Rethinking policy to deliver a clean energy future

Electricity Journal

Volumn 26, Issue 8, 2013, Pages 7-22

  Aggarwal, Sonia ^a   Harvey, Hal ^a  

^a STANFORD UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 84885422030     PISSN: 10406190     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.tej.2013.08.009     Document Type: Article

References (37)

1. Michael Liebreich (2013), Global Trends in Clean Energy Investment, Bloomberg New Energy Finance. Accessed May 13, 2013http:// about.bnef.com/presentations/ global-trends-in-clean-energyinvestment- 3/
2. American Wind Energy Association (2013), Wind Energy Top Source for New Generation2012
3. Hydraulic fracturing, or ''fracking,'' is a technique for accessing natural gas and/or oil by drilling a well and then using pressurized fluid to fracture porous rock and initiate the flow of gas or oil.
4. National Renewable Energy Laboratory (2012), Renewable Electricity Futures Studyhttp://www.nrel. gov/analysis/re_futures
5. Bob Fagan, Max Chang, Patrick Knight, Melissa Schultz, Tyler Comings, Ezra Hausman and Rachel Wilson (2012), The Potential Rate Effects of Wind Energy and Transmission in the Midwest ISO Region, Synapse Energy Economicshttp://cleanenergytransmission. org/wp-content/uploads/2012/05/ Full-Report-The-Potential-Rate- Effects-of-Wind-Energy-and- Transmission-in-the-Midwest-ISORegion. pdf
6. Bob Fagan, Patrick Lucknow, David White and Rachel Wilson (2013), The Net Benefits of Increased Wind Power in PJM, Synapse Energy Economics, Forthcoming; and Amory Lovins, et al. (2011
7. While this article focuses on renewables, energy efficiency will be a massively important complement to deliver a clean and healthy power system. For an excellent set of efficiency policy recommendations
8. Nicole Steele (2013), Energy 2030 Research Reports, Alliance to Save Energyhttp://www.ase.org/ resources/ee-commission-reportsummaries
9. Further innovation is needed to develop cost-effective and ubiquitous energy storage as another option for managing this transformation.
10. REN (2013), Renovaveis Abastecem cerca de 70% do Consume Nacional de Eletricidade no 1 Trimestre, Press Releasehttp://www.ren.pt/ media/comunicados/detalhe/ renovaveis_abastecem_cerca_de_70__do_consumo_nacional_de_ eletricidade_no_1__trimestre/
11. In addition, 24 states have established energy efficiency goals and policies to support them
12. Governors' Wind Energy Association (2013), Renewable Electricity Standards: State Success Storieshttp:// www.governorswindenergycoalition. org/wp-content/uploads/2013/03/ RES-White-Paper-March-2013.pdf
13. Primary non-price barriers include (1) a problem of the commons, wherein the benefits are too dispersed, spanning over a number of jurisdictions; (2) externalities associated with system security and blackouts, (3) perception of risk associated with new technologies, and (4) complexity of permitting or interconnection requirements imposed by multiple agencies.
14. ''Transmission,'' Edison Electric Institute (2013http://www.eei. org/ourissues/Electricity Transmission/Pages/default.aspx12
15. Independent distribution system operators are rare in the United States, but are much more common in Europe.
16. Cost-effective storage technologies could fundamentally change the nature of this role, but this article does not assume their nearterm and large-scale deployment.
17. Utilities can also be ''monopsonies,'' which are single customers for a product or service in a market.
18. This concept was first described in Peter Fox-Penner (2010), SMARTPOWER (Washington, DC: Island Press).
19. Environmental performance can mean emphasizing cleaner resources, as well as using intelligent criteria for siting of new generation and transmission. Intelligent siting can reduce regulatory delays, costs, and timelines for integrating new renewable energy sources. For more detail on intelligent siting, see Hladik and Zichella, Oct '13.
20. Ronald Binz, et al. (2012). Practicing Risk-Aware Electricity Regulation: What Every State Regulator Needs to Know, http:// www.ceres.org/resources/reports/ practicing-risk-aware-electricityregulation
21. Table 1.3. Net Generation by Energy Source: Independent Power Producers, 2003-May 2013, U.S. Energy Information Administration (2013)http://www.eia.gov/ electricity/monthly/epm_table_ grapher.cfm?t=epmt_1_3
22. M. Milligan, B. Kirby and S. Beuning (2010), Combining Balancing Areas' Variability: Impacts on Wind Integration in the Western Interconnection, National Renewable Energy Laboratory conference paper for WindPower 2010, http:// www.nrel.gov/docs/fy10osti/ 48249.pdf
23. PacifiCorp and California Independent System Operator (2013), PacifiCorp-ISO Energy Imbalance Market Benefits.
24. ''Dynamic transfers'' refer to virtual transfers of control for specific resources over certain times.
25. PJM (2012), 2015/2016 RPM Base Residual Auction Resultshttp:// www.pjm.com//media/marketsops/ rpm/rpm-auction-info/ 20120518-2015-16-base-residualauction- report.ashx
26. Many studies have shown that cost savings alone will not drive efficiency; policy can address market failures.
27. Mark Rothleder, Long Term Resource Adequacy Summit, California Independent System Operator, Presented Feb. 26, 2013http:// www.caiso.com/Documents/ Presentation-Mark_Rothleder_ CaliforniaISO.pdf
28. The number of states using broadbased performance-based regulation for utilities and distribution companies has declined since 2000, but through the initial experimental process, many important lessons were learned about how to design smart performancebased regulation. For example, setting a clear and quantitative counter-factual at the beginning of a program makes performance measurement much easier.
29. Definitions from David Sappington and Dennis Weisman (1996), Designing Incentive Regulation for the Telecommunications Industry, MIT Press, and Jim Lazar, Regulatory Assistance Project.
30. Price caps or rate caps can also be considered under the rubric of performance-based regulation, but are not recommended as they incent utilities to maximize electricity sales.
31. ''Decision Regarding Performance Based Ratemaking (PBR), Finding Violations of PBR Standards, Ordering Refunds, and Imposing a Fine,'' California Public Utilities Commission (2008http://docs.cpuc.ca.gov/ published/FINAL_DECISION/ 91249-16.htm
32. This survey was conducted by the authors as part of the research for this article. For more information, contact the authors.
33. Jim Lazar (2000), Performance Based Regulation and Incentive Regulation, The Regulatory Assistance Project.
34. California's progressive building efficiency policy, Title 24, has also driven the state's energy efficiency achievements.
35. Ofgem (2010), RIIO: A New Way to Regulate Energy Networks, Factsheet 93http://www.ofgem.gov.uk/ Media/FactSheets/Documents1/rewiringbritainfs. pdf
36. Sources: insights from author interviews with 25 experts in performance-based regulation
37. William Hogan (2005), On an ''Energy-Only'' Electricity Market Design for Resource Adequacy, Center for Business and Government, John F. Kennedy School of Government, Harvard Universityhttp:// www.ferc.gov/EventCalendar/files/ 20060207132019-hogan_energy_ only_092305.pdf