Hydrogen advocates look to capitalize on California’s goal to replace diesel for back-up generation

At-a-Glance:

California regulators are on the lookout for cleaner alternatives to replace the widespread use of back-up diesel generation – particularly among data centers in Silicon Valley and other areas of the state – and some industry players think hydrogen could be the answer. To learn more, read “Hydrogen advocates look to capitalize on California’s goal to replace diesel for back-up generation.”

Key Takeaways:

  • Hydrogen fuel cells are advantageous for several reasons: they occupy less space than batteries, possess long-term storage capability, are quiet, reliable, and 100% zero-emission.
  • The key draw of hydrogen is its cost effectiveness at longer durations.
    • For a completely resilient, 100% renewable data center with zero emissions, using hydrogen would translate to a levelized cost of electricity amounting to $119 per MWh.
    • Batteries would lead to over $4,000 per MWh levelized cost to ensure 48 hours of backup power.
  • Taking a step back from the issue of replacing diesel back-up generators, environmental advocates are urging the state to prioritize the adoption of renewable, zero emissions technologies.
  • Ben Schwartz, policy manager at Clean Coalition, said California could adopt policies to promote the efficiency of solar and storage alternatives to diesel generation.

Path to 100% Perspective:

Renewable fuels, such as hydrogen, can help utilities overcome the variability challenges posed by seasonal conditions and extreme weather. One approach that can be leveraged in the transition to a 100% renewable energy system is power-to-gas (PtG). PtG technology uses excess energy from wind and solar to produce synthetic hydrogen and methane. The combination of stored fuel potential and thermal capacity yields a long-term energy storage system that acts like a gigantic distributed “battery.” Coupled with traditional, shorter-term storage technologies, this system can help meet seasonal energy demands when renewables are variable, and provide a reliable and secure supply of electricity during periods of extreme weather.

 

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The 10 Ways Renewable Energy’s Boom Year Will Shape 2021

At-a-Glance:

With the uncertainty of 2020 behind us, the new year kicked off with surging growth for renewable energy. Growth will likely continue into 2021, fueled in part by last year’s major turning points. Some analysts have started predicting that the U.S. power sector is approaching peak natural gas. That would leave room for solar-panel installations to build on the ongoing boom. To learn more, read The 10 Ways Renewable Energy’s Boom Year Will Shape 2021.” Reading this article may require a subscription. 

Key Takeaways:

  • Although U.S. residential solar installations dropped nearly 20% in the second quarter of 2020 from the first, by the end of the year, the sector bounced back and the country added 19 gigawatts of total solar power.
  • New battery capacity in the U.S. more than doubled in the third quarter of 2020 from the second, according to Wood Mackenzie and the U.S. Energy Storage Association. Projects in California were a key reason for the surge.
  • Electricity from Spain’s solar farms was up over 60% in 2020 compared to 2019, generating over 15,000 gigawatt hours of power, according to data from the country’s grid manager Red Electrica.
  • Renewable power beat out fossil fuels in the European Union for the first time, with approximately 40% of electricity in the first half of 2020 coming from renewable sources compared with 34% from plants burning fossil fuels.

Path to 100% Perspective:

Despite the upheaval caused by COVID-19 in 2020, the demand for renewable energy has not slowed and the path to 100% is becoming clearer as countries around the world commit to carbon-free sources of electricity. Developments such as China’s commitment to reaching carbon neutrality by 2060 and the European Union’s shift to renewables as the dominant power source provide further evidence that the tide is turning toward decarbonization. Ambitious goals, a commitment to research and development, and ongoing collaboration will continue to pave the path to a renewable energy future.

 

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California’s Big 2021 Decision on Grid Reliability: Expand Supply or Manage Demand?

At-a-Glance:

California is facing a major decision under a tight deadline — whether it should push for large-scale power plants and batteries to prevent a repeat of its August 2020 rolling blackouts this coming summer or turn to behind-the-meter resources such as batteries and demand response. To learn more, read California’s Big 2021 Decision on Grid Reliability: Expand Supply or Manage Demand?” 

Key Takeaways:

  • The California Public Utilities Commission (CPUC) issued a ruling in late December asking the state’s three big investor-owned utilities to find ways to expand supply-side capacity before August 2021.
  • Demand-side solutions – behind-the-meter batteries, smart thermostats, and commercial and industrial demand response – may be a more realistic set of options to meet CPUC’s August 2021 deadline.
  • The joint California agency root-cause analysis into last summer’s grid emergency highlighted “demand response and flexibility” as the resources most likely to be able to be added by mid-2021.
  • Existing rules may be dampening the potential for capturing California’s nation-leading roster of behind-the-meter resources, which adds up to gigawatts’ worth of latent capacity.
  • Barriers aren’t stopping companies from enlisting new demand-response and behind-the-meter-battery customers in California. Oakland-based startup, OhmConnect raised $100 million in December 2020 from Google-affiliated Sidewalk Infrastructure Partners to build out 550 MW of residential load flexibility via smart thermostats and Wi-Fi-connected smart plugs.

Path to 100% Perspective:

Opening up greater demand-response flexibility in California will not only help prevent grid emergencies like those experienced during the rolling blackouts last summer; it will also help advance California’s efforts on the Path to 100% clean electricity. California should pursue an approach that includes adding new innovative demand response systems and more thermal generation flexibility.

 

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