Search Climate Insights Directory

Kaiser Permanente partnered with NextEra Energy Resources to procure 110 MW of solar and 43 MW of wind power, aiming to meet 50% of its California electricity consumption through renewable sources. The organization views climate change as a health issue and set a 2012 target to reduce greenhouse gas emissions by 30% below 2008 levels by 2020. The deal is expected to avoid 215,000 metric tons of greenhouse gas emissions in California, equivalent to removing over 45,000 cars from the roads. The case study highlights the importance of assembling a cross-functional team, balancing economic feasibility with mission-driven goals, and managing internal stakeholder engagement to successfully execute complex off-site renewable energy transactions.

The analysis finds that grid-connected solar-plus-battery systems will become the lowest-cost option for many customers within 10-15 years, potentially causing massive revenue losses for utilities. In the Northeast U.S. alone, potential residential and commercial kWh sales erosion by 2030 could reach 58 million MWh and 83 million MWh respectively. The report argues that eliminating net metering or adding fixed charges only delays this outcome. To avoid a future of stranded assets and high costs for non-adopters, the authors advocate for an 'integrated grid' featuring locational and temporal pricing, performance-based regulation, and the monetization of distributed energy resource (DER) values.

The analysis finds that grid-connected solar-plus-battery systems will rapidly become cost-effective, potentially leading to significant load defection that could undermine utility revenues and create stranded assets. The report argues that the electricity system is at a 'fork in the road,' where current regulatory and pricing models will either lead to fragmented grid defection or an integrated grid where distributed energy resources (DERs) provide value back to the system.

The document proposes replacing the Renewable Portfolio Standard (RPS) and the Efficiency Savings and Performance Incentive (ESPI) with a system-wide carbon intensity standard and per capita energy sales standards. It argues that these reforms will align utility incentives with state climate goals, encourage low-carbon grid flexibility, and remove the conservative goal-setting and contentious evaluation processes currently hindering energy efficiency in existing buildings.

The document proposes replacing California's current electricity sector policies with a system-wide carbon standard and per capita energy intensity standards for electricity and natural gas. It argues that the existing Renewable Portfolio Standard (RPS) and Efficiency Savings and Performance Incentive (ESPI) are insufficient for long-term goals due to siloed procurement and overly conservative efficiency targets. Key recommendations include a 2030 carbon standard of 393lb. CO2e/MWh, a 50 percent renewable energy procurement "backbone," and a performance-based energy standard targeting a 1.2 percent annual reduction in kWh/capita. The report also suggests expanding the Energy Imbalance Market (EIM) to a West-wide scale and expediting the implementation of AB 758 for existing buildings.

The report introduces the electricity system value chain, a non-linear framework designed to map the flow of energy, information, and money across the grid. It breaks the system into three fundamental layers—organizational, electrical, and communications—and defines essential functions (input, process, output) within each. By applying this framework, stakeholders can identify the specific technical and regulatory connections required to realize and monetize system values, such as frequency regulation or renewable energy integration. The document provides step-by-step examples of applying the framework to solar PV and battery systems in both behind-the-meter and distribution-scale environments.

The document describes the four primary components of the US electricity grid: individual generators, transmission lines, distribution networks, and consumer load. It details the technical differences between power sources, such as the low flexibility of coal and nuclear plants compared to the rapid ramping of natural gas plants. The text outlines the regulatory roles of state Public Utility Commissions (PUCs) and the federal Federal Energy Regulatory Commission (FERC), and notes the three main US transmission networks: the Western Interconnection, the Eastern Interconnection, and ERCOT. It also traces the grid's history from the victory of alternating current (AC) over direct current (DC) to the 'restructuring' of the 1970s that allowed for wholesale competition. Finally, it identifies potential improvements through energy storage, smart meters, and distributed generation like residential solar panels.

The document examines the shift from centralized to decentralized electricity structures through distributed energy resources, proposing three policy pathways: analyzing cost-benefit trade-offs, reforming utility business models and wholesale markets to increase competitiveness, and fostering technological innovation to accelerate the adoption of renewable resources.

The report argues that current U.S. distributed solar (DPV) business models are overly customer-centric and fail to capture operational grid benefits, leading to conflict between utilities and solar companies. It proposes three 'bridge' business model building blocks: increasing access via subscription models, optimizing deployment for capacity and grid services, and bundling solar with other distributed energy resources (DERs). The authors emphasize that maximizing DPV value requires collaboration to reduce 'soft costs' and a shift toward standardized valuation methodologies and transparent data sharing between stakeholders.

The report outlines a new business model for Fort Collins Utilities that bundles energy efficiency and solar PV services into integrated packages. It recommends a hybrid approach using auto-enrollment (opt-out) for a basic package, financed via on-bill repayment mechanisms such as on-bill tariffs and energy service charges. RMI's analysis suggests the model could support 90% of residential building emissions reductions and generate net income for the utility. The document details a pilot project for 200–300 homes to test customer demand, financial viability, and operational infrastructure before a city-wide rollout.

The author argues that Dr. Charles R. Frank, Jr.'s analysis incorrectly concludes that nuclear and gas combined-cycle plants are more beneficial than wind and solar. By replacing Frank's data with empirical figures from the EIA and DOE, the author asserts that the priority for carbon savings actually shifts to hydro, wind, gas combined-cycle, nuclear, and solar. The critique highlights significant underestimations of renewable productivity and overestimations of gas and nuclear costs and reliability.

The report argues that traditional bundled, volumetric block rates are obsolete for a grid with increasing distributed energy resources (DERs) because they fail to reflect the temporal and locational value of electricity. It proposes evolving rate design along three continuums: attribute unbundling (separating energy and capacity), temporal granularity (moving toward real-time pricing), and locational granularity (addressing distribution 'hot spots'). The authors suggest a transition strategy using a combination of evolving default rates and opt-in alternatives, supported by third-party technologies to maintain a simple customer experience. Recommendations for regulators include increasing data transparency, enhancing valuation methodologies for DER attributes, and establishing clear timelines for rate transitions.

The report advocates for transitioning from traditional bundled, volumetric block rates to more granular pricing to incentivize the efficient deployment and operation of distributed energy resources (DERs). It proposes a pathway of incremental sophistication across three continuums: attribute unbundling, temporal granularity, and locational granularity. The document outlines six evolutionary pricing options, ranging from near-term possibilities like Time-of-Use pricing to longer-term, sophisticated models such as Distribution Locational Marginal Pricing, suggesting that technology and third-party providers can manage the resulting complexity for the end customer.

The report details the expansion of solar energy in the U.S., focusing on rooftop photovoltaic (PV) systems, large-scale PV, and concentrating solar power (CSP). It highlights significant cost reductions, the role of state and federal incentives, and the environmental benefits of transitioning from fossil fuels to solar, while addressing grid integration challenges and land-use impacts.

The document outlines the systemic shifts required to integrate low-carbon energy, arguing that traditional power plant financing and grid structures are ill-suited for renewables. It proposes new financing models like YieldCos and Muni Finance to lower costs, emphasizes the need for regionally integrated transmission and updated balancing markets to manage variability, and discusses the disruptive impact of distributed generation and demand-side flexibility on traditional utility models.

The report argues that the 19th-century utility model, designed for centralized fossil-fuel generation, is ill-suited for the 21st-century transition to low-carbon energy. It identifies critical challenges across five business segments: generation, transmission, market operation, distribution, and customer management. A central thesis is that current investor-owned utility (IOU) and independent power producer (IPP) financial structures inflate the cost of renewables by imposing risk-return requirements tailored to fossil fuels. The author proposes shifting toward 'YieldCos', municipal financing, and crowdsourced investment to match the bond-like, long-term cash flow profiles of renewable projects, which could potentially reduce the levelized cost of energy (LCOE) by approximately 20%.

The report identifies that U.S. residential solar PV installation labor is significantly less efficient than in Australia and Germany, with U.S. installers averaging 9.4 labor hours per kW compared to 6.1 in Australia and 4.3 in Germany. It argues that the U.S. can reduce its installation time to approximately 7 labor hours per kW by adopting four key interventions: optimizing pre-installation, redesigning base installation (especially for clay tile roofs), using integrated racking, and reducing the number of system meters. The document attributes Australia's success to high market competition, a flat-rate payment structure for installers, and a regulatory environment that minimizes permitting and interconnection costs.

The report identifies that current investor-owned utility and independent power producer models are ill-suited for the low-carbon transition, potentially raising renewable energy costs by up to 20%. It proposes a systemic evolution across five segments: generation (matching financing to risk profiles), transmission (improving renewable integration), market operation (valuing flexibility), distribution (adapting to distributed generation), and customer management (integrating demand response and electric vehicles). The document highlights the emergence of new financing models like YieldCos as a way to provide secure cash flows and lower costs.

The U.S. electricity grid is increasingly vulnerable to extreme weather events, with the average annual cost of severe weather rising from $20 billion in the 1980s to $85 billion in the 2010s. Aging infrastructure, graded D+ by the American Society of Civil Engineers in 2013, is susceptible to sea level rise, wildfires, droughts, and heat waves. The report highlights that thermal power plants are particularly at risk due to their heavy reliance on water for cooling, which can lead to production cutbacks or shutdowns when water is too warm or scarce. To improve resilience, the document recommends 'hardening' measures, such as sea walls and burying power lines, alongside the adoption of distributed renewable energy and energy efficiency to reduce overall demand and carbon emissions.

The report proposes an 'accelerated scenario' for Fort Collins to reach an 80% reduction in CO2 emissions by 2030, twenty years ahead of its original 2050 target. This path involves reducing building energy use by 31%, achieving a carbon-neutral electricity system, and reducing transportation energy use by 48%. The analysis indicates that while this requires higher upfront capital, it would result in a net present value benefit of $260 million by 2030 and $2.0 billion by 2050 compared to business-as-usual. Key strategies include the deployment of distributed solar PV, increased wind capacity, smart growth urban planning, and the adoption of electric vehicles.