Author Archives Laura Arnold

Q&A: Minnesota conservatives want to take ‘culture war’ out of energy

Posted by Laura Arnold  /   February 26, 2016  /   Posted in Uncategorized  /   No Comments

David Strom leads the Minnesota Conservative Energy Forum.

David Strom leads the Minnesota Conservative Energy Forum.

Q&A: Minnesota conservatives want to take ‘culture war’ out of energy

A group of prominent Minnesota conservatives have formed the Minnesota Conservative Energy Forum (MnCEF) in order to reshape the debate over clean energy policy.

The nonprofit plans to focus less on global warming and support for fossil fuels and more on developing a roadmap for moving in a clean energy direction.

“We really need to have a conservative policy debate about how to shape the energy future with the new technology available now,” said David Strom, MnCEF’s project director.

To that end, the organization captured the support and involvement of former state Senate majority leader and small business owner Amy Koch; GOP Sen. John Pederson; St. Cloud State University economics professor King Banaian; Jason Adkins, executive director of the Minnesota Catholic Conference; Ben Gerber, executive director of the Minnesota Renewable Energy Tracking System; and several others.

Both Michigan and Ohio have similar conservative clean-energy focused organizations.

Strom, 51, has been involved in conservative Minnesota policy circles for decades, first coming into the limelight as the head of the Taxpayers League of Minnesota, an advocacy group lobbying for limited government and lower taxes. In the past few years he’s worked on several campaigns for Republican candidates, including Tom Emmer’s successful run for the U.S. House.

MnCEF offers a Statement of Principles on its website which give a nod to the potential for distributed generation and choices for consumers. The last principle reads: “We believe that the renewable energy industry can, does, and will contribute to Minnesota’s economic growth. We also believe that it is in our economic interest to pursue the goal of leading the technological revolution in energy production.”

The Energy Foundation provided a grant for MnCEF to begin its work, Strom said.

He spoke to Midwest Energy News about the goals for MnCEF. His comments have been edited for clarity and brevity.

Midwest Energy News: How do conservatives view energy in today’s balkanized political environment?

Strom: We’re always arguing about whether global warming is the huge threat. We’ve taken our eye off the ball – technology is moving forward, there are new possibilities, we could in the midst of a sweeping clean energy revolution – rather than depending on a status quo situation we don’t particularly care for anyway.

What do you mean by status quo?

Energy is a regulated monopoly, it’s not something someone who likes free markets should be all that interested in.

What’s your pitch to counteract the conservative way of thinking?

Conservatives don’t buy into the philosophy that the world is coming to an end because of global warming. My argument to them is not about the changing environment, it’s about the fact 46 percent of our energy coming from coal now is going to go down, dramatically, over the next 30 or 40 years. Let’s talk about this transition. I’m finding people get excited about that idea.

Is there a battle mentality on both sides?

The environmental battle is really a cultural battle. Once you take the cultural war of out the debate it becomes a different argument. The cultural argument is the shining object, but take the shiny object away and people say, well, this (energy) is an interesting thing to talk about.

How do you view the cultural battle at this point?

Conservatives worry about energy because there’s a cost insensitivity on the part of a lot of environmentalists who are screaming "crisis." Crisis means you don’t pay attention to the cost of what you’re doing and you throw money down a rat’s hole, like Solyndra. Conservatives are very skeptical about how big climate change is and that is being used to fuel money to politically connected people.

Solyndra’s an old example, isn’t it?

But when you have these huge subsidy programs they are just ripe for the kind of manipulation that drives conservatives nuts. The government funds well basic research, but the government has a piss poor record of funding specific businesses. Conservatives have a real concern that once you mess with the fundamentals of the market you're benefiting specific people rather than nudging things toward a better future.

What change could you imagine in the future?

It could take place reinforcing the current regulated monopoly model or it can take place where there’s more choice and competition for consumers. I think that’s a compelling message for people.

You see utilities as changing?

The government has granted them a monopoly with a guaranteed profit for decades and they might not be in the public interest any more. Ask Microsoft. They were on top of the world and then they got displaced over 20 years. Everyone has to adjust to the marketplace.

So is deregulation the answer?

There is no straight path to a deregulated market and the process can go off the rails. You have to be careful. What I would like to see is a transfer of power to consumers so people can reduce their reliance on the grid. We want the technological changes to work so consumers get more power over where and how they purchase energy.

What kind of clean energy gets your personal attention?

I am fascinated by solar, I love reading about Elon Musk and electric cars. All that is very interesting. A lot of people are attracted by that. And there’s no downside to these technologies.

Some conservatives have been critical of the state’s energy policy and focus on renewables. What has Minnesota done right?

Largely the thing we’re doing right is we have goals for our energy mix. I don’t care for how we’ve done that but we have a policy of moving away from the older, dirtier methods of energy to more modern and renewable energy. That’s a good path we’re on.

But?

How do we force the question of whether, 50 years from now, we want a model of a few big energy producers with a cozy relationship with government having a monopoly on energy or something else.

Is the MnCEF going to lobby?

The short answer is this session we wouldn’t be doing any lobbying. We’re registering as a 501(c)3, but I don’t see us as a think tank. We want to get people out of the cultural battle and into the policy questions. After the next election we might consider a 501(c)4, which allows lobbying.

What are immediate issues you might look at?

Community solar, which I’m really interested in, and net metering, which is a hot topic.

What’s success?

In two or three years I hope to see conservatives quit talking about renewable energy in terms of a culture war over the environment and climate change and instead talking about it in terms of technological change. We want to look at how we get to a place where we have reliable, inexpensive, clean energy.

WSJ: Energy Prices Steer Farmers Away From Manure Power Despite U.S. encouragement, development of farm waste-to-energy systems wanes

Posted by Laura Arnold  /   February 26, 2016  /   Posted in biomass, Feed-in Tariffs (FiT), Northern Indiana Public Service Company (NIPSCO), Uncategorized  /   No Comments
Anaerobic digesters convert cow manure into gas, which can then be used to fuel electricity generation. Above, a digester at the New Hope Dairy in Galt, Calif., in 2013.
 
Anaerobic digesters convert cow manure into gas, which can then be used to fuel electricity generation. Above, a digester at the New Hope Dairy in Galt, Calif., in 2013. PHOTO: MANNY CRISOSTOMO/SACRAMENTO BEE/ZUMA PRESS

Energy Prices Steer Farmers Away From Manure Power - WSJ

By DAVID KESMODEL
Feb. 18, 2016 12:02 p.m. ET
19 COMMENTS

Wisconsin dairy farmer Art Thelen was full of optimism a decade ago when he joined a growing group of U.S. farmers investing in technology that turns livestock manure into electricity.

The systems promised to curb air pollution from agriculture, generate extra revenue and—in no small feat—curtail odors that waft for miles in much of farm country.

“It was a great idea, and when it worked well, it was wonderful,” Mr. Thelen said.

Now the 61-year-old is among a group of farmers who recently have shut down their manure-to-energy systems—known as anaerobic digesters—or scrapped plans to build them because of the prolonged slump in natural-gas prices and higher-than-expected maintenance costs that made the systems less economical.
Construction of new U.S. farm digesters has slowed sharply over the past two years, marking a challenge for the Obama administration, which is pushing the technology as a way to curb greenhouse-gas emissions. Agriculture accounts for 36% of human-related emissions of methane—a potent heat-trapping gas—in the U.S., making it the biggest source, according to the White House.

Some big meatpackers that have supported development of digesters have become more cautious, too. Perdue Farms Inc., among the largest U.S. chicken processors, has pledged to contribute poultry waste to a planned Maryland biogas project, but the company has rejected several other manure-to-energy proposals.

“With today’s fossil-fuel prices,” many such projects “can’t stand on their own,” said Mike Phillips, director of special projects for Perdue AgriBusiness.

Digesters are oxygen-free tanks in which microorganisms break down waste and capture methane that otherwise would be released into the atmosphere. The biogas from digesters, mostly composed of methane, can be burned to produce electricity or cleaned and pressurized for transport in natural-gas pipelines. The digestion process also yields products like fertilizer that farmers can use or sell. And by diverting waste from open-air lagoons, digesters limit the potential for spills that can pollute waterways.

About 260 digester projects were active or under construction on U.S. farms as of May 2015, according to data compiled by the Environmental Protection Agency from voluntary sources. Only six new projects became operational or were under construction in 2014, down from an average of about 30 a year from 2008 to 2013.

The Obama administration’s plan to reduce methane emissions relies on farmers voluntarily using digesters, though some federal grants and loans help pay for the systems. A “biogas opportunities road map” issued in 2014 by the Agriculture and Energy departments and the EPA projected that broad adoption of the systems could produce energy to power 1 million U.S. homes, up from about 70,000 at the time. Last year, the USDA announced a goal to support the installation of 500 new farm digesters by 2025.

The gas produced from anaerobic digesters is used to fuel power generators. Above, a generator at Homestead Dairy in Plymouth, In.

The gas produced from anaerobic digesters is used to fuel power generators. Above, a generator at
Homestead Dairy in Plymouth, In.PHOTO: MIRA OBERMAN/AGENCE FRANCE-PRESSE/GETTY IMAGE
[IndianaDG Editor's Note: The Homestead Dairy is using the NIPSCO feed-in tariff.]

But installing and operating digesters has become tougher for farmers. Buying the systems can cost millions of dollars, which farmers typically fund through long-term sales agreements with utilities. Manure from a typical 1,000-cow dairy farm can produce enough electricity to power about 250 homes, said Melissa VanOrnum, vice president of marketing at DVO Inc., a digester provider.

Some utilities, including in Wisconsin, are paying less for manure-generated electricity amid a national slump in power prices driven by cheap natural gas. Wind and solar power also have gotten less pricey, making them more attractive than manure biogas for utilities seeking to meet state renewable-fuel standards.

Nevertheless, installations are expected to pick up in New York, California and a few other states thanks to state government financial incentives, Ms. VanOrnum said.

Smithfield Foods Inc., a subsidiary of China’s WH Group Ltd. and the world’s largest pork processor, has pursued biogas projects since the 1990s and remains optimistic about their potential, despite having to shut several operations because they weren’t as efficient as expected, Smithfield officials said. The company has a handful of existing projects and two pending.

“We want to do everything we can to promote the use of swine manure as an energy source, but there are hurdles to it and we’re trying to work through them,” said Kraig Westerbeek, Smithfield’s vice president for environment and support services.

For biogas-system designers like DVO, markets overseas help make up for the slowdown in the U.S. Germany has more than 8,000 digesters, thanks to a law guaranteeing renewable-energy producers above-market rates for their power for years. China, France and Denmark also encourage the use of farm digesters.

Wisconsin, the second-biggest dairy producer after California, long has led the U.S. in farm digesters. But farmers’ interest has waned, in part because some contracts with utilities reached last decade to promote digester installation are nearing expiration and new terms aren’t as good.

Wisconsin utilities including Alliant Energy Corp. have received state approval to pay around 3 cents per kilowatt-hour of electricity produced from manure, down from 8 to 9 cents guaranteed to some farmers last decade.

Alliant is exploring further digester partnerships and “we view them as playing an important role environmentally,” a spokesman said. But “digesters are more complicated and expensive to maintain” than wind and solar programs.

Mr. Thelen, who runs Wild Rose Dairy near La Farge, Wis., said he and partner Dairyland Power Cooperative decided to halt their digester project about a year ago. One big challenge: maintenance costs for the generator, due in part to corrosion by a chemical common in biogas, he said.

“It got to the point where the electricity was way too high-priced coming out of the digester to be sold on the main line [and compete] with cheaper stuff like solar and windmill towers,” Mr. Thelen said.

 

AES, Tesla’s Battery Competitor, Hedges Its Bets On Energy Storage

Posted by Laura Arnold  /   February 25, 2016  /   Posted in Uncategorized  /   No Comments

Consumers Union Report: Caught in a Fix–The Problem with Fixed Charges for Electricity

Posted by Laura Arnold  /   February 16, 2016  /   Posted in Uncategorized  /   No Comments

Caught in a Fix: The Problem with Fixed Charges for Electricity

Recently, there has been a sharp increase in the number of utilities proposing to recover more of their costs through mandatory monthly fixed charges rather than through rates based on usage. Utilities prefer to collect revenue through fixed charges because the fixed charge reduces the utility’s risk that lower sales (from energy efficiency, distributed generation, weather, or economic downturns) will reduce its revenues.  However, higher fixed charges are an inequitable and inefficient means to address utility revenue concerns. This report provides an overview of (a) how increased fixed charges can harm customers, (b) the common arguments that are used to support increased fixed charges, (c) recent commission decisions on fixed charges, and (d) alternative approaches, including maintaining the status quo when there is no serious threat to utility revenues.

For a copy of the report Click HERE> Caught-in-a-Fix-FINAL-REPORT-20160208-2.pdf

New report from Consumers Union exposes problems with fixed charges on electricity bills

Analysis shows utilities continue to push for fixed charges, despite recent regulatory decisions against such charges

WASHINGTON, D.C. – As the National Association of Regulatory Utility Commissioners (NARUC) prepares to begin work on electricity rate design at its Feb 14-17 winter meeting, a new report from Consumers Union examines how many utilities across the country are pushing to raise mandatory “fixed” charges on electricity bills.  The report describes how these charges can harm consumers, especially low-use and low-income consumers, undermine incentives for energy efficiency, and increase electric system costs.  Consumers Union is the public policy and advocacy division of Consumer Reports.

Conducted by Synapse Energy Economics, Inc. for Consumers Union, the report “Caught in a Fix: The Problem with Fixed Charges for Electricity” finds considerable ongoing efforts by utilities in the past year to push for fixed-fee hikes, even with a recent national trend among utility regulators against mandatory fixed fees.

“Our report investigates how mandatory fixed charges reduce people’s ability to control their bills with their energy consumption, and how they disproportionately impact low-income consumers.  These charges undermine incentives for energy efficiency and can lead to higher electric system costs,” said Shannon Baker-Branstetter, policy counsel for Consumers Union. “Utility companies continue to push these misguided proposals, even though utility commissions have repeatedly rejected or limited them.  Rate designers need to take a close look at this record against fixed charges.”

Key findings of the report include:

Low-usage and low-income customers are hit hardest by mandatory fixed fee hikes. Analysis of the impact of a $16 per month fixed fee increase with a corresponding decrease in the energy usage rate – similar to Kansas City Power & Light’s recently proposed rate design – would significantly raise monthly electric bills for many customers. A home using 1,000 kilowatt-hours a month would have 4% higher electric bill, and a home using 500 kWh/mo would be hit with a 17% higher bill. According to the report’s analysis of Energy Information Administration data, low electricity users tend to also be low-income customers: in nearly every region most low-income customers consume less energy than the typical residential customer.

Utilities keep pushing for increases in fixed charges, even as utilities commissions often steer away from them. Analysis of 51 proposals by utilities to increase fixed charges decided between September 2014 and November 2015 finds that 41% were rejected in full, 33% were scaled back and 25.5% were approved as proposed. About 25 fixed fee proposals are pending currently. For most utilities, there is no need for increased fixed charges, the report recommends. Regulators who decide there is a need to increase utility revenues should consider alternatives to increased fixed charges, such as minimum bills and time‐of‐use rates.

Fixed charges reduce customer control. Since customers must pay the fixed charge regardless of how much electricity they consume or generate, the fixed charges reduce the ability of customers to lower their bills by consuming less energy.

Reduced incentives for energy efficiency and distributed generation can raise costs for all consumers. Increasing the flat charge portion of the bill instead of the variable portion of the bill means that a consumer’s efforts to save energy may not translate into a lower electric bill, which reduces the incentive to invest in energy efficiency or distributed generation. With less incentive to save, customers may increase their energy consumption, and states would have to spend more to achieve the same levels of energy efficiency and clean energy. Where electricity demand rises, utilities will need to invest in new power plants, power lines, and substations, thereby raising electricity costs for all customers.

Consumers Union will share copies of the report with members of NARUC at its winter meeting this month in Washington, D.C., and is delivering petitions from consumers urging their utility commissioners to reject higher fixed charges.

A full copy of the report is available online here.

***

Contact: David Butler, Consumers Union, 202-462-6262, dbutler@consumer.org

National Trade Association for Community Solar Launched

Posted by Laura Arnold  /   February 12, 2016  /   Posted in solar, Uncategorized  /   No Comments

Coalition for Community Solar Access

FOR IMMEDIATE RELEASE
February 9, 2016

FOR INFORMATION CONTACT:
Ben Finzel, 202-277-6286, ben@communitysolaraccess.org

National Trade Association for Community Solar Launched
Coalition for Community Solar Access (CCSA) to Focus on Serving Tremendous Unmet Demand for Solar

Washington, D.C. (February 9, 2016) – Leading energy companies in the solar market today announced the formation of the Coalition for Community Solar Access (CCSA), the first-ever national trade association for community solar. The Coalition’s founding leadership includes Clean Energy Collective, Community Energy, Ecoplexus, Ethical Electric, First Solar, and Recurrent Energy.

CCSA is a business-led trade organization that works to expand access to clean, local, affordable energy nationwide through community solar. Community solar refers to local solar facilities shared by individual community members, who receive credits on their electricity bills for their portion of the power produced. Community solar projects provide American homeowners, renters and businesses access to the benefits of solar energy generation unconstrained by the physical attributes of their home or business, like roof space, shading, or whether or not they own their residence or building. These programs can also expand access to solar energy to low-income households.

“Community solar is the necessary next step to bringing solar to the majority of Americans for whom solar is not yet an option,” declared CCSA Executive Director Jeff Cramer. “We’re meeting a growing need with a coordinated, collaborative approach that will help expand the American solar market benefitting both consumers and business.”

“CCSA is responding to the ever-growing consumer demand for solar. Our companies are hearing from customers who want to go solar but are limited by shading, roof space, or other factors,” said CCSA Board Chair Hannah Masterjohn of Clean Energy Collective. “And we hear every day from community leaders, utilities, clean energy advocates and policy makers across the country who are interested in expanding access to affordable clean energy in their communities. As a coalition of experienced community solar providers, CCSA will be the go-to resource for those leaders to help them establish successful programs.”

Community solar is a rapidly growing market with immense market potential. A recent NREL report outlined that market potential of up to $16 billion in investments and up to 11 gigawatts of cumulative installed capacity through 2020. Successful community solar models are operating across the country with a beneficial role for all parties in the partnerships forged between subscriber, developer, and utility.

CCSA will work in partnership with consumers, local stakeholders, and utilities to promote smart policies and innovative program models to give all Americans in every community the ability to directly benefit from clean, affordable, and reliable solar power. CCSA’s initial goals are: to open markets in key states; serve as the resource for policymakers, utilities and advocates who seek clear, practical options for establishing community solar programs; and to be the messenger to highlight the growing success of the community solar market.

Initially, CCSA will target several key states in 2016, including New York, Massachusetts, and Maryland, and broaden its reach as the organization and the community solar market grows. The coalition will work with legislators, regulators and utilities to help develop fair policy and regulatory frameworks to drive sustainable growth for community solar. Through this collaborative approach, these states can deliver not only the economic and environmental benefits of solar to their citizens, but can create good-paying, long-term jobs in their communities.

“We are already working closely with other national and local solar groups to promote broader access to community solar, and our voice will complement existing efforts,” declared Board Member Joel Thomas of Community Energy. “Solar is a rapidly growing industry employing over 200,000 Americans and serving over 750,000 customers nationwide. Our combined efforts will help expand the opportunity for all Americans to have access to and meaningfully benefit from solar energy.”

Each CCSA member company has agreed to adhere to a set of nine “Core Principles” for developing effective community solar policies and programs, including the importance of access to solar for all consumers, economic benefit to customers, customer choice, and consumer protection.

“We are partnering with other solar organizations, utilities and advocates to help promote the growth of solar broadly and intelligently,” said Board Member Eran Mahrer of First Solar. “Our message is simple, ‘If you want access to solar energy, you should have that option, regardless of where you live.’”

“Ultimately, our work is about expanding access to solar for homeowners, renters, and small and large businesses through community solar programs,” declared Board Member Sandy Roskes of Ethical Electric. “We will help create new opportunities for all consumers to choose the clean, affordable, and reliable options for solar power that are right for them.”

For more information on CCSA, visit the website atwww.communitysolaraccess.org and follow the Coalition on Twitter at @solaraccess.

Statements of Support from Solar Industry Leaders for CCSA
February 9, 2016

We have received the following statements of support from solar industry association leaders, executives of allied and other related organizations, analysts and advocates and CCSA member company executives.

“We strongly support the work the Coalition for Community Solar Access is doing to advance this critical segment of the industry. Community Solar can be made available to everyone and it can play a critical role in increasing the reliability of the grid, injecting investment into local and diverse economies and contributing to cleaner air. We look forward to working with the Coalition as it supports these worthy and important goals.”

Rhone Resch, President and CEO, Solar Energy Industries Association

“The rapid growth of community solar projects across the country once again underlines the intense customer and utility interest in putting more solar on the grid in ways that benefit all stakeholders. Equally important, companies are stepping up to work together, which should further advance the spread of these projects and the innovative technology and business models being developed along side them.”

Julia Hamm, President and CEO, Solar Electric Power Association

“As a long-standing national leader on shared renewables, IREC views the formation of the Coalition for Community Solar Access as an important step to continued and enhanced market maturity. We look forward to working collaboratively with the Coalition in pursuit of our shared goal to expand consumer access to renewable energy across the country.”

Sara Baldwin Auck, Director, Regulatory Program, Interstate Renewable Energy Council

“Americans overwhelmingly want more solar powering their homes, businesses and communities, and with the right policies we can connected more of them with the clean energy they want. We look forward to working with Coalition for Community Solar Access, stakeholders and policymakers to give more consumers ways to participate in and directly benefit from our nation’s growing solar economy.”

Adam Browning, Executive Director, Vote Solar

“Community solar is a great way to provide the benefits of one form of advanced energy – solar – to everyone, even those who can’t host it on their own roofs. In half the states in the U.S., community solar is already happening. It’s great to have a group like the Coalition for Community Solar Access to promote the growth of community solar across the country.”

Malcolm Woolf, Senior Vice President for Policy and Government Affairs, Advanced Energy Economy

“Over the past couple of years, a growing number of utilities and states have rolled out ambitious programs to put community solar on the national radar. As the community solar market nears 100 MW installed, its transition from minor to major driver of U.S. solar demand will benefit from an industry-wide platform for states and utilities to share best practices in program design, and for solar companies to build relationships and partnerships that leverage their strengths to grow community solar. Looking ahead, collaborative efforts like the new trade group will play an important role in helping customers, utilities, and developers scale the learning curve of community solar’s value proposition and enable the market to grow fivefold between last year and the end of this decade.”   

Cory Honeyman, Senior Analyst, Solar Markets, GTM Research | Greentech Media

“The Coalition for Community Solar Access is a testament to the maturity of this model and the opportunity for exponential growth through cooperative efforts.”

Paul Spencer, founder and CEO, Clean Energy Collective

“Advanced solar technology optimally sited on the utility grid offers secure, clean electricity at a lower fixed price with no compromises. The only thing missing is permission for electric customers to sign up. Community Solar means solar power delivered on your utility bill. CCSA is working to bring optimally priced, advanced, solar-power technology to electric customers through the utility grid, and looks forward to working with electric customers, utilities and policy-makers to advance this high-value market.”

R. Brent Alderfer, President, Community Energy, Inc.

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