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2014/01/31

| 01.31.14 | 2014 and the digital grid

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January 31, 2014
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This week's sponsor is SilverSpring Networks.

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Today's Top Stories

  1. Michigan ag industry calling for help from state utilities
  2. PHI's revenue generator
  3. Nuclear plant outage to drive benefits of $150M
  4. EVSE sales to reflect rise in EV popularity worldwide
  5. Santee Cooper sells part-ownership of V.C. Summer


Also Noted: Georgia Tech DOE contract examines detecting utility cyberattacks and much more...

News from DistribuTECH: What does 2014 hold for the digitally-enabled grid?
We are wrapping up at DistribuTECH, the largest utility conference in North America, which, like our industry, has undergone a transformation. The conference has evolved from a gathering of grid hardware specialists to a technology-led event dominated by software and smart technology. 
Article


AESP National Conference: The buzz is about changing consumer behavior
One of the major themes buzzing among attendees of AESP's 24th national conference taking place in San Diego is that seemingly incessant challenge to change consumer behavior. But there is optimism --and evidence -- that consumers may be ready to change their behaviors to save energy. Article


Report calculates the social costs of carbon
The benefits of fossil fuel energy to society far outweigh the social costs of carbon (SCC) by a magnitude of 50 to 500 times, according to a study‎ released by the American Coalition for Clean Coal Electricity (ACCCE). 
Article


News From Across the Energy Industry:
1. Southern California Edison's smart grid experiment
2. The three C's
3. ASP: Some energy decisions unpopular, but necessary


This week's sponsor is Intelen.

Find Out More at www.intelen.com



Sponsor: Vodafone

Events

> The Smart Grid Customer Education - April 28, 2014 - New York City

Marketplace

> Building a Smarter Smart Grid: Counteracting Cyber-Threats In Energy Distribution
> Whitepaper: Download a FREE PREVIEW of the 2013 Smart Grid Hiring Trends report!

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Today's Top News

1. Michigan ag industry calling for help from state utilities


The Michigan Agri-Business Association is calling for the state's utilities to step up and help Michigan agriculture continue to grow by improving communication access and energy efficiency programs. The association contends that a "significant opportunity" exists for utilities in this regard.

Credit: Jake/Wikimedia Commons

Agribusinesses need energy at every point along the supply chain -- planting, harvesting, packaging and transporting food that accounts for a $96 billion industry in Michigan. As a result, disruptions and price volatility in the energy sector have a critical impact on agriculture's bottom line. In particular, the recent propane shortage in Michigan and across the region has put more attention on possibly expanding natural gas availability in the state.

"Agribusinesses and utility providers have to work together on how we'll handle increasing agricultural production, and electric and natural gas demand," said Michigan Agri-Business Association President Jim Byrum. "Michigan agribusinesses pay the highest electricity costs in the Midwest today, which is a real barrier as production continues to expand. Agriculture will need reliable access to energy in the years ahead and we need to focus on the future when it comes to energy efficiency."

Energy demand in the agricultural sector, from farms to businesses that handle grain and provide fertilizer, seed and other inputs increases every year as the industry expands -- increasing from 172.8 Million Metric Tons (MMT) in 1972 to 541.1 MMT in 2013. Production is on track to reach 874.9 MMT by 2025.

Consumers Energy has taken steps to address the concerns of Michigan's agriculture industry with a commitment across 22 areas, each aimed at helping producers increase future energy efficiency. At the same time, agribusinesses in the state have taken steps to improve sustainability and increase energy efficiency in an effort to cut energy consumption in the coming years.

"Agriculture is growing, and we need utility infrastructure to power that growth," said Byrum. "The Michigan Agri-Business Association worked closely with Consumers Energy to identify many of these new energy efficiency practices that qualify for support from the utility. We look forward to an ongoing, robust dialogue with all utilities to help us grow and reduce our energy use through efficiency programs."

For more:
- see this report

Related Articles:
Consumers Energy: Energy efficiency is lowest cost energy option
The energy efficiency/customer connection

Read more about: Energy Efficiency
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This week's sponsor is Vodafone.

Webinar: Beyond connectivity: Business Innovation with M2M Solutions
Thursday, February 20, 11AM ET / 8AM PT

During this webinar, we will introduce how the adoption of M2M technologies will result in business innovation, and the real customer case will be addressed to validate its deployment. Register Today!



2. PHI's revenue generator


Pepco Holdings, Inc. (PHI) has been named a Natural Capital Efficiency Leader by GreenBiz Group and Trucost as part of the partnership's first Natural Capital Leaders Index, making PHI one of just 28 companies across 19 business sectors that used natural resources most efficiently to generate revenue in 2013.

"We take great pride in being recognized for our work to reduce our environmental footprint and for being a leader in sustainability," said Wesley McNealy, PHI's director of environmental services. "We hope others will join our growing passion to address this business challenge with meaningful action."  

PHI was selected from more than 4,600 companies worldwide. Several core principles guided the selection criteria including, an extensive review of government and scholastic data, quantifying more than 700 environmental indicators such as the use of natural resources, water and land, and the generation of waste, water pollutants and air emissions. Company scores also were based on public disclosures - including PHI's Sustainability and Corporate Citizenship Report and the Company's Carbon Disclosure Project reporting.

In addition to being named a Natural Capital Efficiency Leader, PHI has received widespread recognition for its environmental stewardship and partners with regional and local nonprofit organizations devoted to improving and sustaining the environment.

For more:
- see this report

Read more about: Pepco Holdings
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3. Nuclear plant outage to drive benefits of $150M


During an upcoming outage and refueling, FirstEnergy's Davis-Besse Nuclear Power Station in Oak Harbor, Ohio, is a project expected to boost the local economy by more than $108 million. Overall economic benefits are expected to exceed $150 million statewide, according to an economic study recently completed by Phoenix-based consulting firm Applied Economics. The Davis-Besse Nuclear Power Station currently produces 900 MW of electricity and contributes more than $13 million each year in local and state taxes.

Davis-Besse Nuclear Power Station. Credit: Nuclear Regulatory Commission/Wikimedia Commons

The project includes the installation of two new steam generators, 470-ton components that produce the superheated steam used to drive the turbine generator, which ultimately produces electricity. The $600 million steam generator replacement project and the refueling are expected to employ as many as 2,300 additional local union and traveling contractor workers in addition to the normal workforce. Of the project budget, more than $147 million is expected to be spent on salaries for on-site temporary workers during the project.

"Installation of new steam generators is one of the largest projects to occur at Davis-Besse since construction of the facility," said Davis-Besse Site Vice President Ray Lieb. "The effort requires much more equipment, supplies and manpower than a regular refueling, and workers from 13 local unions along with a large contingent of out-of-town contractors will assist site personnel with the work."

Completion of the project is expected to help ensure that Davis-Besse remains an integral part of northwest Ohio's economy, and a safe, reliable and clean energy source for the future.

The economic impact study estimates a local benefit of more than $2.1 million to the Ottawa County area, as out-of-town workers stay in area hotels, eat in local restaurants and frequent area stores. An additional $38 million is expected to be spent on local goods and services to support the outage, including building and office supplies and other construction services.

For more:
- see this article

Related Articles:
Environmental regulations drive closure of FirstEnergy coal plants
FirstEnergy ready for more coal retirements

Read more about: FirstEnergy
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4. EVSE sales to reflect rise in EV popularity worldwide


Global sales of plug-in electric vehicles (PEVs) rose by more than 55 percent in 2013, and the market is expected to continue to grow at a steady pace over the next nine years, according to Navigant Research, leading to solid growth in the market for electric vehicle charging/supply equipment (EVSE). This growth is expected to accelerate over the next several years. 

Credit: Mariordo (Mario Roberto Durán Ortiz)/Wikimedia Commons

Credit: Mariordo (Mario Roberto Duran Ortiz)/Wikimedia Commons

In fact, global revenue from EVSE sales will grow from $567 million annually in 2013 to $5.8 billion in 2022, Navigant predicts. 

"The market for EV charging has seen an imbalance between the relatively high number of available chargers and the number of vehicles on the road, but that ratio is moving toward equilibrium and in some markets, charging demand outstrips supply," said Lisa Jerram, senior research analyst with Navigant Research. "The market has seen a wealth of offerings, including a wider range of EVSE at varying power levels and price points, and this diversity will help drive demand as consumers' choices increase."

The EVSE market is divided between residential, which includes single and family use, and commercial equipment, which includes workplace, public, and private facilities.  The market will see higher demand for residential units than for commercial units through 2014, according to the research, as early PEV adopters are more likely to own their own homes. As the PEV market grows, it will reach a broader base of consumers living in multi-family dwellings.

For more:
- see this report

Related Articles:
EV sales growing in surprising places
States collaborate to drive EV adoption
Consumers want utilities to support EV infrastructure
EVs could explode to more than 35M worldwide

Read more about: electric vehicle
back to top



5. Santee Cooper sells part-ownership of V.C. Summer


South Carolina Electric & Gas Company (SCE&G), principal subsidiary of SCANA Corporation, an energy-based holding company, and Santee Cooper, South Carolina's state-owned electric and water utility, have agreed that SCE&G will acquire a 5 percent ownership interest in the two new nuclear units (2 and 3) from Santee Cooper currently under construction at V.C. Summer Station.

Under the new terms, SCE&G will own 60 percent of the new nuclear units; Santee Cooper will own 40 percent. Under the current ownership agreement, SCE&G owns 55 percent and Santee Cooper owns 45 percent.

The 5 percent ownership interest would be acquired in three stages, with 1 percent to be acquired at the commercial operation date of the first new nuclear unit, anticipated to be in late 2017 or the first quarter of 2018. An additional 2 percent will be acquired no later than the first anniversary of the commercial operation date and the final 2 percent will be acquired no later than the second anniversary date of the commercial operation date.

The purchase price is anticipated to be $500 million for the entire 5 percent interest, based on current project cost, and provides that Santee Cooper will not transfer any of its remaining ownership interest until both units have been completed. The transaction is subject to regulatory approvals.

Santee Cooper has been exploring opportunities to reduce its ownership level since 2011, to better match the new units' capacity with business needs when the units come online, and still provide generating diversity that takes into account regulatory and fuel cost considerations.

"The past few years have shown unprecedented volatility in base load fuel costs and increasing regulatory pressures on fossil-fueled generation. [This] action reduces our costs to customers somewhat, while still preserving an ownership level that will position us well for the flexibility we will need going forward," said Lonnie Carter, Santee Cooper president and CEO. "SCE&G has done a stellar job as managing partner of V.C. Summer Unit 1, and they are supervising construction of our two new units in similar fashion. [The] board decision lets us strengthen that longstanding relationship with SCE&G. It also gives Santee Cooper a more precise future nuclear capacity that meets our generating targets and our customer needs."

The purchase will add approximately 110 MW that will help SCG&E replace a portion of 345 MW of older coal-fired generation expected to be retired over the next five years. The 5 percent increase will delay the need to build new gas fired capacity after 2020.

For more:
- see this report
- see this report

Related Articles:
VC Summer a nuclear debacle
Vogtle loan sparks review of DOE program

Read more about: Santee Cooper
back to top



Also Noted


Events


* Post listing: Click here.
* General ad info: Click here.

> The Smart Grid Customer Education - April 28, 2014 - New York City

Don't miss your chance to join industry leaders discussing experiences, successes, and challenges of rolling out successful Smart Grid communications and customer engagement programs. Register today for this must-attend event and learn more at smartgridcustomereducation.com or call 215-504-4272.



Marketplace


* Post listing: Click here.
* General ad info: Click here.

> Building a Smarter Smart Grid: Counteracting Cyber-Threats In Energy Distribution

A smarter energy grid is in the long-term best interest of the planet and everyone who inhabits it. But along with the potential of the smart grid comes challenges to modernize the existing grid and design tomorrow's grid with even more built-in intelligence, communication, and flexibility to adapt to future needs at an acceptable cost and without complexity. Learn More!

> Whitepaper: Download a FREE PREVIEW of the 2013 Smart Grid Hiring Trends report!

Featuring 76 unique tables illustrating nearly 30 Smart Grid hiring topics, this original research offers human resources professionals and hiring executives unique insight into emerging Smart Grid human resources challenges, solutions and trends. Click here to download the executive summary.

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