DOE seeks alternative energy partners

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The U.S. Department of Energy is asking governments and development finance authorities to participate in the first stage of a new federal loan guarantee program for alternative energy projects, which is expected to be used in conjunction with municipal bonds and will guarantee at least $50 billion of debt.

The program was authorized by the American Recovery and Reinvestment Act. Loans guaranteed by the federal government can be used to fund alternative energy production and manufacturing components used to generate solar, wind, geothermal, biomass, and hydroelectric power.

Development finance authorities acting as third-party lenders will be expected to provide direct debt or debt guarantees equal to at least 5% of the total project debt for the life of the loan, according to DOE documents.

The authorities would be allowed to issue revenue-backed debt or other kinds of secured debt to meet their required share of the project cost, after the department evaluates their default and loss rates over the prior 10 years.

Part of the program's novelty is that it will be the DOE's first time weighing in on the underwriting value of government-run development finance authorities, according to Steven Klein, founding partner of First Infrastructure LLC. Klein worked with the DOE on a request for information it issued October 29. The deadline for responses is January 15.

The department said it may open the program to renewable energy system manufacturing projects in which the development finance organizations - including muni issuers - could act as the lender or co-guarantor.

Klein said the DOE will be providing "an assessment of their strength, and therefore the value of their underwriting," but it will not make selections or rejections in this first stage of the program.

The DOE said it is "also seeking information for [development finance authorities] regarding any innovative and collaborative lending implementation mechanisms that utilize regional, local, or other partnerships."

Fifty-billion dollars is a conservative estimate for the amount of debt that will be guaranteed, Klein said adding that unguaranteed debt issued to complement the DOE-guaranteed loans is likely to include municipal bonds. He could not estimate the total amount of muni bond issuance that would result.

The Council of Development Finance Agencies, a group representing more than 265 public, private and nonprofit development entities, said the program will encourage the use of loan guarantees that have been underused for years.

Agencies "would be able to issue taxable bonds and still be able to participate in this program," said Brian M. Anderson, education and policy manager for the CDFA.

"Also, there would be the question of whether [Build America Bonds] or [Recovery Zone Economic Development Bonds] would be able to be used for government-owned energy projects," Anderson added.

The loan guarantees are expected to be either on parity with, or senior to, other debt. That structure would be "sort of the opposite of TIFIA," or the Transportation Infrastructure Financing and Innovation Act program, Klein said.

TIFIA supplies Treasury-rate loans and credit assistance to public and private entities for transportation projects. TIFIA credit is usually subordinate to the project's capital market or commercial bank debt, except in cases of bankruptcy, insolvency, or liquidation, which automatically springs TIFIA up to parity debt.

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Hydroelectricity Under Pumped Storage Capacity

Pumped Storage Hydroelectricity balances renewable energy, stabilizes the grid, and provides large-scale energy storage using reservoirs and reversible turbines, delivering flexible peak power, frequency control, and rapid response to variable wind and solar generation.

 

Key Points

A reversible hydro system that stores energy by pumping water uphill, then generates flexible peak power.

✅ Balances variable wind and solar with rapid ramping

✅ Stores off-peak electricity in upper reservoirs

✅ Enhances grid stability, frequency control, and reserves

 

The expense of hydroelectricity is moderately low, making it a serious wellspring of sustainable power. The hydro station burns-through no water, dissimilar to coal or gas plants. The commonplace expense of power from a hydro station bigger than 10 megawatts is 3 to 5 US pennies for every kilowatt hour, and Niagara Falls powerhouse upgrade projects show how modernization can further improve efficiency and reliability. With a dam and supply it is likewise an adaptable wellspring of power, since the sum delivered by the station can be shifted up or down quickly (as meager as a couple of moments) to adjust to changing energy requests.

When a hydroelectric complex is developed, the task creates no immediate waste, and it for the most part has an extensively lower yield level of ozone harming substances than photovoltaic force plants and positively petroleum product fueled energy plants, with calls to invest in hydropower highlighting these benefits. In open-circle frameworks, unadulterated pumped storage plants store water in an upper repository with no normal inflows, while pump back plants use a blend of pumped storage and regular hydroelectric plants with an upper supply that is renewed to a limited extent by common inflows from a stream or waterway.

Plants that don't utilize pumped capacity are alluded to as ordinary hydroelectric plants, and initiatives focused on repowering existing dams continue to expand clean generation; regular hydroelectric plants that have critical capacity limit might have the option to assume a comparable function in the electrical lattice as pumped capacity by conceding yield until required.

The main use for pumped capacity has customarily been to adjust baseload powerplants, however may likewise be utilized to decrease the fluctuating yield of discontinuous fuel sources, while emerging gravity energy storage concepts broaden long-duration options. Pumped capacity gives a heap now and again of high power yield and low power interest, empowering extra framework top limit.

In specific wards, power costs might be near zero or once in a while negative on events that there is more electrical age accessible than there is load accessible to retain it; despite the fact that at present this is infrequently because of wind or sunlight based force alone, expanded breeze and sun oriented age will improve the probability of such events.

All things considered, pumped capacity will turn out to be particularly significant as an equilibrium for exceptionally huge scope photovoltaic age. Increased long-distance bandwidth, including hydropower imports from Canada, joined with huge measures of energy stockpiling will be a critical piece of directing any enormous scope sending of irregular inexhaustible force sources. The high non-firm inexhaustible power entrance in certain districts supplies 40% of yearly yield, however 60% might be reached before extra capaciy is fundamental.

Pumped capacity plants can work with seawater, despite the fact that there are extra difficulties contrasted with utilizing new water. Initiated in 1966, the 240 MW Rance flowing force station in France can incompletely function as a pumped storage station. At the point when elevated tides happen at off-top hours, the turbines can be utilized to pump more seawater into the repository than the elevated tide would have normally gotten. It is the main enormous scope power plant of its sort.

Alongside energy mechanism, pumped capacity frameworks help control electrical organization recurrence and give save age. Warm plants are substantially less ready to react to abrupt changes in electrical interest, and can see higher thermal PLF during periods of reduced hydro generation, conceivably causing recurrence and voltage precariousness.

Pumped storage plants, as other hydroelectric plants, including new BC generating stations, can react to stack changes in practically no time. Pumped capacity hydroelectricity permits energy from discontinuous sources, (for example, sunlight based, wind) and different renewables, or abundance power from consistent base-load sources, (for example, coal or atomic) to be put something aside for times of more popularity.

The repositories utilized with siphoned capacity are tiny when contrasted with ordinary hydroelectric dams of comparable force limit, and creating periods are regularly not exactly a large portion of a day. This technique produces power to gracefully high top requests by moving water between repositories at various heights.

Now and again of low electrical interest, the abundance age limit is utilized to pump water into the higher store. At the point when the interest gets more noteworthy, water is delivered once more into the lower repository through a turbine. Pumped capacity plans at present give the most monetarily significant methods for enormous scope matrix energy stockpiling and improve the every day limit factor of the age framework. Pumped capacity isn't a fuel source, and shows up as a negative number in postings.

 

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Solar power growth, jobs decline during pandemic

COVID-19 Solar Job Losses are erasing five years of workforce growth, SEIA reports, with U.S. installations and capacity down, layoffs accelerating, 3 GW expected in Q2, and policy support key for economic recovery.

 

Key Points

COVID-19 Solar Job Losses describe the pandemic-driven decline in U.S. solar employment, installations, and capacity.

✅ SEIA reports a 38% national drop in solar jobs

✅ Q2 installs projected at 3 GW, below forecasts

✅ Layoffs outpace U.S. economy without swift policy aid

 

Job losses associated with the COVID-19 crisis have wiped out the past five years of workforce growth in the solar energy field, according to a new industry analysis.

The expected June 2020 solar workforce of 188,000 people across the United States is 114,000 below the pre-pandemic forecast of 302,000 workers, a shortfall tied to the solar construction slowdown according to the Solar Energy Industries Association, which said in a statement Monday that the solar industry is now losing jobs at a faster rate than the U.S. economy.

In Massachusetts, the loss of 4,284 solar jobs represents a 52 percent decline from previous projections, according to the association’s analysis.

The national 38 percent drop in solar jobs coincides with a 37 percent decrease in expected solar installations in the second quarter of 2020, and similar pressures have put wind investments at risk across the sector, the association stated. The U.S. is now on track to install 3 gigawatts of new capacity this quarter, though subsequent forecasts anticipated solar and storage growth as investments returned, and the association said the decrease from the expected capacity is equivalent to the electricity needed to power 288,000 homes.

“Thousands of solar workers are being laid off each week, but with swift action from Congress, we know that solar can be a crucial part of our economic recovery,” with proposals such as the Biden solar plan offering a potential policy path, SEIA President and CEO Abigail Ross Hopper said in a statement, as recent analyses point to US solar and wind growth under supportive policies.

Subsequent data showed record U.S. panel shipments as the market rebounded.

 

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Fixing California's electric grid is like repairing a car while driving

CAISO Clean Energy Transition outlines California's path to 100% carbon-free power by 2045, scaling renewables, battery storage, and offshore wind while safeguarding grid reliability, managing natural gas, and leveraging Western markets like EDAM.

 

Key Points

CAISO Clean Energy Transition is the plan to reach 100% carbon-free power by 2045 while maintaining grid reliability.

✅ Target: add 7 GW/year to reach 120 GW capacity by 2045

✅ Battery storage up 30x; smooths intermittent solar and wind

✅ EDAM and WEIM enhance imports, savings, and reliability

 

Mark Rothleder, Chief Operating Officer and Senior Vice President at the California Independent System Operator (CAISO), which manages roughly 80% of California’s electric grid, has expressed cautious optimism about meeting the state's ambitious clean energy targets while keeping the lights on across the grid. However, he acknowledges that this journey will not be without its challenges.

California aims to transition its power system to 100% carbon-free sources by 2045, ensuring a reliable electricity supply at reasonable costs for consumers. Rothleder, aware of the task's enormity, likens it to a complex car repair performed while the vehicle is in motion.

Recent achievements have demonstrated California's ability to temporarily sustain its grid using clean energy sources. According to Rothleder, the real challenge lies in maintaining this performance round the clock, every day of the year.

Adding thousands of megawatts of renewable energy into California’s existing 50-gigawatt system, which needs to expand to 120 gigawatts to meet the 2045 goal, poses a significant challenge, though recent grid upgrade funding offers some support for needed infrastructure. CAISO estimates that an addition of 7 gigawatts of clean power per year for the next two decades is necessary, all while ensuring uninterrupted power delivery.

While natural gas currently constitutes California's largest single source of power, Rothleder notes the need to gradually decrease reliance on it, even as it remains an operational necessity in the transition phase.

In 2023, CAISO added 5,660 megawatts of new power to the grid, with plans to integrate over 1,100 additional megawatts in the next six to eight months of 2024. Battery storage, crucial for mitigating the intermittent nature of wind and solar power, has seen substantial growth as California turns to batteries for grid support, increasing 30-fold in three years.

Rothleder emphasizes that electricity reliability is paramount, as consumers always expect power availability. He also highlights the potential of offshore wind projects to significantly contribute to California's power mix by 2045.

The offshore wind industry faces financial and supply chain challenges despite these plans. CAISO’s 20-year outlook indicates a significant increase in utility-scale solar, requiring extensive land use and wider deployment of advanced inverters for grid stability.

Addressing affordability is vital, especially as California residents face increasing utility bills. Rothleder suggests a broader energy cost perspective, encompassing utility and transportation expenses.

Despite smooth grid operations in 2023, challenges in previous years, including extreme weather-induced power outages driven by climate change, underscore the need for a robust, adaptable grid. California imports about a quarter of its power from neighbouring states and participates in the Western Energy Imbalance Market, which has yielded significant savings.

CAISO is also working on establishing an extended day-ahead electricity market (EDAM) to enhance the current energy market's success, building on insights from a Western grid integration report that supports expanded coordination.

Rothleder believes that a thoughtfully designed, diverse power system can offer greater reliability and resilience in the long run. A future grid reliant on multiple, smaller power sources such as microgrids could better absorb potential losses, ensuring a more reliable electricity supply for California.

 

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In a record year for clean energy purchases, Southeast cities stand out

Municipal Renewable Energy Procurement surged as cities contracted 3.7 GW of solar and wind, leveraging green tariffs, community solar, and utility partnerships across the Southeast, led by Houston, RMI, and WRI data.

 

Key Points

The process by which cities contract solar and wind via utilities or green tariffs to meet climate goals.

✅ 3.7 GW procured in 2020, nearly 25% year-over-year growth

✅ Houston runs city ops on 500 MW solar, a record purchase

✅ Southeast cities use green tariffs and community solar

 

Cities around the country bought more renewable energy last year than ever before, reflecting how renewables may soon provide one-fourth of U.S. electricity across the grid, with some of the most remarkable projects in the Southeast, according to new data unveiled Thursday.

Even amid the pandemic, about eight dozen municipalities contracted to buy nearly 3.7 gigawatts of mostly solar and wind energy — enough to power more than 800,000 homes. The figure is almost a quarter higher than the year before.

Half of the cites listed as “most noteworthy” in Thursday’s release —  from research groups Rocky Mountain Institute and World Resources Institute — are in the region that stretches from Texas to Washington, D.C. 

Houston stands out for the sheer enormity of its purchase: In July, it began powering city operations entirely from nearly 500 megawatts of solar power — the largest municipal purchase of renewable energy ever in the United States, as renewable electricity surpassed coal nationwide.

The groups also feature smaller deals in North Carolina and Tennessee, achieved through a utility partnership called a green tariff.

“We wanted to recognize that Nashville and Charlotte were really blazing a new trail,” said Stephen Abbott, principal at the Rocky Mountain Institute.

And the nation’s capital shows how renewable energy can be a source of revenue: It’s leasing out its public transit station rooftops for 10 megawatts of community solar.

All of these strategies will be necessary for scores of U.S. cities to meet their ambitious climate goals, researchers believe. An interactive clean energy targets tracker shows all 95 clean energy procurements from the year in detail.


Tracker 
Even before former President Donald Trump promised to remove the United States from the Paris Climate Accord, a lack of federal action on climate left a void that some cities and counties were beginning to fill, as renewables hit a record 28% in a recent month. In 2015, the first year tracked by researchers at the Rocky Mountain Institute and the World Resources Institute, municipalities contracted to buy more than 1 gigawatt of wind, solar and other forms of clean energy. 

But when Trump officially set in motion the withdrawal from the climate agreement, the ranks of municipalities dedicated to 100% clean energy multiplied. Today there are nearly 200 of them. The growth in activity last year reflects, in part, that surge of new pledges.

“It takes a while to get city staff up to speed and understand the options, and create the roadmap and then start executing,” Abbott said. “There is a bit of a lag, but we’re starting to see the impact.”

Even in Houston — one of the earliest to begin procuring renewable energy — there has been a steep learning curve as market forces change and prices drop, including cheaper solar batteries shaping procurement strategies, said Lara Cottingham, Houston’s chief of staff and chief sustainability officer.

No matter how well resourced and educated their staff, cities have to clear a thicket of structural, political and economic challenges to procure renewable energy. Most don’t own their own sources of power. Nearly all face budget constraints. Few have enough land or government rooftops to meet their goals within city limits.

“Cities face a situation where it’s a square peg in a round hole,” Cottingham said.

The hurdles are especially steep in much of the Southeast, where only publicly regulated utilities can sell electricity to retail customers, even large ones such as major cities. That’s where a green tariff regime comes in: Cities can purchase clean energy from a third party, such as a solar company, using the utility as a go-between.

Early last year, Charlotte became the largest city to use such a program, partnering with Duke Energy and two North Carolina solar developers to build a solar farm 50 miles north in Iredell County. At first, the city will pay a premium for the energy, but in the latter half of the 20-year contract, as gas prices rise, it will save money compared to business as usual.

“Over the course of 20 years, it’s projected we would save about $2 million,” Katie Riddle, sustainability analyst with Charlotte, told the Energy News Network last year.

The growing size of projects, innovative partnerships like green tariff programs, and the improving economics all give Abbott hope that renewable energy investments from cities will only grow — even with the Trump presidency over and the country back in the Paris agreement.

And when cities meet their goals for procuring renewable energy for their own operations, they must then turn to an even bigger task: reducing the carbon footprint of every person in their jurisdiction with broader decarbonization strategies and community engagement.

“The city needs to do its part for sure,” said Houston’s Cottingham. “Then we have this challenge of how do we get everyone else to.”

 

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California Legislators Prepare Vote to Crack Down on Utility Spending

California Utility Spending Bill scrutinizes how ratepayer funds are used by utilities, targeting lobbying, advertising, wildfire prevention cost pass-throughs, and CPUC oversight to curb high electricity bills and increase accountability and transparency statewide.

 

Key Points

Legislation restricting utilities from using ratepayer money for lobbying and ads, with stronger CPUC oversight.

✅ Bans ratepayer-funded lobbying and political advertising

✅ Expands prohibited utility communications and influence spending

✅ Aims to curb bills, boost transparency, and CPUC accountability

 

California's legislators are about to vote on a bill that would impose stricter regulations on how utility companies spend the money they collect from ratepayers. This legislation directly responds to the growing discontent among Californians who are already grappling with high electricity bills, as Californians ask why electricity prices are soaring amid wildfire prevention efforts.

Consumer rights groups have been vehemently critical of how utilities have been allocating customer funds, amid growing calls for regulatory action from state officials. They allege that a substantial portion of this money is being funnelled into lobbying efforts and advertising campaigns that yield no direct benefits for the customers themselves.

The proposed bill would significantly broaden the definition of what constitutes prohibited advertising and political influence activities on the part of utility companies, separate from income-based fixed electricity charges proposals that affect rate design. This would effectively restrict the ways in which utilities can utilize customer funds for such purposes.

While consumer advocacy groups have favored the legislation, it has drawn opposition from utility companies and some labor unions, as lawmakers weigh overturning income-based utility charges in parallel debates. Opponents contend that it would hinder utilities' ability to communicate effectively with their customers and advocate for their interests. Additionally, they express concerns that the bill could result in job losses within the utility sector.

The vote on the bill is expected to take place on Monday. The outcome of the vote is uncertain, but it is sure to be a closely watched development for Californians struggling with the burden of high electricity bills, with many wondering about major changes to their electric bills in the near term.

 

California's Electricity Rates: A Burden for Residents

A recent report by the California Public Utilities Commission (CPUC) revealed that the average Californian household spends a significantly higher amount on electricity compared to the national average. This disparity in electricity rates can be attributed to a number of factors, including the financial costs associated with wildfire prevention measures, investments in renewable energy infrastructure, and maintenance of aging electrical grids, even as the state considers revamping electricity rates to clean the grid.

 

Examples of Utility Company Spending that Raise Concerns

Consumer rights groups have specifically highlighted instances where utility companies have used customer money to fund lavish executive compensation packages, sponsor professional sports teams, and finance political campaigns. They argue that these expenditures do not provide any tangible benefits to ratepayers and should not be funded through customer bills.

 

The Need for Accountability and Prioritization

Proponents of the bill believe that the legislation is necessary to ensure that utility companies are held accountable for how they spend customer funds. They believe that the stricter regulations would compel utilities to prioritize investments that directly improve the quality and reliability of electricity services for Californians, alongside discussions of income-based flat-fee utility bills that could reshape rate structures.

The impending vote on the bill underscores the ongoing tension between the need for reliable electricity services and the desire to keep utility rates affordable for Californians. The outcome of the vote is likely to have a significant impact on how utility companies operate in the state and how much Californians pay for their electricity.

 

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Brand New Renewable Technology Harnesses Electricity From The Cold, Dark Night

Nighttime Thermoelectric Generator converts radiative cooling into renewable energy, leveraging outer space cold; a Stanford-UCLA prototype complements solar, serving off-grid loads with low-power output during peak evening demand, using simple materials on a rooftop.

 

Key Points

A device converting nighttime radiative cooling into electricity, complementing solar for low-power evening needs.

✅ Uses thermocouples to convert temperature gradients to voltage.

✅ Exploits radiative cooling to outer space for night power.

✅ Complements solar; low-cost parts suit off-grid applications.

 

Two years ago, one freezing December night on a California rooftop, a tiny light shone weakly with a little help from the freezing night air. It wasn't a very bright glow. But it was enough to demonstrate the possibility of generating renewable power after the Sun goes down.

Working with Stanford University engineers Wei Li and Shanhui Fan, University of California Los Angeles materials scientist Aaswath Raman put together a device that produces a voltage by channelling the day's residual warmth into cooling air, effectively generating electricity from thin air with passive heat exchange.

"Our work highlights the many remaining opportunities for energy by taking advantage of the cold of outer space as a renewable energy resource," says Raman.

"We think this forms the basis of a complementary technology to solar. While the power output will always be substantially lower, it can operate at hours when solar cells cannot."

For all the merits of solar energy, it's just not a 24-7 source of power, although research into nighttime solar cells suggests new possibilities for after-dark generation. Sure, we can store it in a giant battery or use it to pump water up into a reservoir for later, but until we have more economical solutions, nighttime is going to be a quiet time for renewable solar power. 

Most of us return home from work as the Sun is setting, and that's when energy demands spike to meet our needs for heating, cooking, entertaining, and lighting.

Unfortunately, we often turn to fossil fuels to make up the shortfall. For those living off the grid, it could require limiting options and going without a few luxuries.

Shanhui Fan understands the need for a night time renewable power source well. He's worked on a number of similar devices, including carbon nanotube generators that scavenge ambient energy, and a recent piece of technology that flipped photovoltaics on its head by squeezing electricity from the glow of heat radiating out of the planet's Sun-warmed surface.

While that clever item relied on the optical qualities of a warm object, this alternative device makes use of the good old thermoelectric effect, similar to thin-film waste-heat harvesting approaches now explored.

Using a material called a thermocouple, engineers can convert a change in temperature into a difference in voltage, effectively turning thermal energy into electricity with a measurable voltage. This demands something relatively toasty on one side and a place for that heat energy to escape to on the other.

The theory is the easy part – the real challenge is in arranging the right thermoelectric materials in such a way that they'll generate a voltage from our cooling surrounds that makes it worthwhile.

To keep costs down, the team used simple, off-the-shelf items that pretty much any of us could easily get our hands on.

They put together a cheap thermoelectric generator and linked it with a black aluminium disk to shed heat in the night air as it faced the sky. The generator was placed inside a polystyrene enclosure sealed with a window transparent to infrared light, and linked to a single tiny LED.


 

For six hours one evening, the box was left to cool on a roof-top in Stanford as the temperature fell just below freezing. As the heat flowed from the ground into the sky, the small generator produced just enough current to make the light flicker to life.

At its best, the device generated around 0.8 milliwatts of power, corresponding to 25 milliwatts of power per square metre.

That might just be enough to keep a hearing aid working. String several together and you might just be able to keep your cat amused with a simple laser pointer. So we're not talking massive amounts of power.

But as far as prototypes go, it's a fantastic starting point. The team suggests that with the right tweaks and the right conditions, 500 milliwatts per square metre isn't out of the question.

"Beyond lighting, we believe this could be a broadly enabling approach to power generation suitable for remote locations, and anywhere where power generation at night is needed," says Raman.

While we search for big, bright ideas to drive the revolution for renewables, it's important to make sure we don't let the smaller, simpler solutions like these slip away quietly into the night.

This research was published in Joule.

 

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