5 major utility CEOs discuss the transformation of the energy system

[kristopher]

EEI 2015: 5 major utility CEOs on the transformation of the energy system
Chiefs of Edison International, AEP, Exelon and Southern hold revealing panel discussion

IIt’s not often that journalists get the chance to hear the leaders of four major utilities talk about the hot-button issues in the electric sector, but that’s exactly what the EEI annual convention provided Wednesday. The panel of the EEI board, moderated Dominion CEO Tom Farrell, featured outgoing EEI chair and Edison International CEO Ted Craver, Exelon CEO Chris Crane, Southern Company CEO Tom Fanning, and American Electric Power CEO Nick Atkins. They spoke on a variety of topics, from renewables subsidies to storage and the Clean Power Plan.

Renewables & Subsidies

Farrell started off the panel by asking about subsidies for renewable energy, a popular subject over the two days of conference conversations. Exelon’s Crane said that he thought the solar investment tax credit was a good example of functioning subsidy policy, while the wind production tax credit has driven overdevelopment, distorted power markets, and “skews” investment choices in favor of wind. Exelon is currently seeking taxpayer assistance for its Illinois nuclear plants, arguing they are essential for reliability, because low-cost, subsidized wind is undermining the economics of the plants. Those plants, due to their design, must run nearly continuously, even when there are lower-cost options on the market.

Fanning took a much harder line on the subject of subsidies, criticizing federal government efforts to “drive social change with the tax code,” while also expressing his opposition to a price on carbon, the Clean Power Plan, and a cap-and-trade system. Customers should define the resource mix, he said, not the government.

<snip>

What Craver was more confident about, however, was Musk’s prediction that in the long run, a third of generation will be distributed, which could also hurt load growth for utilities. To that, Southern’s Fanning had a simple answer: “If distributed generation is eroding your growth, own distributed generation!”

Much more at: http://www.utilitydive.com/news/eei-2015-5-major-utility-ceos-on-the-transformation-of-the-energy-system/400530/

[CajunBlazer]

1. Electrical Power Plants Heading for Financial Trouble

Companies which generate electricity are not a good stock market bet over the long term. The amount of homes equipped with solar panels is rising and one of the problems with powering a home with solar may soon have a solution. Tesla (the electric car company) has announced that its huge new battery plant will be manufacturing storage batteries for home use as well as car batteries. These batteries will be usef to store excess electricity generated by solar cells while the sun is shinning for later use when the panels are not generating power.

[nationalize the fed]

2. Elon Musk's 3-Biggest Powerwall Whoppers

Jim Jenal | Run On Sun.com

Elon Musk is a visionary and a showman, but occasionally his enthusiasm for his vision gets way out ahead of reality. Nowhere was that disconnect more on display than this past week when he made his much talked about announcement of the Tesla Powerwall battery storage system. While we share the vision for the potential of battery systems (such as the one Enphase Energy is set to release later this year, albeit in a far more understated fashion), when 38,000 people go online to order a product that doesn’t yet exist, it is time to debunk some of the more exorbitant claims made by Musk.

Here are the three biggest whoppers that Musk made during his Powerwall presentation.

Whopper #3 - Power for an ice storm or other significant grid failure event

Musk touted the “peace of mind” that would come from having the Powerwall, and said, “if there’s a cut in the utilities you’re always gonna have power, particularly if you’re in a place that’s very cold, now you don’t have to worry about being out of power if there’s an ice storm.”

The Powerwall unit that Musk was talking about that was designed for “daily cycling” was a 7 kWh unit that is priced at $3,000. The average home in the Run on Sun service area uses 25 kWh/day. So a single Powerwall unit provides roughly one quarter of the energy demand of an average home. If your desire for “peace of mind” means running your home for a full day in normal fashion, you will need to purchase 4 Powerwall units (assuming you have the wall space to mount them) and that will cost you $12,000.

Of course, many outages last longer than a day. The longer you want to stay powered, the more units you will need...

snip

Whopper #2 - Powerwall will work with existing solar systems

Musk insisted that Powerwall has been designed to work with solar systems, “right out of the box." (See video at 8:25.)

Except… that the Powerwall is designed to fit between existing solar panels and the DC-AC inverter(s) in the system (i.e., on the DC side of the system). But here’s the thing - the vast majority of inverters are what are known as “grid-tied,” which means if the grid goes down, the inverter shuts off, and stays off until the grid comes back...

Whopper #1 - You can go off grid… for $3,500!

Warming to his subject, Musk really brought down the house with his most outrageous claim of all:

"You could actually go, if you want, completely off-grid. You can take your solar panels, charge the battery packs and that’s all you use. So it gives you safety, security, and it gives you a complete and affordable solution. And the cost of this is $3,500." (Gasps and applause from audience.)

No. No you cannot.

Let’s unpack his statement...
Read More: http://runonsun.com/~runons5/blogs/blog1.php/ranting/elon-musk-s-3-biggest-powerwall-whoppers

Elon Musk is a con artist. His companies wouldn't be in business without government handouts. His batteries are yesterday's tech. Japan is perfecting home fuel cells.

[CajunBlazer]

3. I'll Stick With Musk, Thank You

Those who will initially buy Tesla's home storage batteries are the same type of folks who buy a Tesla to drive; they won't be poor. They will have money to buy as many batteries as they desire.

I would also expect that should commercial power go out, those using the batteries will operate similar to those who have electrical generators which are not powerful enough to power everything in their houses. The batteries will be used to keep refrigerators and freezers cold, provide minimal lighting, etc.

Over time the batteries Tesla will sell will grow more efficient and have greater storage capacity. Manufacturing economies of scale will allow for lower prices as well, making them affordable to larger and larger segments of the population.

Never underestimate a man whose companies developed one of the first commercial spacecrafts and a car which has won just about every automobile award the first year it was produced.

[kristopher]

4. The claims you're making about lies are themselves lies.

#3) When you are in a situation where the grid has failed you, it isn't necessary to duplicate your usual daily behavior. Having enough power for some combination of communications (internet, cell phone, radio or tv), lighting, refrigeration and running a fan or two is more than enough for most people. 7 kWh is plenty.

#2) He is introducing a new product and describing how it works. His description is accurate - the idea that it is a lie because he doesn't cover every contingency for retrofitting existing solar systems says more about your perspective and dedication to the truth than it does to anything related to Musk.

#1) Yes, you can. Average daily home electric use by Germans - who work towards energy efficiency - is 13 kWh. Since during daylight hours your panels are not only charging the batteries but also meeting use needs, a 7kWh system could certainly for the heart of a livable system.

Of course, we could do the same with a hydrogen fuel cell system and solar, but we'd have to up our spending on solar by about 70% and spend another couple of hundred thousand on the hydrogen outfit.

[Finishline42]

5. One aspect being ignored - demand pricing on industrial use of electricity

One aspect being ignored - demand pricing on industrial use of electricity - if you have a chance to review the utility bill of a manufacturer - the demand charges are significant - I've seen 30% of the total cost of electric usage.

The utilities come up with a baseload for the facility and when equipment cycles on there is a surge in demand and the utilities are charging extra to supply this demand. I'm not sure if batteries are the best solution to moderate or eliminate this demand but there is an opportunity in this area.