The solar market heated up in 2013. Annual solar installations increased 43% to 2,936 MW according to the Federal Energy Regulatory Commission. These figures, which focus on utility-scale systems and exclude net-metered systems, provide a metric for comparison with new coal, wind, and natural gas installations of a similar scale.
The Southeastern Pennsylvania Transportation Authority (SEPTA), which operates mass transit in the Philadelphia region, announced construction of a second system to recover and store braking train energy as electricity. Similar to a pilot system installed in 2012, this system will transfer electricity to batteries and bid this electricity into PJM Interconnection’s electricity frequency market.
On January 15, 2014, Macquarie Equities Research compared the hype around the demise of the centralized electric grid analogous to the exaggeration found in Sharknado, a movie depicting hurricane-propelled sharks terrorizing Los Angeles. Over the long term, the analysts argue renewables will have a meaningfully bigger impact on competitive power markets than on regulated T&D businesses.
On January 30, 2014, the American Wind Energy Association (AWEA) announced year-end statistics for 2013. The development pipeline ballooned to more than 17.2 GW of new capacity compared with just 1.1 GW added in all of 2013. This development pipeline includes more than 12 GW of capacity already under construction and 5.2 GW with signed PPAs that have not yet started construction.
A long-term decline in electricity consumption, growth advances in energy efficiency, monitoring, and control technologies, and the surprisingly rapid growth of rooftop solar and other renewable generation are challenging the traditional volume-based utility revenue model. Utilities are formulating strategies in response to this changing business environment, examining growth drivers (such as acquisitions), and trying to glean lessons from other countries and regions that are rapidly transitioning to renewable energy sources. Read more below.
The combination of increasing environmental regulations, renewable energy policy and technology advances, and continued production of cheap natural gas from unconventional North American resources is shifting the capacity and energy mix in the United States and Canada. Industry observers are trying to gauge how quickly we can make this transition and what the implications are for energy infrastructure adequacy, reliability, and economics, from gas pipeline capacity to power generation to the electric grid. Read more below.
The distributed generation market, particularly solar, continues to grow, and solar developers are employing different models to promote that expansion. Utilities, meanwhile, are re-examining their own business models and regulatory paradigms to determine whether and how to accommodate distributed generation or participate in this market. Read more below.
Distributed generation, net metering, and other potential sources of utility revenue reduction and disintermediation in the energy value chain are expanding. Meanwhile, utilities must continue to maintain grid reliability and reasonable rates for all customers. To accomplish this, utilities and their regulators are considering changes to the traditional regulatory construct and rate design to get this balance right. Read more below.
In January 2014, North Carolina started collecting a $100 annual fee from all-electric vehicles registered in the state. North Carolina began billing these customers separately because they do not pay road use and maintenance taxes attached to gasoline sales.
We are pleased to announce our Winter 2013-2014 issue of THE SCOTTMADDEN ENERGY INDUSTRY UPDATE. This semi-annual publication features our view of recent significant events and emerging trends in the energy industry.
The internet has enabled different delivery models for business software, such as Software as a Service (SaaS). The emergence of this model has led to an important decision for many companies: whether to “buy” on-premise software or “rent” their technologies through a SaaS vendor. This report provides an overview of SaaS for finance.
This report examines ISO New England’s recent decisions to shift its generation portfolio toward more renewable generation sources. This move places new expectations on simple and combined cycle generation and the natural gas pipelines that serve those plants, especially in the winter months when a “dual peak” often occurs. So, how is ISO New England stacking up so far?
Sussex Economic Advisors is now part of ScottMadden. We invite you to learn more about our expanded firm. Please use the Contact Us form to request additional information.
