In Other ‘Water Is Wet’ News, Stronger RPS’s Encourage Investment In Renewable Energy, Study Says

By Frank Andorka, Senior Correspondent

There are days when you read about academic studies and wonder out loud, “Did we really have to study THAT?”

As I read the excellent story on KSL’s (NBC, Channel 5, Salt Lake City) website about a study concerning renewable portfolio standards (RPS), I had just that sort of revelation.

It seems that our intrepid researchers have discovered that states with stricter RPS’s encourage great investment in renewable energy. In other news, water is still wet and the Pope is still Catholic.

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I’m not diminishing the work by KSL reporter Amy Joi O’Donoghue, who does an excellent job of discussing the issues surrounding RPS’s and then bringing it back to the Utah RPS (which most solar advocates think is mighty weak), but I did scratch my head at the work of the researchers because, for reals, this outcome was as obvious as they come. The weird thing is, the researchers themselves seemed surprised by their findings. Take Lincoln Davies, a law professor at the University of Utah who participated in the research:

Strong laws work really well and weak laws don’t. The more aggressive the law, the more effective they are, which means they will also push down price over time.

I’m not arguing with Davies, of course. It makes total sense that stronger laws would encourage stronger compliance, which in turn would lead to greater investment. But I just keep coming back to the question of whether this really was a question that needed to be studied in the first place.

O’Donoghue notes:

About 30 states around the country have some sort of renewable energy standard on the books.

Hawaii has the strictest standard at 100 percent, with Vermont at 75 percent. California has a standard of 50 percent.

So let’s recap: States with strict RPS’s have utilities that invest in renewable energy. States that have weak or loophole-riddled RPS’s do not.

Well, at least that’s clear now.

More:

Study: Aggressive renewable energy standards spur solar, wind investments

The Energy Show: Gigawatt Scale Solar Installations

We often talk about smaller solar power systems on homes or commercial buildings. On this week’s Energy Show we are discussing gigawatt scale solar installations. The logic is simple: solar panels are getting cheaper and installation costs are declining. At the same time, utility electric prices keep increasing. When prices go up and costs go down profits can skyrocket – so it’s no surprise that there is a big market for large-scale solar installations.

When I started doing PV installations in 2001 the biggest projects were about 5 MW. Now there are several 500 MW installations proceeding in the U.S., and several 1,000+ MW (a gigawatt) installations are under way in India and China. Solar power plants in the gigawatt range are now being planned in the U.S. To put a gigawatt solar power plant in perspective, it is twice the capacity of most natural gas plants, covers about ten square miles, uses over three million solar panels, and employees thousands of people during construction.

To fill us in on the details of projects of this size, my special guests are Mark Cox and Shola Ashiru with the New Energy Fund II. Mark and Shola have been financing solar companies and projects for almost 20 years. They are currently working on a 1.2 gigawatt project which would be one of the largest systems in the world and the biggest in the U.S.

MPSC Issues Most Unsurprising Ruling Ever (And Approves $1 Billion DTE Energy Plant)

By Frank Andorka, Senior Correspondent

What Happened:The Michigan Public Service Commission (MPSC), in a decision that surprised no one, awarded DTE Energy the right to build its $1 billion boondoggle natural gas plant.

  • The commission appears to have ignored, you know, the evidence that showed renewable energy – specifically solar – would provide a much better bang for ratepayers’ bucks than this natural gas plant.
  • The action comes as a blow to solar advocates across the country, who were watching this case to see if the aggressive tactics would stop the plant.
  • Proposed natural gas plants are increasingly being denied in various states as unnecessary, particularly in solar-friendly states like California and Arizona. But the DTE Energy plant is a victory utilities desperately needed to keep putting these monstrous proposals forward.
  • MPSC

    Proof that, given the choice, public utilities commissions will protecct the utilities’ right to do whatever they want, even in the light of evidence.

    SolarWakeup’s View:  That was as predictable a 4-win season for the Cleveland Browns, wasn’t it? Despite strong, well-reasoned and evidence-supported opposition, the Michigan Public Service Commission (MPSC) decided to cave to DTE Energy’s desire to build a $1 billion natural gas plant instead of investing in renewable energy technologies, which evidence from critics of the plant prove would have been a better investment for everyone involved.

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    This is the second crushing blow to the state’s solar industry within a week after the MPSC replaced net metering – the most effective pro-solar policy ever invented – with an inflow/outflow system that penalizes solar users and eliminates retail net metering.

    In particular, Vote Solar, which had led the opposition to the plant in a striking departure from their usual strategies of intervening solely in solar cases, expressed disappointment in the decision.

    “This is a rotten deal for customers and terrible precedent for utility planning in Michigan,” said Becky Stanfield, senior director of Western States for Vote Solar. Stanfield oversaw the Michigan fight for the group. “Everyone in this case knows that there is a better way for DTE customers than this expensive, inflexible and polluting plant. The record was solid against approval.”

    The Solar Energy Industries Association (SEIA) also weighed in – and they weren’t happy, either.

    “We are extremely disappointed with the Michigan Public Service Commission’s decision in this case,” said Sean Gallagher, vice president of state affairs for SEIA. “Despite the overwhelming evidence that DTE failed to adequately consider alternatives, including a portfolio of renewable energy solutions that would lead to greater savings, more jobs, reduced risk, and environmental benefits, the Commission authorized a $1 billion plant that would not pass muster with Michigan’s laws if it were proposed today.”

    I gotta throw in with Becky and Sean. This decision doesn’t make any sense on any level and deals a significant blow to chances of building a robust solar industry in the state. Meanwhile, Illinois and Minnesota get to keep their lead in Midwest solar development. It’s perplexing, though it’s not surprising.

    As more consumers are finding as these battles play out across the country, most public utilities commissions are naturally inclined to support utilities over consumers and, although that is changing, it’s not changing fast enough, as today’s decision in Michigan shows.

    More:

    Michigan Utility Under Fire For Alleged PURPA Violations

    Decision On Fate Of $1 Billion DTE Natural Gas Plant Looms

    Coalition Delivers 10,000 Michigander Letters Calling on DTE to Drop Its Gas Plan and Choose Clean Energy (Vote Solar)

    Power Up Michigan

    Michigan Public Service Commission

    Bonus:

    “I’m shocked, SHOCKED…..”