This is your SolarWakeup for June 4th, 2018
Solar In Illinois. The Illinois Power Agency is looking to finalize the adjustable block program which will be key to the distributed and community solar markets in the midwest’s solar market. SolarWakeup Live will start the full day looking into the market with the director of the IPA, which on June 21st will likely have the rules finalized, so that you can get on the ground and moving forward. We have a few more sponsor spots for the event (email me) and tickets are available at solarwakeuplive.com.
Coal Collusion. Looks like coal magnate, Bob Murray, got what he wanted from Trump on the 1-year anniversary of announcing the departure of the Paris agreement. The best response going around about this announcement is from the PJM twitter account. To date, PJM has not been notified by governing agencies to prop up coal plants yet but expect that to happen. The way for the government to really prop up these plants without picking winners would also cause the value of solar generation to increase which then causes the demise of coal to quicken. So here we are, throwing wind to the free market, rules be damned.
Arizona Plea Deals Rejected. This is your reminder that the original sin in fighting solar net metering is still embroiled in a federal grand jury investigation. Now there’s news that a former regulator and lobbyist are rejecting plea deals in the case. When I read this, I can’t help but to think of the many ex parte communications happening every day across the Country and we may be better off when the power isn’t concentrated to the monopolies anymore. Just a thought.
Thoughts On NV Energy. The gigawatt of solar represents the value of solar in high irradiance areas, like Nevada. Also, I’d be amazed if storage isn’t closer to 2GWh than the 400MWh outlined in the proposal. Let’s revisit this in a few years.
Slowing Chinese Solar. New rules from the Chinese government have caused a few people off guard. This is perhaps a sign of the strength of the global markets. Imagine what else would be possible with the trade wars.
Quality Of Resi Solar. Australia has been growing distributed solar in a big way and a lot of it has to do with the ease of installing solar on homes. Little delay between selling and installation means consumers are happy. With the ability to review the installs later on, gives the consumer advocate a way to make sure installers are doing a good job and there is some work to do. In the US, we need to do more to get closer to an instant solar process. We also need to do more in having the solar industry regulated by solar experts. We will be discussing this in much greater detail this summer but ponder how the solar industry could ensure that consumers are getting great solar.
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Have a great day!
Yann
UPDATE: Trump Throws Free Market Principles Out Window On Behalf Of Coal, Nuke Plants
This article has been updated to reflect that President Trump has in fact given the order rather than just considering it. By Frank Andorka, Senior Correspondent Well, that’s not very free market of him. In a move that made George Gilder do a spit take, President Donald J. Trump has ordered the Energy Department to instruct grid operators to purchase electricity from failing coal and nuclear plants in an effort to keep such faltering plants alive and well, according to the Associated Press. [wds id=”3″] Earlier today, Bloomberg indicated such a move might be imminent, citing a memo it reviewed … Read More
PPL Corporation Acquires Safari Energy
PPL Corporation announced that it acquired Safari Energy. a leading provider of solar energy solutions for commercial customers in the United States. "The Safari Energy acquisition offers PPL an attractive, low-risk opportunity to help advance a cleaner energy future; to support the growth of distributed energy resources, including energy storage; and to gain additional experience with technologies that will play a bigger role in shaping the future energy grid," said William H. Spence, chairman, president and chief executive officer of PPL Corporation. "However, even as it provides these benefits, the acquisition will not alter PPL's core business strategy," Spence said. "PPL's primary investment focus and engine for growth remains our high-performing, award-winning regulated utilities."PPL Corporation announced that it acquired Safari Energy. a leading provider of solar energy solutions for commercial customers in the United States. “The Safari Energy acquisition offers PPL an attractive, low-risk opportunity to help advance a cleaner energy future; to support the growth of distributed energy resources, including energy storage; and to gain additional experience with technologies that will play a bigger role in shaping the future energy grid,” said William H. Spence, chairman, president and chief executive officer of PPL Corporation. “However, even as it provides these benefits, the acquisition will not alter PPL’s core business strategy,” Spence said. … Read More
The Energy Show: John Farrell on Why It Costs More For Utilities to Sell Power
For over a hundred years our civilization has been getting electricity from centralized generation. This utility business model relies on remote power plants fueled originally by coal, oil and gas — and now increasingly by wind and solar. But the development of inexpensive rooftop solar power over the past 20 years is changing this central generation paradigm. It is now cheaper for homes and businesses to generate their own electricity on their rooftop, and only stay connected to the utility for night time power. These Distributed Generation (DG) solar power systems are connected on the customer’s side of the meter, or referred to as Behind the Meter (BTM) from a utility’s perspective. Utilities generate their profits by selling power, as well as owning the power plants and utility power lines. When customers generate their own power, utilities lose revenues. Moreover, when customers pay for their own solar generating systems, utilities do not get to own additional generating assets – further reducing their profits. This loss of revenues and profits is disrupting the conventional Investor Owned Utility (IOU) business. Utilities claim that there are costs being shifted from solar customer to non-solar customers. This cost shift argument is nonsense, since in reality the utilities are trying to regain their lost profits from solar customers by increasing rates for everyone else. Think about it: since utility customers are going elsewhere for the utility’s product (electricity), utilities are raising prices for everyone else. Nice work if you can get it. The trend towards BTM solar (and now battery storage) is inexorable as these technologies continue to get cheaper. The aptly named Institute for Local Self Reliance (ILSR) focuses on these technology and sociological transitions. Our guest on this week’s Energy Show is John Farrell. John directs the energy program at ILSR and is best known for his research and papers on economics and benefits of local ownership of decentralized renewable energy. John is one of our best thinkers and communicators on this subject, so Listen Up to this week’s Energy Show for his commentary on the superior economics of Behind the Meter solar and storage. https://soundcloud.com/theenergyshow/john-farrell-on-why-it-costs-more-for-utilities-to-sell-power-1
For over a hundred years our civilization has been getting electricity from centralized generation. This utility business model relies on remote power plants fueled originally by coal, oil and gas — and now increasingly by wind and solar. But the development of inexpensive rooftop solar power over the past 20 years is changing this central generation paradigm. It is now cheaper for homes and businesses to generate their own electricity on their rooftop, and only stay connected to the utility for night time power. These Distributed Generation (DG) solar power systems are connected on the customer’s side of the meter, … Read More
Trump To Throw Free Market Principles Out Window On Behalf Of Coal, Nuke Plants
By Frank Andorka, Senior Correspondent Well, that’s not very free market of him. In a move that made George Gilder do a spit take, President Donald J. Trump may soon order grid operators to purchase electricity from failing coal and nuclear plants in an effort to keep such faltering plants alive and well, according to a Bloomberg report. [wds id=”3″] A memo reviewed by the news organization says the Energy Department is considering using its power under the Federal Power Act – Section 202 powers, to be exact – to use emergency powers to take such action. Bloomberg called the … Read More
NV Energy Unveils Massive Solar, Storage Plans
By Frank Andorka, Senior Correspondent NV Energy, Nevada’s largest utility, unveiled plans to add more than 1 GW of solar power and at least 100 MW of battery storage in its latest Integrated Resources Plan (IRP), filed today with the Public Utilities Commission of Nevada (PUCN). The new projects will be evenly distributed throughout the state, with three new plants located in the north and three located in the south, pending the plan’s approval by the PUCN. [wds id=”3″] “The six new projects position NV Energy to keep its commitment to double renewable energy by 2023 and, importantly, by diversifying … Read More
This is your SolarWakeup for June 1st, 2018
Bad wifi on the plane means no column this morning. Have a great weekend and I will see you all on Monday. Let’s get ready for a strong June to close our Q2 in a great way! SolarWakeuplive.com to register for our Chicago event.
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Have a great day!
Yann
Minnesota Forges New Rules For Easier Clean-Energy Interconnection
By Frank Andorka, Senior Correspondent The Minnesota Public Utilities Commission (MPUC) decided last week to make significant changes to its interconnection procedures in an effort to make it easier for clean-energy customers to connect to the grid. Despite its reputation as being the Midwestern leader in community solar development, outdated interconnection rules had slowed the progress of community solar garden growth and caused frustration among solar advocates within the state. With the help of he Interstate Renewable Energy Council (IREC), Fresh Energy and the Environmental Law & Policy Center (ELPC), the MPUC has adopted more straightforward rules and procedures that … Read More
This is your SolarWakeup for May 31st, 2018
Learn This, Import License Fee. Here is the thing for you to think about going forward with the global solar economy. As we read about new plants in the US, product is coming and going across borders. Silicon, wafers, cells, glass, back sheets etc, are made all over the world. Some innovative companies like SunPower will have an onshore/offshore strategy which creates the best blend of lead times, cost of goods and types of products the market wants. Tariffs just increase the cost of the products across the value chain and nobody benefits. If instead, we had an import license fee on modules, the market would be able to pay for local module assembly manufacturing. Any module that comes into the market from abroad would create a pool of capital from the ILF that gets distributed to domestic manufacturers. So using an example that has both on and off shore manufacturing equally, the manufacturer ends up basically being tariff free. This ensures the solar market gets low cost solar while benefitting local manufacturing. Best of both worlds!
Growing Choice In Illinois. As policy fights in energy come up, I see a natural ally for solar in the retail energy companies. Utilities see this alignment as well and fight the consumer choice rules that allow retail energy providers to compete for consumers’ business. This is happening in Illinois right now. As a tangent, this affects community solar in a big way because the rules could overlap. Learn more about community solar and adjustable block grants in Illinois at SolarWakeup Live! Chicago on June 21st. Early bird pricing ends today so get your ticket today!
EVs For Everyone. EVs everywhere, that is a future of our transportation sector that I can get behind. This isn’t just for your Tesla owners, this is a 40x growth of where we are today in the next 10 years. The future includes electric buses and scooters in addition to cars. Add this to the retirement of coal and gas peaker plants, we’re going to need a lot of solar to be built in that same time frame.
Solar Powered Peaches. Hanwha is setting up an assembly plant in Georgia which is great news. I will note once more, this has very little to do with 201. This has to do with the value of supply chain and the growth of the markets on the East Coast. The Jacksonville and Savannah ports are massive distribution hubs with rail that goes up and down the coast. 201 supporters can save their happy dance for another argument.
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Opinions:
Have a great day!
Yann
Are Renewables Being Targeted In Illinois Despite Public Support?
By Frank Andorka, Senior Correspondent The legislature giveth with one hand and seems poised to taketh away with the other hand from the Illinois renewable energy providers. Despite a recent survey by CleanChoice Energy that shows 83% of Illinois residents want to have the choice of clean energy as an option to supply their homes and state-sponsored support under the Future Energy Jobs Act of 2016, action in the legislature later this week could diminish solar’s growth considerably if two amendments to SB 1531 are passed as part of the bill. At issue is the idea of “automatic renewals,” a … Read More