Smart Grid: It Isn’t As Simple As You Think

By now, most of us know that the demand for solar continued to rise during the recession. Demand continues to grow throughout the world. A couple of days ago, the SEIA published The US Solar Industry Year in Review 2009. The opening sentence of the report stated: ”Despite the Great Recession of 2009, the U.S. solar energy industry grew— both in new installations and employment.” Reuters reported that the “industry surged on incentives.” In February, Todd Woody provided details of how California and New York utilities are playing a key role in solar growth in the New York Times Green Inc. blog. “Over the past few weeks, some 1,300 megawatts’ worth of distributed solar deals and initiatives have been announced or approved. At peak output, that is the equivalent of a big nuclear power plant” wrote Woody. Yes, it’s only one big nuclear power plant, certainly not “As Big As Coal” which needs to be the rallying cry of the Solar Revolution, but, nonetheless, in the midst of the financial meltdown, it’s something.

So, OK, we are moving in the right direction over the last several weeks…but we’ve got a long way to go. There is so much do to on so many levels. As much credit as some will give to the utilities, the truth remains that the Solar Revolution is a grassroots cause. The efforts of the cause as a whole depend on each and every one of us doing what we can to educate and promote the beneits…even the imperitive…of creating solar As Big As Oil. We cannot settle for less. Along these lines, in order to be most effective, we’ve all got to understand the magnatude of unresolved issues that stand in the way of our goal.

In the Solar Industry Magazine (April 2010, Volume 3, Number 3~it is only available via “deadtree media”) that I recently receved, Michael Coddington, Kate Anderson and Benjamin Kropski did a great job of summarizing a New York City case study assessing grid-level effects of distributed photovoltaics. The article identifies many of the technical issues that stand in the way of rapidly connecting distributive PV to the utility networks. On the front page of the same Solar Industry issue, Bob Powell presents a look at utility-scale financing components. I highly recommend these two front page articles. The NYC Study article describes that utilities use two types of electrical distribution systems. By far the most common is these is the simpler radial system, which is designed for electricity to go just one-way. In such a distribution system, a lot of hardware and software is devoted to detecting and protecting against “reverse power flow,” which is “indicative of an upstream supply feeder fault.” Needless to say, this is not good from a net metering and feed-in-tariff point-of-view. The article also discusses the problems caused by the highly variable nature of solar energy supply and the importance of the development of solutions that will make this source of energy more reliable (such as battery technology or eventually a national or worldwide smartgrid). The front page companion piece reminds us that regulators and legistlators are driving the utilities to do the right thng, “either through mandates such as enacted renewable portfolio standards (RPS)…or via less formal expectations that a utility has in response to climate change.” Failure to meet RPS standards will hit the utilities where it hurts them most: earnings. The challenge for the utility becomes how to finance all the change required to achieve the RPS. There is so much great information is these two Solar Industry Magazine articles.

There was also a separate blog by Tom Raftery in the greenmonk blog. First, I want to say, that this blog is one great example of what we each can do to do our part for the Solar Revolution. Tom’s catchy sub-heading says “green from the bottom up; sustainable from the top down.” On April 16, Tom writes about “Are Utility Companies Ready for Full Smart Grids?” Tom takes a look at the IT angle to the new way of doing business. He also has a video interviw with Chris King, the Chief Regulatory Officer of eMeter. Tom writes that he commonly asks “What is a Smart Grid? Almost all the interviewees talk about an infrastructure capable of full end-to-end, two-way communications. That is, communication from utilities down to the appliance level in-home, and from appliances back up to utilities.” Tom probes the challenges that smart grid poses to IT, appliance development and, probably most importantly, consumer education.

So, with this kind of perspective, how are we doing so far with our Big as Oil goal? Well, in a recent Greentechmedia research article titled “Can the U.S. or California Institute a Feed-In Tariff?” Eric Wesoff writes that the RPS in California has failed. “And the U.S. solar market remains thwarted by tight financing, fragmented policies, and spotty permitting, as well as restrictive access to public lands.  Arguably, policy trumps technology in matters of energy, and the U.S. has a long way to go in developing a favorable energy and solar policy.” Wescoff’s article covers an April 14 presentation made by Ted Ko of the FIT Coalition. “California’s renewable energy piece was 14 percent of the energy mix in 2003,” cited Ko in his speech to the Silicon Valley Photovoltaics Society, ”and actually dropped down to 13 percent in 2008.  Further, he asserts that there is little chance that will California achieve its goal of 20 percent in 2010 and 33 percent in 2020.”

The answer, according to Ko, is getting a feed-in tariff imposed in California and in the U.S.  Ko defined the feed-in tariff as a predefined, pre-approved PPA between renewable energy generators and utilities.  He called it “the most effective policy in the world for getting cost-effective renewable energy online. It’s simple, fair and effective.”

As they say, “the Devil’s in the details.” There are so many details to research and understand. We need to continue to feed one another with newly developing information and ideas. Twitter, Facebook and Linkedin are great communication tools for this. So are invididual, company and public blogs. Write your own; subscribe to this one and others. WholeSolar will be starting a blog list. Let’s all share what we’re discovering and believing. Find a solar or renewable energy meetup group in your area. If you can’t find one, start one. Please be a part of Vote Solar and other similar organizations, where our numbers create “power to change power.” And please encourage other to join you in signing the Solar Bill of Rights. Most importantly, take action (if you have not yet) and increase your action (if you have).

The Solar Bill of Rights

On October 27 through 29, 2009, I attended the Solar Power International show. Wow, what a great three days. So many good things to cover in the next few blogs. Today, I want to share the Solar Bill of Rights which was presented by Rhone Resch, President and CEO of the Solar Energy Industries Association (SEIA). In a message of industry unity that was later complemented by calls for exerting political by New Mexico Govenor Richardson, Rhone laid out eight amendments of the Solar Bill of Rights and then stated, “We declare these rights not on behalf of our companies, but on behalf of our customers and our country. We seek no more than the freedom to compete on equal terms and no more than the liberty for consumers to choose the energy source they think best. These rights, like those on which country was founded, are a simple matter of common-sense. In fact, you might even call them ’self-evident.’ But that doesn’t mean they’re self-evident in the halls of power, especially when our opponents are pumping as much haze into the energy debate as they are into the environment.”

So here it is, in Rhone’s own words:

Solar Bill of Rights.

First Amendment: Americans have the right to put solar on their homes or businesses. Today’s systems beautify and add value to communities and homes, and yet antiquated rules prevent many homes and businesses from going solar. From restrictive covenants to onerous connection, permitting and inspection fees these rules create fundamental barriers to solar. Utilities should not be allowed to restrict green power with red tape.

Second Amendment: Americans have the right to connect their solar system to the grid with uniform national standards. This is as simple as creating a standard jack for telephones. Can you imagine buying a phone in Nevada and bringing it home to California and finding out it doesn’t fit into the wall jack? Other industries don’t stand for this and neither should we.

Third Amendment:  Consumers have the right to Net Meter and be compensated at the very least with full retail electricity rates. Call this solar’s eminent domain—utilities use the power we make, and we expect to be compensated at its actual value. This is not just the cost, but the true value of solar including our security benefits, peak power benefits and environmental benefits – as well as the true price for carbon.

Fourth Amendment: The Solar Power Industry has the right to a fair competitive environment. It’s the most basic right there is—equality under the law. Today, solar has anything but. And that’s not just an opinion, that’s a fact. From 2002 to 2008, federal subsidies for fossil fuels were $72 billion while solar received less than $1 billion. This is completely disconnected with the desires of the American people. Recent independent polling shows that 92% of the public supports greater use of solar. And yet taxpayers are forced to subsidize companies like ExxonMobil, companies that are the richest in the history of the world. It’s that simple—and that wrong. Subsidies aren’t the only issue of fairness, which leads me to number 5.

Fifth Amendment: We also have the right to equal access to public lands. Oil and natural gas companies are operating on 45 million acres of public lands. Today, solar companies have access to ZERO. America has the best solar resources in the world and we can’t harness the full potential of the sun without accessing our sun-baked lands of the West. Of course, there’s little point in collecting energy unless there’s a means of distributing it.

Sixth Amendment: We have the right to interconnect and build new transmission lines. Here, too, we seek no more than what other industries already have. The next great build out of our transmission lines must connect the vast solar resources in the southwest to the population centers across the United States.

Seventh Amendment: Americans must have the right to buy solar electricity from our utilities. Consumers have no choice but to buy power from utilities. Although recently some utilities have started to listen to the 92 percent of Americans who want them to prioritize a kilowatt of power drawn from the sun over any other energy source. We have a long way to go. Therefore, for any renewable portfolio standard to be effective, at either the federal or state level, it must contain a large carve out for all solar energy technologies.

Eighth Amendment: Consumers have the right, and should expect, the highest ethical treatment from the solar industry. From minimizing our impact on the environment to providing systems that work better than advertized to ensuring that we accurately communicate how incentives work for consumers, our industry must operate at a higher ethical standard than any other. We will not stand for those who cheat, lie and take advantage of the good name of solar energy.

We declare these rights not on behalf of our companies, but on behalf of our customers and our country. We seek no more than the freedom to compete on equal terms and no more than the liberty for consumers to choose the energy source they think best. These rights, like those on which country was founded, are a simple matter of common-sense. In fact, you might even call them “self-evident.”

But that doesn’t mean they’re self-evident in the halls of power, especially when our opponents are pumping as much haze into the energy debate as they are into the environment.

National Net Metering: Another Goal for the Tribe

A national net metering policy would make a lot of sense. It sets up the classic debate about Federal government versus state’s rights, but the quality of the environment is clearly a national, if not global issue that begs for a national net metering policy. In addition, any energy policy that moves us away from fossil fuel energy is really a national security issue. There are many issues, where I argue passionately for state’s and local community rights and against big government, but this is not one of them.

The net metering issue is really quite simple: just think of being able to turn your electricity meter backwards when your solar panels generate power. Why should anyone be afraid of this? Clean energy channeled into the grid, thereby reducing the demand for energy that comes from other sources. We’re worried that we’ll convert to solar too fast? Now wouldn’t that be a nice problem to have?

A national net metering policy would perhaps have the effect of further accelerating the development of a national (intra-national) and international smart grid. Admittedly, this will take time, but in theory a global smart grid will solve one of the largest problems facing the industry: wasted energy…energy generated but not used. Until we develop advanced energy storage technologies or a global smart grid, this will remain a large cost item to the utility industry.

Clearly there are many issues facing us as we all work to make solar power mainstream. National net metering is one of the vital issues. It is important that we keep talking and blogging about it. Let’s join together and keep the drums pounding.