Weighing in on Smart Grid Stimulus

CNT Energy's Director of Policy and Evaluation, Anthony Star, wrote up a great piece for GE's smart grid blog on how the new funds have made "getting dynamic pricing right... more important now than ever."

There are several reasons that I am nervous about this large increase in the availability of dynamic pricing. One of our key findings has been that it is essential to think about dynamic pricing from the consumer’s point of view.

The article goes on to describe how our organization feels an effective dynamic pricing program should be run. It took us a long time and a lot of effort to figure out the best methods. The smart grid funds mark a time when a lot of different utilities across the country will be introducing dynamic pricing to their customers. If it is done right, then a lot of people (just like our Power Smart Pricing customers) will benefit from finding a new way to think about their electricity use. If not, preconceptions and apprehension about something new and different can bring the opposite effect.

Read Anthony's GE post "Why Getting Dynamic Pricing Right is More Important Than Ever."

DOE Smart Grid Funding is Announced

This morning the Department of Energy announced the recipients of the $3.4 Billion allocated for 100 smart grid projects through the ARRA. Overall the funding will lead to the installation of 18 million smart meters, 1 million in-home energy management displays, 170,000 smart thermostats, as well as advanced transformers and load management devices.

While this is a major day for the smart grid on a national scale, it is unfortunate that neither of the major Illinois utilities were among those chosen to receive funds. The competition was incredibly fierce. Of the 400 applicants only 100 projects will see their projects funded through the grant.

Alongside the $3.4 billion set aside by the federal government, $4.7 billion in private funds will contribute to a total of $8.1 billion. This is quite an investment for an emerging field. Smart grid projects are still new and today is a day that will surely mark its true arrival.

Many of the projects include a dynamic pricing option where customers will pay for electricity on a rate that varies across each day and provides incentives to manage peak electric demand. Some projects even include a real-time pricing model like Power Smart Pricing where that rate will be based on the wholesale electricity market prices.

Here in Illinois we have seven years of experience of how to get the consumers, environmentalists, citizen watchdog groups, utilities, and governments all on board with dynamic pricing. This was not achieved by a chanced interaction between a group of like minded people. All parties had their input, and thus a mutually agreed upon consumer-centric approach has been successful. Nationwide roll outs of these programs need to be handled with care, and they need to focus on making it easy for the consumer.

Click on the map to open a pdf.

For more details, you can see lists of the smart grid projects by category (pdf), by state (pdf).

10/24 Energy & Environment Links

Debate Follows Bills to Remove Clotheslines Bans

As much a cultural clash as a political and economic one, the issue is causing tensions as homeowners, landlords and property managers have traded nasty letters and threats of legal action. 

U.S. Green Building Retrofit Market to Hit $15B by 2014: Report

Just days after the White House outlined its strategy for bolstering the home energy retrofit market, a new report from research and publishing firm McGraw-Hill Construction predicts the market for nonresidential green building retrofits is set to soar and represents a better opportunity for designers and builders than new construction.

Financial Innovation We Can Believe In?

It's fairly well-established that people could save money over the long run by making their homes more energy-efficient—better insulation, say—or even, in some cases, putting solar panels on their roofs to generate their own electricity. But many of these upgrades never happen, for a variety of reasons. Sometimes the incentives are misaligned, if, say, the landlord owns the building but the tenant pays electricity and heating costs. And sometimes homeowners are dissuaded by the high upfront capital costs.

Solar Gets a Hand from Auto Manufacturers

An interesting story out of the New York Times Environment and Energy blog called Green, Inc discusses the great fit between the expanding solar industry and the struggling auto industry. As the solar industry is looking to expand their manufacturing capabilities with the rise of consumer and industrial demand, the auto industries well documented difficulties through the recession give access to an eager and well trained manufacturing workforce.

On Tuesday solar start-up, Skyline Solar announced that Cosma International will produce the metal components of their solar panels. Cosma's other clients include: GM, Ford, Honda, and Toyota. This comes after a similar announcement that Clairvoyant Energy and Xtreme Power Inc. are converting an idled Ford plant in Michigan to produce renewable energy components.

Clearly the solar industry has a long way to go to fill the gap in lost manufacturing, but its a heartwarming story to see the ingenuity and ability of a trained workforce in action. Car manufacturers will bring the expertise of handling a large supply and production efficiencies to lower costs. The car industry's misfortune presents quite an opportunity for the younger solar industry, and this trend should only continue to the benefit off all involved.

For more go to the Green Inc article.

White House Unveils "Recovery Through Retrofit"

The goal of the Recovery Through Retrofit plan is to expand home energy retrofit programs and energy efficiency. The report sites the barriers that have prevented the field from expanding and reaching more of the 130 million homes in the United State that could use a boost in efficiency. The key to the new initiative is to overcome these barriers to help homeowners make cost effective investments in their homes.

A common reason many people do not make the investments is the initial cost. One proposed solution is to take the cost of the home energy improvements and incorporate them into property taxes each month. Turning the payments into a monthly obligation would allow for a scenario where the monthly energy cost savings would be offset the change in property taxes.

Additionally, the report covers a collaboration between the Department of Labor, the Department of Energy, the Department of Housing and Urban Development, and the Environmental Protection Agency to establish national workforce certifications and training standards. The goal would be to expand the home energy retrofit workforce and to build a foundation of strong consumer confidence.

This is great step towards expanding the cost effective solutions that can help alleviate the strain that energy bills place on so many families. The real challenge will be catalyzing consumer action in making a smart investment in their home. The proposed changes should initiate job creation in a field that needs a rapid expansion in both quality assurance and opportunity to homeowners.

To learn more read the report and executive summary here.

Here is a link to additional commentary from The New York Times.