On Rooftops, a Rival for Utilities

Alarmed by what they say has become an existential threat to their business, utility companies are moving to roll back government incentives aimed at promoting solar energy and other renewable sources of power. At stake, the companies say, is nothing less than the future of the American electricity industry.

According to the Energy Information Administration, rooftop solar electricity — the economics of which often depend on government incentives and mandates — accounts for less than a quarter of 1 percent of the nation’s power generation.

And yet, to hear executives tell it, such power sources could ultimately threaten traditional utilities’ ability to maintain the nation’s grid.

“We did not get in front of this disruption,” Clark Gellings, a fellow at the Electric Power Research Institute, a nonprofit arm of the industry, said during a panel discussion at the annual utility convention last month. “It may be too late.”

Advocates of renewable energy — not least solar industry executives who stand to get rich from the transformation — say such statements are wildly overblown. For now, they say, the government needs to help make the economics of renewable power work for ordinary Americans. Without incentives, the young industry might wither — and with it, their own potential profits.

The battle is playing out among energy executives, lawmakers and regulators across the country.

In Arizona, for example, the country’s second-largest solar market, the state’s largest utility is pressuring the Arizona Corporation Commission, which sets utility rates, to reconsider a generous residential credit and impose new fees on customers, months after the agency eliminated a commercial solar incentive. In North Carolina, Duke Energy is pushing to institute a new set of charges for solar customers as well.

Nowhere, though, is the battle more heated than in California, home to the nation’s largest solar market and some of the most aggressive subsidies. The outcome has the potential to set the course for solar and other renewable energies for decades to come.

At the heart of the fight is a credit system called net metering, which pays residential and commercial customers for excess renewable energy they sell back to utilities. Currently, 43 states, the District of Columbia and 4 territories offer a form of the incentive, according to the Energy Department.

Some keep the credit in line with the wholesale prices that utilities pay large power producers, which can be a few cents a kilowatt-hour. But in California, those payments are among the most generous because they are tied to the daytime retail rates customers pay for electricity, which include utility costs for maintaining the grid.

California’s three major utilities estimate that by the time the subsidy program fills up under its current limits, they could have to make up almost $1.4 billion a year in revenue lost to solar customers, and shift that burden to roughly 7.6 million nonsolar customers — an extra $185 a year if evenly spread. Some studies cited by solar advocates have shown, though, that the credit system can result in a net savings for the utilities.

Utilities in California have appealed to lawmakers and regulators to reduce the credits and limit the number of people who can participate. It has been an uphill fight.

About a year ago, the utilities pushed regulators to keep the amount of rooftop solar that would qualify for the net metering program at a low level; instead, regulators effectively raised it. Still, the utilities won a concession from the Legislature, which ordered the California Public Utilities Commission to conduct a study to determine the costs and benefits of rooftop solar to both customers and the power grid with an eye toward retooling the policy.

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Intermittent Nature of Green Power Is Challenge for Utilities

Except when they aren’t allowed to spin at their fastest. That has been the case several times in the farm’s short existence, including during the record July heat wave when it could have produced enough much-needed energy to fuel a small town. Instead, the grid system operator held it at times to just one-third of what it could have produced.

“We were being told to turn on diesel-fired units that are very expensive and dirty and told to ramp down what is renewable, cost-effective energy for our customers,” said Mary Powell, chief executive of Green Mountain Power, the utility that owns and operates the wind plant. “We should go with the sources that can have the highest value, especially during peak times.”

It is not the first time the grid system operator, ISO New England, which operates in six states, has cut back energy from the farm since it began operating at the end of last year, or from others in the region, including some in Maine and New Hampshire. Other windy states and regions like Texas and the Midwest have experienced similar cutbacks, known as curtailments.

But the recent Vermont episode, which set off a debate among government officials, the New England grid executives and the wind farm producers, highlights a broader struggle taking place across the country as utilities increasingly turn to renewable sources of energy. Because energy produced by wind, for example, is intermittent, its generating capacity is harder to predict than conventional power’s. And a lack of widely available, cost-effective ways to store electricity generated by wind only compounds the complex current marketplace.

Moreover, although the wind industry has been growing for decades, it is still relatively new at operating large-scale wind farms, so it is often only once a farm is up and running that some of the problems emerge, developers say.

And those problems are likely to grow. Last year, wind power was the most prevalent source of new energy capacity — 43 percent of overall generation installed — while its price neared an all-time low, according to a recent report for the Department of Energy by Lawrence Berkeley National Laboratory.

A number of factors can trigger curtailments in wind output, including reducing the danger to bats or birds flying around the spinning blades. But more commonly, regional grid managers, who must match demand and supply instantaneously, call for a reduction in wind power when more energy is produced than the system can safely transport, they say.

Indeed, in New England in recent months, the grid system operator has cut back power from wind and hydroelectric plants several times, generally, its representatives say, because they were making too much electricity. New wind farms are frequently located in sparsely populated areas or along mountain ridges where there has not been a need for transmission lines with a robust carrying capacity, officials say.

In addition, it is more difficult to properly synchronize wind’s fluctuating power flow with a system built for the steadier electric stream that fossil fuel plants tend to produce.

“As these wind turbines are built and interconnected, they’re interconnecting to local transmission lines, and for the most part they can produce electricity and inject it onto the system,” said Ellen Foley, a spokeswoman for the grid operator. “But there may be occasions where they may have to be backed down or curtailed because of the limitations of the line — it’s literally the size of the line.”

The fear, she said, is that a surge in energy could overload and shut down the wires, leading to a drop in voltage on the system that could spread blackouts through the region and to other parts of the country.

This article has been revised to reflect the following correction:

Correction: August 21, 2013

An article on Thursday about challenges affecting renewable energy producers misstated the estimated costs to the Vermont Electric Cooperative under production curtailments at the Kingdom Community Wind farm, ordered by ISO New England, the area’s electric grid operator. The cooperative estimated that the curtailments would cost the cooperative about $1.5 million this year; the estimate did not apply to last winter.

The article also misstated, using information provided by the cooperative, the ownership structure of Kingdom Community Wind. It is owned by Green Mountain Power; it is not “co-owned” by Vermont Electric Cooperative, which shares in the cost of running the wind farm.

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Intermittent Nature of Green Power Is Challenge for Utilities

Except when they aren’t allowed to spin at their fastest. That has been the case several times in the farm’s short existence, including during the record July heat wave when it could have produced enough much-needed energy to fuel a small town. Instead, the grid system operator held it at times to just one-third of what it could have produced.

“We were being told to turn on diesel-fired units that are very expensive and dirty and told to ramp down what is renewable, cost-effective energy for our customers,” said Mary Powell, chief executive of Green Mountain Power, the utility that owns and operates the wind plant. “We should go with the sources that can have the highest value, especially during peak times.”

It is not the first time the grid system operator, ISO New England, which operates in six states, has cut back energy from the farm since it began operating at the end of last year, or from others in the region, including some in Maine and New Hampshire. Other windy states and regions like Texas and the Midwest have experienced similar cutbacks, known as curtailments.

But the recent Vermont episode, which set off a debate among government officials, the New England grid executives and the wind farm producers, highlights a broader struggle taking place across the country as utilities increasingly turn to renewable sources of energy. Because energy produced by wind, for example, is intermittent, its generating capacity is harder to predict than conventional power’s. And a lack of widely available, cost-effective ways to store electricity generated by wind only compounds the complex current marketplace.

Moreover, although the wind industry has been growing for decades, it is still relatively new at operating large-scale wind farms, so it is often only once a farm is up and running that some of the problems emerge, developers say.

And those problems are likely to grow. Last year, wind power was the most prevalent source of new energy capacity — 43 percent of overall generation installed — while its price neared an all-time low, according to a recent report for the Department of Energy by Lawrence Berkeley National Laboratory.

A number of factors can trigger curtailments in wind output, including reducing the danger to bats or birds flying around the spinning blades. But more commonly, regional grid managers, who must match demand and supply instantaneously, call for a reduction in wind power when more energy is produced than the system can safely transport, they say.

Indeed, in New England in recent months, the grid system operator has cut back power from wind and hydroelectric plants several times, generally, its representatives say, because they were making too much electricity. New wind farms are frequently located in sparsely populated areas or along mountain ridges where there has not been a need for transmission lines with a robust carrying capacity, officials say.

In addition, it is more difficult to properly synchronize wind’s fluctuating power flow with a system built for the steadier electric stream that fossil fuel plants tend to produce.

“As these wind turbines are built and interconnected, they’re interconnecting to local transmission lines, and for the most part they can produce electricity and inject it onto the system,” said Ellen Foley, a spokeswoman for the grid operator. “But there may be occasions where they may have to be backed down or curtailed because of the limitations of the line — it’s literally the size of the line.”

The fear, she said, is that a surge in energy could overload and shut down the wires, leading to a drop in voltage on the system that could spread blackouts through the region and to other parts of the country.

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.