An Ignoble Experiment

2. National Grid supports net metering compromise

Cambridge, Massachusetts is the latest city to require the benchmarking and disclosure of building energy performance for large commercial, institutional, and multifamily buildings, joining Boston, along with eight other major U.S. cities -- Austin, Chicago, Minneapolis, Philadelphia, New York City, Seattle, San Francisco, and Washington, D.C. -- as well as two states and one county.

Green Building, Massachusetts Institute of Technology, Cambridge, Massachusetts. Credit: Wikimedia Commons

The City Council voted unanimously to approve the Building Energy Usage and Disclosure Ordinance (BEUDO), which will cut energy waste, lower utility bills, and reduce greenhouse gas emissions. The ordinance will be phased in for the various building types, with municipal buildings reporting their data by the end of 2014. Beginning in the second year of reporting, data collected will be disclosed annually.

"Building energy use produces two-thirds of Cambridge's total greenhouse gas emissions, and benchmarking data will create much-needed transparency in the marketplace to help drive owners, tenants, and investors to make better decisions about their buildings' energy use," said Cliff Majersik, executive director of the Institute for Market Transformation (IMT), a nonprofit that promotes energy efficiency in buildings. "Cities such as Cambridge, that are harnessing the power of building performance data, are at the forefront of [this] movement."

With buildings remaining the largest energy user in the country -- with much of that energy being wasted due to poor operations -- disclosure ordinances such as Cambridge's BEUDO identifies opportunities to cut waste and improve building performance. By providing information about energy consumption in a region, benchmarking data can help guide energy efficiency improvements.

Research has shown that building owners who benchmark their buildings are more likely to make energy efficiency improvements. A 2012 analysis of 35,000 benchmarked buildings, conducted by the U.S. Environmental Protection Agency (EPA), found that the buildings reduced consumption by an average of 7 percent over three years.

Further, a 2012 report commissioned by the California Public Utilities Commission found that benchmarking correlated closely with building energy improvements and management actions, and was a strong catalyst for customer participation in utility rebate and incentive programs.

For more:
- see this report

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By Barbara Vergetis Lundin

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National Grid is asking the House Ways and Means Committee to quickly release consensus language on House Bill 4185 -- a landmark compromise that provides a stable and cost-effective policy solution to support solar energy in Massachusetts. HB 4185 extends Massachusetts' net metering program, removing the caps that have been reached and making changes to both the net metering and renewable energy incentive programs.

"National Grid supports this legislation, in which many stakeholders worked together [including the Solar Energy Industries Association, the Solar Energy Business Association of New England, the New England Clean Energy Council, the Massachusetts Municipal Association and Environment Massachusetts] to reach a compromise that we believe will grow the solar industry while lowering the overall costs of the program, reducing the impact on customer bills," said Marcy Reed, president of National Grid. "The bill establishes a more competitive framework that will reduce the cost of installing solar throughout Massachusetts and position the commonwealth to meet the goal of 1,600 megawatts of solar by 2020."

The bill simplifies the solar rules in Massachusetts, removing NEM caps and establishing a stable incentive program. Without passage of the bill, some believe the solar sector in Massachusetts -- which currently employs more than 8,000 people -- will stall.

"Moreover, the bill stands as a model for the nation, resolving the debate between the renewable energy industry and utilities about how to support solar growth fairly," said New England Clean Energy Council President Peter Rothstein.

Last week, changes that would enable HB 4185 to move forward was agreed upon, including an accommodation to existing solar customers that recognizes the impact a minimum monthly bill could have on those customers; a continuation of the existing solar program for residential customers in municipal light plant districts; an expansion of program eligibility for solar projects up to 5 MW on brownfields; and a provision to further encourage the development of community solar.

For more:
- see HB 4185

Read more about: net metering
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3. Germany's solar story

By Barbara Vergetis Lundin

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4. Government initiative focusing on natural gas

The Solar Energy Industries Association (SEIA) has released a study prepared by the Brattle Group, which takes an in-depth look at Germany's solar support programs and how the United States can benefit in the long term by applying lessons learned.

Freiburg Minster. Credit: Wikimedia Commons/Oberth

Currently, Germany has 35 GW of installed solar capacity -- representing about 7 percent of the nation's wholesale generation -- and is on track to reach 52 GW in the near future. But the path has not been obstacle free.

"The primary lessons from the German experience are that a system of FITs [feed-in-tariffs], such as the one used in Germany, can be highly effective in promoting the growth of solar PV," the report contends. "But FITs for new installations should be adjusted regularly and perhaps automatically… so as to avoid undue increases of electricity rates for retail customers."

The report goes on to say that, "The reform efforts of the solar PV and renewable support programs in Germany should not be interpreted as an acknowledgement of a broad failure of the Germany systems of FITs. Rather, the reforms are indeed an effort to improve the design of the FIT system… Germany's experience therefore likely provides an opportunity to 'look ahead' and see how electricity systems and the rules governing them will have to adapt when penetration rates of various renewable energy sources reach levels similar to those in Germany today and beyond."

Solar in Germany has had its benefits, which the report claims outweigh the issues.

"When you examine all of the facts, Germany is a lesson to be learned from, not an experience to be avoided. Admittedly, the costs of Germany's renewable support programs, including solar PV, have been significant -- and higher than expected. But that's only part of the story," said SEIA President and CEO Rhone Resch. "There is also significant evidence that increased power production from the use of solar and other renewables is a major contributor to falling wholesale market prices in Germany, while also helping to significantly reduce pollution."

For more:
- download the report

Related Article:
Renewable energy lessons from Germany

Read more about: renewable energy, feed-in-tarriffs
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By Barbara Vergetis Lundin

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5. Dominion making progress toward reducing its environmental impact

The U.S. Department of Energy (DOE) has announced several new initiatives as part of its Administration Strategy to Reduce Methane Emissions, which builds on President Obama's Climate Action Plan. As part of the president's Climate Action Plan, the administration is currently carrying out the Quadrennial Energy Review (QER). The first installment is focused on the issues of transmission, storage and distribution infrastructure across the energy sector -- including natural gas.

The Energy Department's Initiative to Help Modernize Natural Gas Transmission and Distribution Infrastructure has several parts.

First, DOE has encouraged the Federal Energy Regulatory Commission to look at incentives and other ways to provide for greater certainty for cost recovery for investments in modernization of natural gas transmission infrastructure.

Second, the administration's initiative includes creating energy efficiency standards for new natural gas compressors, which are currently estimated to consume more than 7 percent of natural gas in the U.S. Improved efficiency will not only help provide energy savings for consumers but also reduce greenhouse gas emissions.

Third, the DOE, in collaboration with industry, will evaluate and establish a high-impact manufacturing research and development initiative to improve natural gas system efficiency and leak reduction.

Finally, a technical partnership with the National Association of State Regulatory Utility Commissioners is expected to accelerate investments for infrastructure modernization and repairs to natural gas distribution networks, with DOE providing grant funding and technical assistance to help inform decision-marking by state utility commissioners.

For more:
see this fact sheet

Read more about: natural gas infrastructure
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By Barbara Vergetis Lundin

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