25 March 2017

Fast-Forward To The Future [and a City of Mesa Electric Energy Survey]

Why the combination of the two in this post headline? One is the start of a revolution for battery power and the other is dinosaur thinking, relying on the grid of fossil fuel-generated electric energy in Sunshine-rich Arizona. What's the bright, or brightest, idea?
Think about it: do the survey.
Will Mesa become a solar city? It could happen in less than 3 years.Apple's global command center here may lead the way recently reaffirming its worldwide commitment to using 100% renewable energy.
Tesla’s Battery Revolution Just Reached Critical Mass
Three new plants in California show how lithium-ion storage is ready to power the grid.
" . . . this is a revolution that’s just getting started, Tesla Chief Technology Officer J.B. Straubel said in an interview on Friday. “It’s sort of hard to comprehend sometimes the speed all this is going at,” he said. “Our storage is growing as fast as we can humanly scale it.”
Tesla Motors Inc. is making a huge bet that millions of small batteries can be strung together to help kick fossil fuels off the grid. The idea is a powerful one—one that’s been used to help justify the company’s $5 billion factory near Reno, Nev.—but batteries have so far only appeared in a handful of true, grid-scale pilot projects. 
Three massive battery storage plants—built by Tesla, AES Corp., and Altagas Ltd.—are all officially going live in southern California at about the same time. Another one by Tesla in Hawaii.
A Question of Price
The battery storage industry—a key part of the plan if wind and solar power are to ever dominate the grid—is less than a decade old and still relatively small. Until recently, batteries were many times more expensive than natural gas “peaker” plants that fire up to meet surging demand in the evening and morning hours.

But prices for lithium-ion batteries have fallen fast—by almost half just since 2014. Electric cars are largely responsible, increasing demand and requiring a new scale of manufacturing for the same battery cells used in grid storage. 
Battery costs and profitability for utilities are difficult to evaluate. Companies are reluctant to give up their pricing data, and the expense is highly variable. Nevertheless, battery plants take up a much smaller footprint than gas-powered plants, they don’t pollute, and their instant response can provide valuable services better than any other technology. In a small but increasing number of scenarios, batteries are already the most economical option. 

City of Mesa flag
THE SURVEY
Affordability, Sustainability, Reliability: What’s important to you as an electricity customer in Mesa?
Post Date: 03/13/2017 4:55 PM
Mesa’s electric utility, the Energy Resources Department, is currently working on our 10-year Integrated Resource Plan (IRP) to examine the different options for providing energy to electric customers (including solar, wind, hydro and traditional power sources) and is currently seeking citizen input.
Mesa’s current power supply is 20% renewable hydroelectric power and the remainder is composed of the sources that make up Arizona’s mix as a whole (nuclear, coal, and natural gas).
Mesa receives its renewable hydroelectric power from the Western Area Power Administration (WAPA) and is required to complete an IRP every five years.  
The IRP process helps both the Energy Resources Department and its customers follow the best path forward by determining the best resources for its stakeholders.
At the beginning of the IRP process, all resources are considered viable for meeting Mesa electric customers’ needs. 
These resources include:
1. Long Term Contractual Resources
This is where Mesa issues “Requests for Proposals” from energy suppliers whereby the suppliers can generate energy and sell it to Mesa for an extended period of time. 
The energy may be generated by any technology that the supplier chooses, but typical supplies in the southwest region may include
  • natural gas generated electricity,
  • coal generated electricity,
  • nuclear generated electricity 
  • possibly some small contributions from wind generated electricity or electricity generated at hydro-electric generators.

2. Purchasing Physical Resources
Mesa may have opportunities to own the resources that could provide electricity to its customers. 
This may include owning and operating
  • natural gas fired generation,
  • wind-powered generation or
  • solar photovoltaic generation. 
Mesa may also have opportunities for joint ownership in tandem with other utilities in larger resources, accessing economies of scale.

3. Demand Side Management
Opportunities may exist for Mesa to facilitate programs which incent Mesa electric customers to reduce their electric consumption. 
This way, Mesa helps its customers to keep their demand low to avoid the cost of acquiring other resources -- through staff analysis and input from the public on what energy values are most important to them (sustainable energy options, affordability, etc.).

We invite you to share your thoughts on energy sources in this 5-minute survey:
English version: https://www.surveymonkey.com/r/MesaEnergy
Spanish Version: https://www.surveymonkey.com/r/MesaEnergyEsp
For further information on the IRP planning process, please contact Anthony Cadorin, Energy Resources Coordinator, at Anthony.Cadorin@mesaaz.gov.

This is a reply received 4 days ago in response to questions sent
Thank you for your response to our survey, we appreciate the feedback.  Regarding your questions:
 
1. What's the city paying now for electric supply?
 The cost of electric supplies for the City of Mesa’s electric utility are published monthly on our website in our tariff adjustment sheet.
·         The ELRF is the electric supply cost for our residential customers
·         The ELCF is the electric supply cost for our commercial customers 
·         The ELFF is the electric supply cost for our interdepartmental customers 
These costs are inclusive of generation, transmission, and all ancillary services required to deliver electric supplies from the energy market to Mesa’s electric utility:

2. Please be more specific about dollar figures, financing and proposed entities for joint ownership:
 
City of Mesa Energy Resources is always trying to keep abreast of any new resource opportunities that may be available to Mesa for electric supplies.  We’ve previously has evaluated resource options like the ones that you’ve listed, on multiple occasions.  In each case, the drawbacks of ownership, including unit contingent generation, have outweighed the potential benefits to the City when considering the City’s load profile and opportunities on the wholesale market.  However, we’re always interested in hearing about and evaluating new opportunities when they arise.
 
Thank you,
Amy McConnell
 
 
mesa-az-RGB-72dpi
 
Amy J. McConnell
Transportation | Energy Public Information Officer
480-644-6553 - Office

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