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More Companies Focus on Utility-scale Renewable Energy Integration

By Jennifer Runyon, Managing Editor
March 17, 2009   |   5 Comments

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"We believe renewable energy can be stored and stored renewable energy can help stabilize our system."

-- Phillip LeGoy, Senior Consultant, Power Plant Design, ESB International
5 Reader Comments
Comment
1 of 5
March 17, 2009
In addition to utilities California ratepayers are also very interested in being a propenent for energy storage. The Self-Gerenation Incentive Program is from what I know the first incentive program in the U.S. that is incentivizing energy storage when coupled with eligible DG technologies. The SGIP working group and CPUC feel that it is a necessary step to firm up our renewable energy resources thorughout the State.

Ryan
SGIP Program Manager
Comment
2 of 5
March 18, 2009
"Wilder feels that interest in storage is being driven by utilities, because, as he says, when you talk about electricity, utilities are the experts."

There are plenty of electricity experts outside of the utilities. Utilities have a stranglehold on the energy generation market and the associated energy revenues. Distributed energy models require much less storage capacity and can be met with less expensive technologies. We don't need to wait for the old guard to create solutions to our energy problems.

To the time of use rate issue, the utilities may be moving towards this for their residential rate payers because of their own RE goals. The unintended consequence to them is that distributed generation wins even more in this scenario. A residential PV system on TOU with the homeowners at work all day (ie not consuming electricity) has a similar economic profile to a PV system on a feed in tariff. What happens to residential demand for RE when both occur?

Renewable energy is the future and utilities won't be able to adapt to it. The utilities will try to graft new technology into an old model but we'll quickly see that none of the holes line up.
Comment
3 of 5
March 18, 2009
Wow, this article is the first I have seen that is honest about wind industry support for monopolies being granted to the utilities. The reason appears to be the wind industry needs utilities to solve problems arising from intermittent generation at the wrong times of the day. I would think it would be better if the wind industry were to solve these problems themselves, because then utility monopolists couldn't take over their industry later. Apparently, the wind industry doesn't think it can solve the problem themselves, so they have decided their only hope is to make a deal with the devil. The utilities get to keep their monopolies and continue building large scale generation at their fossil and nuclear-fueled power plants, while also securing the public relations propaganda that they are trying to develop renewable energy, specifically large-scale wind energy. The wind energy industry gets renewable mandates favoring wind, token contracts to build some wind towers from their friends at the utility monopolies, and ratepayer-supported development of storage technologies for wind energy (even though it may never succeed). Environmentalists, who love wind energy, get to look like they are promoting renewable energy. Meanwhile, the development of other renewable energy technologies is stymied by the utility monopolies, leaving almost all of the renewable market for wind. Even though wind is the least reliable renewable energy, so the industry fails.
Comment
4 of 5
March 18, 2009
Alex, I agree with you completely that utilities are monopolizing electricity markets and that utility scale power is less economic than distributed generation. But I disagree that distributed generation will necessarily win out to utility scale power in the future. The utilities, wind energy industry and environmentalists have the political power to force renewable portfolio standards, instead of feed-in tariffs. Renewable portfolio standards allow the utility to negotiate prices with suppliers on a discriminatory basis. That invariably results in higher prices for their own renewable energy generators and that of their affiliates and friends, particularly those in the wind industry. In comparison, feed-in tariffs, like those in Germany, are paid to all renewable energy producers at the same fair price. For example, all renewable energy producers would get say 7 cents per kWh for all power they generate. In addition, the US will also not establish competitive free markets, as evidenced by the failure of deregulation, that occurred because states awarded old coal and nuclear power plants all sorts of advantages including stranded cost subsidies, grandfather exemptions to environmental regs, preferential grid access, etc.
Comment
5 of 5
March 19, 2009
Whatever happened to the good old fashioned flywheel as a way to store energy? Easy to install at distributed locations, smoothes out energy spikes, no need to carry volatile gasses from place to place. Sometimes I think we get way too high tech (just because we can) without taking into account all the long term maintenance and infrastructure consequences.
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Jennifer Runyon

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About: Jennifer Runyon is managing editor of RenewableEnergyWorld.com and Renewable Energy World North America magazine, coordinating, writing and/or editing columns, ... more »

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