The consumer-centric smart grid and its challenge for regulators.
Federal and state regulators play a critical role in the evolution of the smart grid. Lawmakers face a host of questions, from deciding who owns consumer data and how it can be used, to defining a new range of regulated and unregulated utility services and applications. How much regulation will be needed to manage the transformation to a smart grid? And how much regulation will be too much?
Renewing public support after Fukushima Daiichi.
The Fukushima disaster has fallen off the headlines, but fear of nuclear energy remains a potent barrier to new development—as well as continued operation of the current reactor fleet. Building the foundation for a stable industry will require a sustained and strategic approach to restoring and securing the public trust.
The smart grid requires utilities and regulators to assert leadership.
Adopting an interoperable framework for the smart grid isn’t just a question of technology standardization. It’s also about navigating the legal, regulatory, and business factors that affect technology implementation. Making the smart grid work will require utilities and regulators to assert leadership.
(October 2011) Wind Capital group selects RMT Inc. to design and construct wind energy facility; MEMC Electronic Materials, Inc. and SunEdison acquire Fotowatio Renewable Ventures; Solar Community and Reliant Energy team up to offer financing options; KEMA selects Green Energy Corp.’s software; Leviton unveils commercial electric vehicle charging stations; plus announcements and contracts involving Science Applications International Corp., Tantalus, FirstEnergy Nuclear Operating Co. and others.
When NYMEX closed on Tuesday, Sept. 27, Henry Hub natural gas spot prices were $3.92 per MMBtu. 24 months earlier in June 2009, the same spot prices ranged between $3.50 and $4.20 per MMBtu. Other than seasonal spikes due to increased heating demand, there has been a prolonged period of cheap natural gas. Even though natural gas prices have been slowly rising over the past few years, the industry has been wondering whether natural gas prices will ever rebound to the historical levels seen between 2006 and 2008.
Efficiency pessimists contend that energy efficiency (inclusive of demand response) is unlikely to make much of a dent on energy consumption and peak demand in the year 2020 since all the low-hanging fruit has been harvested. Ergo, the solution to meeting the nation’s future energy needs in a carbon-constrained future is to build more power plants (preferably those that don’t burn coal), transmission lines and distribution systems.
Does slow and steady still win the race?
When a capital-intensive industry enters an asset-building cycle, many companies will operate in the red for a few years or more. That’s not necessarily a bad thing, as cap-ex investments represent growth for shareholders. The devil is in the details, however, and companies facing a large slug of environmental compliance investments might produce disappointing returns over the next few years.
‘We can’t have it both ways: costly mandates without full consumer understanding and support.’
Gaz Métro buys Central Vermont Public Service; Tortoise Capital Resources acquires interest in Public Service of New Mexico; South Carolina Electric & Gas and Santee Cooper sell capacity, and more.