January 31, 2012 at 8:00 am
by Laurie Park
Source: California Energy Efficiency Strategic Plan
The “Zero Net Energy” (ZNE) vision is based upon a simple premise: if each facility self-provides its own energy requirements, we will ultimately eliminate large fossil-fuel power plants and the extensive high voltage systems needed to transport electricity from points of production to points of use. In so doing, we will substantially increase energy efficiency by reducing electricity losses while also avoiding the high costs and environmental impacts of additional electric infrastructure.
Ideally, ZNE starts by making every energy consumer as efficient as possible, and then by meeting any remaining energy requirements through self-production at the point of use. For residences and office buildings that have moderate energy requirements, the hope is that we will be able to meet these requirements through rooftop solar or other zero emissions technologies. For more energy intensive industries, intermittent renewable resources such as solar will likely need to be supplemented with other types of energy that can be produced at sufficient quantities when needed.
The vision of a future where large, centralized fossil fuel power plants and thousands of miles of high voltage transmission are no longer needed, is intriguing. To realize this vision, all of the key stakeholders whose support is needed must be effectively engaged.
Not surprisingly, vertically-integrated electric utilities are not big fans of Zero Net Energy, Net Energy Metering, or Energy Self-Sufficiency. The Energy Policy Act of 1992 required that owners of high voltage transmission lines make capacity available to independent producers to encourage wholesale competition among electricity suppliers (open access). To implement open access, we commandeered use of electric utilities' wires. To foster competition, we encouraged electric utilities to divest of their generation resources. To facilitate zero net energy, we implemented aggressive programs to make electricity customers as self-sufficient as possible. And with energy storage, smart grid and other technologies yet to be developed, we hope to eventually eliminate the need for electric wires (transmission and distribution) altogether. If no longer Generation (electric production), Transmission (electric transport) or Distribution (electric delivery), what is the role of the future electric utility?
It is appropriately the role of policymakers to drive us toward a new future vision that meets all of our energy requirements through non-emitting renewable resources without need for wires. As we make that transition, it is important that everyone working to achieve that vision recognize the critical role of utilities in helping to pave the way to that future. This will only happen if we help our energy utilities define their own pathways to becoming utilities of the future.
Topics:
Energy Efficiency,
Environmental,
Market Transformation,
Renewable Energy,
SustainabilityAbout the Author
Laurie ParkLaurie Park, CPA began her energy career as a project analyst for an independent developer of renewable energy resources. She then became a consultant to developers, helping them negotiate power contracts, structure public-private partnerships, and secure project financing ...
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