Envisioning Our Energy Future: Making It Work for Consumers and the Environment –A Strategy Retreat

On the heels of its release of UtilityVision, a framework for advancing a modern clean energy grid, Acadia Center took the next step to work through various challenges to implementation. On March 23 and 24, Acadia Center hosted Envisioning Our Energy Future: Making it Work for Consumers and the Environment—a strategy retreat at The Pocantico Center of the Rockefeller Brothers Fund* in Tarrytown, New York.  The objective was to move closer to resolving key questions regarding how the utility business model must change to achieve a clean energy future that is friendly to both consumer and the environment. The agenda was structured around two key questions:

1. What reforms are needed to maximize the utility transition to a clean, affordable distributed energy future?

2. Broad-based consumer support will be critical to achieving the reforms needed. What is needed to ensure that all consumers tangibly benefit from the future energy system?

The retreat brought together a small group of individuals who are leaders in thinking about the future of the electric power system. Attendees included representatives from utilities, clean energy businesses, academia and consulting, state energy officials, and consumer and sustainable energy voices from California, New England, and New York.
The discussions covered these three categories: a) the roles of planning and competitive markets to achieve a sustainable power grid; b) how to align utility financial incentives with public policy objectives; and c) ways to design revenue recovery to both empower consumers and provide utilities with the appropriate level of certainty. Some of the key questions discussed included the following:

  • What is the utilities’ experience with using geographically-targeted energy efficiency and demand response to avoid transmission and distribution upgrades?
  • What is the experience with performance incentive mechanisms, from the U.S. and United Kingdom?
  • Can competitive markets deliver greater innovation and respond to consumer needs more quickly and with greater nimbleness than utilities?
  • What are different ways utilities can earn the revenue required to support the advanced technological investments needed to create a market platform?
  • Can the utility’s obligation-to-serve and net metering co-exist?
  • Can we shift to widespread time-of-use distribution rates or demand charges while ensuring that consumers have the knowledge and tools to manage their electricity bills?

The group at The Pocantico Center of the Rockefeller Brothers Fund* came much closer to agreement than expected on key questions concerning the utility business model, the role of markets and regulation, strategic grid planning, and utility rate design and compensation for distributed generation. The next steps discussed include drafting and refining a straw proposal for grid reforms, providing lessons learned from utility pilot experiments, and possibly reconvening in the future. Acadia Center will be developing a proposal for facilitating these next steps.

*Please Note: As is the case with all materials resulting from meetings held at The Pocantico Center, the views expressed in this report are not necessarily those of the Rockefeller Brothers Fund, its trustees, or its staff.

New Study Shows Value of Solar for Massachusetts

Acadia Center today released a study that quantifies the grid and societal benefits of solar photovoltaic systems (solar PV) in Massachusetts. Establishing the value of distributed resources is increasingly important as states explore ways to meet energy needs and deploy clean energy resources. Acadia Center has also released a Value of Solar study for Connecticut, and Maine ‘s Public Utilities Commission recently completed a similar type of analysis.

Acadia Center assessed the value of six hypothetical solar PV system configurations to better understand the overall value that solar PV provides to the grid. By evaluating an array of configurations, this analysis determines that the value of solar to the grid—and ratepayers connected to the grid—ranges from 22-28 cents/kWh, with additional societal values of 6.7 cents/kWh.

“Solar generation is a valuable local energy resource that provides significant benefits to ratepayers,” said Jamie Howland, Director of Acadia Climate and Energy Analysis (CLEAN) Center. Solar PV provides unique value to the electric grid by producing clean energy and avoiding generation and related emissions from conventional power plants. The overall grid value of solar is the sum total of these different benefits.

The benefits vary based on the time and location of output from solar panels. Acadia Center examined these variations in the study, including the impacts of orientation (i.e. west- or south-facing arrays) on the value of solar PV. One key finding is that under traditional net metering, west-facing arrays—which maximize output during periods of peak demand—would receive approximately 20% less credit than a comparable south-facing system, despite the fact that they produce approximately the same overall value to the grid.

In addition to value to the grid, Acadia Center’s study finds that solar PV provides broader societal advantages, such as environmental benefits from avoided greenhouse gas emissions and other pollutants. “Societal benefits should be used when assessing the overall costs and benefits of solar PV and determining additional incentives,” said Leslie Malone, Acadia Center Senior Analyst and an author of the report.

The report provides information that is relevant for the Net Metering and Solar Task Force in Massachusetts, which will conclude its work at the end of April. “Having a better understanding of the value of solar PV and its components will help the task force and policy makers recommend and advance policies that help to encourage deployment of this clean energy resource,” said Mark LeBel, Staff Attorney with Acadia Center and the organization’s Massachusetts lead on solar policy.

For more information see: www.acadiacenter.org/document/value-of-solar-massachusetts

 

Contact:
Leslie Malone, Senior Analyst, Acadia Center,
(401) 276-0600, lmalone@acadiacenter.org

Peter Shattuck, Dir. Clean Energy Initiative, Acadia Center
(617) 742-0054 x103, pshattuck@acadiacenter.org

Emily Avery-Miller, Dir. External Relations, Acadia Center
(617) 742-0054 x001, eavery-miller@acadiacenter.org

A Resolution to Keep Massachusetts a National Leader in Energy Savings

Massachusetts has an impressive record of investing in energy efficiency and saving home-owners and businesses money on energy bills.  Electricity and natural gas programs produced an estimated $3.14 billion in benefits in 2014 alone, and $11.4 in benefits since the programs began in 2010 (Press Release: MA Energy Efficiency Benefits Top National Bests for Savings ;  MA Energy Efficiency Benefits Factsheet). Now, work is underway on the state plans that can ensure that this leadership continues to provide even more benefits to ratepayers.

Under the Massachusetts Green Communities Act (GCA), the state gas and electric utilities (Program Administrators) are charged with creating plans to acquire all available energy efficiency and demand reduction resources that are cost-effective, or less expensive than supply.  These plans are prepared in coordination with the state’s Energy Efficiency Advisory Council (Council) which is made up of fifteen representatives of stakeholder groups and includes residential customers, low-income customers, large commercial and industrial users, manufacturers, and non-profits, as well as state agencies. Acadia Center is the representative of the environmental community.

The Council recently issued a Resolution setting out its priorities and recommendations for the 2016-2018 state plans. It also reiterated that the emission reduction targets established by the Global Warming Solutions Act and the state’s Clean Energy and Climate Plan–which implements the Act—require a key role for energy efficiency and demand reduction programs. The Council has high expectations for the development of a third well balanced, cost-effective, robust, and innovative statewide electric and natural gas plan. The Council expects the forthcoming energy efficiency programs to accomplish the following:

  • Achieve all cost effective energy efficiency and demand reduction in accordance with the GCA;
  • Align with the greenhouse gas reduction targets of the Global Warming Solutions Act and Clean Energy and Climate Plan;
  • Deliver consistent and equitable service to all segments of businesses and residents statewide;
  • Prioritize lifetime savings and benefits;
  • Produce electric demand savings in order to significantly mitigate peak demand costs to the electric sector;
  • Achieve data transparency and enable robust planning and analysis through a comprehensive statewide database;
  • Effectively communicate to ratepayers information about program and initiative effectiveness, and progress;
  • Continue to improve the cost efficiency of program delivery.

Acadia Center—as a member of the Council—will be reviewing the draft Three-Year Plans when the Program Administrators submit them on April 30th.  After June stakeholder workshops, the Council and Program Administrators will coordinate on plan revisions. Plans will be filed with the Department of Public Utilities by October 31st and be finalized and under implementation starting January 2016.

The Massachusetts EEAC Resolution is available in final form here: http://ma-eeac.org/wordpress/wp-content/uploads/EEAC-Resolution-Priorities-for-2016-2018-Three-Year-Efficiency-Plans.pdf

RGGI Would Boost VA Economy and Meet Future Climate Goals

Participating in the Regional Greenhouse Gas Initiative (RGGI) would bring significant benefits to Virginia, according to analysis released today by Acadia Center. Acadia Center has been tracking RGGI since the program’s launch in 2009, and drew on this expertise to arrive at the following key findings:

  • RGGI provides a flexible, straightforward mechanism for reducing greenhouse gas (GHG) emissions
  • Participating in RGGI would enable Virginia to meet Environmental Protection Agency requirements to reduce GHG emissions from power plants.
  • RGGI would raise $2.8 billion by 2030 for Virginia to reinvest in complimentary consumer and climate programs

“RGGI has been successful in the states that currently participate.  It is helping to reduce carbon emissions, while offering a demonstrated record of advancing economic development, and saving consumers money on energy,” said Daniel L. Sosland, Acadia Center President.

“RGGI has received significant attention and growing support as a means of reducing climate pollution and helping to protect the state from sea level rise and other damaging effects of climate change,” said Dawone Robinson of Chesapeake Climate Action Network. “This analysis helps show why RGGI is the right solution for Virginia.”

Virginia needs a plan for cutting greenhouse gas pollution from major generators to meet the federal requirements of EPA’s Clean Power Plan.  A recent study by the regional grid operator PJM showed that a multi-state program—like RGGI—was the most cost-effective way for Virginia and other PJM states to meet the regulations.

“The RGGI program is well-established and has a track record of results: driving down emissions and bringing in revenue and other economic benefits. The numbers clearly show how much Virginia and other states could gain by joining,” said Stutt.

The current RGGI states have used the majority of revenue raised through the program to invest in energy efficiency and clean energy programs, which have generated $3.40-$3.70 in economic growth for every $1 invested. Revenue can also be used to meet local needs such as adaptation planning or investment in diversifying Southwest Virginia’s economy and retraining its workforce.

For more information see: http://acadiacenter.org/document/va-and-rggi-compliance-with-clean-power-plan/

Contact:

Emily Avery-Miller, Director External Relations, Acadia Center, 617-742-0054 x100, eavery-miller@acadiacenter.org
Jordan Stutt, Policy Analyst, Acadia Center, 617-742-0054 x105, jstutt@acadiacenter.org
Dawone Robinson, Virginia Policy Director, Chesapeake Climate Action Network, 804-767-0372, dawone@chesapeakeclimate.org

 

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Acadia Center is a non-profit, research and advocacy organization committed to advancing the clean energy future. Acadia Center is at the forefront of efforts to build clean, low-carbon and consumer-friendly economies. Acadia Center provides accurate and reliable information, and offers a real-world and comprehensive approach to problem solving through innovation and collaboration.