Home News CCSE Newsletter SDREO Energy Connection - May 2006

SDREO Energy Connection - May 2006


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May 2006
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Upcoming Events

Lunch & Learn: Effective Daylighting
Date: 5/10/2006
Time: 12:00pm to 2:00pm

Nuclear Power Workshop
Date: 5/12/2006
Time: 9:00am to 12:00pm

Specifying Green
Date: 5/24/2006
Time: 9:00am to 12:00pm

View a complete calendar of upcoming events.

News Bits

Gas Platform Powered by Renewables. The world's first gas platform powered solely by two wind turbines and a pair of solar panels began pumping gas in April. Owned by Shell and Exxon Mobil unit Esso, the unmanned platform is located in the UK's southern North Sea and is expected to produce about 3 million cubic feet a day of natural gas for the next 15 years. - More Info -

Dust to Dust Lifetime Value of Vehicles. A study conducted by CNW Marketing Research listed the Toyota Scion xB to be the least energy expensive vehicle at $0.48 cents per mile. Energy cost per mile was measured based on energy used to plan, build, sell, drive and dispose of a vehicle from initial concept to scrappage, simply called "Dust to Dust." This includes plant to dealer fuel costs, employee driving distances, electricity usage per pound of material used in each vehicle and hundreds of other variables. The Mercedes Maybach was the most energy expensive vehicle at $11.58 per mile. - More Info -

Showcasing History and Technology. In its 33rd annual showcase, the San Diego Historical Society is presenting a home that combines history and state-of-the-future energy technology. This year's showcase home dates back to the early 1920s and was originally part of Rancho San Dieguito. It was also owned by actor Danny Kaye at some point. Current owners recently completed a meticulous restoration that included the installation of a 10- kW solar power system. The house will be open for tours from April 30 to May 29. - More Info -

Borrego Springs Zero Energy Home Clarum Homes hosted a preview event of its Borrego Springs Zero Energy Demonstration Project on April 25. It included a tour of the four demonstration homes that are constructed with sustainable building products, generate their own electricity with photovoltaic systems, and reduce energy consumption by up to 90% with other energy efficient features. The homes will be measured for energy performance over the next 12 months with project data to be shared through the project's website. - More info -

Tech Tip

Thermostatic Expansion Valves (TXV's or TEVs) provide improved performance over a wider range of operating conditions, extend compressor life, and reduce energy use and costs. Recent field studies show 75% of central residential and light commercial air conditioning systems may be improperly charged. HVAC service technicians are not frequently called to inspect such systems, and when they arrive on a service call, they do not always verify an over- or under-charge condition of the cooling refrigerant. According to the EPA, improper refrigerant charge often lowers air conditioner efficiencies by 5% to 20%. Put into perspective, a TXV valve installed on new equipment helps ensure operating efficiencies in line with what they paid for.

A TXV meters refrigerant flow to the evaporator coil (located inside for a split-system, or contained in an outside unit for a packaged system). Standard factory-installed refrigeration control consists of a fixed size orifice metering device, whereas a TXV automatically adjusts to changing cooling conditions. You can determine if your unit contains a TXV by looking for a brass valve device connected to the evaporator coil coming from the condenser. Replacing a factory-installed metering device on a packaged unit with a TXV is not recommended as it might void the warranty.

A TXV adds about $40 to $70 to the cost of a new factory unit, or $100 to $200 if installed later by an HVAC contractor. It is not uncommon for an undercharged system to realize $60 to $80 per cooling season in cost savings.

 

Quotables

“The bottom line is that the power produced by small wind farms is worth more to the system than power from large centralized wind plants, by at least 5%, and perhaps 10%. The conventional thinking in the wind industry is that large projects gain substantial economies of scale. With electricity prices lower in North America than in Europe, perhaps wind needs these economies of scale to compete with other generation sources. ... So why do large projects dominate the North American market? The answer can be found in artificial economies of scale resulting from nearsighted government polices”

-- Glen Estill, President & Founder, Sky Generation

 

Speak Out

Energy Connection is a monthly publication of the San Diego Regional Energy Office.

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Status on Renewable Energy Production

Renewable Portfolio Standards ( RPS) or "targets" to get a percentage of power from renewable sources have now been adopted by 23 states. With the first RPS adopted by Iowa in 1983, it bears asking what kind of growth the various renewable energy sources have experienced and how much of our total electricity production comes from renewable energy.

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Conference "Bets" on Renewables

A conference on renewable energy feels out of place in Las Vegas. After all, it seems like every casino uses enough electricity to power a small planet. The Luxor pyramid "sky beam" alone uses about 300,000 watts. With all its excesses on display, Las Vegas served to remind attendees at "PowerGen Renewable Energy & Fuels" last April of our enormous appetite for energy.

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Energy News Briefs

Four-State Transmission Line. The governors of California, Nevada, Utah and Wyoming last month signed an agreement to pursue a $3.3-billion project called the Frontier Line, a 1,300-mile transmission line originating from Wyoming with terminal connections in Utah, Nevada and California. The line will help deliver as much as 12,000 MW of power to load centers on the West Coast and will also allow the states to transport electricity generated from the region's renewable energy sources. California Energy Commission Chair Joe Desmond stated that the four states want the project online between 2010 and 2012, but was under no illusions about how long it would take.

read more>>

 

Inside the San Diego Energy Resource Center

Featured Display

Name: LED Traffic Signal
Description: Two full-sized traffic signals: one with LED lamps and one with incandescent lamps. Includes wattage differential between the two as well as technology descriptions and estimated savings with LEDs.
Systems Addressed: Electrical
Illustrates: Light Emitting Diodes are an energy efficient alternative to incandescent lamps that also offer lower maintenance costs.

Featured Instrument

Name: “Discriminator” Ballast Type Indicator
Description: Differentiates magnetic from electronic ballasts
Examples of Use: Can be used to determine if a luminaire is driven by a magnetic ballast. If so, it could be replaced with a more efficient electronic one.
Benefits: Can help to quickly determine ballast retrofit opportunities
Availability: Loaned free of charge for up to 10 business days. Remember: safety first!

Featured Books

The Handbook of Energy Engineering by D. Paul Mehta and Albert Thumman, The Energy Management Handbook by Wayne C. Turner and The Guide to Energy Management by Barney L. Capehart, Wayne C. Turner and William J. Kennedy are the three main sources of information used to assist energy professionals review for the Association of Energy Engineers Certified Energy Manager (CEM) certification test. The San Diego Regional Energy Office ( SDREO) has bundled these books together for energy professionals who want to get their certification. Check out these books from SDREO's lending library two weeks in advance of the test to study and then take them with you in the test room. The CEM certification test is an open book exam.

Featured Periodical

Distributed Energy is published bimonthly by Forester Communications Inc. for professionals responsible for onsite power quality issues, protection, maintenance and programs. Creating awareness of reliable, cost effective, and secure power, Distributed Energy includes case studies, new technologies, a product gallery, and articles from around the world.

Featured Video

 

Name: Taking Back Our Trash II: Putting Waste To Work
Description: This film, produced by Ideas in Motion for the Alameda County Waste Management Authority and Recycling Board, shows the dramatic changes that have taken place in the world of recycling in Alameda County. By servicing their waste stream more efficiently, far less is winding up in landfills. Alameda County is recycling at a rate nearly four times greater than just ten years ago. Learn how they did it in this informational video.
Length: 28 minutes

NOTE: Books, periodicals and videos can also be checked out free of charge. Please call toll-free: 1-866-SDENERGY for more information.

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Energy Policies, Regulations & Legislative Updates

Regulatory Updates

California Solar Initiative and Self-Generation Incentive Program (R.06-03-004) On May 4, the California Public Utilities Commission ( CPUC) will hold a workshop to discuss their proposals supporting a performance-based incentive for photovoltaic ( PV) systems, incentives for Self-Generation Incentive Program ( SGIP) technologies other than PV, energy efficiency standards, administration of the residential retrofit portion of solar programs, and metering requirements. Information from the workshop has been posted on the CPUC website.

Effective March 21, the incentive level for PV systems was reduced from $2.80 to $2.50 for those projects that surpass the 50 MW statewide threshold. This ruling is a result of decision D.06-01-024, which specified trigger mechanisms for automatic reduction of incentives for PV projects.

Long Term Procurement Planning (R.06-02-013) On April 11, the CPUC held a status report to review progress in the Long Term Procurement Plan proceeding. All investor-owned utilities will submit their long-term forecast for procurement this summer, with a decision by the CPUC on those plans by the end of the year.

Energy Efficiency Policies, Administration, and Programs (R.01-08-028)
On April 28, the CPUC issued a letter to SDG&E approving Advice Letter (AL) 1769-E/1591-G effective March 3, 2006. This AL details the energy efficiency programs approved for the 2006-2008 funding cycle. For more information, visit the SDG&E website.

Sunrise Powerlink Transmission Project (A.05-12-014) On April 7, the CPUC issued a ruling denying SDG&E’s proposal to initiate an evaluation of the need for its proposed Sunrise Powerlink project prior to SDG&E’s filing of its Proponent’s Environmental Assessment (PEA). SDG&E was ordered to submit a status report by June 20 on its expected updated July 2006 CPCN filing application.

Legislative Updates

SB 1539 (Kehoe) This bill states the intent of the legislature that the San Diego Association of Government (SANDAG) Energy Working Group ( EWG) should participate in energy planning and implementation of energy-related policy in the San Diego region. It also states that the development and implementation of energy management plans to advise local governments in the effective implementation of renewable energy projects, green building options and energy efficiency should occur. It is set to be heard by the Senate Appropriations Committee on May 8.

SB 1 (Murray) The California Solar Initiative ( CSI) was amended on April 4. This bill would require the CPUC, in implementing the CSI, to authorize the award of monetary incentives for eligible solar energy systems that decline at a rate of an average of at least 7% for each year following implementation, and be zero by Dec. 31, 2016. The bill would require the PUC to adopt a performance-based incentive program by Jan. 1, 2010 and was supported by the Assembly Utilities and Commerce committee on April 24.

AB 2778 (Lieber) This bill would extend the sunset of SGIP for distributed generation resources from Jan. 1, 2008 to Jan. 1, 2017. It was supported by the Senate Natural Resources committee on April 27 and will be heard next by the Senate Appropriations committee.

For a complete listing of current energy-related state bills, visit www.sdenergy.org.

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Renewable Energy Production (cont.)

Leading the nation with the most aggressive renewable portfolio standard is California with a goal of going 20% renewable by 2010, followed closely by New York with 24% by 2013 and Nevada with 20% by 2015. And although states have gotten more aggressive with their targets, energy production from renewable sources has declined in the United States over the past two decades.

As of December 2005, renewable energy contributed 8.8% to total electricity production compared to 8.9% two decades ago. Contributing to the decline is a reduction in biomass and hydropower, the latter of which saw a decrease of 8.6% from 1995 to 2005 due to cost, regulations and site availability. But both are still the leading renewable energy sources in the United States. Biomass accounts for 46% of renewable energy production while hydropower accounts for 45%; both combined contribute about 8% to the nation’s total electricity production.

Making up for the decline in biomass and hydropower is the rise in solar and wind power, which experienced the most growth over the past 20 years. Wind power grew from less than 0.01% of total renewable energy production in 1985 to 2.8% in 2005. According to the American Wind Energy Association, wind generating capacity is now at 9,149 MW or enough to power 2.3 million homes.

Solar electric or photovoltaic ( PV) installations, on the other hand, have become increasingly popular due to tax credits, incentives and their small-scale installation adaptability. In 2005, PV installations reached approximately 120 MW, growing over 20% compared to 2004. Also showing growth is geothermal energy, the third largest source of renewable energy, making up 5.8% of renewable energy production and contributing about half a percent to total electricity production.

On a local level, SDG&E aims to supply 20% of the region’s electricity from renewable energy sources by 2010. So far, the utility has more than 12% renewables under contract. As of February 2006, a total of 9% of SDG&E’s power mix is from “eligible” renewable energy sources: 4% biomass and waste, 3% wind, 1% geothermal, less than 1% solar, and less than 1% small hydroelectric. The remainder of the utility’s power comes from the following non-renewable energy sources: 54% natural gas, 17% nuclear, 13% coal, and 7% large hydroelectric power, which California doesn’t classify as renewable.

Although renewable energy continues to play a small part in total electricity production, consumers, manufacturers and politicians are taking notice of its potential, for it represents a growing supply of non fossil-fuel based power production that is better for the environment. Renewables also help guard against the continued rise of electricity and gas rates, foster local job development and, in many cases, can be installed on-site. Although it still has a long way to go, renewable energy is seen as a critical component for a secure energy future.

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Conference (cont.)

Sponsored by the American Council on Renewable Energy (ACORE), PowerGen featured a broad range of workshops covering everything from national energy policies to the latest updates on ethanol technologies, plus exhibits from many of the major players in the renewable energy market. Of special interest to those of us from SDREO were discussions about renewable portfolio standards, renewable energy credits (RECs), carbon trading, and new technologies for wind, wave, hydrogen and solar.

PowerGen turned out to be a great opportunity to access a broad spectrum of opinions and viewpoints. Several of the panel discussions featured utility executives, environmentalists, manufacturers and politicians side-by-side -- each having a unique angle on the same subject. Sometimes they agreed, often there were sharp differences of opinion on costs, policies and technologies. PowerGen certainly showed that the path to renewability is not straightforward.

For example, a workshop on REC Market Development detailed next year's pending roll-out of WREGIS (Western Renewable Energy Generation Information System) and how it will issue and track RECs for 11 western states and two Canadian provinces. The workshop also explored the challenges in REC trading and valuation due to Interstate disparities in renewable portfolio standards and penalties. Even among the panelists, who were all generally supportive of RECs as a good approach to "monetizing" renewables, there were major disagreements over how successful they would be at ultimately modifying utility and consumer power purchasing behavior. Several presentations were valuable in explaining some of the more obscure ramifications of the Energy Policy Act of 2005 -- especially with respect to ethanol, biodiesel and transportation fuel policies and initiatives.

This conference is highly recommended for anyone interested in renewable energy. Those interested in making plans for next year's event can visit the PowerGen Renewable Energy 2007 website.

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Energy Briefs (cont.)

California Partners With Wyoming. California and Wyoming are jointly pursuing federal approval and funding for FutureGen, a DOE initiative to build the world's first integrated sequestration and hydrogen production research power plant. The $1 billion project intends to create the world's first zero-emissions fossil fuel plant by using the technology Integrated Gasification Combined-Cycle (IGCC). Wyoming Gov. Dave Freudenthal and California Gov. Arnold Schwarzenegger agreed to create a joint task force of experts from both states to help Wyoming get approval for the project. The task force will also explore opportunities to develop Wyoming's renewable resources such as wind power.

DWR Awarded More Than $70 Million. An independent arbitration panel awarded the California Department of Water Resources more than $70 million in damages from Sempra Generation. The panel ruled that Sempra had acted in bad faith and breached multiple operational aspects of its long-term energy contract with the Department. The 10-year agreement with Sempra is one of the largest in DWR’s portfolio of long-term energy contracts that it entered into in May 2001 as a result of the electricity crisis.

Once-Through Cooling Process Discouraged. On April 18, the State Lands Commission approved a resolution that discourages California power plants from using seawater to cool electric generating systems, a process called once-through cooling. Existing power plants seeking lease extensions and permits to upgrade their facilities may be required to install alternative, environmentally superior cooling technology. The Commission has jurisdiction over tidelands where 12 of the state's 22 coastal power plants operate, including the San Onofre Nuclear Generating Station at the northern end of Camp Pendleton and the Encina Power Station in Carlsbad.

Palomar Energy Center Opens. A ceremony unveiling the first power plant to be built in the county since 1960 was held on April 19. Built in a ravine to minimize noise and lower its profile, the Palomar Energy Center generates about 550 MW of energy or enough to power about 360,000 homes. Present at the ceremony were California Public Utilities Commission ( CPUC) President Michael Peevey, Sempra Energy Chairman and CEO Donald E. Felsinger, and SDG&E Chairman and CEO Edwin A. Guiles.

Investing in San Onofre Station. SDG&E opted to invest $142 million to replace old equipment in the San Onofre Nuclear Generating Station where it has a 20% ownership stake; SDG&E receives a comparable share of its output, or about 430 megawatts. The utility's hopes of an agreement to simply purchase power from the plant instead of investing were dashed when an arbitrator ruled that if SDG&E failed to invest in the new equipment, it would forfeit its entire stake. The other option was to build a new power plant, which was also considered and rejected. SDG&E filed its plan to invest with the CPUC whose approval is required before it can raise and allocate the funds.

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Copyright 2006 San Diego Regional Energy Office

 

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Notable & Quotable

“You may be on the right track, but if you’re sitting still you will get run over.”

-- Will Rogers