Archive for Global

FERC Chair Jon Wellinghoff: Solar ‘Is Going to Overtake Everything’

If anybody doubts that federal energy regulators are aware of the rapidly changing electricity landscape, they should talk to Jon Wellinghoff, chairman of the Federal Energy Regulatory Commission (FERC).

“Solar is growing so fast it is going to overtake everything,” Wellinghoff told GTM last week in a sideline conversation at the National Clean Energy Summit in Las Vegas.

If a single drop of water on the pitcher’s mound at Dodger Stadium is doubled every minute, Wellinghoff said, a person chained to the highest seat would be in danger of drowning in an hour.

“That’s what is happening in solar. It could double every two years,” he said.

Geothermal, wind, and other resources will supplement solar, Wellinghoff said. “But at its present growth rate, solar will overtake wind in about ten years. It is going to be the dominant player. Everybody’s roof is out there.” Advanced storage technologies also promise lower costs, he said. “Once it is more cost-effective to build solar with storage than to build a combustion turbine or wind for power at night, that is ‘game over.’ At that point, it will be all about consumer-driven markets.”

If FERC does not ensure the grid is ready to integrate the growing marketplace demand for distributed solar and other distributed resources, Wellinghoff said, “We are going to have problems with grid reliability and overall grid costs.”

Transmission infrastructure will be able to keep up with solar growth. The big changes will be at the distribution level where FERC has less influence, he explained. But the commission has been examining the costs and benefits of distributed generation (DG) in wholesale markets.

“Rate structures need to be formulated in ways that fully recognize the costs and benefits of distributed resources,” Wellinghoff said. “In many utility retail rates, a disproportionate amount of the fixed costs are recovered through a variable rate. That is problematic when a lot of people go to distributed generation.”

The net metering controversy this has caused at utilities like Xcel and Arizona Public Service, he said, can only be resolved by “the fully allocated, fully analyzed cost and benefit study of distributed resources.”

Tea Party Joins with the Sierra Club to Promote Solar in Georgia

As Debbie Dooley co-founder of the Atlanta Tea Party explains, “I’m a grandmother, and I want to be able to look my grandson in the eyes and tell him I’m looking out for his future. Conservation is conservative, and protecting our children and our natural resources is a conservative value.” Those who believe in the free market need to reexamine the way our country produces energy. Giant utility monopolies deserve at least some competition, and consumers should have a choice. It’s just that simple, and it’s consistent with the free-market principles that have been a core value of the Tea Party since we began in 2009.

“In Georgia, we have one company controlling all of the electricity production, which means consumers have no say in what kind of power they must buy. A solar company could not start up and offer clean power to customers because of restrictions in state law. Our Constitution does not say that government should pick winners and losers, but that is what government is doing when it protects the interests of older technologies over clean energy that’s now available at competitive prices. I say, let the market decide” says Debbie.

She goes on to explain, “Georgians are currently and unjustly denied this opportunity, and will continue to be unless a law is passed to change the system. That is why the Atlanta Tea Party supported Senate Bill 401 in the past legislative session. Georgia Power opposed it and it never made it out of committee. We will try again when the Georgia legislature reconvenes in January 2014. All states should allow their citizens the opportunity to generate and sell their own solar power.”

So I ask our elected state and federal officeholders, “Why hesitate in voting for extending the Master Limited Partnership to renewables?” Level the energy playing field. Here in Tennessee, our citizens have the same demands as our neighbors in Georgia. TVA board serves the people in the valley, why not listen to their demands for cleaner energy?

Postscript: Americans for Prosperity, which like the Tea Party have been nurtured and sponsored by the Koch brothers oil billionaires, is dismissing the Georgia faction as an aberration, or even more damming, as a “green Tea Party.” It has sought to turn the issue of rights on its head by arguing that rooftop solar will “infringe upon the territorial rights to the distribution grids” of the network operators.

TSEA August Newsletter Editorial

TSEA Editorial

Disputes over the use of small-scale solar power are flaring across the nation. At issue in an Iowa lawsuit is whether solar-system marketers can sell electricity in territories where local utilities have exclusive rights to customers.

In TVA territory distributors are forbidden from generating electricity and that extends down to small installations on residential homes. The overall concept of an individual providing some of its own power and selling the rest to the utility company is called net metering.

Net metering or net energy metering (NEM) allows electricity customers who wish to supply their own electricity from on-site generation to pay only for the net energy they obtain from the utility. NEM is primarily used for solar photovoltaic (PV) systems at homes and businesses (other distributed generation (DG) customers may have access as well). Since the output of a PV system may not perfectly match the on-site demand for electricity, a home or business with a PV system will export excess power to the electric grid at some times and import power from the grid at other times. The utilities bill customers only for the net electricity used during each billing period. Alternately, if a customer has produced more electricity than they have consumed, the credit for that net excess generation will be treated according to the NEM policy of the state or utility.

Benefits of distributed solar include:

• PV systems generate the most electricity during the middle of the day when demand is the highest.
• Net metered PV systems reduce the need to expand transmission grid capacity
• Net metering allows for the development of a solar energy market and the jobs that come with it

Currently 44 states plus D.C. have implemented net metering policies. The following map shows the six states that forbid net metering.


Utilities “are proponents of renewable energy,” said Barry Shear, president of Iowa’s Eagle Point Solar LLC, but only “if they own the energy assets and the electrons flow through their grid and they can bill you.”
“The electric utility industry’s preservation of revenues and investor capital will be determined by its success in aligning with the following five consumer mega-trends reshaping the U.S. economy” says Bill Roth President of NCCT, a nationally recognized business coach, economist, ranked as a top-five writer on sustainability and business best practices. To paraphrase his proposed trends as:
1. Consumers are in active pursuit of lower bills,
2. The electric utility industry’s revenues are at risk with a generation that views the industry as missing in action,
3. Today moms manage the household budget. They expect the companies they do business with, including their utility, to provide products and services that align with their values,
4. Electric utilities need to mimic CEOs of major corporations who are adopting sustainability to reduce their operating costs, increase customer alignment and mitigate risks, and
5. Consumer acceptance of cost reducing disruptive technologies that challenge existing utility economic models.

The issue being brought up in this Iowa dispute is the question as to who supplies electric power to residential customers. The dispute can be resolved with changing the economic model of how solar can be integrated into the existing business models of TVA and independently owned utilities. Nobody has to lose. The existing model in our state can be preserved allowing TVA to generate all the electricity selling the power through their distributors who connect the electricity to the residential commercial customers.
The issue now is not who owns the power sources, but how we raise the funds for solar farms and distributed solar needs. The answer maybe to apply the economic model of micro-investments.
The model published in the July/August issue of Solar Today, addresses the existing barriers through the following channels.
• The income will be generated by residential customers who are interested in improving their environment as well as income generation.
• TVA will manage all future solar installations in cooperation with their distributors.
• Income from the sale of solar power will be channeled from TVA and it’s distributors to the residential investor.
• TVA and its distributors will be responsible for the operation and maintenance of all solar generation where the cost for the O&M will come from the profits of solar sales.
• Home owners and businesses that sign up for the program will agree to compensate the distributors for the cost of maintaining and upgrading the distribution system.
• For distributed generation TVA will compensate the owner of the property for renting their roof.

The essence of the model is discussed in the Solar Today article which can be retrieved at the American Solar Energy Society (ASES) website

Arizona leads states in per-capita solar energy

The report notes that it is not availability of sunlight that makes states solar leaders, but the degree to which state and local governments have enacted effective public policy for the development of the solar industry.


Arizona leads the nation in per-capita solar energy, according to a report released Thursday.

Following Arizona, in descending order, are: Nevada, Hawaii, New Jersey, New Mexico, California, Delaware, Colorado, Vermont, Massachusetts, North Carolina and Maryland.

The details are in a report titled “Lighting the Way: What We Can Learn from America’s Top 12 Solar States,” released by the Environment America Research & Policy Center. The organization — online: www.EnvironmentAmerica.org — is a public interest group that advocates for strong environmental policy.

“The sky’s the limit on solar energy,” Rob Sargent, energy program director with Environment America, said in a news release. “The progress of these states should give us the confidence that we can do much more. Being a leader in pollution-free solar energy means setting big goals and backing them up with good policies.”

The report emphasizes that it is not availability of sunlight that makes states solar leaders, but the degree to which state and local governments have enacted effective public policy for the development of the solar industry.

Reference: http://www.thetowntalk.com/article/20130725/BUSINESS/130725020/Arizona-leads-states-per-capita-solar-energy-report-says

US Utility Business Model Woes

Jennifer Runyon is managing editor of RenewableEnergyWorld.com

Jennifer Runyon, managing editor of RenewableEnergyWorld.com, had a three minute conversation with Dr. Stephen Chu, former Energy Secretary that emphasized the need for electric generators and distributors to change their business model to reflect the addition of renewables, particularly solar PV, as a significant addition to the energy mix. Chu feels that utilities ought to own solar panels and energy storage systems that they put on their customers’ roofs and in their garages. He said if utilities could outfit homeowners with solar panels and a 5-kW battery system, they could continue selling that customer power just as they do now. The utility would own the system, maintain the system and the customer would have no out-of-pocket expenses for it other than continuing to buy power at the same rate or at perhaps an even lower rate. This would nicely fit into the TVA distributors future business model for distributed solar installations while preserving the distributor’s mission of providing their customer base with high quality, reliable electric power.

When it’s just a quarter or a half of one percent of a utility’s customers that have their own PV and are selling their solar power to the grid at the retail rate, the utility doesn’t care. But energy storage and PV panel costs are dropping, and once that percentage of utility customers’ that are zeroing out their bill goes to 5, 10 or 15 percent then “it’s a big deal” said Chu.

Chu said he told utilities that PV and energy storage is going to come and they should “form a new business model” NOW so that what today is a potential revenue loss, could become an area of growth for them in the future. Plus, he said this model would eventually lead to a more stable grid for us all.

TSEA’s suggested micro-investment model suggested for TVA would complement the distributor’s suggested model, supplying solar energy at the most affordable prices with ownership of large solar farms in the hands of the ratepayer investors. The TSEA model avoids having to loan money from banks; instead, it will earn interest on the monies deposited in investments increasing the income the ratepayer investors make. The question is whether TVA and its distributors will accept these business model changes.

Runyon’s article

Solar Industry Calls for Market Driven Approach to TVA Solar Programs

Wall Street Journal June 25, 2013

KNOXVILLE, TN–(Marketwired – Jun 25, 2013) – TenneSEIA, the state business association representing the solar industry, responded to the closure of TVA’s solar programs today by publically urging the authority to abandon the practice of setting arbitrary calendar year caps on solar installations and instead, adopt a market driven model that decreases incentives based on the amount of solar installed and incorporates the value of solar energy into the budgeting process. TenneSEIA hopes to resolve these issues prior to the TVA Board of Directors voting on the 2014 budget at its August 22(nd) meeting in Knoxville.

“Consumer demand for solar energy has grown faster than TVA’s ability to adjust, therefore leaving the market underserved, restricting the investment of private capital and creating unnecessary uncertainty for businesses,” said Gil Hough, president of TenneSEIA. “TenneSEIA is committed to working with TVA to create a fair and market driven approach to solar energy development in the Valley.”

TenneSEIA quickly sprang into action to work with TVA after the April 24(th) program closure announcement.

original article

Barack Obama puts solar at forefront of ‘assault’ on climate change

President Barack Obama today put solar at the forefront of a national strategy to cut carbon emissions in the United States as part of a “coordinated assault on a changing climate”.

The US president’s two-step climate action plan, launched at Georgetown University in Washington DC, includes regulatory efforts to curb emissions from fossil fuel power stations and to increase the use of clean energy.
“This plan begins with cutting carbon pollution by changing the way we use energy, using less dirty energy, using more clean energy wasting less energy throughout our economy,” said Obama.
“Today, about 40% of America’s carbon pollution comes from power plants. But there are no federal limits to the amount of carbon pollution those plants can pump into our air… for free. That’s not right, that’s not safe and it needs to stop.”

original article

MAJOR FUNDING Through Micro-Investments

The new July/August issue of Solar Today contains an article by TSEAs Technical Director offering a new idea for a solar program within TVA. Micro-investments allow anyone to invest in a project because the cost of a single share is affordable. A recent micro-investment concept was developed by Muhammad Yunus, a Bangladeshi banker who won the Nobel Peace Prize in 2006 for his work in creating economic and social development for the poor. A similar concept, savings bonds, was used in the United States and other countries to finance costs for World War I and World War II. During World War II, half the U.S. population purchased approximately $186 billion in savings bonds. This investment accounted for nearly three-quarters of total federal spending from 1941 to 1945 — all from families whose average wage was $50 per week.

The Tennessee Solar Energy Association (TSEA), an ASES chapter, has as its mission the promotion of the widespread use of solar energy in the state of Tennessee. Unlike most states, Tennessee is served entirely by electric distribution companies who purchase power from the Tennessee Valley Authority (TVA). The TSEA will use the concept of micro-investment to provide opportunities to all ratepayers to invest in solar projects in Tennessee. The success of our endeavors in Tennessee will mean that the concept can easily be duplicated in other states.

Financing solar projects through micro-investments offers many advantages. First, consumers and businesses would neither have to finance nor build their own solar projects on their properties. This eliminates three barriers they often face: (a) unsuitable properties for solar because of trees or rooftop alignments; (b) building permits and grid interconnections; and (c) large financial investments with long payback periods. Second, by opening investment opportunities for all ratepayers, a micro-investment plan should attract customers who otherwise would or could not have considered their own solar projects. Third, micro-financing can be used for large solar projects to benefit entire communities, taking advantage of the lower overall costs of large-scale projects. Finally, micro-investments would provide large sums to utilities and other solar companies who might otherwise not be able to finance a solar project.

Proving the Model at TVA
In the Tennessee Valley, TVA is a closed system in which all 155 distributors buy power from TVA, making it an ideal utility for studying this micro-investment model. Moreover, as a federal power authority, TVA plays an important role in the Tennessee Valley as the regional stewardship agency and supplier of public power. TSEA envisions that TVA would establish a micro-investment program, achieving even greater economies of scale than the individual distributors could achieve.

A 2012 Hart Research survey, funded by the Solar Energy Industries Association, found that 92 percent of voters “believe it is important for the United States to develop and use solar power.” TVA, serving 9 million people in the Tennessee Valley, can play a large role in finding the relationship between how much the public says it wants solar energy and how much the public is willing to invest.

TVA’s aging coal-fired plants are more than 50 years old and are depleting TVA funds to meet increasingly strict air-quality standards. As a result, the TVA has little funding available for solar energy. Although TVA has a renewable energy program known as Green Power Providers, which provides long-term power purchase agreements, the program has not produced a bankable level of funding that has resulted in loss of jobs and statewide solar installers to look elsewhere for work. The small amount of funds allocated for the program were absorbed in the first trimester of this year.

As a federal authority, TVA is in an ideal position to undertake a micro-investment program. Under the TVA charter, the president can direct the U.S. Department of Energy to provide support and resources as requested by the TVA board, which is directed to make studies “in the application of electric power and a better balanced development of the resources of the region” (Tennessee Valley Authority Act of 1933, Section 10). Furthermore, TVA pays no property tax, has a plethora of sites where large solar installations can be located, knows where in its power system to best locate large solar farms to provide the greatest ROI, has the staff to manage the program, can handle the procurement actions and can set aside a percentage of the installations for local installers. Thus TVA can avoid all the soft costs that ordinarily burden solar purchasers. In addition, its purchasing power, backed by the aggregated micro-investments, will produce the lowest cost through competitive bidding.

I suggest to all our members and readers of this column to join ASES and help promote solar energy in their region.

Read the article and the entire Solar Today magazine

Outlook: Solar Panels for 36 Cents Isn’t As Low As You Think

The global PV industry’s recent past has seen wafer, cell, and module suppliers at the mercy of an inhospitable supply-demand imbalance throughout the global market. With supply consistently 200% of demand annually, c-Si module prices have fallen approximately 70% in two years. One positive externality of this cutthroat pricing is that manufacturing costs have fallen in line with pricing declines. This is mostly because pricing for key inputs further up the value chain has also fallen as a result of overcapacity and consequent margin evaporation.

Back in 2009/10, industry roadmaps were targeting $1.00/W module costs as a medium-term goal. With best-in-class Chinese producers approaching costs of $0.50/W in 2013, yesterday’s goals are no longer relevant today. However, as noted, the majority of cost reduction over the last two years has been driven by declines in consumables prices. This state of affairs has left both manufacturers and their customers with considerable uncertainty, and there is currently little consensus on what is a realistic goal for the module supply chain to set for itself over the next three to five years. This 112-page report on the latest in c-Si PV wafer, cell, module, and materials technology is the most recent analysis from GTM Research’s flagship supply-side practice, and aims to provide a competitive outlook on the leading technology and cost trends through 2017 across the global PV supply chain. The report explores existing and innovative technology advancements in ingot growth, wafer slicing, cell processing, and module assembly, as well as their impacts on efficiencies and manufacturing costs.

This article was taken verbatim from this site

TVA Cuts Back on Bellefonte Nuclear Plant While Residential demand spurs U.S. solar installations in 1Q13

The nation now exceeds 8.5 GW of cumulative installed solar electric capacity, of which 7.9 GW is PV. Solar nearly made up half (48 percent) of all new electric capacity installed in the U.S in 1Q13. Meanwhile in an effort to revive the stalled build at the Bellefonte nuclear power plant, the Tennessee Valley Authority is trimming the project’s budget by 64 percent and cutting 530 jobs at the facility, The budget for Bellefonte is being cut from $182 million to $66 million. According to the AP, the massive cutbacks call the entire future of the project into question.
The cutbacks come on top of a spate of bad news for the nuclear industry, culminating in the announcement last week that Southern California Edison was permanently closing the long-troubled San Onofre nuclear plant.

U.S. solar energy installations totaled 723 megawatts (MW) from January through March, a 33 percent increase from a year ago and the solar sector’s best-ever first-quarter performance. Residential solar installations rose 53 percent year-on-year to 164 MW, with the utility segment more than doubling to 318 MW. Third-party-owned solar residential systems made up two-thirds of all residential PV installations in California (exceeding non-residential for the first time), and 86 percent of them in Arizona. Residential solar has managed to expand, at times well into double-digits, for 12 of the past 13 quarters. The only top-tier residential market to shrink in 1Q13 was Arizona, which fell 9%. Average PV system costs were $3.37/W, a 24 percent drop over the past year, though that’s about 10 percent higher than the previous quarter because of fewer utility-scale projects coming online. Residential systems fell about 16 percent Y/Y (2 percent Q/Q) to $4.93/W, non-residential also fell 16 percent Y/Y (8 percent Q/Q) to $3.92/W, and utility system prices declined 26 percent Y/Y but only 6 percent Q/Q to $1.12/W. Note that there’s an especially wide range of installed PV prices by state, anywhere between $3-8/W.

Risks to distributed generation of solar PV are threefold, say SEIA and GTM Research:
Net metering revisited. As distributed generation expands, utilities are seeking to revise, cap, and even remove net metering. This will take different forms in different regions — and varying degrees of resistance or acceptance — but it will have major implications everywhere.
Utility electricity rate structures. How utilities set up their tariff structures, incorporating time-of-use pricing and fixed or volumetric charges, will have a significant impact on the economics of solar energy systems. “While net metering is currently a more public battleground, we anticipate that rate structures will soon follow behind,” they say in the report.
Who’s going to pay for it? Distributed generation could require more than $48 billion of investments from now through 2017 — far exceeding what’s been provided to date. There will be a need for new sources of capital, new financing models (think REITs and MLPs, and crowdfunding and community solar), and new investors in existing structures (tax equity). “Project finance could serve as a significant bottleneck to growth over the next four years,” they write.

original articles here and here