve as a mini-energy grid and one of the key building blocks for a smart city. Feature
Utilities, regulators vital to aging water infrastructure
Public-private partnerships can play a role in rehabilitating the nation's aging water and wastewater infrastructure, according to Tom Roberts, president of Aqua North Carolina, which has spent more than $11 million to repair and improve water and wastewater systems throughout the state. Article
EIM to strengthen western grid reliability
The ISO Board of Governors has approved the design framework for a California Independent System Operator Corporation (ISO) energy imbalance market (EIM), which will allow western grid operators, known as "balancing authorities," to voluntarily participate in a real-time energy market that enhances grid reliability and responsiveness, effectively integrates renewable power and saves wholesale energy costs. Article
News From Across the Energy Industry:
1. Smart Grid Pioneers recognized
2. CA ISO approves Central Valley transmission line
3. Websites, IVRs demonstrate utilities' attempts to connect with customers
| This week's sponsors are FierceEnergy & FierceSmartGrid. |  | Fierce Innovation Report: Download Today
This special innovation report features in-depth articles on the state of the energy industry, with a focus on the smart grid, cybersecurity, and reliability and distrubition automation. The report also highlights the innovative companies and products that are shaping the future of the industry. Download it today! |
Today's Top News 1. Is the energy sector too big to fail?
The lack of a globally agreed upon framework for carbon pricing will impede investments in clean energy and low-carbon projects, according to the World Energy Council (WEC). The WEC has set forth an action plan for leaders to create an energy policy framework that addresses the triple challenge of environmental sustainability, energy equity (access and pricing), and energy security -- the energy trilemma.  | | Credit: Geg Agency/Wikimedia Commons | "The current lack of a global carbon pricing framework is having a chilling effect on investment for clean energy and low-carbon infrastructure. Setting long-term, stable policies is crucial to unlocking the needed investments, and business must be part of the solution. Policymakers and industry must work together to reduce uncertainty and manage risk more effectively," said Joan MacNaughton, executive chair of the WEC's World Energy Trilemma study. "Without a coherent and long-term carbon pricing framework, we could be creating the next 'too big to fail' sector with current investments being stranded and an energy system locked into a high-carbon future. This is not what we want but delay will prolong uncertainty, leading to systemic risk for the sustainability of the world's energy systems." The WEC report finds that capital is extremely sensitive to perceived political and regulatory risks, and the growing pressures on public finances in many countries mean that public funds will not be available to augment the private financing of energy initiatives. In a separate study, the WEC estimates that the world will need to invest from $19 trillion to more than $25 trillion for electricity generation alone between now and 2050. These recommendations are supported by Christiana Figueres, executive secretary of the UN Framework Convention on Climate Change (UNFCCC). "The UN Intergovernmental Panel on Climate Change clearly sounded the alarm that greenhouse gas emissions will cause tremendous and irreversible harm to the economies of the world if not quickly curbed. The good news is that the money, technology and policy tools to shift the current emissions trajectory and steer humanity out of the danger zone are available," Figueres said in a statement. "The Trilemma report demonstrates that a sustainable energy future is possible if all of these tools are deployed quickly and at scale. It also shows a strong willingness to act by the energy sector. I recommend that governments look closely at the report and act on its conclusions, which will strengthen the outcome of the 2015 global climate agreement and raise immediate ambition to curb greenhouse gases." The single best mechanism to drive investment is a stable, predictable policy framework. In order to unlock energy investments, WEC is calling for concerted efforts from policymakers and industry to minimize policy and regulatory risk, as well as the adoption of market-based approaches to carbon pricing to drive investments. WEC has found that market-based instruments are most effective in driving changes in the energy system, and that a carbon price or tax on CO2 emissions from energy can be an important tool to support the transition to low-carbon energy systems. WEC is also calling for transparent, flexible and dynamic pricing frameworks because energy systems that do not cover their costs over the medium to long term are not sustainable. Long periods of low prices may also jeopardize future energy availability. Transparent, flexible and dynamic energy pricing frameworks are critical for attracting investment, increasing energy efficiency, changing energy consumption patterns, developing renewable energy, improving access to new supply options, and driving innovation, WEC concludes. "Without immediate concerted action between the public and private sectors, the prospect of sustainable energy systems will hang in the balance as we approach the 2015 negotiations deadline," MacNaughton said. "For energy systems to be sustainable, countries must continue to work hard at identifying and implementing balanced and forward-looking policies. It is also necessary for the public and private sectors to proactively engage the finance community to drive the higher level of energy investments now required." For more:
- see this report Related Articles:
Balancing the energy trilemma's conflicting agenda
World energy issues keeping leaders up at night
World's sustainable future is uncertain
Research: Most countries grapple with "energy trilemma" Read more about: World Energy Council, energy trilemma
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2. Ensuring the reliability of variable resources
The American bulk-power system requires significant changes to electricity system planning and operations to ensure continued reliability. To this end, the North American Electric Reliability Corporation (NERC), in collaboration with the California Independent System Operator Corporation (ISO), has prepared an assessment to highlight the ISO's efforts toward effectively planning for and operating a transforming grid, as California expects to connect more than 11,000 MW of variable generation resources to their grid in the next eight years. The assessment identifies the key system enhancements in planning and operations that the ISO is pursuing and identifies further recommendations to promote reliable operations and maintain essential reliability services. As variable resources become a larger part of a system's resource mix -- on the order of 20 to 30 percent -- fundamental reliability services, such as frequency response, voltage control, transient stability, load-following and ramping capability can be impacted if not fully considered. Renewable generation provides a good basis for greening the grid and reducing the electric industry's carbon footprint. Their intermittency can be supported by a clean and flexible gas generation fleet, to which California is currently transitioning. "California ISO's experience provides a good case study of the challenges that need to be addressed to successfully integrate large amounts of variable energy resources into the grid," said Gerry Cauley, NERC's president and chief executive officer. Electricity supply traditionally has been provided by fossil?fueled, large?scale hydro and nuclear resources synchronously connected to the grid. These traditional generation resources have predictable operating performance with well?understood reliability characteristics. Variable energy resources have different characteristics and respond differently on the system. As larger amounts of variable generation are added to the system, they will displace the traditional large, rotating machines and the operating characteristics those machines provided. NERC and the ISO expect the solution to include a mix of market approaches, technology enhancements and reliability rules or other regulatory rule changes. For more:
- see this report Related Articles:
EIM to strengthen western grid reliability
Geothermal's place in the U.S. power grid Read more about: renewable energy, California Independent System Operator
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3. Operators unite to face grid challenges
The GO15, made up of the leaders of 16 of the largest power grid operators in the world, are calling for more grid infrastructure investment across the globe. The CEOs say that the current rate of change in the electricity industry is unprecedented and presents emerging challenges driven by the transition to lower emissions generation and a changing fuel mix, as well as changes in technology, economic factors and consumer behavior.  | | The energy grid. Credit: U.S. Dept. of Energy | These challenges require power grids to upgrade grid infrastructure and expand interconnections between power systems. Investment is needed to develop the information technology systems and "smart" IT systems required for the monitoring and control of power flows under increasingly complex operational conditions. "All of the world's grids share a similar problem," said Terry Boston, GO15 president and president and CEO of PJM Interconnection. "We all face reliability and operational challenges in a rapidly changing industry. The specifics of those challenges may differ from nation to nation, such as how best to connect renewable generation that is often far from population centers, the retirement of conventional power plants and the rapid growth of electricity use in emerging economies." The world's grids all face reliability and operational challenges in connecting and integrating new generation sources and renewable generation (such as photovoltaic, geothermal and wind), which is often intermittent and located far from load centers, which can be compounded with the retirement of conventional power plants. Power grids are also faced with increasing threats from terrorism and climate change, resulting in the need for increased grid resilience and protection. "There's no silver bullet to ensure resilience for the grid. What we need is more like silver buckshot that encompasses multiple approaches," Boston said. "Resilience is a learning process, and it is best when we learn from others' handling of crises…We're working closely with government and industry to blunt threats wherever possible and to meet them with determination and resilience." To accommodate these changes and protect the grid, operators and asset owners must support safety and reliability, economically efficient, sustainable investments, and a stable regulatory framework. For more:
- see this declaration Related Article:
Utilities can take simple steps to improve grid resiliency Read more about: PJM Interconnection, grid resilience
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4. Strategic planning will help guide renewable energy for the grid
The Bureau of Reclamation has released a sustainable energy strategic plan that will help guide the agency into the future as it develops and supports renewable energy production for the U.S. power grid.  | | The energy hierarchy. Credit: Philip R Wolfe/Wikimedia Commons | "Reclamation continues to successfully generate renewable, clean and affordable hydropower as energy needs consistently grow across the western United States," Commissioner Michael L. Connor said. "It is only natural that Reclamation play a key role in facilitating the additional development and integration of renewables such as hydropower, solar, wind and geothermal to help meet the western energy demands." As part of the Bureau's six long-term strategic objectives, the agency is increasing renewable generation from Reclamation projects; facilitating non-federal development of renewable energy projects; increase energy savings and conservation at Reclamation project; supporting integration of variable non-dispatchable renewable resources in the electrical grid; increasing benefits of renewable energy through technological innovation; and improving management efficiencies related to the implementation of renewable energy and energy savings projects. The agency has already begun implementing this plan and continues to work with water and power customers, power marketing administrations, and other stakeholders. Some of what the agency is currently working on includes engaging in generator uprates to increase power production capacity at generating units; replacing turbines to support overall unit efficiency and increased generation at the same water levels or the same generation at lower water levels; issuing a new Lease of Power Privilege directive and standard to provide clearer guidance and streamlining the process for non-federal hydropower development; identifying facilities and lands as potential candidates for renewable energy development; and increasing utility metering at individual buildings to facilitate monitoring of existing energy and water usage and to allow tracking after implementation of energy conservation measures. For more:
- see the plan Related Article:
Federal grants addressing energy-water nexus Read more about: Commissioner Michael L. Connor, renewable energy
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5. PUC finalizes new electric competition dictionary
The Pennsylvania Public Utility Commission (PUC) has finalized pricing label guidelines used when selling electric generation service to residential customers. A vote of 5 to 0 approved the updates to the Commission's "electric competition dictionary," which provides guidance to electric generation suppliers (EGS) on the appropriate use of the "fixed-price" label when presenting offers to potential customers. The changes come after several informal complaints were filed by consumers and inquiries were received from EGSes and electrical distribution companies about pricing practices.  | | Alex756/Wikimedia Commons | Some EGSes are offering fixed-rate products to residential customers but include language in the disclosure statement that allows the EGS to pass through rate changes if an outside entity like Federal Energy Regulatory Commission or the PJM Interconnection imposes costs on the supplier. These types of offers may be misleading, especially when an EGS prominently advertises a fixed price but includes possible additional costs that are described in the pass-through clause far down in the fine print. The guidelines address the definitions of fixed price, variable price and introductory price, expanding the definitions to include much more detail. For more:
- visit this website Read more about: Pennsylvania Public Utility Commission, pricing label guidelines
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