Domestic Fuel

The U.S. Department of Energy (DOE) has awarded a $2.1 million contract to Solectria Renewables as part of its SunShot Initiative, to develop integrated smart-grid ready photovoltaic (PV) inverters with utility communications. The project will be completed in partnership with Electric Power Research Institute (EPRI), Detroit Edison, National Grid, and Xcel Energy. The DOE program is aimed at bringing cost-competitive solar technologies to market faster.

The purpose of a PV inverter or a solar inverter is to convert the variable DC output of the solar modules into a utility frequency AC current that can be fed into the electrical grid. A PV inverter has special functions adapted for use with PV arrays. The key objectives of the Solectria Renewables Program are to leverage ongoing investments in smart grid and related standards as well as to expand PV inverter capabilities. The company says that together these two things will help grid operators better utilize grid assets.

“We are honored to have been selected by the Department of Energy to receive this award, which is a reaffirmation of our leadership in the inverter space,” said Michael Zuercher-Martinson, CTO of Solectria Renewables. “Enabling utilities to control our SMARTGRID inverters (SGI) is the next big step towards a smarter grid that can accommodate a very high PV penetration density in a safe, secure, efficient and reliable manner.”

Detroit Edison, National Grid and Xcel Energy will supply test sites ranging from 605kW to 30MW. Each of the sites will test different aspects of the technologies being developed by EPRI and Solectria Renewables.

The Bay Area is the home of three new electric vehicle (EV) charging stations. 350Green, in partnership with Simon Property Group, will install one EV charging station at the Stanford Shopping Center, one at Santa Rosa Plaza and one at Coddingtown Mall. These are the first three major shopping areas to offer EV charging in the Bay Area while consumer shop.

“We are thrilled to offer our shoppers easy and convenient access to charging stations, demonstrating our ongoing commitment to sustainability,” said Kelly Hartsell, West Regional Vice President of Simon Property Group. “Our customers expect us to offer them goods and services that reflect their values. Known for being environmentally and socially conscious, the Bay Area is the perfect location to introduce this to our shoppers.”

The “Level 2″ charging stations are strategically located in mall parking lots. Shoppers at Stanford Shopping Center will have access to two chargers located in the Lower Level Parking Deck between Macy’s and Bloomingdale’s. At the Coddingtown Mall, a “Level 2” charging is located at the North Main Entrance and in Santa Rosa Plaza’s the EV charging station will be located on its third level parking deck. The installations will be complete in the next 30 days.

Simon is working with 350Green for its Bay Area roll-out. The self-serve charging stations have the capability to “top off” or partially charge a customer’s electric vehicle in a 90 to 120 minute time frame, allowing shoppers to leave their vehicles at the charging station while they are shopping or dining. Charging will be free during an introductory time period, after which 350Green will offer various pricing plans.

“Our partnership with Simon is an important part of expanding our network of EV charging stations in convenient locations throughout the Bay Area,” said Mariana Gerzanych, 350Green’s co-founder and CEO. “In doing so, we help advance the EV revolution by making it easier and more convenient to charge up an EV than to fill up a car with gas.”

Alternative energy technolgies, including biodiesel and ethanol, natural gas, smart grids, solar, and hydro power, will share in $300 million in capital from a new joint venture involving General Electric Co., ConocoPhilips and NRG Energy Inc.

This article from Bloomberg says the investment company, Energy Technology Ventures, will be backing about 30 startups over the next four years:

Collaborating with other major energy companies “enables us to pool our financial resources and technological expertise – - along with our extensive relationships — to provide more than money to emerging energy technology companies,” Kevin Skillern, managing director and leader of venture capital at GE Energy Financial Services, said in the statement.

The joint venture will focus on companies that are developing technology for renewable energy, smart grid, energy efficiency, oil, natural gas, coal, nuclear, emission controls, water and biofuels.

Some of the joint venture’s first investments will be with Alta Devices, a solar photovoltaic cell maker from California; Colorado-based coal-to-methane technology company Ciris Energy Inc.; and non-food biofuels developer CoolPlanetBiofuels from California.

According to an analysis performed by Battelle Memorial Institute and R&D Magazine, the global research and development (R&D) outlook for 2011 will be more stable and positive and is emerging from one of the worst recession eras in recent times. With this in mind, R&D managers are prepared to see moderate, but sustainable growth and more global competition for resources and market share.

In more tangible terms, R&D spending is expected to increase by 3.6 percent in 2011 to $1.2 trillion; however, in the U.S. this number is only expected to climb by 2.4 percent over the 2010 numbers reaching just over $405 billion in 2011. Regardless of a number that appears to be minor, the U.S. is positioned to be the dominate region for research and investment.

When you hone in on energy R&D, the report notes that in this category, overall R&D budgets are low compared to the percent of R&D versus revenues of companies in other categories. The companies spending the most in R&D are: Exxon Mobil, Chevron, ConocoPhillips, USEC, First Solar, Cree, McDermott International, A123, SunPower, and FuelCell Energy.

The authors write, “Unlike defense, outcomes and benefits from federal energy research are realized largely in the private sector. Moreover, DOE’s research investment fills a critical gap in private sector innovation capacity. The relatively low level of R&D spending in the regulated, capital-intensive energy sector is unlikely to achieve the affordable, abundant, sustainable, secure energy supply that will be necessary for the U.S. to maintain global economic leadership in this century.”

“At the same time, public-private collaboration and commercialization are necessary to deploy energy innovation at scale, since the government controls little energy production or distribution capacity (except fossil reserves on federal lands).”

The conclusion in this sector by the report authors is that the private sector lacks the full scope of resources to accomplish the necessary research that is required to meet the demand for sustainable and affordable energy. They also note that the government lacks the means to deploy energy innovation at scale to meet policy goals and stresses that collaboration and commercialization are essential to see success.

You can download a copy of the 2011 Global Funding R&D Forecast here.

Earlier this month, the Federal Energy Regulatory Commission (FERC) issued a Notice of Proposed Rulemaking aimed at removing barriers to the integration of wind and solar and other forms of alternative energies to the wholesale power grid. The 60 day comment period is in full swing and many in the wind industry are actively submitting comments.

According to a FERC release, the proposed rule would reform the Open Access Transmission Tariffs (OATT) and the Large Generator Interconnection Agreements filed by public utility transmission providers to require them to offer services that will allow for a more efficient integration of variable energy resources such as wind, solar and hydrokinetics into the grid system. This has been a challenging and ongoing issue for alt energies and the passage of the rule would signify the country’s commitment to renewable energy.

“Most of the new power plants for which developers are seeking access to the grid are variable resources such as wind and solar generators,” FERC Chairman Jon Wellinghoff said. “This proposal will help the Commission to cost-effectively integrate these and other variable generators into the grid in a way that helps maintain reliability and operational stability.”

According to Gregory K. Lawrence, with law firm McDermott Will & Emery and the head of the firm’s renewable business and his associate Mustafa Ostrander, the three proposed reforms address “discrete operational protocols” and should be viewed as “complementary parts of a package.” The reforms include:

• Intra-hourly Transmission Scheduling—FERC proposes requiring public utility transmission providers to give their customers the option of using more frequent transmission scheduling intervals (15-minute intervals) within each operating hour.  This would allow transmission schedules to reflect more accurately power production forecasts, load profiles and other changing system conditions, while also allowing the system’s variability to be managed more effectively.
• Power Production Forecasts—The proposed rulemaking also requires public utility transmission providers to amend their pro forma Large Generator Interconnection Agreement to incorporate provisions requiring interconnection customers with VER-generating facilities to provide to public utility transmission providers certain meteorological and operational data.  FERC believes this requirement will result in greater situational awareness and efficiency within the unit commitment, dispatch and reliability assessment process.
• Generic Ancillary Service Rate Schedule—FERC also proposes adding a generic ancillary service rate schedule to the pro forma Open Access Transmission Tariff. Public utility transmission providers would be required to offer generator regulation service, to the extent physically feasible, to transmission customers using transmission service to deliver energy from a generator located within the transmission provider’s balancing authority area.

FERC’s goal with the proposed rules is to create a “reasonable foundation upon which public utility transmission providers will be well-positioned to manage system variability associated with increased numbers of VERs,” but acknowledges that these rules do not solve all the integration challenges.

Tis the season to start thinking about electricity costs. Winter is on the horizon and with the holiday season comes holiday lights and holiday parties. As energy demand rises, how are the utilities going to keep up with demand? An important question as the country looks to reducing greenhouse gas emissions while at the same time needs to find a solution to our growing energy needs. To learn more about these issues, I read Smart Power by Peter Fox-Penner.

I must admit that I don’t know much about the utility industry but I do have fond memories of living in Texas when the state approved deregulation and all the rolling brownouts as a result of that decision. But according to experts, these could be more commonplace if the grid is not improved. Yet what is the best way to do this and who should pay? Most conversations about these issues involve in some capacity a discussion about the smart grid. However the first thing we need to understand is what exactly is the smart grid?

Penner writes, “As the industry shifts its supply sources, builds transmission, and increases its energy efficiency efforts, the technologies at the core of its operations will shift dramatically. Over the next thirty years, the industry will adopt the so-called Smart Grid, and the architecture of the system will shift from one based exclusively on large sources and central control to one with many more smaller sources and decentralized intelligence. The Smart Grid will mark a total transformation of the industry’s operating model–the first major architectural change since alternating current became the dominant system after the Chicago World’s Fair in 1893.”

This shift will cost more than $2 trillion dollars, and the jury is still out on whether the best option is large sources (nuclear, coal with sequestration, natural gas, etc.) or smaller sources that include solar and wind energy or a combination of the two.

In the book, Penner progresses the reader through a history of the grid, explains where we’re at today and where we need to be in the future. He discusses the intricacies of pricing and how energy conservation plays a role for saving consumers money while at the same time making utility companies money. He discusses privacy issues related to the smart grid (that is being developed and monitored in part by third party companies). Penner also addresses issues and challenges and offers solutions. In addition he presents scenarios of what could happen if certain paths are taken.

This is a very complicated issue with dozens of moving parts and while I understand it much better, the book is not for the newcomer. It is best suited for those working directly for utility companies or those working for companies that are providing products and services that will move the country to the smart grid. And because Penner gives very detailed future scenarios including electricity scenarios and detailed charts detailing large scale power generating technologies including costs associated with each technology relating to carbon emissions, I believe it could become a very valuable resource for high-level utility executives.

The fifth solar project to occur on public lands has been approved by Secretary of the Interior, Ken Salazar. The Calico Solar Project, located in San Bernardino County, California was proposed by Tessera Solar of Texas, and when completed could produce over 663.5 megawatts of renewable energy or enough to annually power between 200,000 – 500,000 homes. The solar project will use Stirling Energy System‘s SunCatcher technology, and project planners are anticipating the need for 500 new jobs.

“The Calico Solar Project is one of several projects in the pipeline that will help California and this nation build a renewable energy economy,” Secretary Salazar said in signing the Record of Decision. “With each project, we are helping to create new jobs for American workers, reduce carbon emissions, promote energy independence and strengthen our national security.”

October has been the month for public land approvals. Prior to the Calico Solar Project getting the go ahead, Salazar also approved four renewable energy projects on public lands with three located in California and one in Nevada. The projects include Imperial Valley Solar Project, Chevron Lucerne Valley Solar Project, Ivanpah Solar Electric Generating System, and Silver State North Solar Project. Should all five solar projects come to fruition, they could generate over 1,800 megawatts of renewable energy, or enough to power 550,000 to 1.4 million homes.

The Secretary’s decision authorizes the Interior’s Bureau of Land Management (BLM) to offer Tessera Solar a right-of-way grant to use these public lands for 30 years if all rents and other conditions are met. The site is on 4,604 acres of public lands in Southern California’s Mojave Desert, 37 miles east of Barstow. In addition, Tessera Solar is eligible to apply for significant funding through the Department of Energy’s Recovery Act conditional loan guarantee program.

“This marks the fifth solar energy project approved on public lands in the last two weeks,” said BLM Director Bob Abbey. “Through these approvals, along with recent approvals for transmission lines and other renewable energy infrastructure, we are continuing to make significant contributions to this nation’s renewable energy generation capabilities.”

Today the Colorado Cleantech Industry Association (CCIA) presented eight awards during its inaugural “Colorado Cleantech Awards Celebration.” The event was created to honor leaders who are working to advance cleantech developments. Christine Shapard, CCIA executive director said during the event, “Winners were selected by our Awards Committee from twenty finalists that emerged from a statewide call for nominations. The event, showcasing those companies and individuals who have made a significant impact on Colorado’s cleantech industry during the past year.”

Awards & Winners include:

• §      Political Advocate of the Year: Colorado Governor Bill Ritter, Jr.
• §      High Impact Cleantech Company of the Year: Abound Solar
• §      Runner-Up High Impact Cleantech Company of the Year: Tendril
• §      Breakout Cleantech Company of the Year: Ice Energy
• §      Emerging Cleantech Company of the Year: VanDyne SuperTurbo
• §      Colorado Cleantech Entrepreneur of the Year: Raymond R. Johnson
• §      National Cleantech Leader: Rocky Mountain Institute
• §      Governor’s Award for Excellence: Ron Bernal, NEA

Shapard concluded, “We want to extend our congratulations to this year’s winners and finalists, plus extend sincere appreciation from the Colorado Cleantech Industry to these outstanding companies and individuals who have truly made a difference as they’ve forged their paths in the cleantech sector. Further, we want to convey our appreciation to Ira Ehrenpreis, noted venture capitalist and cleantech industry expert, who served as the keynote speaker for our first awards event.”

The NGN Forum has launched a new Smart Energy Forum to focus on IP services to power the smart grid, home grids and alternative energy sources such as wind and solar. The Smart Energy Forum will focus on two main areas, next generation communications and NGN energy applications, and will develop guideline documents to help guide the industry in its adoption of this technology as well as enhancing NGN/IMS Interoperability and its Plugfests to include Smart Energy apps requirements.

One of the biggest challenges facing the utility industry as the country ramps up its alternative energy mandates is adding solar and wind power to an overstressed, and often outdated grid. Another problem is overcoming storage issues, and yet another issue facing consumers who have installed solar panels to their homes is how to develop metering systems that will enable consumers to better capitalize on their energy savings.

“Utility companies have traditionally developed their own networks and communications systems,” said Michael Khalilian, Chairman & President, NGN Forum. “However, they are now looking toward the telecommunications industry for apps, technology development, and OSS/BSS/Security to help them manage consumer demand. A number of major telecom operators and vendors are driving the initiative to expand into the highly lucrative energy management and applications field.”

According to Smart Grid News, the U.S. smart grid industry is valued at about $21.4 billion. By 2014, it is projected to exceed $42.8 billion. The world market is expected to grow at a faster rate, surging from $69.3 billion to $171.4 billion by 2014. The American Recovery and Reinvestment Act allocates billions of dollars for energy projects including $4.5 billion to modernize the electric grid. Other major government initiatives that will increase telecom-related funding include $7.2 billion in broadband deployment grants administered by the National Telecommunications and Information Administration (NTIA) and the Rural Utility Service (RUS).

“By ensuring that the Smart Grid is effectively managed, protected and secured, we will help speed its overall adoption by increasing confidence in the reality of these visionary solutions,” concluded Doug Havas, vice president of communication industries at Symantec, a company focused on smart grid technologies.

“Where is the debate about the smart grid? Are we just going to believe what GE and EEI tell us? Who can actually prove that the smart grid is going to be all that smart, or that it is even going to work?”And who has thought through all the implications?” These are a few of the questions that author Nick Rosen asks in “Off The Grid: Inside the Movement for More Space, Less Government, and True Independence in Modern America.”

This is definitely a set of questions that aren’t often asked in context with the smart grid. More often, there is a disagreement of who is going to pay for the smart grid or whether the smart grid will save consumers money or cost consumers money. However, Rosen has a definite opinion of the smart grid. He writes that privacy will be at risk (utilities will literally be able to ‘see’ into your house with the new technologies) but he also writes that utilities will make billions more in profits with this move.

Rosen explains that based on the track record of utilities, “…the smart grid is not in the country’s best interest nor are they concerned with Secretary Chu’s carbon-reduction targest when they enthuse about rolling out the smart grid. They are concerned with market dominance and profits.”

He continues by anticipating that smart technologies will eliminate the need for meter readers and many call centers, thus reducing the number of jobs in the space while making even more profits (most people estimate that utilities will pass along the costs of developing the smart grid to consumers in the form of higher energy costs).

I must say that while I do not disagree with Rosen as a whole, he does fall into a growing number of Americans who want less government and more individual control. Many of these people who are “anti-government” already live off the grid; however, it is unfair to say that all people who live off the grid are those who are hiding for some reason or other. Many people are looking for ways to become “energy independent” to save money, to have a back-up in case of a major electricity shortage or outage, or to just get-away from technology in general for a while.

For those people who are curious about what living off the grid would be like, or learning how to go “Off The Grid,” this is a very interesting book to read. It is also educational for those who are not convinced that the smart grid is all that smart.