NRG Energy agrees to acquire Solar Power Partners; SolarCity agrees to financing terms for SolarStrong; plus asset sales by Home Warranty of America and ESA Renewables, and debt issues by Peabody Energy, Duke Energy, Baltimore Gas & Electric and others.
(January 2012) Hawaiian Electric selects Renewable Energy Group to supply biodiesel for combustion turbine; GE signs long-term services agreement with Comision Federal de la Electricidad; Nissan North America selects Coulomb Technologies to provide EV charging infrastructure locations; Siemens agrees to acquire eMeter; plus announcements and contracts involving AES Corp., Maui Electric, KCP&L, and others.
A strategic approach to mitigating rate increases and greenhouse gas price risk.
Experience in the Duke Energy Carolinas service territory shows that high penetration rates for electric vehicles, combined with increased natural gas-fired power generation, can result in lower costs to customers and lower risks for utility shareholders—while also reducing total emissions of greenhouse gases. However, these outcomes depend on policy changes that facilitate smart, off-peak vehicle charging, and that allow utilities to capture the benefits of a more environmentally friendly power system.
Does the lack of long-term pricing undermine the financing of new power plants?
The PJM Interconnect’s Reliability Pricing Model generally has succeeded in attracting and retaining low-cost generation and demand resources to maintain resource adequacy. But sluggish demand and low prices have weakened the market for long-term capacity contracts. Suppliers aren’t willing to lock in current low prices, and buyers don’t want to pay more for future certainty. Is the market dysfunctional, as some state lawmakers suggest, or does the lack of long-term contracts indicate a rational balance of supply and demand?
Engineering and construction firms adapt to a changing market.
Engineering, procurement and construction (EPC) contracts are evolving as utilities seek to spread risks, contain costs, and execute their business strategies. As a result, turnkey contractors are adapting their capabilities to meet the industry’s changing needs. Leading EPC firms share their vision for a 21st century energy industry—and their role in building it.
The old rules don’t always fit with new commercial realities.
To encourage billions of dollars of investment into America’s transmission grid over the next several decades, the Federal Energy Regulatory Commission (FERC) is restructuring its regulatory policies to bring market-based solutions into the framework for planning, construction, and operation of new transmission lines. The recent Order 1000 is the most dramatic example of this effort. But as FERC has learned before, one set of rules doesn’t serve the financial and commercial needs of all market participants.
Election politics portend painful cutbacks.
Whether it deserves it or not, the solar energy industry can’t count on continued government largess, thanks in part to the Solyndra mess. But in the end, Solyndra’s demise might be exactly what the industry needs to wean itself off heavy subsidies and become a mainstream resource.
(November 2011) Hitachi Power Systems America wins contract from Westar Energy; City of Fort Collins selects Elster, Siemens Energy, eMeter and Tropos GridCom to provide systems for its AMI project; Energate to supply smart thermostats for Oklahoma Gas & Electric; Jackson Municipal Electric Department selects Survalent Technology for a new SCADA system; Eastern Nebraska Public Power District Consortium selects ABB to implement an advanced smart grid-based SCADA; plus announcements and contracts involving EnerSys, S&C Electric, Siemens and others.
Distribution management at the smart grid frontier.
The hype over smart grid has become focused on the idea of “advanced distribution management systems” (ADMS). But so far, few utilities have implemented ADMS beyond pilots and incremental tests. Fortnightly analyzes the technology trends and profiles examples of true ADMS in action.
(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.