Will green energy grow more through onsite or centralized generation?

With the enactment of the Clean Power Plan, more renewables will be coming on line. But will most of those green electrons move along traditional networks or localized microgrids that service enclosed campuses? Given the emphasis on disruptive technologies that are used to generate, store and deliver energy at the point of consumption, the trends suggest that local microgrids will grow.

That technology, however, will not obviate the need for either a modernized transmission system or a more extensive network to support the expected growth of renewables whether they be generated onsite or from central stations. “Although the NIMBY factor is generally pernicious in elevating parochial concerns over regional and national interests, its influence can sometimes be constructive in pushing the search for better alternatives,” says Steve Huntoon, principal at the Energy Counsel LLP.

In a feature story that Huntoon penned for Public Utilities Fortnightly on the subject, he goes on to reference studies performed by ICF International and the Brattle Group that say “Big Transmission” will not be needed to fulfill the renewables requirement under the Clean Power Plan. Incremental expansion and modernization, however, will be required.

The Clean Power Plan was finalized in August and mandates 32 percent cuts in carbon dioxide emissions by 2030. Adding green energy to the mix is an essential component of that strategy, which can be done either through such onsite generation as rooftop solar panels or through centrally-located wind and solar facilities. Both innovations still need a 21st Century grid.

If Clean Power Plan-related upgrades would be less than 3 percent of the national 5-year spend on transmission and distribution — according to ICF — then that leaves increasing opportunities to build onsite generation that can be supported by energy storage and microgrids. Microgrids are becoming hot items for industrial sites or businesses that cannot afford momentary lapses in electric service, such high-tech ventures and hospitals.

With their emergence, those disruptive technologies are shaking things up – and giving access to new market participants, which could either partner with or compete against the utilities. Those issues will be the focal point of a Fortnightly conference to be held November 17 and 18 in Scottsdale, Arizona.

IMAGE DISTRIBUTED FOR SC JOHNSON – Two new, state of the art wind turbines are shown at SC Johnson’s Waxdale manufacturing facility Tuesday, Dec. 18, 2012, in Mt. Pleasant, Wis. The turbines are the first of their kind in Wisconsin and the largest onsite company owned wind turbine manufacturing project in the Midwest. Waxdale will now be able to generate on average 100 percent of its electrical energy on site while reducing the carbon emissions. (Jeffrey Phelps/AP Images for SC Johnson)

To that end, Siemens is partnering with a Native American reservation, Humboldt University and PG&E Corp. to build a community microgrid in Northern California that runs on solar panels, biomass and diesel generators, in combination with battery storage. The microgrid will service a 100-acre territory.
“Two or three years ago, utilities were much more apprehensive — with some not even allowing the conversation,” says Sally Jacquemin, microgrid business manager for Siemens, at a recent meeting in Boston. “Now, most utilities think of microgrids as a way to add to their business models.”
Indeed, the Edison Electric Institute, which is speaking at the Fortnightly conference, told this reporter that the development of microgrids is right in its members’ sweet spot — that utilities know best how to develop and operate grids, both big and small. PG&E and Sempra Energy are two examples of companies spotting a trend and pouncing on it. Still, non-traditional players such as SolarCity Corp. are getting in the micgrogrid game too.
An upcoming October feature story in Fortnightly magazine says that today’s consumers are “prosumers,” which means that they will be making increasing demands on utilities to be cleaner, cheaper and more reliable. If the power companies don’t, then others will move in and meet that need. Aligning the technologies and the regulations is part of the job ahead. The authors acknowledge that the path forward will center mostly on optimizing the existing infrastructure while the market place warms to disruptive technologies. In any event, the electricity deck will be reshuffled:
“Providing safe, reliable and affordable electricity is no longer enough. The public today demands cleaner energy, more resiliency, and greater customization and control,” write former Federal Energy Regulatory Chair Jon Wellinghoff, with Jenny Hu of Clean Power Finance and Shayle Kann of Greentech Media.

The authors go on to discuss “grid neutrality,” which simply means that all energy producers will have access to the transmission system. Utilities and grid operators, of course, are tasked with providing reliable and affordable options to customers. 

With that, more green energy is coming, which the wires must accommodate. This is when the technicalities will come face-to-face with the regulatory requirements.
Doable? The American Wind Energy Association says that up to 60,000 megawatts of new wind energy development is possible if planned transmission expansions occur. It also points to an Energy Information Administration analysis that says wind will make more than half of all the planned expansions under the Clean Power Plan, which will eventually necessitate more wires — not just upgrades.

To that end, Siemens is partnering with a Native American reservation, Humboldt University and PG&E Corp. to build a community microgrid in Northern California that runs on solar panels, biomass and diesel generators, in combination with battery storage. The microgrid will service a 100-acre territory.
“Two or three years ago, utilities were much more apprehensive — with some not even allowing the conversation,” says Sally Jacquemin, microgrid business manager for Siemens, at a recent meeting in Boston. “Now, most utilities think of microgrids as a way to add to their business models.”
Indeed, the Edison Electric Institute, which is speaking at the Fortnightly conference, told this reporter that the development of microgrids is right in its members’ sweet spot — that utilities know best how to develop and operate grids, both big and small. PG&E and Sempra Energy are two examples of companies spotting a trend and pouncing on it. Still, non-traditional players such as SolarCity Corp. are getting in the micgrogrid game too.
An upcoming October feature story in Fortnightly magazine says that today’s consumers are “prosumers,” which means that they will be making increasing demands on utilities to be cleaner, cheaper and more reliable. If the power companies don’t, then others will move in and meet that need. Aligning the technologies and the regulations is part of the job ahead. The authors acknowledge that the path forward will center mostly on optimizing the existing infrastructure while the market place warms to disruptive technologies. In any event, the electricity deck will be reshuffled:
“Providing safe, reliable and affordable electricity is no longer enough. The public today demands cleaner energy, more resiliency, and greater customization and control,” write former Federal Energy Regulatory Chair Jon Wellinghoff, with Jenny Hu of Clean Power Finance and Shayle Kann of Greentech Media.

http://www.forbes.com/sites/kensilverstein/2015/09/24/will-green-energy-grow-more-through-onsite-or-centralized-generation/2/