Renewable Energy Standard Pros and Cons – Federally Mandated Utility Participation

The question of what percentage of utilities' output should come from renewable energy sources has been debated by legislators nationwide for years now.  Some 28 states have declared statewide standards on renewable energy use by utilities, such as Colorado’s mandate for utilities to draw 20% of their energy from renewables by 2020.  Right now, a Colorado House of Representatives committee is discussing a bill (House bill 1001) to raise that requirement to 30% by 2020 for both Xcel Energy and Black Hills Energy (Source:  DenverPost.com, February 4).  The proposed bill, while it appears to have fairly broad support across the groups involved, is being considered in a state that’s much more conducive to renewable energy generation than say, Alabama may be.  (Photo credit: switchboard.nrdc.org)

The issue of the relative accessibility of renewable energy generation opportunities and the fact that this availability varies greatly across the nation is precisely the concern with some legislation that’s currently in front of the U.S. House of Representatives.  One bill being discussed would require utilities nationwide to derive 15% of their total energy output from renewable sources by 2021 – a number that’s already been reduced from 20% after hearing concerns from utilities on the issue (Source:  RenewableEnergyWorld.com, February 5). (Photo credit: wikimedia.org)

One possible solution to this problem is adopting a specific clause that allows for energy efficiency savings to be factored in to this mandate percentage.  If a given utility can implement an efficiency savings across its customer network of say, 8% between now and 2021, that percentage would likely count toward the overall 15% goal from renewables outlined in any legislation. 

It’s plain see that a state like Arizona may have abundant access to solar energy and Texas may have an abundance of potential wind energy, but that Mississippi may have less opportunity for either.  At the same time, if a reduction in carbon emissions is to be a priority in this country, there has to be either a market-driven or mandated incentive to push states to reach this goal.  While there may be more market-driven incentive in some states terms of the dollars to be earned by achieving these goals (and some federally-funded incentive as well in the form of American Recovery and Reinvestment Act dollars), there are legitimate concerns that these alone are simply not powerful enough.  In addition, if there is no pressure on the states that appear to have fewer resources where renewable energy generation is concerned, these states are less likely to produce more creative solutions, such as using sawdust in place of fossil fuels in the energy generation process (as the previously cited RenewableEnergyWorld.com article mentions).  (Photo credit: scientificamerican.com)

One thing is for certain – it will be interesting to see what comes of these legislative discussions.  My hope is that ingenuity and technological advancement will help every state to reach these goals, whether they arrive at them on their own or via federal mandate.  It's also worth noting here that many utilities are working with each other to produce their own industry guidelines, which is likely to help the cause as well.  For more on utility-driven measures, read more about the National Action Plan for Energy Efficiency.

Wind Power News Highlights

Wind energy generation is increasing, particularly in the United States, at a rapid pace. This pace is so rapid that, “The American Wind Energy Association (AWEA) reported today in its third quarter (Q3) market report that the U.S. wind energy industry installed 1,649 megawatts (MW) of new power generating capacity in the third quarter…bringing the total capacity added this year to date to over 5,800 MW” (Source: AmericanWindEnergyAssociation.com, October 20, 2009). In fact, as of February 2009, the United States surpassed every country in the world in wind energy generation (Source: NREL.gov, February 2009).

A Different Kind of Ownership

Though a large number of wind farm projects are funded by utilities, economic-stimulus funding, and private companies, a new type of group is taking on wind energy in the state of Montana. A community-owned wind farm projected to generate 500 megawatts will undergo on-site testing for the next year before the first phase of the turbine installation will begin. The project, a joint venture between National Wind and area ranchers and Montana Wind Resources LLC, will phase in several stages of 100+ megawatt turbine clusters over the next five to eight years (Source: RenewableEnergyWorld.com, December 1).

Combating the Wind Energy Storage Problem

Calmac recently developed a different approach to wind power storage that involves an interesting component; ice. Given that roughly 75% of the energy used in the United States is used by buildings and that a significant percentage of that goes towards air conditioning, excess energy storage in the form of ice has a lot of potential (Source: AlernativeEnergyNews.info, December 1). The thought process is that excess wind energy can be converted into ice during non-peak use hours, such as at night (when the wind is typically strongest), thus lessening the overall demand during peak times. Though there are similar devices available on the market, Calmac’s tank allows for the uniform building of ice throughout, charges in 6-12 hours, and can cut energy demand costs from 20-40%.

Re-framing the Storage Question

What if wind power could be reliably used by utilities without needing battery storage? The National Renewable Energy Laboratory recently announced a project that may bring researchers a step closer to this reality. NREL and Second Wind Inc., will test the Triton Sonic Wind Profiler, a device aimed at better predicting when and where wind will blow (Source: RenewableEnergyWorld.com, December 9). This testing, which will take place over the course of the next year, will eventually lead to the incorporation of the Triton Sonic Wind Profiler in a Wind Instrument Characterization System at the National Wind Technology Center. In the long run, the hope is for this collective set of tools to reliably predict future wind power output for use in the real-time power grid and to aid in development of new wind generation plants for optimal gathering capabilities.

Existing Technology, New Approach

In its own response to the wind power battery dilemma, Duke Energy is pursuing a more traditional battery storage project. The project, which will use an economic-stimulus grant of $22 million, involves the installation of batteries at its 151-megawatt Notrees wind farm in Texas. Duke Energy intends to prove that current batteries can store sufficient amounts wind-generated energy for reliable use by utilities, even when the wind is not blowing (Source: Charlotte.BizJournals.com, December 2).

Wind Energy Cost Hurdles and Drawbacks

Besides the obvious issues that wind farms create (noise, unsightliness, hazards to birds or bats, energy storage issues), there are a few other items worthy of consideration. As noted in an article by Daniel Price in Hutchnews.com, there is a tendency for wind farms to be built away from population centers and a fairly substantial up-front investment cost. In his article, he explains that transmission from these more remote locations poses a challenge for utility providers. A recent study by the found that the presence of wind turbines does not negatively impact housing prices (Source: NYTimes.com, December 9). If these wind farms truly do not negatively impact property values in their immediate vicinity, a compelling case exists for more of these facilities to be built closer to population centers, thus reducing transmission costs.

Another barrier to lowering the cost-per-kilowatt-hour of energy generated by wind turbines is the large amount of land necessary for industrial-use wind farms. “…it takes 60 acres per megawatt of installed capacity but only about 5 percent to 8 percent (three to six acres) are actually occupied by turbines, access roads and other equipment.” If the scale of these wind turbines is a clear barrier to more widespread use, what are some viable smaller-scale wind turbine options? The National Renewable Energy Laboratory is currently exploring this market by testing a handful of small turbine systems for certification; for more information, please click here.

Environmental Effects

At the request of congress, The National Academy of the Sciences recently produced a study about the hidden costs and effects associated with different types of energy generation. This study found that damages to the environment in terms of hidden pollutants, toxins and general effects were very small compared with traditional fossil fuel sources (Source: AmericanWindEnergyAssociation.com, December 2009). To read the full report, please click here.

Residential Energy Generation News

Although there are dozens of energy efficiency improvements that the average homeowner can embrace, there are an increasing number of renewable energy generation systems - and incentives – that are appearing in the residential marketplace.

Selling Your Energy - Ontario's Feed-In Tariff Proposal

The province of Ontario, Canada recently announced a strong feed-in tariff system modeled after similar programs in Europe. The program takes into account the cost differential between energy types and rewards participants accordingly, so the same number of watts fed into the main grid from these private sources are rewarded on a scale according to the estimated installation and generation costs to the energy contributor (Source: RenewableEnergyWord.com, September 25).

The proposed program includes everything from solar-generated energy to offshore wind energy and unlike programs that exist in the United States, there are no government subsidies or credits involved. In addition to the proposed feed-in tariffs, the province will commit to building an infrastructure of what they term “enabler” lines to aid in transmission of these new, privately generated renewables to the main transmission grid.

One anticipated result of these tariffs is a swift growth in the installation of renewable energy generation systems in private homes and commercial buildings. With such a wide variety of opportunities to generate renewables, one could expect to see an expansion upon the traditional hardware available to facilitate this generation.

A Material Improvement

One area where more experimental forms of energy generating components are already available to the homeowner is in solar generation cells. Several companies are developing building and roofing materials that include photovoltaic films that can be integrated into an existing roof design, rather than in the form of the standard - but less aesthetically pleasing - solar panels. Such roofing materials, while appealing, are still more costly and less efficient at this stage than the traditional solar panel technologies (Source: NewYorkTimes.com, September 26).

This week, however, some of the top experts in the development of solar materials presented some encouraging news in the development of solar generation materials at the Photovoltaic Solar Energy Conference and Exhibition (PVSEC), a European solar tradeshow. Among the many stated goals of these experts were advancements in both the efficiency of crystalline silicon (c-Si) and thin-film solar photovoltaics (PV) and the costs to produce these materials (Source: TradingMarkets.com, September 26).

Energy Efficiency Meets Renewable Energy - Geothermal

Another type of energy generation system that holds some promise on the homeowner’s level are geothermal systems, in which ground source heat pumps transfer heat stored in the ground to the residence, where a small amount of electricity can then be used to bring the temperature up further and the heat can be used for the home or to heat water. If no additional energy is added, the relatively cool temperature (compared to surface-level temperatures) can be used to cool air for dispersion into the home. Depending on the location of the home, a vertical system may involve drilling down to 200 feet and could cost as little at $10,000-$15,000, though many systems can cost more (Source: BCLocalNews.com, September 26). For the typical cost of a system, a homeowner could expect to recover the costs of installation at around seven years of operation, which tends to be sooner than the payoff seen with some other forms of energy efficiency or renewable energy generation systems at the homeowner’s level.

Making an Impact with Energy Efficiency - Where to Start

As I’ve mentioned in previous blogs, the best starting place for many homeowners is still to take on the simpler, less expensive energy efficiency improvements before seeking out more costly renewable energy generation systems. For homeowners who don’t have any idea where to start looking for the most cost-effective energy efficiency improvements to their home, I recommend The Home Energy Saver website tool, which was developed by the Environmental Energy Technologies Division at Lawrence Berkeley National Laboratory.