One Utility’s Position on Renewable Energy

Jesse Berst of Smart Grid News fame is one of the good guys.  He’s smart, level-headed, and always working hard to improve the industry overall.  In this article on PNM, the power utility that serves New Mexico, Jesse points out that this is an all-to-rare example of a utility that – whether you agree with them or not—is at least honestly communicating its position vis-à-vis renewable energy.  I have to admit: that’s a lot better than what we often find elsewhere, i.e., silent, stone-cold obstructionism, or, even worse, a happy PR line from a glib, insincere spokesperson.

PNM’s position is that they want to move to renewables, but not at any price, and not at the expense of grid reliability.  I join Jesse in saying that I’m glad they’re communicating—but I point out, at the risk of offending anyone: that’s not too horribly controversial a position.  Is anyone indifferent to price and reliability?
This is equivalent to saying we want to move to renewables, but not at the expense of encouraging school bullying, or releasing the serial killers currently locked safely behind bars, or some other fabulously unsupportable idea.

What we are saying is extremely simple – and it appears to be in the process of happening in New York and Hawaii, where regulators are creating a new framework for utilities in which:

• Renewables are integrated with the maximum possible speed, which actually has very little effect on rates, given the plummeting costs of solar and wind.  Here, utilities should be encouraged to exceed (not just meet) the renewable portfolio standards we set for them.

• This process is accelerated even further with the implementation of a smart, interconnected grid and energy storage.

• Consumers and businesses are encouraged to implement distributed generation, and are rewarded for efficiency, participating in demand response, and, ultimately, V2G (vehicle to grid).

I understand that none of these three items is going to put a smile on any utility CEO’s face, but they’re what we need to do nonetheless.  I hope we can maintain a discussion on the subject, but, regardless, this is a transition that needs to happen—now.