Implications of Rate Design for the Customer Economics of Behind-the-Meter Storage

This analysis explores how the details of retail electricity rate design can impact customer bill savings from behind-the-meter (BTM) storage.

Scope
• Focus is on the customer-economics
– Follow-on project will address alignment between customer-economics and utility value
• Addresses just one aspect of the customer-economics: utility bill savings (demand and energy charges)
– Not considered here are other potential value/revenue streams for BTM storage owners (e.g., participation in wholesale markets, customer reliability and resilience benefits, voltage support, T&D deferral, etc.), though some of those are “implicit” in retail rates
– We also do not address storage costs

Approach: Compute/compare …

Output and Attribute-Based Carbon Regulation Under Uncertainty

Output-based carbon regulations—such as fuel economy standards and the rate- based standards in the Clean Power Plan—create well-known incentives to inefficiently increase output. Similar distortions are created by attribute-based regulations. This paper demonstrates that, despite these distortions, output and attribute-based standards can always yield greater expected welfare than “flat” emission standards given uncertainty in demand for output (or attributes), assuming locally constant marginal damages. For fuel economy standards, the welfare-maximizing amount of attribute or mileage-basing is likely small relative to current policy. For the electricity sector, however, an intensity standard may yield greater expected welfare than a flat standard.…

Evolution of Mobility: The Path to Electric Vehicle Adoption

Dealers and automakers are in the driver’s seat when it comes to laying a positive foundation for the nearly 100 new electrified models scheduled to arrive in the U.S. market in the next few years. However, without collaboration between the two groups, clearing up the common misconceptions facing electric vehicles (EV) could delay widespread adoption, according to the Cox Automotive Evolution of Mobility: The Path to Electric Vehicle Adoption Study.

For this study, Cox Automotive surveyed 2,503 consumers – divided into EV Owners, EV Considerers and EV Non-Considerers – as well as 308 franchised dealers.…

PG&E: Market and Policy Perspectives on the First Climate Change Bankruptcy

The Pacific Gas and Electric (PG&E) bankruptcy, which was caused by liabilities resulting from massive wildfires, has widely been called the first climate change bankruptcy. It will likely not be the last, as climate change exacerbates natural disasters, leading to more frequent and intense wildfires, storms, and flooding. Wildfires alone could become up to 900 percent more destructive in certain regions by midcentury, and utility assets will also be increasingly exposed to threats stemming from hurricanes, rising sea levels, and other climate-related events.

These extreme weather events will increase costs to utility-sector stakeholders, including investor-owned utilities, state and local governments, …

Lessons and Perceptions: Adopting a Commercial Approach to CCS Liability

Liability has long been raised as a significant barrier to the wide scale deployment of carbon capture and storage (CCS). Despite regulatory developments, the topic of liability continues to be considered by some CCS project developers, policy-makers and regulators as a critical issue and potential ‘show-stopper’ for the technology’s deployment.

This report, through policy and regulatory analysis as well as interviews with policy makers, regulators, lawyers, project proponents and representative from the insurance sector, seeks to challenge these views and make the case for a more commercially-minded view of liability.

The report’s findings reveal that many of the liabilities borne …

EPA Sets Tier 3 Motor Vehicle Emission and Fuel Standards

The U.S. Environmental Protection Agency (EPA) is finalizing an important rule designed to reduce air pollution from passenger cars and trucks. Starting in 2017, Tier 3 sets new vehicle emissions standards and lowers the sulfur content of gasoline, considering the vehicle and its fuel as an integrated system.…

California Greenhouse Gas Emission Inventory – 2019 Edition

California’s annual statewide greenhouse gas (GHG) emission inventory is an important tool for establishing historical emission trends and tracking California’s progress in reducing GHGs. In concert with data collected through various California Global Warming Solutions Act (AB 32) programs, the GHG inventory is a critical piece in demonstrating the state’s progress in achieving the statewide GHG target. The inventory provides estimates of anthropogenic GHG emissions within California, as well as emissions associated with imported electricity; natural sources are not included in the inventory. The Air Resources Board (ARB) is responsible for maintaining and updating California’s GHG Inventory per H&SC section …

Health Co-Benefits of Sub-National Renewable Energy Policy in the US

State and local policy-makers in the US have shown interest in transitioning electricity systems toward renewable energy sources and in mitigating harmful air pollution. However, the extent to which subnational renewable energy policies can improve air quality remains unclear. To investigate this issue, we develop a systemic modeling framework that combines economic and air pollution models to assess the projected sub-national impacts of Renewable Portfolio Standards(RPSs) on air quality and human health, as well as on the economy and on climate change. We contribute to existing RPS cost benefit literature by providing a comprehensive assessment of economic costs and estimating …

Estimating Electric Vehicle Charging Infrastructure Costs Across Major U.S. Metropolitan Areas

This paper analyzes the capital costs of the electric vehicle charging infrastructure needed for public, workplace, and home charging for the most populous 100 metropolitan areas in the United States from 2019 through 2025. The 100 metropolitan areas analyzed represent 88% of all new electric vehicles sold and 75% of the overall U.S. vehicle market.

The analysis revealed:

Substantial charging infrastructure investments are needed to fill the charging gap. Necessary investments in workplace, public Level 2, and DC fast charging infrastructure would increase from approximately $110 million in 2019 to $270 million in 2025, amounting to a total of about …

Bitcoin, Blockchain, and the Energy Sector

The popularity of cryptocurrencies such as Bitcoin and the underlying blockchain technology presents both challenges and opportunities to the energy sector. As interest in Bitcoin and other cryptocurrencies has increased, the energy demand to support cryptocurrency “mining” activities has also increased. The increased energy demand—when localized—can exceed the available power capacity and increase customers’ electricity rates. On the other hand, not all cryptocurrencies require energy-intensive mining operations. Some cryptocurrencies can operate under algorithms that require less energy. In addition, blockchain technologies could present opportunities for the energy sector by facilitating energy and financial transactions on a smart grid.…