Cities are strengthening the electricity grid by taking “green” measures

WASHINGTON − What Auden Schendler calls the “Dr. Seuss machine” in his garage not only protects his home from the power outages that regularly affect his neighbors in the Colorado mountains, but he believes it also helps others in his community and beyond.

“We have mudslides, fires, stores, ice storms and power loss. But not my power,” Schendler (53) told the Thomson Reuters Foundation.

Schendler says his home in Basalt is unusual in many ways, but he thinks it has a superpower.

“I have a ranch from 1960, but it is equipped like a modern, eco-friendly building, with a photovoltaic system, an electric vehicle charger, batteries and more,” he said. “My house is how we deal with the climate problem.”

Schendler commissioned the installation of three large batteries under a new program offered by the local utility, with the cost expected to be recouped within ten years.

In return, the utility Holy Cross Energy can access the energy contained in these batteries to feed into its grid, and Schendler receives a fee for each use.

That’s the idea behind the “virtual power plant,” or VPP, which is generating excitement as a way to make the electricity grid more resilient, accelerate the transition to renewable energy, and even offer customers a way to make money.

The strategy is to use new ‘smart’ appliances and battery technology, as well as renewable energy generation in homes, to help consumers avoid energy consumption during periods of high intensity, such as a particularly hot day, and even return energy to the grid when needed.

100% clean energy goal by 2030

About 30-60 gigawatts of VPPs are currently installed in the United States, and the Department of Energy says capacity could triple by the end of the decade, which it said last year is a key way to meet the country’s goal of 100% clean energy for 2035 .

In Colorado, Holy Cross Energy also sees its VPP as a key way to achieve its goal of 100% clean energy by 2030.

“We are at the forefront of transformational change,” said Bryan J. Hannegan, president and CEO of Holy Cross.

Hannegan said the VPP highlighted the changing role of utilities, which must become more like orchestra conductors.

“Every home, business or community can now generate its own energy. Our job is to get it from where it is generated to where it wants to be consumed,” he said. “I try to make sure all these resources work well together.”

“A lot of action”

The ideas behind VPP have been around for years, said Lauren Shwisberg, director of RMI’s energy think tank.

“We saw a lot of activity last year,” she said. “We have already seen VPPs play a huge role in supporting grid reliability, such as avoiding major power outages in California.”

Shwisberg said some of the interest was driven by skyrocketing demand for electricity, tied to the climate-driven electrification drive and the availability of hundreds of billions of dollars in federal funds for climate and energy projects.

The U.S. government now wants to send a strong signal that utilities, grid operators and investors should consider VPPs, said Jennifer Downing, an engagement specialist at the Department of Energy’s Office of Lending Programs.

“We are at a moment where we need VPP more than ever,” she said. “All the megawatts and gigawatts are already on the grid; we just need to squeeze more out of the network for what we have already paid for.”

Downing said local authorities can play a key role, including through permitting processes and building regulations that speed up the creation of VPPs.

The Sacramento, Calif., utility is aiming to decarbonize the city’s electricity supply by 2030, and last year launched a VPP pilot program “to help seamlessly generate power from variable renewable sources,” said Denver Hinds, chief electrical engineer at Sacramento Public Utilities District.

Under the program, customers receive up to $2,500 for registering a battery for home use with the initiative, after which they receive payments for allowing the battery to be used on the network.

“This approach allows our customers to take advantage of utility incentives and get more value from their investments, while playing a key role in the entire community’s transition to cleaner energy sources,” he said.

Buildings monitor their carbon footprint

After cities have adopted new climate commitments in recent years, VPPs now offer an additional opportunity to make progress.

A new law in New York requires large buildings to monitor their carbon footprint and stay within a set limit, and several other cities and states are taking similar steps.

Large property management companies are also making greater efforts to save on energy costs and reduce their carbon footprint, said Jeff Hendler, co-founder and CEO of Logical Buildings.

The national company offers residents and property managers a digital platform that allows them to see when energy demand peaks are coming, coordinate smart devices and more.

“We create visibility into how the data is being used, and then we are able to integrate it with smart thermostats or batteries… to avoid using it during periods of high carbon intensity,” he said.

“So, to achieve your goal of saving money, making money and the trifecta – reducing your carbon footprint.”

Logical Buildings has found that simply allowing a resident or property manager to visualize energy use typically helps a building save 10% of its energy use.

The New Rochelle, New York City School District used one of the company’s programs last summer to reduce its energy use by 700 kilowatts and received a $24,000 rebate in January.

Sustainable Westchester, a local government-led group that helps local jurisdictions meet New York State’s climate goals, has partnered with New Rochelle schools and is working to increase the use of such programs.

A key goal of VPP’s work is to avoid using the area’s 16 mostly gas-fired peaker plants, which come online during periods of peak energy use, said Michel Delafontaine, director of business development at Sustainable Westchester.

Four years ago, the group launched a program in which subscribers could get paid for turning off air conditioning, car charging and other utilities when the electrical installation required it – an approach they are now trying to automate.

“If we could get 350,000 customers, which is the number of households in Westchester County,” and equip them with small backup systems, Delafontaine said, “it would eliminate the need for a peaker plant.”

Reporting by Carey L. Biron; Editing: Jon Hemming. The Thomson Reuters Foundation is the charitable arm of Thomson Reuters. Visit https://www.context.news/

This article originally appeared on USA TODAY: Home Power Plants: American Cities Try to Boost Going Green