switch~ is an energy entertainment event using 5min pecha-kucha talk format to inspire or humor a sustainability geek audience. This talk was given at eTown Hall fall of 2014 by Chuck Ray addressing the struggle between regulated monopoly electric delivery and market side entrepreneurs. switch-energy.org
15. RETAIL PRICE ≠ GENERATION COST
yet isn’t it true that paying flat retail price for energy the utility
does not need is obscene?
16. GOD SAVE THE QUEEN.. THRU CHANGED RATE
STRUCTURE
What happens if we match cost of generation with the price paid?,
allow the market to determine viable economic solutions?
17. UNLEASH DERS !!!
in so doing unleash the future of distributed energy resources –
PV/DG, storage, and multi nodal demand response
18. UTILITIES ARE THE ENABLING ENGINEERS
let the utilities do what they do so amazingly well - engineer and
operate an intelligent grid, with rapid response capability
19. COMMONERS ARE THE INNOVATIVE
ENTREPRENEURS
allow entrepreneurs to do what they’re wired for -chasing
opportunity
20. WE HAVE AN IMPATIENT MOVEMENT A FOOT
let’s not suffer a revolution with heads on spikes. give the
Commoners what they want -market price incentives- let them go
to work plowing the fields and reaping harvest
Editor's Notes
We want a NEW ENERGY ERA
You can see it now right, what the Peoples Climate March wishes they could do.
…credit to Nick Nahauer the one man revolution against plutocracy
The Commoners want a new energy era and utilities say they’re game but it feels like they say one thing and do another:
Just look at the evidence:
-they charge us for smart meters… but we can’t get the data
-they say they love solar… but then move to shut it down
-they don’t even appear to be behind EVs
-they say they love renewable energy…. but only if it’s cheaper than coal or natural gas
-they say that we should have choice… but with Community Choice Aggregation
… or when a city wants to rid all coal from their generation mix [municipalization] it’s a fight to the death
So why is it that every time we want to do something positive with our energy portfolio, we have to play Monopoly?
Rolling the dice repeatedly only to find put you can’t pass Go.
But credit where credit’s due right:
-RES exists in all but 10 or 12 States
-RE makes up 100% of all new generation (according to EIA)
-EEPS exists in half the states
-CO2 emissions in the US are below 1990 levels (NG and exporting CO2 aside)
But how does a RE Std come about? Either by Legislation or Citizen Petition
…or federal regulation! like we’re seeing with EPA’s 111d
We chose / the utilities comply, not the other way around.
Sounds like a good model ..but the implementation plan requires approval
THE GREAT COMMISSION
Which is so painful -- we find ourselves considering that the utility is the enemy…
Which leads to want to tear down the caste walls … and scream Death Spiral to Utilities
But let’s take a look at the last surviving members of monopoly capitalism, and what’s happened with deregulation past.
Telecom, Banking, Airlines
Airlines oh geez
Time magazine depicted it well – flying in a sardine can! .
Can you image having to pay $3 to see your bill, $25 any service call, and god forbid you miss your payment by a day – “change fee $250 for you”
But as every monarchy knows,
Evolution offers happiness and zen for everyone involved
-DERs!!
-Solar and Storage that can make money
-No Coal / Less Methane
So, we’re at a fork in the road for the utility business model:
Are we going to go the way of revolutionary deregulation and be handed a archaic system? that can’t support complexity DERs ???
Or are we going to choose the obvious evolutionary path and bake capitalism into the regulated energy distribution market?
Let’s look at incentives:
Utilities are motivated by selling more electricity
and big Cap Ex projects
But both incentives are gone after the great recession, off shoring manufacturing, energy efficiency gains
the old business model –socializing the costs- isn’t holding up to the test time
Want economically viable projects!
They need velocity so they can get to scale, lower costs, and survive as a company.
But utilities don’t support this business need – slow, inconsistent, and have the power to get what they want.
Case in point -conflicting incentives of net metering:
Reverse Robin Hood vs Industry Killa message that utilities hate solar
But isn’t it true that paying retail price for energy you don’t need is obscene?
Look at the unintended consequences of flat rate pricing -- causes installations facing due south to maximize daily production;
when the grid actually needs installations with a westerly lean to maximize afternoon/evening power generation (except for hot summer days).
But what happens if we match cost of generation with the price paid?, and allow the market to determine viable economic solutions?
Imagine that capitalist concept, in which the monarchy can be saved and the commoners satisfied!
And in so doing unleash the future of distributed energy resources – PV/DG, Storage, and multi nodal demand response
Look at:
New York REV
California Storage
Let the utilities do what they do so amazingly well –
Engineer and operate an intelligent grid, with rapid response capability.
Invest in infrastructure while interest rates are low, and satisfy investors with big capital intensive projects
Allow entrepreneurs to do what they’re wired for -chasing opportunity
they’re willing to take risks and are motivated to find solutions that work, or die trying.
With emissions globally on the rise we’re desperate to solve the single largest source of climate change -electricity generation.
It’s an Impatient Movement, let’s not suffer a revolution with heads on spikes;
Let’s give the Commoners what they want -market price incentives- and let them go to work plowing the fields and reaping harvest.