E035: Blockchain and Solar In Power Markets With LO3 Energy and Nat’l Grid, SolarWakeup Live! New York

What: Interview with LO3 Energy And National Grid On The Use Of Blockchain In The Future Energy Market Summary: Blockchain is a decentralized ledger technology driven to publicity by cryptocurrencies. In this conversation recorded at SolarWakeup Live! New York, Yann speaks with Lawrence Orsini, CEO of LO3 Energy, and Mathew Sachs from National Grid. SolarWakeup View: Blockchain is a new and early concept to the solar market. The Brooklyn microgrid is a pilot project that uses the concept of blockchain within an existing power marketplace. Overproduction of solar generation is delivered in power market credits to willing buyers. It can be sketched out how a distributed ledger within the blockchain can be the de-regulated version of net metering, matching overproduction with other energy consumers without having to have people in the middle of it. Related: Brooklyn Microgrid Subscribe to EnergyWakeup

This is your SolarWakeup for February 6th, 2018

A New (Gas) Tax. If most new car sales are going to be electric in a few years then imagine what will happen to gas tax revenues. Those taxes are largely used to pay for the infrastructure needed to move those cars around: roads, bridges and highways. The gas tax is already lacking in sufficient revenues, when electric cars circumvent the tax we need to look at a tax on energy consumption. Some States are looking at annual registration fees which don’t track consumption. Also, an energy tax for transportation makes more sense because it tracks across energy usage. Utilities will fight against this but even a $0.001/kWh gas tax would make a big dent in infrastructure revenue shortfalls.

SAII. Solar As Infrastructure Investments. The experimental marriage between SunPower and First Solar looks to be on the way to the end. Capital Dynamics has announced that it is acquiring 8point3 from the JV partners. Capital Dynamics has been aggressive and winning deals in the solar market. With this $1billion investment Capital Dynamics is making it clear that doing infrastructure and investing in solar is not mutually exclusive. 8point3 still goes down as the most clever branding venture with the ticker of CAFD, it was a great combination of name and ticker.

Nuclear Group Showdown. Grab your popcorn, there is trouble in nuclear paradise. NextEra has filed a lawsuit against NEI, the Nuclear Energy Institute, the trade group representing nuclear power’s interests in DC. Both NextEra and Energy have apparently left NEI as of the end of 2017. Within the details of the suit, it comes out that NextEra pays somewhere near $860k in membership dues. This makes me wonder what NextEra pays SEPA to be a member. It’s definitely not $860k and probably not even 10% of that number. This seems like an opportunity for SEPA to review its fee structure as its members leave other groups in the changing priorities.  

Good Luck With That. Company comes up with the idea to put solar on the Trump Wall. Trump likes the idea. Trump doesn’t use the idea in the sample walls. Company plans on suing Trump for the solar wall which now has a patent applied for. The wall appears to be making people act in ways that are counter intelligent.

Worried About Solar Scale? You can go down the line and count up the billions of investments that automobile OEMs are making into energy storage. Porsche is now adding $7.5billion to that total. We will soon discuss in greater detail the role that our solar industry plays in the e-mobility space.

Presented by Aten Solar. Experts in adding value to your supply chain and procurement.  Aten Solar is your go-to source for the best closeout pricing on new and surplus modules for your project needs. They still have limited modules available at pre-tariff pricing, visit atensolar.com for details.

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Yann

This is your SolarWakeup for February 5th, 2018

Getting To Minneapolis. The Super Bowl was last night and it was in Minneapolis. This will be the second most exciting thing in MN this year because I’ll be there during a special SolarWakeup Live! keynote interview with Connexus CEO Greg Ridderbusch during Midwest Solar Expo. Since some of the readers have lost their way as Patriots fans and I don’t want to lose any more subscribers, I will not be congratulating the Eagles or say Fly Eagles Fly.

Get Political. This is correct. The democrats have done a lousy job making solar a political issue. It’s a natural wedge issue, arguing for more jobs with higher wages. At the same time it lets politicians take a stand against monopolies. I always cringe when people tell me solar doesn’t do well in elections because I can count on one hand the political races that were impacted by solar as a issue. I want to see more elections where solar is a central topic while at the same time the argument against monopoly incumbents is made. That’s an issue talking point that works for voters, on both sides of the aisle.

Oil Convergence. Much is being made about oil companies going all in on solar. First off, couple hundred million dollars into solar is far from all in. Oil companies reported some $50billion in profits, last quarter. They also see the statistics on electric vehicles which will not get their energy from oil products. In order to keep that ‘market share’ they need to produce the new fuel, which is electricity.

100% Is Just Smart. A dialogue about 100% renewable energy goals is percolating and whether the goal is smart, achievable and politically motivated. The question to me isn’t whether 100% makes sense, it’s what the timeframe to achieve it is. A goal would be to push the envelope on doing it faster and while it will require capital investments, it will have very little exposure fuel cost volatility and create long term price transparency for customers.

Holy Electric. With Tesla Model 3 reservations in full delivery (I got my invitation to design last week) it will increase EV penetration by more than 30% monthly in the early months of 2018. What happens when the big OEMs get into this game? How much more energy will we need? How will we manage the additional consumption to the likely nighttime peaks it will create?

Presented By Panasonic. When you install Panasonic HIT® high-efficiency solar panels, you’ll provide homeowners with what we believe are the most efficient solar modules available today. Let’s take your business to profitable new levels together.

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Yann

This is your SolarWakeup for February 2nd, 2018

The Weekend. A great week in New York and I head to San Francisco next week. The state of the solar industry is steady and resilient. Mentally prepared for anything that is thrown at the industry, most of you are doing a good job of taking things in stride. That being said, for all of you heading to Solar Power Northeast, I can only say one thing to you. Fly Eagles Fly!

State Job Losses. GTM is breaking down the impacts of 201 by State. While California may have the biggest impact, it will be felt less than Texas perhaps. The fringe PURPA States will simply not start up or continue to grow from a nascent state. That being said most of the Florida losses I don’t agree with. Most of Florida solar is built on the balance sheet of the ratepayer and therefore a cost increase is actually a financial improvement to the utility monopoly since it increases rate base.

South Carolina Pain. This likely spells the end of the SCANA acquisition by Dominion. SCANA was scheduled to bill SC ratepayers about $37million per month but the State legislature voted 119-1 against allowing SCANA to collect those payments. I know it seems obvious that the legislature would vote this way but I don’t underestimate the power of utilities in Southeast legislatures. This time, the right vote was taken, now to figure out the 1 person that voted for it. (Mr. I pushed the wrong button/Mr. I am termed out and need a job)

You Failed At Your Job. The US Government has an employee that describes his job this way. “I went to Washington, D.C., for one purpose and that was to help create coal jobs in the United States. That’s my total purpose for being there.” Once you pick your jaw up from the table, you should be comforted by the fact that he is going to fail in his one purpose. Also, how does he sleep at night?

My Lithium Ion 201 Testimony. Fast forward 5-8 years from today and someone in the US is crying that China owns the lithium ion battery manufacturing supply chain. If you look where US IP went post bankruptcy and where the investments in manufacturing are going right now, you will find much of it in lithium battery city. If the US wants to lead, do it now.

Presented by Mintz Levin. Mintz Levin is an Am Law 100 law firm with a nationally recognized Energy & Sustainability Practice that has completed more than 500 transactions across energy sectors totaling over $7.5 billion since 2006.

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Yann

This is your SolarWakeup for February 1st, 2018

Grateful. Yesterday’s SolarWakeup Live! event exceeded all expectations and by the look of the lobby, it seems that good networking was in the works. I want to thank everyone that attended and the sponsors for making the event possible. Look out for the conversations to make it onto the website and your favorite audio platform in the next few weeks. When looking at the podcasts, don’t forget to search for EnergyWakeup to subscribe.

Clean Peak. The new version of the RPS is the Clean Peak Standard, an RPS that moves with the peak demand of the grid. This aligns the clean energy needs with the grid’s needs, i.e. preemptively adjusts procurement with side effects of the duck curve. In many ways this could be called the storage RPS.

SMART Storage. As SMART rolls out, I want to hear from the market participants about the program. There is a nice oped in the rundown today. My question to you is what percentage of SMART projects will be built with storage? The economics seem to be clearly in the money with storage but surely there are other market obstacles that may stop you from moving ahead with storage, tell me what your thinking is.

Conference Call? If SolarWakeup were to host a conference call on an ongoing basis, would you be interested in that? What types of experts would you want to have on and is this interaction something worthy of the time investment, on your and my end?

Call For Next City. Boston, DC and New York are in the books. Where should we go next? Goal is to have markets which could drive 100 attendees or more.

Presented By EnterSolar. EnterSolar is a leading provider of solar photovoltaic solutions to the commercial marketplace that is ranked the #1 solar developer in New York State and in the top 10 nationally.We are currently hiring at our growing company. 

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Yann

This is your SolarWakeup for January 31st, 2018

Time For Live! In NYC. It’s never too late to join us in New York for SolarWakeup Live! This will be a great event and if all technology works as intended you will be able to hear the podcast replays in a few weeks. Thanks to all for joining and the sponsors that make it happen.

Arizona Sees The Light. Don’t blame me if I read the highlights from the Arizona Corporate Commissioner with a grain of salt. But, I will take it as a sign in the right direction if executed on correctly. It will be a good day for Arizona consumers if the ACC moves towards power generation that does not have exposure to fuel cost volatility and takes advantage of Arizona’s land and solar resource.

Taiwan Jumps In. As South Korea has filed and Canada is complaining to the WTO about NAFTA, Taiwan is also asking for remedy against the US. I am still waiting for the Chinese response to the 201 tariff. Lighthizer better start working quickly towards a settlement before this all gets out of control.

BP Makes Another Move. Having an EV charging network means having access to real estate that will enable the electrified transportation system to run more efficiently. That is why some of the biggest energy, oil, and transportation companies have invested into EV charging companies. BP is now moving into this space with an investment and announcement that they will put charging at their gas stations. Since they already have the real estate this would seem to make sense, look to see other oil majors do the same.

Presented By FlexGen. FlexGen has been providing energy storage solutions for military and microgrid applications for nearly a decade and installed the largest DC-coupled solar plus storage project in the world. Their integrated solution is ideal for your dc-coupled storage project for projects over 250kW.

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Yann

This is your SolarWakeup for January 30th, 2018

I am on my way to New York for the third edition of SolarWakeup Live! 6 years ago, this newsletter went to about 40 people and it’s unbelievable where it has gone since. On Wednesday there will be almost 150 people in a room to join in a conversation about solar. The hope is that this becomes a monthly get together because our industry is constantly moving forward, deploying well over $20 billion every year. See you Wednesday!

Energy Progression. A few years ago there was a massive coal to natural gas replacement cycle. In Florida, there was also a oil to gas replacement. The replacement cycle is supposed to revolve every 30+ years or so. As we’ve seen in Michigan, it may be the end of gas as a replacement source given where the cost curves of renewables and storage are and where they’re going. At the very least, ratepayers should be given the choice to invest in a future that prices in the cost of fuel price volatility and the source of the energy. Time to look up after a century of looking down.

NJ Back To The Top. State races matter as New Jersey is showing us. NJ will be fixing the solar market shortly after a Christie veto and is now going back into RGGI and backing the Paris climate accord. I’m excited to see where NJ goes from here, it has a great market that can reestablish the area as a solar powerhouse.

Tax Shell Game. Ever since the tax reform came through, some regulators have pushed for utilities to pass the additional profits back to ratepayers. This sounds like recouping fuel savings when the prices drop which never seem to go back to where they came from when rates went up. For solar, this is a catch 22 since our unspoken secret is that we do better when rates go up and never down. I don’t see many of you rushing to advocate at the commissions to bring this money back to the ratepayers.

Coming To America. Jinko has confirmed that it’s coming to Florida with a secret procurement deal. I’ve gotta say something that seems obvious to me. There are only a few buyers in the US marketplace that would sign a 1.75GW module deal, especially somewhat tied to the intention of opening a factory in Florida Moreover, navigating the Florida economic development council takes work on top of the legwork you need to engage the Jacksonville Mayor’s office at the same time. Leaving the procurement announcement nameless seems ridiculous to me, there is a well over 75% chance that Florida Power & Light/NextEra is the counterparty. This wouldn’t be the first time that NextEra has tried to do this, they’ve been looking for a manufacturing win for almost a decade.

Presented by Aten Solar. Experts in adding value to your supply chain and procurement.  Aten Solar is your go-to source for the best closeout pricing on new and surplus modules for your project needs. They still have limited modules available at pre-tariff pricing, visit atensolar.com for details

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Have a great day!
Yann

This is your SolarWakeup for January 29th, 2018

201 Recap. Last week we learned about the 201 tariffs from Trump and SolarWakeup quickly held a conference call for our readers. That call is now available online for you to review. This week, I head to New York for our third SolarWakeup Live. We will hear about community solar, blockchain, energy storage, REV and investments in New York. I also have an unannounced guest that was inside the room during 201 tariff discussions fighting for the solar industry every step of the way. If you are in the area, don’t miss the event the solar industry is calling the most important gathering in America.

Congrats. Oliver Crane has made it to Antigua. Catch the livestream on the ‘Atlantic Campaigns’ facebook page. It was pretty cool so it gets the double mention. A big thanks from all of you that donated and shared his donation page.

SunPower Hits Back. The stop and go portion of the 201 tariff has already caused job losses in solar, we’ve been saying that since the start. Since the announcement of the tariff, it has been more of the same with the press release, proclamation and annexes all coming separately. Then we waited for the exemption process and hinting at a path to global settlements. SunPower was adamant about their differentiation during the USITC hearings and filings. Their position was that the IBC technology is just as different as First Solar’s CdTe solution which was exempted. SunPower is now stopping a $20million investment and hiring plan until they find out if their exemption request comes out. The interesting subplot is that if Suniva had been run properly from the start, taking on SunPower’s dealer network would have worked. Instead they were greedy and focused on the SolarCity/Sunruns of the market and promptly screwed up customer service when they changed their supply chain software solution. I hope for the sake of SunPower, their employees and dealers that they get the exemption.

South Korea Files With WTO. This is unlikely to be the first WTO filing by a country affected by the tariff. The political ramifications elude me unless the politics are better at putting issues into silos than I thought. It may also provide an inside look on if the tariffs hold up at the WTO.

Red State Pushback. Tom Matzzie highlights the interesting ‘policy by press release’ result of the 201 tariffs. The jobs that will be lost, in large part, come in the form of lost jobs in the future; i.e. growth of market that will not occur. Many of those projects are in the Trump States that wanted better paying blue collar jobs. The political challenge now is to use this issue as a way to show the tangible economic opportunity presented by solar and win an election fighting for solar to grow. The 201 tariff is both anti-growth and wage suppressing while costing taxpayers half a billion dollars.

Presented By Pfister Energy – Your only source for turnkey design-build renewable energy system solutions. We provide world-class power solutions for the commercial, industrial, and utility sectors with an emphasis on energy efficiency and energy management. Visit us at www.pfisterenergy.com

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Yann

This is your SolarWakeup for January 26th, 2018

19 Year Old. World Record. Clean Oceans. For the past month and a half, a 19 year old has been ROWING a boat that has capsized numerous time ACROSS the Atlantic. He is doing it all for charity and this weekend he will have made it across the Atlantic and be the youngest to ever accomplish this row solo. This has been an amazing story that I’ve had the privilege to read about in a play by play from Oliver’s father, David Crane. Oliver is doing this for an amazing charity to help clean the oceans. Clean oceans means a clean future for all of us. Please spare a few dollars and if you can’t spare a few dollars, share this on your social media. Imagine being completely alone, on a 22 foot kayak, auto-rudder broken, steering yourself to Antigua. Give for clean oceans here. 

201 Tariff Conference Call. If you missed the conference call on Wednesday you can now hear it on the EnergyWakeup podcast. Make sure to subscribe and give us a review to get the word out about this. All of our great content from the live events and now conference calls are on the podcast stream. Here is the link for the conference call. 

Real Numbers From GE. A division of GE had sales of $10.4 billion in 2017 and it is none other than the renewable energy group at GE. While it comes from the wind turbine business, it creates a shift in dynamic within the industrial giant. 10 billion is the eleven figure club that makes business unit heads a little bit more powerful. Mark this down as a moment in the energy transition that mattered.

Silicon Battles. Does China need the US solar market to be bigger by allowing cheaper solar modules to thrive in the market enough to let US silicon compete in their supply chain? That’s the question now as we try to kick off the settlement discussions.

Praise And Debate. Yesterday Gore gave a pass to Trump for the tariffs. Headlines overshadowed Gore’s intention of blaming the petitioners. The GOP isn’t happy about the tariffs, as stalwart defenders of the free trade market, this goes counter to their platform. However, Majority Leader Kevin McCarthy, who may have more solar in his district than other member of the House, praised Trump for the tariffs yesterday. The praise was wrapped in irony because they were made while standing in Davos for the World Economic Forum. Where’s my invitation by the way?

COSEIA Call For Nominations. Help Honor Solar Projects:  Do you know of a wonderful solar or energy storage project that deserves recognition? If so, the new COSEIA awards program is designed to provide kudos to these projects. Nomination form here. I will be interviewing a special guest on March 15th at the COSEIA Conference.

Presented By FlexGen. FlexGen has been providing energy storage solutions for military and microgrid applications for nearly a decade and installed the largest DC-coupled solar plus storage project in the world. Their integrated solution is ideal for your dc-coupled storage project for projects over 250kW.

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Yann

E034: SolarWakeup Conference Call On 201 Tariff Decision, Market Impacts and Pricing Forecast

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