POWER March 2020 - 24

GENERATION TRANSITIONS
A Clean Energy Case
Study
Kit Carson Electric Cooperative
(KCEC), a member-owned electric
cooperative headquartered in Taos,
New Mexico, has a goal of being
100% powered by solar energy during
daylight hours by 2022. KCEC
in a document provided to POWER
said its " ability to achieve its solar
goal and address concerns from its
membership were limited by the
long-term contract it had with its
generation and transmission utility,
Tri-State Generation and Transmission. "
KCEC pursued an exit from
Tri-State in an effort to increase its
renewable energy capacity.
KCEC, after settling with Tri-State
on an exit fee, began a partnership
with Guzman Energy, a wholesale
power provider, to expand its renewable
energy capacity and set a path
for approximately 40% lower wholesale
rates. As part of the 10-year contract,
Guzman financed KCEC's exit
fee and helped KCEC develop a plan
to achieve its solar goal and build
35 MW of solar arrays and storage
throughout its service territory. The
agreement gives KCEC a 10-year,
fixed-cost power purchase contract
at approximately 15% less than its
previous rates.
KCEC since beginning its partnership
with Guzman has built 16
solar arrays to power homes and
businesses, creating what it calls
a Distributed Energy Resource
grid. KCEC told POWER it recently
signed an agreement with a developer
to purchase and build two
new solar arrays and add 15 MW of
storage capacity. Completing those
projects will push KCEC past the 35
MW required to meet its 100% daytime
solar energy goal (the co-op
said that will occur nine months earlier
than anticipated) and increase
the amount of renewable energy in
KCEC's portfolio to 53 MW, including
38 MW of solar power. KCEC
said it expects to see $70 million in
cost savings from the program.
the [San Francisco] Bay Area in California,
you don't have the hot summers or
the cold winters, so transportation becomes
the focus. "
Baehman of Southern Company provided
details of his utility's plan, which
covers three traditional electric utilities-Georgia
Power, Alabama Power,
and Mississippi Power. Southern Power,
a subsidiary of Southern Company, is a
24
wholesale power provider, which along
with its subsidiaries has generation facilities
in 13 states.
" On an enterprise-wide basis, Southern
Company has set a long-term goal of
low- to no-carbon operations by 2050, "
Baehman wrote. " On our path to 2050,
we have established a goal of 50 percent
reduction from 2007 levels in CO2 emissions
by 2030. Our strategy to achieve
these goals includes the continued development
and deployment of a diverse
portfolio of energy resources to reliably
and affordably serve our customers and
communities with a focus on reducing
CO2 emissions. Additionally, we work
within the regulatory framework in each
of our states to ensure that our carbon
reduction efforts support customers'
needs and preferences. "
The regulatory framework differs by
state and city, and the federal government
is looking at new initiatives such
as the CLEAN Future Act that will impact
how clean energy goals are achieved.
Federal legislation also could foster R&D
into technologies such as green hydrogen,
or natural gas with carbon capture.
" Utilities must carry out long-term
investments in technology, policy, infrastructure,
and education, both of employees
as well as of consumers, " said
Reshef. He said new technologies must
be explored, including " electricity produced
by surplus sun, wind, and hydro
power plants stored as green hydrogen
that is produced by large-scale electrolysis.
In another scenario, this surplus
renewable energy can be used to run
reformers that produce green ammonia.
The green ammonia and the green
hydrogen can be stored and used when
needed to run fuel cells that generate
emission-free electricity. "
Engaging with Customers
Residential electricity customers already
are taking steps in support of
clean energy and energy efficiency, often
partnering with their power provider
(see sidebar).
" While some of the most popular avenues
to achieving clean energy goals
are through wind, solar, and storage
systems, there are technologies already
in most households that can be used
for demand-side initiatives that support
these commitments, " said Google's
Berndt. " Devices like smart thermostats
offer a way for utilities to engage
customers and boost voluntary participation
in DR [demand response] programs
and efficiency measures. These
www.powermag.com
programs offer incentives in exchange
for customer participation. "
Berndt noted several utilities have
programs to incentivize efficient energy
Nearly 100 U.S.
cities have clean
energy targets.
use by customers. " For example, Duke
Energy, the second-largest utility in the
U.S., just launched its DR program with
Google's Rush Hour Rewards program. It
offers customers $75 just to enroll and
pays customers each year they remain in
the program, " Berndt said. " In Michigan,
DTE provides Google Home Minis as an
incentive to enroll in the utility's DR program
called Smart Savers. This model of
using voice assistant devices to encourage
customer enrollment is expected
to expand significantly in 2020. Each of
these programs was created and implemented
by EnergyHub, a distributed energy
resource management company. "
'Lead by Example'
Nearly 100 U.S. cities have clean energy
targets. They run the gamut from small
towns, such as Abita Springs, Louisiana,
to large cities such as Philadelphia, Pennsylvania;
Seattle, Washington; and Los
Angeles and San Francisco in California.
State and local mandates are driving
the expansion of clean energy projects,
but Berndt said industry also can support
adoption with or without lawmakers.
" It's best to lead by example, " he
said. " When private companies step
up and show leadership by investing
in renewables and committing to sustainable
practices regardless of governmental
support, it makes a statement
that investing in a clean energy future
is non-negotiable. "
Pedotto said investment in energy infrastructure,
primarily for transmission
and distribution, also will be important to
achieve carbon-free mandates.
" Investing in energy infrastructure is
crucial for achieving clean energy goals, "
said Pedotto. " With
investments, the
United States will see an increase in
jobs, public health, and clean air. All in all,
improving infrastructure is an important
step to ensure citizens can benefit from
the energy revolution. " ■
-Darrell Proctor is a POWER
associate editor.
POWER | March 2020
http://www.powermag.com

POWER March 2020

Table of Contents for the Digital Edition of POWER March 2020

Contents
POWER March 2020 - Cover1
POWER March 2020 - Cover2
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