Advanced Energy Perspectives

On Nov. 17, the Federal Energy Regulatory Commission (FERC) issued a notice of proposed rulemaking (NOPR) that has the potential to significantly expand opportunities for advanced energy technologies in the coming years. The proposed rule will allow more competition from advanced energy technologies in the regional electricity markets under FERC’s jurisdiction, driving down costs for consumers while giving the industry greater chance to grow. AEE has frequently noted that current rules do not allow advanced energy to compete fully in wholesale markets. With unnecessary obstacles removed, the advanced energy industry will be able to grow with the simple force of free markets. With Thanksgiving just behind us, we’re thankful for this effort by FERC to remove market barriers for advanced energy in wholesale markets.

This week’s biggest story was a late-breaking one: the Tesla and SolarCity merger, which, despite much armchair criticism, won shareholder approval handily. Tesla will pay $2.6 billion to acquire SolarCity, and the transaction should be complete in the coming days. Elon Musk, Tesla’s CEO and Chair of the Board of SolarCity, abstained from the vote, as did several other shareholders who were on both sides of the transaction, but 85% of the shareholders who participated voted to merge. In response, Musk tweeted “Thanks for believing.”

After nearly two full years debating its energy future, on Nov. 10, the Michigan Senate decisively voted in favor of Senate Bills 437 and 438, energy legislation that requires utilities to produce 15% of their electricity from renewable sources by 2021. Approved with strong bipartisan support, Michigan’s new renewable portfolio standard (RPS) will replace the state’s existing requirement of 10%, which was reached by 2015, as required. Retaining and expanding the state’s RPS, which will now be coupled with a utility Integrated Resource Planning process, is a major victory for Michigan’s advanced energy industry, given that earlier versions of the bills would have eliminated the state’s RPS altogether. Same with the state’s Energy Optimization Standard, which also had been on the chopping block but now will be preserved, under a new name.