$100 Billion for a Smart Grid

Smart Grids are basically about making the distribution of power smarter through improving the transmission system. Think of driving when traffic signals are synchronized, verses not for movement of traffic. The current transmission infrastructure has challenges and is in the wrong place for carrying alternate energy. The windy areas that are prime for wind farms, don't have the transmission lines needed to send the power to the area that needs the power. My thought is a DC Power System. The key issue, as this article mentions, Can the DOE stimulate the smart grid? , is the incentives that utilities are given. If the improvement of transmissions lines are not given the right incentive they will be starved for capital. And with the US having a very decentralized power production system, it makes it even more challenging.

Utilities Turn Their Customers Green, With Envy

Utilities Turn Their Customers Green, With Envy - NY Times.

Peer pressure, what a powerful emotion! And some utilities are using it as a way to get people to reduce their usage of electricity by showing how they compare to their neighbors.

California's energy efficiency an economic boon

California's energy efficiency an economic boon - San Francisco Chronicle

This is the same idea of WalMart, just being more efficient which leads to higher profits! Unfortunately sometimes governments needs to give some incentives in order for companies and people to become more energy efficient. How public utilities in California are rewarded is a great example, that is why they subsidize CFL's and do other activities to reduce the demand for electricity since they are regulated by California.

Edison Proposes 30% Rate Increase

Power rates could surge - ROSEMEAD - Southern California Edison, SCE, estimates rates for some residential customers could increase by an average of 30 percent or more next year because of soaring fuel prices and costs to upgrade infrastructure, according to a company executive. I can't figure out where to go on the SCE web site to get more information.

This does help the economics of solar. I would like to know more about what the infrastructure upgrades are. Hopefully some transmission lines like what Texas is doing... Texas to Spend Billions on Wind Power Transmission Lines

This is hopeful on the conservation side - July 10, 2008Southern California Edison Customers Shine Bright by Installing More Than 1 Million CFLs

Unfortunately some of the CFL's migrated to other states via eBay and other means.

The elusive negawatt

Excellent article from the Economist The elusive negawatt It helps explain some of what I picked up at an interview with SCE (neat position, but they selected another candidate). SCE is being paid to focus on conservation, and their profits have been decoupled from the delivery of electricity.

The question on what is the best approach for improving efficiency is an interesting one. Government standards overall seems to be the best approach, since most people want a quick payback (3 years) for extra cost compared to efficiency.

Economics, Environment & Electricity Production

Electricity industry wrangles over California's greenhouse gas law - The challenge is dirty electricity generation is a lot cheaper (and exists) than clean power generation. The challenge for the state is how to regulate this, and a Cap N Trade bill is being worked on, where pollution credits are auctioned and the Electricty provider in California is responsible for being in compliance with the CA green house law of 1996.

World's Largest PV Installation

Southern California Edison - SCE has proposed to install on commercial rooftops in San Bernardino and Riverside counties (translation large warehouses such as in Ontario) PV to generate 250 megawatts of peak power. Currently there is only 750 Megawatts of capacity in the US. This still needs regulatory approval, etc.

My question is with the shortage of PV, where are they going to get the PV to make this happen? It's a great idea, but the question of financing, cost, availability are not spelled out.

SCE and Renewable Energy

Disclaimer - I did have an interview with SCE for a position a couple of months ago. I did not get the job (bummer), but it was a great learning experience. It's a subject I am very interested in and they had me interview with five people and I got a lot of great information. I even got a tour showing their trading floor where they buy energy.

SCE is a utility that needs to obey the California Public Utility Commission (CPUC) and Federal Energy Regulatory Commission (FERC). Basically they have a box that they need to stay within. There is no incentive for them in the design for reducing costs. Currently they get a guaranteed profit and need to supply the electricity needed within California per the rates that have been approved by the CPUC.

All SCE controls currently is the purchasing of electricity (often on multi-year contracts), transmission lines, and the billing of customers. Under deregulation the power plants were taken away from them. Some were sold to other companies, and others were put into a separate organization. Currently SCE has mandates on purchasing a certain amount of renewable power (20% by 2010 and 33% by 2020). California power transmission infrastructure needs help, and was the cause of some of the power problems. A challenge with windpower, is the best places for wind power usually don't have the needed transmission lines for sending the power to where it's needed. Edison is building in the Tehachapi (just North of Los Angeles) power lines that are needed for this. The challenge of building power lines is if not buried (which costs more), they impact the view. SCE has also been funding CFL's to increase the adoption of them within their area. They are also looking for ways to store energy so it can be used at night. The problem with solar and wind is it works great during the day. Current storage mechanisms such as batteries have a high cost (only lasting five years) and are not feasible for the levels Edison needs.