Electric power industry’s traditional revenue collection model, which is based on a fixed tariff applied to volumetric consumption, is showing signs of erosion due to customer self-generation at a time of tepid to non-existent demand growth. The challenge of distributed energy resources (DERs) could not have come at a worse time for the industry – just as massive investments are needed to upgrade and modernize an aging infrastructure, it is facing the prospects of a growing number of consumers buying fewer kWhs and paying even less for the privilege of being connected to the grid under prevailing laws. This is especially true for the distributors of TVA power who are prevented by contract from generating electricity. The only alternative for TVA distributors to improve their distribution system is to charge the heck out of their customers. TVA needs to give their distributors some latitude in creating new ways of generating new sources of revenue. That will require some changes in their contract to allow them to have their own distributed solar programs. Are there any other alternatives?
Archive for Middle Tennessee News
Franklin will lease unused land to a Nashville-based company for the future installation of a new solar panel array.
Energy Source Partners is proposing to spend $2.6 million to build a new solar array on a 3-acre sludge field site near Mack Hatcher Parkway. That array is expected to generate 1 megawatt of electricity, which would be sold to the Tennessee Valley Authority.
Over the course of the proposed 20-year contract, the 1 megawatt panels would generate $165,000 for Franklin by the 10th year of the program and about $800,000 from years 10 to 20.
Last year, Franklin leased part of an empty sludge field near its sewer plant off Claude Yates Drive to Nashville-based Energy Source Partners, which paid about $1 million to install 940 solar panels on the land. Those panels, which generate about 200 kilowatts, capture sun rays and convert them to electricity, which is then resold.
NY Times article:
The Tennessee Valley Authority sharply accelerated a shift away from coal as an energy source on Thursday, saying it would shut down eight electricity-generating units that together will burn nearly a fifth of its coal this year. TVA is to generate 20 percent of its electricity from coal, instead of the current 38 percent. It also plans to increase the use of renewable energy sources like solar and hydropower to 20 percent, from the current 15.7 percent. Bill Johnson, said experts were studying whether more coal-fired plants should be shut down later.
Two other developments hastened the shutdowns: the advent of cheap natural gas, which has turned coal into a costlier fuel, and falling demand for electricity. Thursday’s announcement was the second and biggest step the authority had taken to reduce its appetite for coal. In 2011, T.V.A. agreed to retire 18 coal-fired generating units to settle a lawsuit by states and environmental groups charging violations of the Clean Air Act. Four of those 18 units have been shuttered so far.
Eventually, the authority hopes to get a fifth of its power each from coal, natural gas and renewables and the remaining two-fifths from nuclear plants.
November 14, 2013. Today at a board meeting in Oxford, Mississippi the Tennessee Valley Authority (TVA) Board of Directors voted to retire units at three of its coal plants. This will affect coal-burning units at the Colbert and Widows Creek plants in Alabama and the Paradise plant in Kentucky.
TVA’s commitment to retire units at three coal plants will protect customers from rising energy bills as coal prices increase, and protect families from the health threats posed by coal pollution. According to the Clean Air Task Force, pollution from the Colbert coal plant in Alabama alone contributed to 940 asthma attacks, 83 heart attacks, and 57 deaths per year.
As the nation’s largest public power provider, TVA was first established to bring innovation to the Valley and address a wide range of environmental, economic and technological issues. As it transitions away from coal, TVA should remain true to its founding principles by bypassing natural gas or any other dirty fossil fuel that will continue to exacerbate environmental and public health issues.
TVA is now mapping out its next Integrated Resource Plan (IRP), the strategy document outlining the utilities energy portfolio for the next 20 years. As TVA works to protect public health and decrease energy costs by moving away from coal, the utility can also commit to speeding the deployment of the most promising and cost-effective renewable technologies, like wind and solar, in its IRP. Wind and solar power are currently experiencing fast growth while simultaneously becoming more cost-competitive with TVA’s other fuel choices.
This report was excerpted from the following resource: http://www.enewspf.com/latest-news/science/science-a-environmental/47950-tennessee-valley-authority-makes-major-coal-plant-retirement-announcement.html
The Tennessee Valley Authority is gathering public input on a long-range plan for the type and mix of energy sources it needs to provide power to the region.
Finding the right mix of coal, nuclear, natural gas, hydro-electric, renewable energy and efficiency programs is the goal of the 18-month-long planning process, TVA Vice President Joe Hoagland said. “It takes a very long, strategic look at the assets TVA needs to provide low-cost electricity for the people in the Tennessee Valley,” Hoagland said in an interview.
The direction TVA takes will ultimately affect how much residents pay for electricity, and the federal utility is embarking on the planning process at a time when it faces scrutiny from a variety of interest groups.
TVA is spending more than $1 billion to install new pollution controls at its coal-fired power plant in Gallatin. Environmental groups sued TVA for not fully studying alternatives, including retiring the aging facility.
Conservation groups and the solar industry in Tennessee have criticized TVA for not doing enough to support that renewable resource. They say TVA’s small-scale solar program is stifling the industry because it sets a cap on solar power far below demand. Some of the solar installation companies have to look outside the state for work. Our polysilicon manufacturers have laid off their work force. The on-again, off-again opportunities for solar installations are killing the solar businesses in Tennessee.
I attended the first meeting along with 15 other people. Promises of answers to questions have not been received by those that asked questions which the moderator could not answer.
Hoagland said gathering input helps TVA understand what the public and other stakeholders consider important. The “Integrated Resource Plan” looks at different fuel options and tries to anticipate how those might evolve over the next two decades, he said.
TVA completed its last plan in 2011 and typically only does an update every three to five years. But Hoagland said changes in the energy industry require an earlier update.
Natural gas prices have dropped dramatically in recent years in the midst of a nationwide surge in production. At the same time, TVA’s growth in power demand has slowed, Hoagland said.
The 2011 plan anticipated natural gas prices at about $6 per million BTUs, escalating over time, Hoagland said. Now, prices are between $3 and $3.50, he said. The current plan also assumed a 2 percent to 3 percent rate of growth, while TVA now anticipates growth at less than 1 percent.
In addition, TVA hopes to complete the Watts Bar Nuclear Unit 2 plant in 2015 and retire at least 2,700 megawatts of less-efficient coal capacity by 2018.
Anne Davis, managing attorney in Nashville for the Southern Environmental Law Center, said Tuesday that she appreciates that TVA is accelerating the start of the new resource plan. She said she expects the new plan to focus on how TVA will replace its “oldest, dirtiest, and least efficient coal plants with clean and modern resources like solar, wind, hydro optimization, energy efficiency, and demand response.”
“The precipitous drop in cost of renewables and technological improvements in efficiency — coupled with enormous public demand for both of these resources — will demand more attention in this IRP,” Davis said by email.
“We have already been working with TVA on these issues, and we are committed to helping TVA modernize its long-term portfolio in a way that’s protective of ratepayers’ health, environment, and pocketbooks.”
The first public meeting was held on Thursday, October 24th in Knoxville. A second is scheduled for Nov. 6 in Memphis. To encourage more input, TVA is allowing the public to participate through online webinars. The public can access those at www.tva.gov/irp.
TVA hopes to use the webinars and a social media outreach effort to boost public participation, particular with younger residents, Hoagland said.
most of this article was taken from the Tennessean article: http://www.tennessean.com/article/20131023/NEWS/310230137/
Study Says Most Americans Would Consider Residential Solar. A study from research firm Market Strategies International finds that interest in residential solar installations is stronger and broader than expected among American consumers, even when those consumers are educated on associated costs. With few exceptions, this interest is strong across virtually all age and income groups.
Survey participants were informed that, “The cost of a typical home solar system is about $30,000 and provides about 60% of a home’s electricity needs. The final costs of a solar system can be reduced through a federal tax credit that allows purchasers to deduct 30% of the systems’ cost from their income taxes. Some states also provide financial incentives for solar installations.”
According to the survey, the information made 51% of respondents more interested in home solar systems, with consumers older than 55, again, the only group to show less interest. A majority of respondents across every income group continued to show interest – even low-income households with incomes under $25,000.
“It’s pretty clear that most utilities in the U.S. have to figure out an effective strategy for working with their customers who want solar power,” says Jack Lloyd, senior vice president of energy at Market Strategies. “Companies will take different approaches in adapting to the situation, but rooftop solar appears to be poised to move beyond its early adopter niche and become a more mainstream phenomenon.”
original article: http://www.solarindustrymag.com/e107_plugins/content/content.php?content.13353#utm_medium=email&utm_source=LNH+10-18-2013&utm_campaign=SIM+News+Headlines
Farmers in Japan can now generate solar electricity while growing crops on the same farmland. This co-existence or double-generation is known as “Solar Sharing” in Japan. The concept was originally developed by Akira Nagashima in 2004, who was a retired agricultural machinery engineer who later studied biology and learned the “light saturation point.” The rate of photosynthesis increases as the irradiance level is increased; however at one point, any further increase in the amount of light that strikes the plant does not cause any increase to the rate of photosynthesis.
By knowing that too much sun won’t help further growth of plants, Nagashima came up with the idea to combine PV systems and farming. He devised and originally patented special structure, which is much like a pergola in a garden. He created a couple of testing fields with different shading rates and different crops. The structures he created are made of pipes and rows of PV panels, which are arranged with certain intervals to allow enough sunlight to hit the ground for photosynthesis.
Based on the tests conducted at his solar testing sites in Chiba Prefecture, he recommends about 32% shading rate for a farmland space to reach adequate growth of crops. In other words, there is twice as much empty space for each PV module installed. Takazawa installed 348 PV panels on a small 750 square-meter of farmland. PV panels are installed on pipes, which are 3-meter high from the ground. Rows of PV panels are installed every 5 meters. Under the PV system, Takasawa’s father has been cultivating peanuts, yams, eggplants, cucumbers, tomatoes, and taros and will cultivate cabbages during the winter. These vegetables are sold at a nearby street and consumed by his neighbors.
Many have questioned stability and durability of the PV structure for solar shared family. Nagashima stated that his systems, which are made of thin pipes without concrete footings, even withstood strong winds and earthquakes during the Fukushima Tsunami disasters in 2011. These systems are extremely lightweight and installation of PV panels are spaced out, allowing air to flow through between the panels. This will eliminate concern that the panels will receive wind load and be blown away, therefore, reducing the need for complicated and expensive mounting hardware.
Leading Utilities Recognize the Need for Solar Energy as Older Nuclear Plants Pass Their Economic Viability
CEOs from opposite sides of the country also spent much time discussing the increasing role of renewable energy and distributed generation.
California is known for having the nation’s most ambitious renewable energy mandate while North Carolina, where Duke is based, also has a growing solar energy presence.
Edison CEO Ted Craver said electric utilities would be mistaken to dismiss distributed generation as merely a “fringe” business in the future. The Edison chief said his company initially started in the field by supplying big solar arrays for “big box” stores.
“A lot of this is really experimental,” Craver said. Utility subsidiary Southern California Edison (SCE) used to rely on industrial customers for one-third of its load but that is now probably closer to 10 percent, Craver said.
While some argue that California policy has been inhospitable to heavy industry, it’s important to realize that manufacturers are looking to generate more of their own power, Craver said.
The utility, SCE, is also investing more in the transmission side of its business to accommodate the growing role of distributed generation in California.
Duke is developing a variety of resources in its service territories — including new combined-cycle and peaking units in Florida — to help compensate for retirement of the Crystal River nuclear plant and potential coal units retirements as well. California is known for having the nation’s most ambitious renewable energy mandate while North Carolina, where Duke is based, also has a growing solar energy presence.
You know implementing energy efficiency projects can produce cash flow and grow your business, but did you know these same energy efficiency projects are also eligible for federal tax incentives?
Event: Webinar: Getting Your Money’s Worth Out of Energy Efficiency
Date: September 30, 2013
Time: 1:00–2:00 EDT / 12:00–1:00 CDT
Please join the Tennessee Energy Education Initiative for a webinar on monetizing energy efficiency projects and taking advantage of tax incentives. This is valuable knowledge for CFOs, financial advisors, and other key decision makers in organizations seeking to improve bottom lines through energy efficiency initiatives.
Here’s what you can expect:
• Monetizing Energy Solutions: The Road to Funding
Christopher Russell, Visiting Fellow, American Council for an Energy-Efficient Economy; Principal, Energy Pathfinder Management Consulting LLC.
• Guide to Tax Incentives for Commercial Business
CJ Aberin, CCSP, shareholder at KBKG, a specialty tax firm focused on securing energy tax incentives, will summarize the benefits of the Energy-Efficient Commercial Buildings (179D) federal tax deduction and other related tax strategies, explain the process, and share information about ideal candidates and eligible projects so you know how to get started.
The Tennessee Valley Authority is forming two new advisory boards this fall to give advice and counsel about the changing power market ahead.
TVA is creating a new 19-member panel known as the Regional Energy Resource Council to offer ongoing input into how TVA balances the need for reliable power and low-cost electricity with energy efficiency, cleaner energy and transmission requirements. Joe Hoagland, chief technology officer for TVA, said the new council “will provide valuable advice as TVA develops policies and strategies associated with our future.” “TVA wants to ensue that it manages the power system with all public interests in mind,” Hoagland said.
The new Regional Energy Resource Council is headed by Goodrich “Gus” Rogers, the president of the Jackson County Economic Development Authority in Alabama. Rogers is an ardent supporter of finishing the incomplete Bellefonte Nuclear Power Plant his Hollywood, Ala., which TVA will consider in is long-range power plan. But other members of the 19-member panel approved by the TVA board have differing views.
TVA spokesman Scott Brooks said TVA also will soon form an advisory board to help guide its Integrated Resource Plan, which is a 10-year plan for future power growth in the Valley.