Advanced Energy Perspectives

Creation of a wholesale energy market in the West got a stamp of approval from Nevada last week when a legislative committee sent a letter to state officials urging them to support western regionalization – and citing AEE’s principles for doing so. “The West may meet its near-term clean energy policy targets” with current arrangements, committee chair Daniele Monroe-Moreno wrote. “However, to achieve long-term clean energy targets, western states and utilities must move towards even more flexible options and coordinated operations.”

While the typical electric vehicle in the minds of most consumers may be a compact urban car or possibly a luxury sedan – call it “Tesla Envy Syndrome” – 2020 has been the Year of the Electric Truck. Large companies, including Walmart, PepsiCo, and Sysco, have announced plans to begin replacing their fleets with electric trucks, and the pandemic’s increase in residential delivery has prompted Amazon, FedEx, and UPS to speed up the switch to electric. Market analysts predict rapid growth in this sector through the next decade. This is in large part due to the savings from reduced fuel and maintenance costs over the life of electric trucks. But with major product announcements this year, the savings and performance benefits of electric-powered vehicles will soon be available to pickup drivers too.

One of the simplest concepts governing the electric power system for more than half the country – competitive wholesale markets deliver reliable power at the best price for customers – is also among the most complex in practice. Our nation’s system of  Regional Transmission Organizations (RTOs) and Independent System Operators (ISOs) proves that. Navigating the world of RTOs and ISOs can be challenging, but participating in the markets they manage is critical to the success of advanced energy companies. AEE’s recent webinar, “Everything You Wanted to Know about RTOs But Never Could – Until Now,” moderated by AEE General Counsel and Managing Director Jeff Dennis, dug into how RTOs and ISOs operate and how to utilize AEE’s PowerSuite platform to track, navigate, and participate in RTO/ISO processes.

For years, large companies in California have been calling for expansion of Direct Access (DA), California’s limited retail choice program for commercial and industrial customers. Retail choice allows customers to shop around, rather than relying on their local electric utility. It also allows large customers to meet sustainability commitments by procuring more renewable energy than the utility provides. Such corporate purchases have driven development of renewable energy in markets that allow retail competition, and for that reason AEE and the Advanced Energy Buyers Group have jointly supported the expansion of DA in California. That expansion could be coming, if recommendations contained in a California Public Utility Commission (CPUC) report on extending DA to all nonresidential customers are acted upon by the California Legislature. But the expansion is more likely to happen – and happen faster – if some misplaced worries in the CPUC report were put to rest.

This is a guest post by Laura Sherman, president of Michigan Energy Innovation Business Council, an AEE state partner. The commentary was originally published by Energy News Network.  

Last month Gov. Gretchen Whitmer set a goal for Michigan to be carbon-neutral by 2050, a bold move that will bring more jobs and industry to the state. This executive order will continue to increase demand for innovative, business-driven solutions to reduce the impact of climate change. But three decades is a long time, so it may be difficult to imagine how achieving this goal will change Michigan’s economy.

Fortunately, though, we do not have to look out into the distant future to see how increasing the use of renewable energy, battery technology to store energy, electric vehicles (EVs) and energy efficiency—some of the advanced energy technologies that will be most important to achieving carbon neutrality—can deliver economic benefits. We can measure the economic growth and jobs that these energy innovations have already brought to Michigan and can continue to bring—not in 10, 20 or 30 years, but right now.