Advanced Energy Perspectives

Colorado Governor's Residence, photo by Eric Allix Rogers, used under a Creative Commons license. 

On August 7, Advanced Energy Economy (AEE) and our state and regional partners, Interwest Energy Alliance and Colorado Cleantech Industries Association, held conversations with Colorado’s gubernatorial campaigns, meeting with Democratic nominee U.S. Rep. Jared Polis (D) and policy advisor for State Treasurer Walker Stapleton, the Republican nominee, along with candidate for attorney general Phil Weiser. One message consistently reverberated throughout our meetings: Colorado is well positioned to take advantage of a significant advanced energy opportunity.

Advanced energy employs 3.3 million Americans making and installing solar panels, wind turbines, energy efficient appliances and HVAC systems, and electric vehicles  for homes, businesses, and farms across the country. Advanced energy jobs range from software engineers and coders to construction workers. Advanced energy workers are in every corner of the United States. Unfortunately, not all of our leaders in Washington, D.C. and in state capitals across the country are aware of this thriving sector and what it’s doing to drive our economy.

That’s why we’re launching Advanced Energy Works.

Many of us spend New Year’s Eve watching football, especially ESPN’s rewind of the top 10 plays of the year. It may not be SportsCenter, but here is AEE’s top five list of state policy victories, setbacks, and stalemates for advanced energy in 2015 – many of them on issues that will carry over into the new year. As a highlight reel, it may leave something to be desired. But replaying this year’s skirmishes might just help the advanced energy industry and its allies prepare for the next round of battles in 2016.

Actual peak load forcast in Massachusetts in 2015 was 12,287 MW. Photo: Boston from above via Robbie Shade.

Demand for electricity can spike during just a few hours a year, and typically 10 percent of our electric system capacity is built to meet demand in just 1 percent of hours during the year. This comes at a significant cost to consumers. Last week, Advanced Energy Economy released a new report, “Peak Demand Reduction Strategy,” showing that states that implement peak demand programs can significantly reduce costs for customers, strengthen reliability of electric service, and ease compliance with EPA’s Clean Power Plan. The day before, the U.S. Supreme Court heard oral arguments in a case that will determine whether the Federal Energy Regulatory Commission (FERC) has authority to regulate payments for demand response, a primary mechanism for reducing peak demand. In all, it was a big week for efforts to get spikes in electricity demand under control.

For over a year, the advanced energy industry in Michigan has engaged in a good faith effort to reshape the state’s energy policy. Throughout the process all parties have had reason to be optimistic about the legislation that would come out of this process. The level of public and stakeholder engagement led by Senator Mike Nofs, chair of the Energy and Technology Committee, was more in-depth than usual, and in March, Gov. Rick Snyder delivered an energy address that called for Michigan to reduce energy waste through increases in efficiency, as well as continue to diversify its energy portfolio with renewable energy. That’s why the pair of bills filed by Nofs and his committee vice chair took everyone by surprise.