Regional Interest in Battery Storage Heats Up

With the sweltering days of summer behind us and New Englanders reluctantly turning their minds to winter storm season, it is worth asking how we can keep our electric grid running affordably and efficiently during both heat waves and cold snaps. Behind-the-meter energy storage is one solution that is showing increasing promise.  

In-Home Energy Storage

Behind-the meter energy storage refers to when customers store electric power purchased from the grid or power generated themselves (such as from rooftop solar panels) in batteries installed in their homes. The market for behind-the-meter storage is growing rapidly due to decreasing costs and growing awareness. In addition to providing backup power to homeowners during outages, like a traditional generator, this storage can provide backup power for the grid itself.

Battery storage can also be combined with innovative electric rates. For example, time-varying rates could encourage customers to purchase power from the grid during periods of low demand and use energy stored in their battery during periods of high demand. This would lower storage users’ bills directly while reducing the use of expensive and polluting backup plants typically needed during times when temperatures surge or plunge. In turn, avoiding these expensive resources will cut energy prices for all customers.

Policies and Pilots

Many states are currently experimenting with adding battery storage to the grid to help reduce prices and integrate renewable energy sources that produce power intermittently. This wide range of pilots is providing valuable lessons for putting storage to good use. For example, Vermont’s Green Mountain Power (GMP) claimed it saved customers $500K during a heat wave this summer through its pilot of in-home batteries. During the hours of highest demand, the program allows GMP to withdraw energy stored in customers’ batteries instead of paying very high prices on the wholesale market. This year, GMP also expanded its pilot program to allow customers to purchase third-party storage devices. In New Hampshire, Liberty Utilities is proposing a similar pilot that would combine storage with time-varying rates to provide customers with incentives to use electricity during times of lower demand.

To support a future electric grid where consumers are empowered to produce, store, and use their own electricity, state policies should enable residents to own and operate batteries to the largest extent possible. Utility ownership of residential batteries can stifle the development of competitive markets and reduce customers’ flexibility in deciding how and when to deploy their power. Acadia Center will continue to advocate for programs that prioritize a customer-centered model, helping states pursue and expand programs like those detailed above.

As market takes shape, Connecticut makes its first moves on offshore wind

The expansion of the offshore wind industry in the region has meant more competition, and more competition means lower costs. Emily Lewis, a policy analyst at the Acadia Center, said there’s a common misconception that offshore wind is more expensive than other forms of energy, when it’s actually quite cost competitive.

“The contracts that utilities entering with offshore wind companies are longer term,” she says. “Through that, they’re getting lower prices.”

The data is minimal right now, but her suspicion seems to be right. The price for the Block Island Wind Project was $0.244 per kWh, while the price for in-progress projects in Maryland is $0.132 per kWh.

Read the full article from Energy News here.

Op-ed: Rising transportation emissions are a threat to Maine’s environment

When National Highway Traffic Safety Administration Secretary Elaine Chao and acting Environmental Protection Administration Secretary Andrew Wheeler announced their agencies’ rollback of federal clean car standards in August, they pledged to “ Make Cars Great Again.” In doing so, they have threatened our air, water and public health — and will increase costs for consumers.

Federal clean car standards directly reduce the amount of fuel burned for transportation by requiring auto manufacturers to increase fuel efficiency, saving consumers money and limiting transportation emissions. Consumer Reports says the proposed rollback could cost consumers as much as $100 billion, and the increased pollution is definitely not great for our air or oceans.

Read the full article from Bangor Daily News here.

Merger of two wind power companies is good news for Connecticut, supporters say

Connecticut officials already have issued another request for proposals in an effort to meet the state’s clean energy goals for the future. Three offshore wind bids were among the dozens submitted and supporters of wind power in Connecticut are optimistic that request for proposals will yield further wind power projects to add to the state’s energy mix.

“These bids give Connecticut another opportunity to affordably meet its clean energy and greenhouse gas reduction requirements by bringing more offshore wind online,” said Emily Lewis, senior policy analyst at Acadia Center. “With this procurement, Connecticut should aim to keep pace with its neighbors and grow its offshore wind resource to maximize ratepayer savings, economic growth, and carbon-free electricity generation.”

Read the full article from the New Haven Register here.

National Rankings Highlight Leadership of Northeastern States’ Energy Efficiency Programs

Policy and Funding Challenges Remain

BOSTON – Northeast states continued their nation-leading performance in the 2018 State Energy Efficiency Scorecard, released today by the nonpartisan American Council for an Energy-Efficient Economy (ACEEE). Massachusetts ranked #1 for the eighth straight year, Rhode Island remained at #3, and Vermont, Connecticut and New York ranked #4, # 5 and #6, respectively.

Maine and New Hampshire ranked #14 and #21, respectively.

“Energy efficiency is a cornerstone of the clean energy economy in the Northeast and beyond. Leading states in the region are successfully demonstrating that non-polluting energy efficiency lowers consumer utility bills, reduces the cost of doing business, and provides healthier, more comfortable spaces to live and work,” said Daniel Sosland, Acadia Center president. “All states must continue to prioritize energy efficiency so that these benefits reach additional residents while sharply reducing emissions to meet climate targets.”

In addition to a strong overall performance on the Scorecard, New England states performed particularly well in the category of utility and public benefits programs, which are operated on behalf of utility customers. Together, these programs represent the single largest state policy-driven impact on greenhouse gas emissions in the region. Due in large part to energy efficiency gains, electric consumption in New England has declined over the past few years even as the population and economy have grown. Energy efficiency investments have brought billions of dollars in energy and utility bill savings to consumers and businesses and helped halt the growth of peak electric use. Increasing investments in efficiency has made nearly $500 million of expensive transmission line upgrades no longer necessary in New England.

Leading the charge with low-cost efficiency

Massachusetts and Rhode Island tied for first in the utility program category, followed by Vermont and Connecticut at third and fourth, respectively.

With strong customer-funded efficiency programs, Massachusetts and Rhode Island have achieved the country’s highest electric savings rates – at least 3% of retail sales last year – and demonstrated the significant potential that exists for cost-effective efficiency investments. Acadia Center’s EnergyVision 2030 report shows that, on average, if all Northeast states achieved at least 2.5% annual efficiency savings, efficiency would reduce emissions from electricity generation in line with regional climate targets and offset the additional electricity from increased electric vehicle and heat pump adoption.

“Massachusetts has shown over the last eight years of first place rankings that making effective use of efficiency can grow the economy while saving ratepayers money and cutting carbon emissions. Even so, Massachusetts can do more to maximize this low-cost, clean resource,” said Amy Boyd, senior attorney at Acadia Center and a member of the Massachusetts Energy Efficiency Advisory Council. “Many residents – particularly renters – and businesses need more help lowering their energy costs, and the efficiency programs can play a crucial role in transitioning ratepayers off fossil fuels.”

Rhode Island held the #3 spot overall despite state government action in 2017 that diverted $12.5 million in ratepayer efficiency funds and forced an additional $10.7 million in program cuts this year. Rhode Island’s continued strong showing stems from a state law that prioritizes investments in energy efficiency over traditional energy supply when efficiency is cost-effective and less expensive.

Policy opportunities for lagging states

The gap between the elite efficiency performers and the second tier is significant, as in prior years. While Massachusetts, Rhode Island and Vermont are fully embracing cost-effective efficiency, neighboring Northeast states could do more to show a sustained commitment to efficiency that would reduce energy consumption and minimize consumer costs.

Connecticut took a major step backwards on efficiency in 2017, for instance. Under extreme fiscal pressure, the state diverted $127 million in ratepayer funding for efficiency to the budget’s general fund.

“Connecticut has high-quality, award-winning energy efficiency programs that deserve real praise for helping the state earn the #5 ranking,” said Amy McLean Salls, Connecticut Director and Senior Policy Advocate with Acadia Center. “However, Connecticut can, and should, do more to improve its actual energy efficiency savings levels. Connecticut has slipped down regionally on this all-important metric and will need to ramp up its energy efficiency savings goals in coming years to protect its strong in-state efficiency industry and to meet its aggressive climate targets for 2020 and 2030. As a necessary first step to increasing Connecticut’s efficiency ambitions, the Governor and General Assembly should undo the devastating fund raid imposed by legislators last year.”

Although New York moved up a spot in the Scorecard to #6 overall, it too continues to lag best-practice states, with current annual utility savings levels roughly one-sixth of Massachusetts and Rhode Island. In April, New York announced a plan to reduce energy consumption by 185 trillion BTUs from forecasted levels by 2025, but important details such as utility savings targets and funding sources have yet to be worked out. Acadia Center has offered four recommendations that, if implemented, would strengthen the likelihood of achieving the 2025 energy efficiency target.

“New York should be commended for seeking to jump-start its efficiency efforts,” said Cullen Howe, Acadia Center’s New York Director. “But now it needs to follow through by setting aggressive but achievable targets and ensuring that efficiency’s many consumer and environmental benefits are realized.”

Maine’s dip from #13 to #14 reflects the impact of inconsistent funding and regulatory uncertainty, despite the achievement of reasonable energy savings levels. Maine continues to lead the nation in deployment of clean, efficient electric heat pumps, thanks in part to leadership from Efficiency Maine, the independent administrator of the state’s efficiency programs. The three-year energy efficiency plan currently under review is an opportunity to secure steady, long-term commitments that expand energy efficiency access and savings for Maine homes and businesses and improve economic security.

Despite implementing the first year of the Energy Efficiency Resource Standard (EERS) in 2018, New Hampshire maintained the same relatively low rank as last year, primarily because spending on energy efficiency has not fully ramped up. The EERS puts New Hampshire on a path to reducing energy waste, and the state should progress in future rankings as it pursues more efficiency.

The 2018 Scorecard did recognize New Hampshire’s efforts to target significant energy efficiency funding to low-income communities.

The Scorecard is available at: https://aceee.org/state-policy/scorecard

Media Contacts:

Erika Niedowski, RI Director and Coordinator, Energy Efficiency Initiative
eniedowski@acadiacenter.org, 401.276.0600 ext. 401

Krysia Wazny, Communications Director
kwazny@acadiacenter.org, 617.742.0054 ext. 107

Electric vehicle advocates urge Connecticut regulators not to forget sector in grid planning

A group of clean-energy proponents are calling on state utility regulators to make sure plans for modernizing the state’s power grid include the necessary components to accommodate the expected increase in use of electric vehicles.

[…]

“EVs are a key piece of Connecticut’s clean energy future, and the state’s utilities can play a role in advancing these vehicles,” said Emily Lewis, senior policy analyst for Acadia Center, a regional environmental group with an office in Connecticut. “Through this grid modernization proceeding, PURA can set the stage for utility engagement that supports EV deployment, protects consumers, and shares the benefits of EVs more equitably.”

Read the full article from the New Haven Register here.

Rhode Island charts a course for a cleaner grid

The agencies spent eight months engaging with more than 200 people and 65 organizations in the process, including local residents, national experts, clean energy companies, nonprofits, and Rhode Island’s utility, National Grid. The aim was a blueprint outlining how the state can achieve a cleaner, more affordable, and more reliable energy system—one that adapts and evolves as consumer demand and technology does.

[…]

The decision received overwhelming support from stakeholders, including customer advocates and environmental advocacy organizations.

“It’s a big first step,” said Mark LeBel, a staff attorney with the clean energy nonprofit Acadia Center, which was a stakeholder in the project. “We can’t do it all at once, and I think Rhode Island has taken a big first step here.”

Read the full article from Energy News Network here.

Another fleet of EV chargers approved in Mass.

National Grid can also collect on a performance incentive of $750,000 if 75 percent of the target number of chargers are successfully installed, and $1.2 million for 125 percent of the target. That feature drew criticism from groups including the state attorney general and the Acadia Center, which said the bonuses should be tied to metrics like increased electric vehicle adoption, emissions reductions and reduced costs.

Massachusetts is aiming to get 300,000 zero-emission vehicles on the road by 2025, and the number of EV chargers has been ticking steadily upward. As of a year ago, 1,158 Level 2 ports and 128 fast chargers were available, according to the DPU, compared to 963 Level 2 ports and 83 fast chargers in the prior year.

Read the full article from E&E News here (article may be behind paywall).

New Rates, Energy Plan Approved for R.I. Electricity

After months of hearings and negotiations, an energy initiative called grid modernization is moving forward in Rhode Island, along with new gas and electricity rates.

On Aug. 24 the state Public Utilities Commission (PUC) approved a new model for compensating National Grid for operating and maintaining utility poles, transmission lines, and substations. For the next three years a portion of National Grid’s revenue will also go to making the power grid more cost-efficient and accommodating to renewable power, electric vehicles, and energy storage.

Read the full article from ecoRI News here.

Settlement Puts Rhode Island in a Leading Role on Utility Reform

PROVIDENCE — Acadia Center applauds the Rhode Island Public Utilities Commission’s (PUC) approval today of an amended comprehensive settlement in National Grid’s distribution rate case and Power Sector Transformation proceeding. The PUC’s order represents the first steps toward utility business model reforms and power sector transformation activities that will further Rhode Island’s ability to achieve a clean energy future.

“Approval of the revised National Grid settlement will greatly benefit ratepayers and the state by putting Rhode Island firmly on a path toward expanding local clean energy resources and bolstering energy system reliability,” said Daniel Sosland, Acadia Center President. “Rhode Island has jumped into a leadership role among New England states seeking to reform utility regulations. Embracing the changes needed to modernize the energy system will deliver large economic, public health, consumer and environmental benefits to all Rhode Islanders.”

The agreement lowers National Grid’s return on equity and reduces the utility’s original base rate proposal by over $40 million. The agreement also provides more meaningful bill relief for low-income customers, up to a maximum discount of 30% for some qualifying customers. Importantly, the agreement also approves initial investments in a modern grid, electric vehicle charging, and energy storage as well as a study of Advanced Metering Functionality (AMF) and further grid modernization investment.

“Acadia Center commends the Public Utilities Commission, Division of Public Utilities and Carriers, National Grid, the Office of Energy Resources and other intervenors for the commitment and collaboration throughout this process,” said Erika Niedowski, Rhode Island Director for Acadia Center. “We look forward to working with our colleagues through the newly established Power Sector Transformation Advisory Group to advance further reforms including new utility performance mechanisms, grid flexibility and resiliency, and expansion of clean energy resources that benefit customers.”

Acadia Center engaged in every stage of Rhode Island’s Power Sector Transformation stakeholder process and provided expert testimony to the PUC on a variety of components in today’s settlement. Acadia Center has long recommended the types of reforms included in the settlement through reports and materials such as UtilityVision.

“Rhode Island is now leading the way in New England utility business model reforms,” said Mark LeBel, staff attorney at Acadia Center. “In the future, Rhode Island must do even more to shift investments away from expensive capacity building projects that primarily benefit the utility and toward projects that benefit the customer by maximizing energy efficiency, expanding distributed energy resources, and bolstering system reliability.”

Acadia Center will release a more detailed summary of the approved settlement in the coming days.