Tag Archives: solar

Latest ERCOT projections suggest adequate resources for next few years — buoyed by wind, gas and solar

ERCOT has recently released a series of biannual reports suggesting adequate electric resources in Texas over the coming months and years. While “resource adequacy” has been a buzzword in Texas in recent years, due in part to a series of unfortunate outages from fossil fuel plants and extreme weather events, the ERCOT reports released today suggest a healthy reserve — in normal weather situations. This is due in part to the continued use of energy efficiency and demand response, as well as significant investment in new power plants, including wind, solar and natural gas. 

According to its 10-year projection report known as the “Report on Capacity, Demand and Reserves in the ERCOT Region,” ERCOT expects that Texas will meet its current reserve target of 13.75% in 2015, 2016 and 2017. By 2018, reserves would dip under the current target, falling to 12.3%.It is important to note, however, that ERCOT — as per its current board policy — continues to discount the capacity of wind resources to only 8.75% at peak demand since wind values tend to be lower on a hot summer day. However, recent ERCOT proposals suggest that West Texas wind should be valued closer to 15%, while Coastal wind resources actually provide closer to 40% at peak times. Making those adjustments would raise the reserve margin. According to ERCOT’s latest Planning Report, also recently released, over 8,712 MWs of wind power is expected to be added over the next three-and-a-half years, bringing total wind capacity to some 19,777 MWs by 2017. That report also highlighted some 3,000 MWs of solar that is being developed in Texas, though only a few of those projects have signed interconnection agreements. 

The report also used ERCOT’s latest load forecasts, which take into account the impact of energy efficiency, while also giving credit for demand response programs run by both ERCOT, as well as transmission and wire companies. Thus, the report assumes that at least 1,900 MWs of these demand response programs will be available to the market should they be needed. 

A shorter term forecast — known as the Seasonal Assessment of Resource Adequacy — shows some concerns for the upcoming summer, however. ERCOT reports that the summer will start with tight reserves, but that six new gas and wind generating projects will add some 2,122 MWs of power by the end of the summer. ERCOT states that in normal weather there should be sufficient reserves, though in extreme weather situations, or should several large units have issues, they would need to rely on their demand response products, operating reserves and a call for additional energy conservation. 

Sierra Club believes that new generation — particularly from wind and solar — along with continued investment in demand response and energy efficiency should keep the lights on in Texas for years to come. Among our recommendations are increasing the required utility energy efficiency goals to 1% of peak demand by 2018, increasing the budget for Emergency Reserve Services, and allowing demand response companies to bid in directly into the energy market. Stay tuned for more. Click here for access to several of the ERCOT reports. 

Austin City Council approves negotiation with SunEdison for 150 MWs of West Texas Sunshine!

Yesterday, the Austin City Council approved a resolution to direct Austin Energy to negotiate a deal to procure up to 150 MWs of solar power from West Texas through a Power Purchase Agreement with SunEdison. Austin Energy will return next week to City Council with a more detailed contract for final approval. Under the limited information that has been released publicly and discussed at City Council yesterday, Austin Energy GM Larry Weis explained that the deal was a take and pay contract where Austin Energy is only obligated to pay for any electricity generated by the plant at a fixed rate of roughly $50 per MWh or 5 cents per KWh. That is well below the retail rate paid for by Austin Energy consumers and is often below the wholesale market rate of energy in Texas, especially during hot summer days when solar produces the most electricity.

While recent press articles suggest that some California utilities are pursuing even cheaper PPAs, the announced price of $45 to $55 per MWh would represent the lowest price in the US that we could find thus far and is a game-changer in the energy industry. As an example, Austin Energy’s deal with the Webberville solar PV plant costs roughly $165 per MWh, and was only built four years ago. While AE was originally only looking for 50 MW of solar capacity in this latest request, they took a larger position because the price is so much cheaper than expected. Weis said on Thursday that while more solar was available at similar prices, his recommendation for the moment was not to go beyond the 150 MWs of additional solar to be built by 2016 until Austin Energy does a fuller review of all its energy needs, future costs and scenarios. Previously City Council has asked Austin Energy to consider doubling their solar goal from 200 to 400 MWs by 2020, as recommended by the Local Solar Advisory Council, a position supported by the Sierra Club. Austin Energy has said wait until we update our generation plan.

 

The Webberville Project: Near Austin, Texas

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Separately, the Austin City Council is expected to name an Austin Energy Generation Task Force to begin looking at Austin Energy’s medium-range plans for future generation through 2024, including solar energy, its use of the existing coal and gas plants and the role of energy storage and demand response. In fact, Mayor Lee Leffingwell went ahead and announced his pick to the Generation Task Force: Spansion Facilities Engineer Barry Dreyling, who should be well versed on energy issues for large industrial consumers. Stay tuned for more info next week

Cyrus Reed, Conservation Director, Lone Star Chapter

Texas Renewable Energy Keeps Growing: Both Austin and ERCOT Showing it Can Be Done

Ok I’ve written about this before but the pace is getting to be mind-boggling. Every month, ERCOT releases its Monthly Status System Planning Report and the amount of proposed generation keeps growing. And in particular what appears to be winning is wind power, and increasingly solar. The February 2014 Monthly Status Report shows that ERCOT is currently tracking 219 proposed projects totaling over 55,300 MWs, about half – 26,700 MWs in all — of which is wind. The latest to sign what is known as a Generation Interconnection Agreement with the local transmission company is the Briscoe Wind Farm, a 300 MW facility located in West Texas. Just earlier this month we announced that Austin Energy had negotiated a cheap wind deal with Lincoln Renewable for 300 MWs in Castro County.

Here are the latest numbers from ERCOT.

Confidential Projects Projects under Study Projects with Signed Agreement Total
Natural Gas 3,544 11,437 9,521 24,502
Coal 0 30 240 270
Wind 5,538 12,777 8,413 26,728
Solar 1,335 1,414 198 2,947
Storage 0 874 0 874
Nuclear 0 0 0 0
Petroleum Coke 0 0 0 0
Total 10,417 26,532 18,372 55,321

What is pretty interesting is the geographic distribution of these projects. If you look at ERCOT’s five traditional load zones — Panhandle, West Texas, North Zone, South Zone and Coastal Zone, future natural gas projects dominate in the South and North Zone — where wind and solar resources are just not as strong. But from the Coastal Zone — where gas and wind split the pie — to West Texas and especially the Panhandle, wind and increasingly solar beat out gas projects.

Coal you might ask? Two projects – a tiny 30 MW proposed project in Milam County and the long-awaited IGCC project by Summit in Ector County, which has been delayed three times, and is currently scheduled for 2018.. maybe. Petroleum Coke, like those proposed Las Brisas and White Stallion projects that SIerra Club fought?  Dead. none. What about nuclear? Didn’t NRG and Luminant promise to build us new reactors? Dead.

In fact, other than gas, wind and solar, the only projects are three proposed storage facilities which could revolutionize the use of renewable energy, making it dispatchable just like gas.

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Webberville Project — three times more expensive than the new one they are talking about.

Now back to Austin Energy. While two weeks ago we told you about a deal to purchase wind at a bargain rate of $26 to $36 per MWh that City Council recently approved — a price rivaling what we pay for our dirty coal power — this Thursday Austin Energy will be proposing to City Council that they authorize negotiations over two utility-scale solar plants to be constructed by SunEdison. While the exact price can not be revealed, Austin Energy is reporting that it is between $45 and $55 per MWh, making it the cheapest solar deal in the country. The two plants will total up to 150 MWs of capacity, and be located in West Texas. If these deals come to fruition, Austin Energy would not only meet its 35% renewable energy commitment four years early by the time the plants come online in 2016, but even its 200 MW solar goal. With the Local Solar Advisory Committee recommending that Austin Energy double its goal to 400 MWs by 2020, Austin Energy’s initial negative reaction — based on a belief that solar would cost more in the $80 to $100 per MWh range — now seems well.. so last year. In fact, Austin Energy reports that they had over 125 proposals for utility-scale solar from 66 separate projects, and $100 per MWh was the very highest they got. In fact, most were in the $60 dollar range. Remember in 2009, we negotiated a deal for 30 MWs of solar for around $165 per MWh. So that means for Austin Energy solar energy prices got chopped by some 70% between 2010 and 2016 when the latest solar projects get built.

Folks, the news for renewable energy in Texas just keeps getting better. Cyrus Reed, Conservation Director, Lone Star Chapter

Victory! Austin City Council Votes 6-0 In Favor of Generation Plan Task Force

Screen Shot 2014-03-06 at 12.56.57 PM

FOR IMMEDIATE RELEASE:

March 6, 2014

Contact: Dave Cortez, David.Cortez@SierraClub.Org, 512-736-7600

Austin City Council Votes to Create Austin Energy Task Force

AUSTIN, TX – Today, in a 6-0 vote, city council members voted to create the Austin Energy Resource Generation Task Force as part of the 2014 update process to the city’s existing energy plan.

The task force is directed to provide recommendations to council members for how Austin Energy should meet existing goals for renewable energy by 2020, as well as opportunities for strengthening and expanding those goals through 2024. Task force members will include one member from the Electric Utilities Commission and one from the Resource Management Commission, as well as seven other members appointed by city council.

Sierra Club Beyond Coal Organizer David Cortez
issued the following statement in response:

“Public participation is always a win-win in our book. Today, the people of Austin and Central Texas communities impacted by climate disruption won a major procedural victory for clean energy, transparency and good governance. This task force will provide environmental, low-income, renewable energy and industry stakeholders their best opportunity to review Austin Energy’s approach and set a clear path for making Austin a leader in the clean energy economy.

Austin Energy ratepayers have made it clear that they want this process to expand our clean energy goals, phase out our over-reliance on dirty coal and fracked gas, as well as preserve our affordability targets. We see this task force as the best way to ensure those demands are met.

The Sierra Club and our 4,500 Central Texas members and supporters applaud City Council for their leadership in making this process more accessible to all Austin Energy ratepayers.”

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Austin’s 10-Year Energy Plan: Ramp Up Renewables, or Double Down on Fossil Fuels?

Stop Dirty Coal Rally, Austin, Texas

***MEDIA ADVISORY FOR TUESDAY, FEBRUARY 25th***

FOR PLANNING PURPOSES

Contact:
Dave Cortez, Sierra Club Beyond Coal,
David.Cortez@SierraClub.Org, 512-736-7600
Kaiba White, Public Citizen, Kwhite@citizen.org, 607-339-9854

Austin Energy Ratepayers Rally to Expand Affordable Renewable Energy Goals in Energy Plan Update 

WHAT: Clean Energy Rally Following First Austin Energy Stakeholder Meeting

WHERE: Front Lawn, Austin Energy HQ, Town Lake Center, 721 Barton Springs Road
WHEN: Tuesday, February 25th at 12:15 pm
(following the conclusion of Austin Energy’s first stakeholder meeting)

WHO:  Hosted by the Sierra Club Beyond Coal Campaign and Public Citizen

VISUALS FOR CAMERAS: We’ll have 30 Austin Energy Ratepayers wearing yellow shirts and holding clean energy signs next to a large solar panel. A coal lobbyist clad in a suit and a large black smokestack costume will be doing all he can to remove the solar panel from the rally. Parents and children will also be in attendance to highlight the need to plan for clean future for our kids.
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Coal Monster
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FULL SCHEDULE OF AE STAKEHOLDER MEETINGS: 

Tuesday, Feb. 25, 2014 – 10 a.m. to Noon
Tuesday, Feb. 25, 2014 – 6 p.m. to 8 p.m.
Thursday, Feb. 27, 2014 – 1 p.m. to 3 p.m.

Austin Energy Headquarters
Town Lake Cntr
721 Barton Springs Road
First floor assembly room

AUSTIN – On Tuesday, February 25th at 12:15 PM CT, dozens of yellow-shirt clad Austinities will rally in support of clean energy and moving beyond fossil fuels outside of Austin Energy headquarters following the first of three stakeholder input meetings on the proposed 10-year update to the Austin Energy Resource, Generation, and Climate Protection Plan.

Austin Energy has given no indication that it will incorporate City Council’s recommendation that the solar energy goal be expanded to 400 megawatts by 2020 – enough to power about 50,000 homes. Nor has it suggested increasing the overall renewable energy goal, despite the fact that it’s already has contracts to meeting the current goal 4 years early. Instead, the utility is proposing to keep the Fayette coal plant running through 2025 and to build an additional 800 megawatt fracked gas plant.

The rally is hosted by the Sierra Club Beyond Coal Campaign and Public Citizen.