Preview Newsletter
SFCE Sept 22
-
US & Chinese Cities Meet & Pledge Deeper Carbon Cuts
Sep 22, 2015 | Clean Technica
By Sandy Dechert
US and China climate leaders held a summit in Los Angeles on September 15–16. The meeting fulfilled a key element of the US–China Joint Announcement on Climate Change by Presidents Obama and Xi last November. It will help ensure that ambitious actions on the part of the #1 and #2 carbon-polluting nations to address climate change will be implemented at subnational levels (cities, states, and provinces), which have made substantial progress in recent months and years. -
Regional governments promise to deliver carbon cuts by 2030 greater than total US annual emissions
Sep 22, 2015 | BusinessGreen
State and regional governments representing jurisdictions that account for 10 per cent of global GDP have today announced collective climate targets designed to save 7.9Gt of carbon dioxide equivalent by 2030. The announcements, which were orchestrated by the Compact of States of Regions, are expected to result in emissions savings greater than total annual US carbon emissions in 2012. The Compact, which is backed by the UN and has been developed by a partnership between leading NGOs The Climate Group, CDP, R20 and nrg4SD, will unveil the new commitments at the high profile Climate Week NYC event in New York later today. -
Massive Texas “Electricity Island” To Get First Ever Solar Energy Storage
Sep 22, 2015 | Clean Technica
By Tina Casey
Cleantech news has been pouring forth from the great state of Texas, but it looks like we ain’t seen nothing yet. Texas has just committed to its first ever grid-connected solar system with energy storage, courtesy of home-state solar experts OCI Solar Power and the global energy storage company Younicos. It’s a huge deal because the grid in question happens to serve 24 million Texans and other customers, accounting for about 90% of the electric load in the entire state. If you guessed that the grid is managed by ERCOT, the The Electric Reliability Council of Texas, run right out and buy yourself a cigar. ERCOT has an extremely difficult mission to fulfill, and it is growing more difficult practically by the day. The agency is tasked with ensuring reliability within the confines of a virtual “electricity island” that lacks full connectivity with other grids in the US and Mexico, to serve a vast, complex, and skyrocketing number of consumers. -
OPIC funds 100 MW CSP plant in South Africa, grid improvements in Pakistan
Sep 22, 2015 | PV Magazine
By Edgar Meza
The U.S.-led international development projects support private sector development in energy and inclusive access to finance. The projects "show the transformative impact that the U.S. private sector can have in the developing world," OPIC says. As part of a $1 billion initiative to support private sector-led development projects in Africa and Asia, the U.S. government’s Overseas Private Investment Corporation (OPIC) has approved up to $400 million in financing for a 100 MW concentrating solar power (CSP) plant in South Africa. -
The sneaky war on rooftop solar from Australia’s utilities
Sep 22, 2015 | Reneweconomy
By Nathan Lim
Utilities around the world pretty much all use the same approach to earning a profit. With government regulatory oversight, they determine the total cost of providing their service and then pass this cost with a reasonable mark-up on to its customers. The cost to customers has traditionally been a blend of a fixed and a consumption-based charge, with the fixed charge component typically small to encourage energy conservation. In essence, a household would be rewarded with a lower bill when they used less energy. Alternatively, a bill that was 100% fixed would mean households would experience no savings by using less energy and, in fact, might use more. Just think about how much you ate the last time you went to an all- you-can-eat restaurant! -
VW scandal: what the emissions revelations mean
Sep 22, 2015 | The Guardian
By Sean Farrell
The US Environmental Protection Agency (EPA) said on Friday that Volkswagen had installed illegal software to cheat emission tests, allowing its diesel cars to produce up to 40 times more pollution than allowed. The US government has ordered VW to recall 482,000 VW and Audi cars produced since 2009. It could be very bad indeed. Almost €15bn (£10,8bn), or a fifth, was wiped off the company’s market value on Monday as investors took fright at the revelations. At the market opening on Tuesday shares were down a further 3.6%.
Industry News
-
US & Chinese Cities Meet & Pledge Deeper Carbon Cuts
Sep 22, 2015 | Clean Technica
By Sandy Dechert
US and China climate leaders held a summit in Los Angeles on September 15–16. The meeting fulfilled a key element of the US–China Joint Announcement on Climate Change by Presidents Obama and Xi last November. It will help ensure that ambitious actions on the part of the #1 and #2 carbon-polluting nations to address climate change will be implemented at subnational levels (cities, states, and provinces), which have made substantial progress in recent months and years.
Chinese officials announced after the bilateral talks that Beijing and 10 other Chinese cities have agreed to peak greenhouse gas emissions by 2030. These cities emit about 25% of the nation’s total greenhouse gases. Beijing and Guangzhou, two of China’s largest cities, are aiming for 2020. The moves put them 10 years ahead of their previous target.
US cities and states pledging further actions include Atlanta, Boston, Los Angeles, Connecticut, Portland (OR), Seattle, Houston, Salt Lake City, Des Moines, Carmel (IN), Pinecrest (FL), Miami-Dade County, Boston, San Francisco, and Washington (DC). Seattle is pledging carbon neutrality by 2050. Also, New York and Los Angeles have promised to cut greenhouse gas emissions 80% by 2050 and significantly cut down energy use in buildings.
In support of peak national CO2 emissions around 2030, provinces, states, and cities in the new compact will jointly establish an Alliance of Peaking Pioneer Cities (APPC). You can access the full declaration and actions and commitments of subregions in both nations here.
Below are the specific actions the leaders outlined for their respective municipalities and regions:
Establish Ambitious Target(s): Each municipality, county, or region intends to establish or re-establish ambitious and achievable targets and actions as listed in the Appendix to control greenhouse gas emissions, promote low-carbon development, and build climate resilience.
Report on GHG Inventories: Each municipality, county, or region intends to track and report emissions via regular GHG inventories.
Establish Climate Action Plans: Each municipality, county, or region intends to create a municipal or regional climate action plan to mitigate greenhouse gas emissions and enhance climate resilience.
Enhance Bilateral Partnership and Cooperation: Recognizing that regular bilateral dialogue and cooperation is essential for sharing best practices and lessons learned, as well as innovating, demonstrating, and deploying low carbon technologies, we will work toward establishing a US-China Climate Leaders Network, comprised of cities, counties, and regions in the context of U.S.-China Climate-Smart/Low-Carbon Cities Summit, to support sustained partnerships and knowledge-sharing.
http://cleantechnica.com/2015/09/22/us-chinese-cities-meet-pledge-deeper-carbon-cuts/?utm_source=dlvr.it&utm_medium=twitter
-
Regional governments promise to deliver carbon cuts by 2030 greater than total US annual emissions
Sep 22, 2015 | BusinessGreen
State and regional governments representing jurisdictions that account for 10 per cent of global GDP have today announced collective climate targets designed to save 7.9Gt of carbon dioxide equivalent by 2030.
The announcements, which were orchestrated by the Compact of States of Regions, are expected to result in emissions savings greater than total annual US carbon emissions in 2012.
The Compact, which is backed by the UN and has been developed by a partnership between leading NGOs The Climate Group, CDP, R20 and nrg4SD, will unveil the new commitments at the high profile Climate Week NYC event in New York later today.
The Compact said combined the new targets would cut emissions by 2 GtCO2e by 2020 relative to 'business as usual', more than the combined emissions of Brazil and Germany in 2012.
The 20 sub-national governments signed up to the initiative cover 220 million people and are expected to meet the targets through a series of renewable energy and energy efficiency programmes.
They include US states such as New York, California and Oregon, the Canadian provinces of British Columbia and Quebec, Jalisco, Rio de Janeiro and Sao Paulo in Central and South America, Australian Capital Territory and South Australia in Australia, and European governments, such as the Basque Country, Bavaria, Catalonia, Wales and Scotland.
The new commitments are expected to be followed by similar pledges from other regional governments in the run up to this December's Paris Summit. A total of over 40 States and Regions have now submitted data in support of their targets through the UN's Non-state Actor Zone for Climate Action (NAZCA) platform. The commitments are being verified and compiled ahead of the Paris Summit later this year where they are expected to support the growing number of climate action plans submitted by national governments.
"This proves yet again that the work of state and regional governments is not only supporting a transition to a low carbon economy, but accelerating it," said Premier Philippe Couillard of Québec, and North America co-chair of The Climate Group States & Regions Alliance, in a statement. "We are implementing innovative programmes that will allow this prosperous future to become a reality. The Compact of States and Regions creates the opportunity for us to accurately and publicly record data against our climate targets. We continue to lead the way, and do so because we know it will not only create a healthier environment for our citizens, but because it is a significant economic opportunity for a more prosperous, sustainable economy."
His comments were echoed by Scotland First Minister Nicola Sturgeon, who in a video message to be broadcast at Climate Week NYC argued "rapid action to [build] a low carbon economy will benefit everyone".
"It tackles climate change, supports the development of new technologies and creates new jobs," she added. "We want to work closely with partner governments, businesses and non-governmental organisations from around the world to upscale this transition. Platforms like the Compact of States and Regions allow us to lead by example and shows the need and way towards a strong agreement in Paris."
http://www.businessgreen.com/bg/news/2426950/regional-governments-promise-to-deliver-carbon-cuts-by-2030-greater-than-total-us-emissions
-
Massive Texas “Electricity Island” To Get First Ever Solar Energy Storage
Sep 22, 2015 | Clean Technica
By Tina Casey
Cleantech news has been pouring forth from the great state of Texas, but it looks like we ain’t seen nothing yet. Texas has just committed to its first ever grid-connected solar system with energy storage, courtesy of home-state solar experts OCI Solar Power and the global energy storage company Younicos. It’s a huge deal because the grid in question happens to serve 24 million Texans and other customers, accounting for about 90% of the electric load in the entire state.
If you guessed that the grid is managed by ERCOT, the The Electric Reliability Council of Texas, run right out and buy yourself a cigar. ERCOT has an extremely difficult mission to fulfill, and it is growing more difficult practically by the day. The agency is tasked with ensuring reliability within the confines of a virtual “electricity island” that lacks full connectivity with other grids in the US and Mexico, to serve a vast, complex, and skyrocketing number of consumers.
Younicos And Energy Storage And Texas
CleanTechnica was invited on a cleantech tour of Germany in 2014 got to tour a Younicos facility in Berlin. CleanTechnica director Zachary Shahan was very impressed with the company, and it sure has been making waves in the energy storage field since then. Last winter, Younicos earned a spot on our list of 43 battery energy storage companies, right after expansion announcements and not long before it announced plans to double its workforce in Germany and the US. Just before all of that, it began a trial run of the largest battery storage project in Europe. In April, it partnered with Leclanche for an energy storage project in the Azores. And just last week, it launched a major new energy storage system for Bavaria.
The newest agreement, in Texas, calls for Younicos to provide a “turnkey” 1 megawatt battery energy storage system for an OCI Solar Power installation, with overall system management provided by proprietary software developed by Younicos. The location of the solar array is not revealed in the press materials, but the important thing is that this will be ERCOT’s first ever foray into grid-connected, utility-scale solar with energy storage.
The system will also mark the first time that a facility in the ERCOT market has used battery energy storage provided by LG Chem, and chances are that it won’t be the last. Younicos and OCI have already announced that the new Texas project is just the first in a string of similar ventures around the globe.
Massive Electricity Island In Texas
ERCOT’s news feed from the past couple of months paints a picture of a system under stress, particularly when it comes to peak load. The agency’s 2014 report details long-term solutions for system reliability (as capably predicted by Abengoa by the way), and renewable energy storage makes the cut. Because of the grid’s relative isolation, the need for readily available reserves is critical.
With 43,000 miles of transmission lines and 550 generation units already in the mix, you’re not going to see ERCOT switch gears overnight. For example, while ERCOT added almost 1,500 megawatts of new wind generation last year, it also added more than 2,100 megawatts of new gas-fired generation (yes, that gas).
However, the agency’s 2014 report paints a clear picture of grid management in transitionacross the board, including energy storage:
As renewable energy sources become less expensive and ongoing regulatory developments create a more uncertain environment for some traditional generation sources, ERCOT is seeing growth in wind and solar resources and expects future growth in energy storage. Although utility-scale solar power still represents less than 1 percent of capacity and energy production in the ERCOT region, it is poised for significant growth in the coming years.
As of last year, Texas was still the leading wind energy state in the US, and wind accounted for an impressive 10.6% of all the energy consumed in the ERCOT market. ERCOT plans to look into adding another 6,000 megawatts of wind in addition to new projects already under agreement totaling 385 megawatts, thanks to the recently completed $7 billion CREZ wind transmission project.
Grid-connected solar is off to a slow start in the ERCOT market but that seems to be changing , too. ERCOT added 38 megawatts of new solar last year, bringing its total to 150 megawatts. A report commissioned by a Texas business organization suggests that this is just the tip of a very large solar iceberg.
Battery energy storage is similarly lagging at a total of 36 megawatts in the ERCOT market, with no new storage added in 2014. However, that is due for a sea change. Last year, ERCOT changed its rules for reliability to include storage in its Fast-Responding Regulation Service, and the ERCOT market could be in for another 600 megawatts of new storage capacity in the not too distant future.
Whither Shale Gas?
Last year, we got so excited about renewable energy activity in an epicenter of US oil and gas production that we declared that the shale gas revolution is over and done. For some reason, that memo didn’t get over to our friends at ExxonMobil. Last year, we noted that the company was buying up shale assets, apparently in support of the company’s new gas-to-plastics venture.
That strategy also appears to apply to the company’s shale oil assets. Last week, Bloombergreported that ExxonMobil has been signalling a new push for shale acquisitions in Texas, focusing on independent producers. We’re guessing that represents a low-risk attempt (low risk for ExxonMobil, that is) to keep drill rigs humming along in a glutted market, so stay tuned.
http://cleantechnica.com/2015/09/22/massive-texas-electricity-island-get-first-ever-solar-energy-storage/?utm_source=dlvr.it&utm_medium=twitter
-
OPIC funds 100 MW CSP plant in South Africa, grid improvements in Pakistan
Sep 22, 2015 | PV Magazine
By Edgar Meza
The U.S.-led international development projects support private sector development in energy and inclusive access to finance. The projects "show the transformative impact that the U.S. private sector can have in the developing world," OPIC says.
As part of a $1 billion initiative to support private sector-led development projects in Africa and Asia, the U.S. government’s Overseas Private Investment Corporation (OPIC) has approved up to $400 million in financing for a 100 MW concentrating solar power (CSP) plant in South Africa.
Projects approved for financing include large-scale renewable power generation, increased lending to underserved populations to spur economic growth and partnerships to modernize and construct stabilizing energy infrastructure in fast-emerging economies that currently lack reliable electricity, the agency said.
OPIC’s financing will support the South African solar energy project by providing an investment guarantee to California-based SolarReserve and Saudi Arabia’s ACWA Power, which are partnering on the construction and operation of the Redstone CSP plant in the Northern Cape province. SolarReserve’s development of the project also helps fulfil the South African government’s renewable energy goals.
OPIC is playing a key role in the White House’s $7 billion Power Africa initiative, which aims to address critical power access needs across sub-Saharan Africa. The initiative is focusing on the expansion of the continent's power generation capacity and specifically targeting small-scale renewable energy investments.
OPIC also provided $250 million in to Standard Bank of South Africa, which it will use to finance power generation and infrastructure projects in OPIC-eligible countries in Sub-Saharan Africa. The demand for electricity across Africa was critical, the agency stressed.
In Pakistan, Karachi-based electric company K-Electric (KE) will use a $250 million OPIC investment guaranty to undertake a comprehensive and transformative power grid upgrade program in the country’s largest and most populous city. Electricity outages and shortfalls are a constraint to economic growth and stability in Pakistan and KE’s grid improvement project will significantly improve reliability and efficiency of the power network in its licensed area, which extends to other parts of Sindh as well as Baluchistan provinces in addition to Karachi, OPIC said. The agency’s support in conjunction with a direct loan from Citibank to K-Electric’s project will support new transmission capacity, loss-reduction measures and an innovative smart grid initiative to more accurately distribute and utilize existing power.
OPIC President and CEO Elizabeth Littlefield said the projects approved by OPIC were “significant in both vision and volume,” adding,“[T]he new clean power generation led by SolarReserve as well as sweeping efficiency modernizations from K-Electric exemplify the exciting realities of energy production and delivery in the 21st century. These projects show the transformative impact that the U.S. private sector can have in the developing world, and we look forward to their successes in supporting clean power and inclusive growth in Asia and Africa.”
http://www.pv-magazine.com/news/details/beitrag/opic-funds-100-mw-csp-plant-in-south-africa--grid-improvements-in-pakistan_100021189/?utm_source=twitterfeed&utm_medium=twitter#axzz3mS4pNHWl
-
The sneaky war on rooftop solar from Australia’s utilities
Sep 22, 2015 | Reneweconomy
By Nathan Lim
Utilities are being sneaky
We previously wrote about how it is a mistake to think utilities will disappear with the growth of distributed generation. Utility companies could be expected to respond to the challenges to their dominance with the growth of rooftop solar. However, their response to date could best be described as sneaky.
The current utility business model
Utilities around the world pretty much all use the same approach to earning a profit. With government regulatory oversight, they determine the total cost of providing their service and then pass this cost with a reasonable mark-up on to its customers. The cost to customers has traditionally been a blend of a fixed and a consumption-based charge, with the fixed charge component typically small to encourage energy conservation.
In essence, a household would be rewarded with a lower bill when they used less energy. Alternatively, a bill that was 100% fixed would mean households would experience no savings by using less energy and, in fact, might use more. Just think about how much you ate the last time you went to an all- you-can-eat restaurant!
How rooftop solar upsets the utilities
Customers who install solar panels reduce their energy consumption from the utility. Based on the current utility charging approach, less power consumption results in less revenue and less profit. Unsurprisingly, utilities have started to lobby their regulators for changes in their charging structure. They increasingly are now opting to increase fixed charges while simultaneously reducing variable charges. To a typical non-solar household, the change is often invisible as there will frequently be little or no impact on their bill. However, by shifting more of the monthly bill into the fixed category, the benefit of installing solar is greatly diminished. In effect, the utility has found a way to take back the lost revenue a household saves when they go solar.
The rise of fixed charges
Fixed charges are going up everywhere. According to the NC Clean Energy Technology Center in their quarterly assessment of the US solar policy, 32 fixed charge increases have been proposed in 18 states. The average proposed increase is seeking a 59% increase in the monthly fixed charge from US$9.70 to US$15.45 for all customers (solar and non-solar). Thankfully, of the 15 proposals decided in the June quarter, only nine got an increase and then only at about half the amount requested.
Utilities have also sought increases that specifically target solar households. Five states are considering such solar-specific charges. Two states are basing the charge on the size of the solar panel system, and three states are basing charges on peak demand. Peak demand charges have traditionally been reserved for business as they can put significant, intermittent strain on the system due to their size.
For example, think of a factory with hundreds of workers that suddenly turn on its air conditioning for the entire facility for an hour until the hottest part of the day passes. A peak demand charge is calculated by observing the maximum load a customer draws over the day. This peak typically only lasts a short period, but the utility must have significant resources on standby ready to deal with these daily surges. Incredibly, utilities are now applying the same logic to households targeting surges in their uses to drive solar-specific charges.
We can see this happening in Australia
Even here in Australia, the Queensland Competition Authority (QCA) recently raised the monthly fixed charge for households and lowered the consumption charge. The monthly fixed charge rose 28% while the consumption charge (variable portion) fell 12%.
Using the table below from the QCA we can see the impact on households:
Based on the latest data from Energex, we estimate the typical Queensland home uses 5,939 kilowatt hours of electricity per year. Conversely, the average home with solar only uses 2,641 kilowatt hours. Looking at the first column of the QCA table above, a household that consumes 6,000 kilowatt hours will see a 3.7% reduction in their bill (last column). However, smaller consumers (like a solar household) will see an increase of between 2.5 – 7.1%. This feels a lot like solar is under attack.
There need not be a war
In fairness, utilities need to earn something for maintaining the grid. Solar households predominately still need grid power when it is dark or overcast, so they rightfully should pay something as long as they remain connected. We are merely concerned that utilities will prefer to only lobby for higher fixed charges instead of adapting their business model to the changing realities of the grid.
As customers, we need to remain vocal regardless of whether we have solar or not. We need to keep challenging the utilities and regulators to keep the system both fair and progressive. When companies face change, we do not (and should not) reward those that sit still and fight the tide. Consider Kodak or Seven West Media, who did not adapt to changed industry conditions.
Kodak is now bankrupt having famously invented the digital camera but then concealing it to protect their film business. Seven West has yet to adapt fully to the digital era and now face a new threat from Netflix. Seven West’s stock price continues to make new all-time lows.
Times are changing for utilities and we believe they need to redefine their role in the grid. In the future, we see utilities more focussed on delivering reliability and facilitating the movement of energy between producers and consumers, whoever they may be. There need not be a war on solar – but it is up to the utilities to stop behaving like there is one.
http://reneweconomy.com.au/2015/the-sneaky-war-on-rooftop-solar-from-australias-utilities-38675
-
VW scandal: what the emissions revelations mean
Sep 22, 2015 | The Guardian
By Sean Farrell
What has Volkswagen done?
The US Environmental Protection Agency (EPA) said on Friday that Volkswagen had installed illegal software to cheat emission tests, allowing its diesel cars to produce up to 40 times more pollution than allowed. The US government has ordered VW to recall 482,000 VW and Audi cars produced since 2009.
How bad is this for Volkswagen?
It could be very bad indeed. Almost €15bn (£10,8bn), or a fifth, was wiped off the company’s market value on Monday as investors took fright at the revelations. At the market opening on Tuesday shares were down a further 3.6%.
At up to $37,500 per car (£23,000) in the US, fines could add up to $18bn – more than a year’s net profit for Volkswagen. Its managers could face criminal charges and a US law firm has already launched a class action lawsuit on behalf of car buyers. Long-term damage to the company’s reputation could be huge. Volkswagen likes to claim it is environmentally conscious and has billed its cars as “clean diesel”. Max Warburton, an analyst at the financial research group Bernstein, said: “This is really serious.”
Is the scandal limited to VW in the US?
Possibly not. The news knocked billions of pounds off the value of other carmakers amid concern that rigging emissions tests is common across the industry. John German, one of the officials who uncovered the scandal, said it could extend to other countries and manufacturers. Stuart Pearson, an analyst at the stockbroker Exane BNP Paribas, told the FT: “The artificial gaming of emissions tests threatens to become the car industry’s Libor” – referring to the fraudulent fixing of global interest rates that has cost the banking world billions. Greg Archer, a former UK government adviser, told the Guardian there was lots of anecdotal evidence about the use of “defeat devices” to disguise environmental impacts and that the scandal could spread beyond diesel and into Europe, where tests are more prone to abuse.
What has VW said about the scandal?
The company’s chief executive, Martin Winterkorn, issued a statement on Sunday apologising for losing trust over the scandal. Winterkorn, who has led Volkswagen since January 2007, said: “I personally am deeply sorry that we have broken the trust of our customers and the public. We will cooperate fully with the responsible agencies, with transparency and urgency, to clearly, openly, and completely establish all of the facts of this case. Volkswagen has ordered an external investigation of this matter.”Is the scandal limited to VW in the US?
Possibly not. The news knocked billions of pounds off the value of other carmakers amid concern that rigging emissions tests is common across the industry. John German, one of the officials who uncovered the scandal, said it could extend to other countries and manufacturers. Stuart Pearson, an analyst at the stockbroker Exane BNP Paribas, told the FT: “The artificial gaming of emissions tests threatens to become the car industry’s Libor” – referring to the fraudulent fixing of global interest rates that has cost the banking world billions. Greg Archer, a former UK government adviser, told the Guardian there was lots of anecdotal evidence about the use of “defeat devices” to disguise environmental impacts and that the scandal could spread beyond diesel and into Europe, where tests are more prone to abuse.
What has VW said about the scandal?
The company’s chief executive, Martin Winterkorn, issued a statement on Sunday apologising for losing trust over the scandal. Winterkorn, who has led Volkswagen since January 2007, said: “I personally am deeply sorry that we have broken the trust of our customers and the public. We will cooperate fully with the responsible agencies, with transparency and urgency, to clearly, openly, and completely establish all of the facts of this case. Volkswagen has ordered an external investigation of this matter.”
http://www.theguardian.com/business/2015/sep/22/volkswagen-scandal-q-and-a-emissions-scandal?CMP=twt_a-environment_b-gdneco
Industry News
Add recipients
Suggested