A couple weeks ago, I quickly read this article, Cracking the Code - Aligned Incentives, on EnergyCentral.com. It concerns incentives for high-performance employees, but my read was about incentives for efficiency programs. It applies to that too. Myopic Focus I wrote about short-term focus many times, including last week – if your lips are chapped, stop licking them – short-term gain for longer-term pain. Efficiency portfolio administrators, typically utilities, want long-lived measures, deep energy savings, and instant savings. The demand for instant savings is like harvesting the carrots at day 30 rather than at day 70 maturity. SEM Myopathy As…
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Original Source: Risks Faced by Power Utility Companies | Energy Central Unprecedented transformation and rising threats are a top focus for power and utilities. Meanwhile, the cleaner energy transition poses unique opportunities to move the industry forward. Leaders know that taking a panoramic view of risk is no longer nice to have. It’s a must. Power utility companies are facing significant risks due to the latest technologies available. The advancements in technologies have led to a change in the power generation and distribution system, and thus, power utility companies must adapt to these changes to stay relevant in the industry.…
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Original Source: Record-high electricity prices fail to boost residential energy management programs: JD Power | Utility Dive Utilities Intelligence Report March 2023 Electricity bills in the United States rose 13.1% on average in 2022, higher than the overall rate of inflation. Concurrent with this trend, utilities have introduced aggressive carbon reduction goals and sustainability initiatives that rely on customers reducing their energy consumption through a combination of time-of-use rates, energy-saving appliance rebate programs and more. In fact, 81% of electric utility customers are now served by a utility with a stated carbon reduction target. Despite this decade-long push to change…
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Original Source: Construction begins on Idaho Power’s first energy storage projects as it faces growing capacity shortfall | Utility Dive Dive Brief: Construction has begun on Idaho’s first utility-scale energy storage installations, which are expected to start to come online this summer, Idaho Power announced March 3. An 80-MW battery energy storage system is being installed at the company’s Hemingway substation in Owyhee County and a 40-MW system is being built adjacent to the 40-MW Black Mesa solar project in Elmore County. Idaho Power told state regulators it identified in May 2021 a capacity deficit of 78 MW by this June, growing each year…
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Original Source: North Carolina’s Carbon Plan criticized for lack of specifics, energy reliability and possible higher bills (wral.com) A plan to significantly reduce carbon emissions in North Carolina is receiving widespread criticism. Environmental groups believe the state’s first Carbon Plan lacks specifics while other critics are concerned that too much reliance on renewable energy will be costly to the state. Some customers believe increasing renewables will mean a less reliable grid. The passing of House Bill 951 requires Duke Energy and other electric utility providers to reduce carbon emissions by 70% from 2005 levels by 2030 and reach net-zero emissions…
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We open this week’s Energy Rant with a called shot. Michael and Chantell Sackett are enjoying fresh mulch provided by the SCOTUS as they sent the EPA’s interpretation of “navigable waterways” to the woodchipper as predicted here last October. The energy transition is having problems, as this blog has often predicted. The message is hitting the mainstream. For example, last Friday, The Wall Street Journal featured three articles on the sputtering and wheezing transition in one edition. The first was global with the headline, Your Coming Summer of Blackouts. Faulty Power Markets Some things are working in reliability’s favor. The…
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I spent last week in California, where the energy transition is being jammed at a breakneck pace like a square peg in a round hole. I’ll set the stage with just a few things. First, the duck curve, a feature of excessive solar generation that began overgenerating a year or two ago, is now the “canyon” curve. Overgeneration occurs around 10 GW of net load – the amount needed to keep hot resources spinning in case of a fault in the system. The image below shows the current and forecast net loads on CAISO as of Saturday, May 20, 2023.…
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Now and then, a seemingly dumb idea flies through my neocortex like a bat at dusk. Bats have Mr. Magoovian eyesight and rely on radar technology to catch bugs. They are silent in flight. A few weeks ago, one such metaphorical flying rodent got too close for me to ignore. That bat was carbon dioxide pipelines used to sequester CO2. This could be the dumbest idea I have investigated. The pipeline would carry liquid CO2 from ethanol, fertilizer, and “other agricultural industrial plants” from Illinois, Iowa, Minnesota, Nebraska, and the Dakotas, to be sequestered under North Dakota or Illinois. Developers…
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This week I’m repackaging recent news on electric vehicle (EV) developments – market, technical, and utility impacts. I like to look at scale (macro) rather than ubiquitous siloed micro thinking. Is it realistic to scale rare earth mineral mining, battery manufacturing, and battery disposal? What about charging logistics, third-world labor, and grid impacts? Breaking the Grid? Let’s start with the revelation that force, in the form of mandates, will break things. An aeronautical engineer’s piece in Energy Central, says EVs, at scale, will break the grid. He notes that the Biden regime is developing restrictions requiring the market share of…
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Although, or maybe because Michaels Energy has provided research and evaluation services for about 25 years, I’ve been a consistent critic of evaluation, measurement, and verification (EMV), and I’ll tell you why in several chapters. Chapter 1 Resource Acquisition Evaluation methodologies are predominately based on widget programs, also known as resource acquisition programs. The hypothesis is this: efficient equipment costs more, and that extra cost is the barrier. How to mitigate or remove the barrier? Pay down the incremental cost with a rebate after the purchase or incentive before the purchase. It’s that simple and dumb. The simpleton approach to…
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