Download the full report Also In the Report: The New Energy EconomyThe Future of EnergyIntegrating Renewables in the Grid: A Snapshot of ProgressAs Large Corporations Go Green, Utilities Are Feeling the Loss The second milestone happened in Colorado, where Xcel Energy announced that it had received bids from energy developers to supply solar and wind-generated electricity — with battery storage included — at a lower cost than conventional generation. While Colorado’s supportive regulatory environment helped make this a reality, the major takeaway is that in 2018, renewable energy at utility scale can not only be price-competitive with fossil fuels, but it can even cost less. U.S. Power Grid More Renewable Ready Than Many Thought Just a few years ago, there were predictions that 30 percent of power from renewables was all the grid could easily handle and that anything more would have significant consequences. However, recent events have shown that it is possible to integrate much higher levels of renewable energy without large negative effects. Part of the reason is that the growth has been incremental, typically a few percentage points a year, allowing grid planners to adjust as needed. It’s also because of the emergence of technologies and techniques that help incorporate fluctuating power from renewables into the grid. With the right tools and guidance, utilities can manage that variability successfully, even on a massive scale. Facing Down Today's Regulatory, Economic Barriers Many technical challenges (such as forecasting) associated with integrating renewable energy into the grid have been addressed. In addition, prices have dropped sharply — a trend that continues. The result is a different set of challenges than a few years ago, when there was more uncertainty over whether these projects could work, along with concerns over their financial toll. Every state has a unique set of resources, market structures, energy priorities and policies that affect the economics of a project. Project developers must evaluate this landscape of factors and choose a strategy that makes business sense. Findings from the 2018 Strategic Directions: Electric Report survey reveal what energy professionals are thinking as they plan and build their renewables projects. When asked to choose the best options for renewable integration, utility-scale energy storage was the preferred choice at 66 percent, with grid improvements a distant second at 41 percent (Figure 3). Download the full report The dropping cost of storage technology is good news for utilities because high prices long have been a challenge to integration efforts. Today’s lower costs are enabling much more competitive offerings, as seen in the Colorado example. It should be noted that there are ways to address intermittency that do not require lots of new equipment, transmission lines or capital. For example, rather than balancing supply and demand hourly, doing it every five minutes or less could be considered. More accurate forecasting of wind and solar output is another option, as is changing the way power producers are penalized or incentivized for over- or under-generation. While these are admittedly partial measures, changes in rules or polices can help grid operators respond to output fluctuations with minimal investment. Respondents also were asked what system improvements they recommend. A variety of tools are available to help utilities deal with the variability of renewables, including demand management, storage management, real-time monitoring and rapid cutover solutions to meet a sudden drop in output. The most popular choice was quick response resources, selected by 56 percent of survey participants, followed closely by load control devices (51 percent) and advanced system control devices (48 percent) (Figure 4). Utilities typically use a combination of the resources listed. The fact that survey participants are aware of these capabilities is encouraging, suggesting at least basic knowledge of practical details required to make the integration work. More Progress to Come Technology is available that allows large-scale renewables to better integrate into the existing grid while accommodating for the inherent variability. Financial viability is determined on a case-by-case basis by weighing regulations, weather patterns and competition and doing what makes economic sense. Considering the previous uncertainty over whether this integration was even possible, this marks major progress. More dramatic changes are on the horizon. Some utilities have started long-range planning for 100 percent renewables, looking ahead at what changes will be necessary in 10 or 20 years. To get there, they will have to address a new class of challenges for generating, storing, distributing and managing power without falling back on fossil fuels. Download the full report Contact us to learn more about what we can do for you.
From Drones to Senders: Innovation Gaining Sway Among Electric Utility Leaders With their infrastructure graying and renewable energy posing growing threats to their customer bases and bottom lines, electric utilities are awakening to the power afforded by dynamic advances in construction, from the deployment of drones to innovative construction practices. Amid the prospect of a continued shift to decentralized, digital grids and the broadening appeal of increasingly affordable solar power systems, electricity suppliers no longer have the luxury of resisting change or delaying the adoption of next-generation power delivery.
Catalyst for Clean Energy In this year’s 2019 Strategic Directions: Natural Gas Report, we explore the sector’s weightiest topics and offer insights driven by survey input from hundreds in the industry and our decades of experience serving the natural gas marketplace.
Old Capital Allocation Strategies Require New Thinking The electric utility industry is in the middle of a transformation that has no precedent. Historically speaking, delivering electricity was relatively simple; utilities generated power and provided it to customers over a one-way delivery system. Companies requested, and utility regulators granted, periodic rate hikes to cover infrastructure upgrades while providing a reasonable rate of return on that investment.
Transforming Southeast Asia's Energy Sector: Opportunities and Challenges Nations in Southeast Asia are working to balance energy security, environmental sustainability and economic competitiveness at a time when the financial sector is looking for bankable energy projects in which to invest. The region’s industrial growth in recent years has encouraged economic growth and urbanization that has expedited its consumption of energy.
The New Power Grid: Obligations In The Era of Change To effectively map out the current and future states of power delivery, it’s imperative to discuss what the landscape looked like in the past. Understanding the evolution of any industry typically requires a healthy dose of historical context, and making sense of today’s energy grid is no exception.
Black & Veatch, Coalition Donate Electric Resiliency to Hurricane-Affected Puerto Rico School, Saving it in the Process A coalition led by Black & Veatch donated tens of thousands of dollars in technology along with the manpower to provide a new, solar-driven power source for the SU Manuel Ortiz in Yabucoa, ground zero of Hurricane Maria.
Shell Microgrid Doubles as Research Lab for Testing New Energy Solutions Black & Veatch designed, procured and constructed a microgrid for Shell, which is using it to generate power while it also serves as a working test lab to explore advancements in renewable energy.
Client Removes Transmission Lines with Minimal Disruption to Auto, Train Traffic Below The United Illuminating Company needed to replace existing transmission line conductors located on 100-year-old lattice towers built on a historic railroad bridge, hiring Black & Veatch as the EPC contractor.
Black & Veatch’s EPC Expertise Expands Capacity, Ensures Reliable Power Delivery in West Texas Black & Veatch provided engineering, procurement and construction services, including permitting, for the new Cassava Substation, enabling AEP to prepare for future growth by providing greater capacity and higher voltage to support area oilfields.
Advanced Combined Cycle Facility Delivers Value to Community, Environment, Investors Near the shore of Lake Erie, in Oregon, Ohio, an 869-megawatt (MW) combined cycle power plant, known as the Oregon Clean Energy Center, is now providing critical baseload power to the PJM regional transmission organization and delivering value to virtually all stakeholders.