The American Wind Energy Association's call for more investment in electric transmission, noted in Len Anderson's posting, won a major endorsement today from the North American Electric Reliability Corporation (NERC), whose mission is to ensure the reliability of the bulk power system in North America.

In its 2008 Long-Term Reliability Assessment, NERC highlights both the extraordinary growth of wind power and the challenges posed by integrating such an intermittent resource into the nation's power system.

Over the next 10 years, NERC predicts, the total capacity of wind farms in North America will soar 750 percent--but this clean, renewable power will only do us good if high-capacity transmission lines connect big cities and other load centers with turbines in West Texas, the Dakotas, and other remote areas.

New transmission is also needed to connect reserve power sources, which can be cranked up when the wind dies down.

Unfortunately, owing to local opposition and environmental concerns, transmission permitting, siting and construction typically takes 7 to 10 years, much longer than for new generation, according to the report.

"We need more transmission resources to maintain reliability and achieve environmental goals," commented Rick Sergel, president and CEO of NERC. "Transmission lines are the critical link between new generation and customers, yet we continue to see transmission development lag behind generation additions. Faster siting, permitting, and construction of transmission resources will be vital to keeping the lights on in the coming years."

The announcement today by American Electric Power and Duke Energy to build a $1 billion, 240-mile transmission line in Indiana points out the challenges to link new supplies of renewable energy with utility customer load.

The 765-kilovolt line proposed by AEP and Duke would connect AEP's Rockport Station east of Evansville, Ind., with Duke's Greentown Station near Kokomo, Ind. The line could tap more than 3,000 megawatts of wind power planned in central Indiana.

The proposed joint venture project faces a number of state and federal regulatory hurdles and would be completed at the earliest in 2014. Approvals would have to come from the Midwestern Independent System Operator and the PJM Interconnection. The JV also must file in Indiana to operate as a transmission utility and seek rate approval from the Federal Energy Regulatory Commission. Utility customers would pay for the project in rates.

Overcoming regulatory hurdles for siting and developing new transmission lines for solar and wind energy in remote areas in the Midwest, California, desert Southwest, Texas and other states is critical for the development renewable enrgy supplies. We'll keep an eye on this latest proposal in the Hoosier State.

Pacific Gas and Electric Company is committed to developing more supplies of concentrated solar power, citing the technology's availability during high-demand hours, relative cost effectiveness, and capacity to meet power demands, the California utility told federal lawmakers today. 

Fong Wan, PG&E's Vice President of Energy Procurement, told the U.S. Senate Committee on Energy and Natural Resources that concentrated solar power (CSP) could, in theory, produce seven times the energy needed to serve California. Wan spoke at a committee field hearing on solar thermal power in Albuquerque, New Mexico. PG&E has four solar thermal supply contracts for more than 1,700 megawatts of power, enough capacity to meet almost 10 percent of the utility's peak summer needs.

A study prepared by the National Renewable Energy Laboratory suggests that costs for CSP technologies could decline significantly, from approximately 16 cents per kilowatt-hour on average today, to approximately 8 cents per kilowatt-hour in 2015, Wan said in prepared testimony. The reduction in seven years is premised on an assumption that at least 4,000 megawatts of CSP will be built by then - not just contracted for - to achieve learning curve benefits.

"Photovoltaic technologies are also making great progress for utility-scale applications and we hope to be in a position to announce contracts for utility-scale PV applications soon," Wan said. "But - given these advantages - it's reasonable to ask why the country is not seeing greater progress on renewables."

Wan identified ways for lawmakers to help advance thermal power technologies and the burgeoning renewable energy industry. Despite falling costs, CSP can't compete on price with electricity fueled by natural gas. "We are confident that will change as economies of scale are achieved. But in the interim, federal production and investment tax credits are absolutely essential for continued progress," he said. Wan urged the government to extend the credits and also remove the ITC exclusion for regulated utilities.

Siting and developing new transmission lines to carry power from remote locations to customers will also enable renewables to expand, Wan said. He noted that Senate Majority Leader Harry Reid told the committee last month that the West alone will need 7,500 miles of new transmission lines over the next decade to expand renewable energy production. Wan also said integrating intermittent renewable resources into an overall supply is needed and one key is developing storage technology. He applauded Congress for including an energy storage R&D program in legislation last year.

"In this time of high energy prices, a weak economy, and heightened focus on security, the federal government is uniquely positioned to provide clarity of vision and foster stable growth in this critical sector of the energy market," Wan said.

You can read Fong Wan's testimony at:

http://energy.senate.gov/public/index.cfm?Fuseaction=Hearings.Hearing&Hearing_ID=a7228ca1-a50a-c91d-59d8-a682d15052ad

Electric utilities in North America are building infrastructure to support "smart grid" applications for plug-in electric vehicles and other energy features for residential, business and industrial customers. Jill Egbert, manager of Pacific Gas and Electric Co.'s Clean Air Transportation program, talked recently with "Living on Earth" radio program host Bruce Gellerman about the California utility's vision for a two-way power grid.

 You can download the audio version of the interview. | mp3 (4MB) |

Every week, about 300 Public Radio stations broadcast Living on Earth's news, features, interviews and commentary on a broad range of ecological issues.

NPR caught my ear this morning with an interview with reporter Kate Golden at The Juneau Empire in Alaska's capital. Juneau residents and the city have launched an aggressive effort to save energy in the wake of an avalanche in April that toppled the transmission grid linking the city to a hydroelectric dam 40 miles away.

 | Listen Now | 4min 30sec | NPR, Morning Edition |

Diesel generators are running to keep the lights on but energy bills will soar on higher fuel costs while repairs are made over an expected three months. So the people of Juneau responded quickly to an urgent financial signal and discovered conservation in a big way:  there was a run on clothespins to hang out the wash to dry, energy-efficient light bulbs sold out, stores and offices dimmed the lights, TVs went dark, and families dined by candlelight. The result: electrical usage plummeted as much as 30 percent within a week of the avalanche.

"Turn off, turn down, unplug," said Sarah Lewis, chairwoman of the Juneau Commission on Sustainability. "That's what everyone is doing and being vigilant about and commenting when others are not."

The city of Juneau is helping low-income residents with energy costs and the governor has declared an "economic injury" which could bring in funds from the federal Small Business Administration. And the repairs may go faster than expected: reporter Golden told NPR the first transmission tower was likely to go up this afternoon.

Wind power could provide 20% of U.S. electricity needs by 2030, according to a new DOE report released this week.

The report, titled "20% Wind Energy by 2030: Increasing Wind Energy's Contribution to U.S. Electricity Supply," identifies the steps that need to be addressed to reach the 20% goal.  According to the Wall Street Journal's Environmental Capital blog, obstacles include reducing the cost of wind technologies, building new transmission infrastructure, and enhancing domestic manufacturing capability.

Wind currently accounts for about three percent of PG&E's energy mix and we've added more than 250 MW to our future contract mix over the past nine months.  That means that we have 1061 MW of wind energy under contract or delivered.

However, as much as we believe in adding clean renewable sources to our mix, wind poses a bit of a challenge for all of California's utilities.

Wind blows at night in California, which means that we're getting a renewable source during a time when we don't need a significant amount of energy.  In the past, we've been able to store wind energy via the Helms Hydroelectric facility to be used during the day time peak demand hours (roughly 11 am to 7 pm).  We use the clean wind power to pump water uphill to a reservoir, where it is stored.  Then during the day, we generate electricity by running the water through the hydroelectric facility.  It's truly an amazing engineering feat, yet requires a significant capital investment. 

We're also looking at electric vehicles as a way to store off-peak generated wind energy.  At some point we could see plug-in electric hybrid vehicles (PHEVs) serving as mobile storage facilities. Our customers would plug their PHEV in to a 120 volt outlet at home during the night following their daily commute.  Then each car would sell back the energy to the grid when needed during the day.  The car would communicate with the utility, so that it knows exactly how much to take depending on the driver's needs. 

We're a few years off from this scenario, but we've been doing some interesting partner work with Google and Tesla, and discussing the need for more electric vehicles (EVs) with the major U.S. automakers. 

With advancements in battery technology we could also have onsite storage capacity, whereby wind energy is stored at the generation facility and brought on the grid during the day when demand is highest. We're also working with venture capitalists and entrepreneurs to develop this market. 

Whether it's onsite or through PHEVs, it's clear that we'll need improved storage capacity to truly take advantage of California's abundant, yet off-peak wind supply.  It should be interesting to see how this plays out. 

Katie Fehrenbacher of Earth2Tech wrote a very helpful piece today looking at the pros and cons of distributed solar vs. utility scale solar.

Her story was driven by a keynote speech given by PG&E's Roy Kuga during the Berkeley-Stanford Cleantech Conference Series.

It's fairly common to look at these two approaches as competing and I am glad that she's been able to look at this objectively. Both approaches are extremely complimentary and we'll need both to meet our future energy needs and address climate change. There probably will not be a silver bullet when it comes to solar technologies.

One interesting point to add on to her piece is the idea that there is also a middle play, which combines photovoltaic technology (PV) at a utility scale.  Last year we signed deals with GreenVolts for two MW and Cleantech America for 5 MW.  These companies use PV technology and site relatively small utility scale projects closer to urban populations, thereby cutting down on distribution costs and land use needs.  There are others out there, like OptiSolar, who are looking to do similar projects, but with thin film technology.

With so many new technologies and such a pressing need, it will be a very interesting space to watch over the next few years, when the utility scale projects are projected to come online.

We are expanding our push into solar thermal power in a big way today with a series of contracts with BrightSource Energy Inc. for up to 900 megawatts from plants to be built by BrightSource in California's Mojave Desert. The first three contracts are for a total of 500 megawatts from three power stations and two contracts for options for 400 more megawatts.

At 900 megawatts, this would be one of the biggest solar power deals anywhere and another step by PG&E to bulk up our supplies of renewable energy.

The first BrightSource solar thermal plant, a 100-megawatt plant, will be constructed at Ivanpah in San Bernardino County and in operation in late 2010-early 2011 depending on permitting and infrastructure. It will generate 246,000 megawatts hours of renewable power per year. A second plant at Ivanpah will generate 200 megawatts, and subsequent plants are slated for Broadwell Dry Lake, also in San Bernardino County.

"Solar thermal energy is an especially attractive renewable power source because it is available when needed most in California - during the peak mid-day summer period," said Fong Wan, vice president of energy procurement at PG&E. "Through these agreements with BrightSource, we continue to broaden our renewable energy portfolio and provide our customers with some of the cleanest energy in the nation."

A PG&E-BrightSource memorandum of agreement was first announced in August 2006 and called for 500 megawatts. The final agreement expanded the original to five separate power-purchase agreements for 900 megawatts. We also have power purchase agreements for solar electricity with Israel's Solel and Australia's Ausra.

Today's news also comes after announcements last week that Southern California Edison and FPL Energy each plan to develop 250 megawatts of solar power - SCE installing solar panels on commercial roofs in Southern California's Inland Empire and FPL Energy developing solar thermal electricity in the Mojave Desert.

 An existing transmission line will need to be rebuilt to a high capacity for BrightSource's  Ivanpah site. The California Independent System Operator, the main grid manager for California, also is assessing transmission improvements for the Broadwell stations.

Here's more information about solar thermal energy. 

Southern California Edison will install 250 megawatts of solar panels on the roofs of commercial buildings to generate electricity for 162,000 homes, an $875 million project that SCE says will be the nation's largest solar system.

"This project will turn two square miles of unused commercial rooftops into advanced solar generating stations," John Bryson, CEO of SCE's parent company Edison International, said in a statement. "We hope to have the first solar rooftops in service by August. The sunlight power will be available to meet our largest challenge - peak demand on the hottest days."

SCE's announcement comes a day after FPL Energy said it plans to build a 250-megawatt solar thermal power station in the Mojave Desert. FPL Energy has not disclosed a buyer for the electricity but Green Wombat reported that the project will connect to the transmission grid operated by the Los Angeles Department of Water and Power. Construction is expected to begin in 2009. FPL has nine solar trough plants in the Mojave Desert.

Edison said its rooftop power system will be installed during the next five years and will cover 65 million square feet of leased roofs on more than 100 buildings in the "Inland Empire" east of Los Angeles in San Bernardino and Riverside counties, the fastest-growing urban region in the United States. The project requires approval by the California Public Utilities Commission.

The rooftop system would be one of the first major projects in California for distributed generation - locating small power modules close to utility customers and feeding electricity directly into neighborhood distribution circuits, eliminating the need for new transmission cables. 

It's an interesting business model.  Recurrent Energy, a start-up in San Francisco, has had some success in the "solar as a service" space.

The announcement will also serve as a boon for solar panel manufacturers and could be a driving force in lowering the cost of photovoltaic solar energy, which has been faced with polysilicon constraints.  A controversial paper recently released by UC Berkeley's Severin Borenstein calls into question photovoltaic energy's economic benefits.

California has directed Edison, San Diego Gas & Electric and PG&E to make renewable energy 20 percent of their energy supplies by 2010 and 33 percent by 2020. Edison's energy portfolio has about 16 percent renewable power.  PG&E is currently at 12 percent and recently announced that it signed an agreement to reach 20 percent for future energy delivery to come online in the 2011-12 time frame.

PG&E is a leader in solar energy with more than 20,000 customers, representing 175 megawatts - the most of any utility in the nation. The company has added 740 megawatts of solar power to its energy portfolio, including utility-scale solar thermal and photovoltaic projects. During the 2007 Clinton Global Initiative, the company committed to adding 1,000 megawatts of solar thermal electricity by 2012.

Today Xcel Energy announced that it was going to make Boulder, Colorado, into the nation's first Smart Grid city.  Hats off to the leadership at Xcel for making this commitment. I really admire their holistic approach.

Renewable energy gets a lot of the attention these days as a silver bullet in the fight against climate change and as a way to ensure energy independence.  Certainly, renewable energy will play a key role in both of these endeavors.

Yet, it's the less sexy technologies that will probably have the greatest impact, especially in the short term.  The true benefits of a smart grid will be in providing utility customers tools to help them make smart energy choices.  It builds upon the idea of energy efficiency and bundles it with customer service more consistent with what we traditionally find in competitive markets. 

Energy efficiency is truly the most cost efficient way to combat climate change.  In California, we treat energy efficiency as the highest priority supply side resource.  For PG&E customers, this has meant savings of $22 billion and CO2 emissions avoidance of 135 million tons.  Despite these numbers, we feel like we're just scratching the surface when it comes to energy efficiency.  A Smart Energy grid will help to bring many of these energy efficiency benefits directly to our customers.

Xcel's Smart Grid announcement is a great way of bundling these less sexy technologies into a nice marketable concept.  And in Boulder, they have a great canvas to tell their story.

PG&E has been implementing its Smart Grid strategy for the past couple of years, starting with the adoption of over 250,000 SmartMeters in Bakersfield.  When fully complete, we will have installed nearly 10 million gas and electric meters from Bakersfield to the Oregon border.

We've also started a voluntary air conditioning demand response program, called Smart AC.  We launched it last summer in the Stockton area and will soon be implementing in other hot parts of the state. 

In addition to these types of technologies, Xcel is also looking at adding smart substations and infrastructure to support distributive generation, like solar, wind, and electric vehicles. 

We recently launched an internal group within PG&E called Sustainable Communities, which is looking at a similar concept.  We're working with city planners, builders, and government leaders to collaborate on new communities and to redesign older cities to be more sustainable.  The group is in its nascent stages, but we think that it will have real potential in helping our customers, residential, government, and commercial achieve their sustainability goals.