Mexico Border Wall Won’t Stop Cross-border Power Push

Relations between the United States and Mexico are strained at the national level, with President Donald Trump pushing his promised border control wall and demanding a U.S.-favored rewrite of the North American Free Trade Agreement (NAFTA). But Mexico and the southwestern states have continued working towards an international agenda for electricity, and regional players are talking up a first set of projects due to be completed before Trump’s term is up — projects that put the region on a path to a far more electrically-porous border.

These projects include a trio of new crossborder links between California, Arizona and Mexico to be completed in the next three years. They also include grid studies, revised market rules, and new power lines within Mexico that could rapidly expand flows over all of the U.S.-Mexico interties. “The proposition right now is fairly small because the interconnections are small. But that’s going to change,” says Carl Zichella, director for Western transmission at the Natural Resources Defense Council.

SENER Cross-Border-Interconnections-Mexico-Ministry-of-Energy

Many US-Mexico electric interties operate at relatively low voltage (ie low tensión) and are used infrequently – some only during emergencies. Credit: Mexico Ministry of Energy (SENER)

Transmission experts such as Zichella trace today’s momentum back to energy reforms enshrined in Mexico’s constitution in 2014. Those reforms opened up Mexico’s state-dominated energy sector, providing access to private and foreign investment for energy infrastructure and unleashing rapid development of some of North America’s best renewable energy resources.

In 2016 wind and solar capacity grew 33 percent and 114 percent, respectively, according to Mexico’s power grid and market operator, the Centro Nacional de Control de Énergía. CENACE’s 2017-2031 grid development plan (reviewed here in English) foresees wind and solar meeting two-thirds of an estimated 55,840 megawatts of demand growth through 2031.

A more porous border will ease the challenge of backing up that variable renewable power, which is growing on both sides of the border. Duncan Wood, director of the Mexico Institute at the Wilson Center in Washington, D.C. highlights the opportunity to trade wind power between Mexico’s San Fernando Valley, where wind blows hard during the day, and the West Texas wind power farms that run strongest overnight. “If you can link those you might be able to meet peak demand in both the U.S. and Mexico and avoid having natural gas backup,” says Wood.

Mexico’s power grids presently intersect with their U.S. counterparts at 11 points, but more than half of those links can exchange just 100 megawatts (MW) or less and almost half operate only during grid emergencies [see map below]. There are also a few dedicated lines serving individual power plants, such as one that links a natural gas-fired generator in Mission, Texas to Mexican consumers.

Today’s cross-border construction plans, in contrast, go well beyond spur lines and emergency links. The focus is on robust connections between Mexico and the giant synchronized zone operated by the Western Electricity Coordinating Council (WECC) which shares alternating current amongst most of the western U.S. and Canada as well as the northernmost portion of Baja California in Mexico.

“Everything has just gone lightning speed. The political will is there,” says Antonio Ortega, who manages governmental affairs and communications for the Imperial Irrigation District (IID), which operates the grid in California’s Imperial Valley. IID and CENACE signed a memorandum in May to study exchanging up to 600 MW, and Ortega says they now have plans mapped out for a pair of interties to be completed in 2019 and 2020.

Ortega says IID has secured a substation site for one link, and is fielding calls from local geothermal developers and solar developers eager to access the Mexican market. “If all 600 MW of renewable energy development is built it would be an economic boon to the region,” he says.

CENACE and the California Independent System Operator (CAISO), which controls the state’s major grids, are looking to get more out of the existing 800-MW link between the San Diego region and Baja California. Roberto Bayetti, a CAISO working closely with Mexico’s power sector, says the link is used sporadically such as when an outage leaves one side or the other short temporarily. Now they are talking about using the link to integrate renewable energy.

Bayetti says 675-MW of renewable generation under development in Baja California could help the San Diego region, which has relied heavily on imports since the region’s San Onofre nuclear power station closed down in 2013. “That would alleviate some of that congestion for us and provide a big opportunity for both sides to reduce carbon,” says Bayetti.

Greater opportunity for both IID and CAISO will open up thanks to internal transmission projects in Mexico. One that is in advanced planning is a high-voltage direct current (HVDC) line that will, for the first time, link northern Baja (and thus California’s grids) to Mexico’s main grid. “There is huge potential. Now we’re not talking about 800 MWs. We’re talking about thousands of MWs that could be transferred,” says Bayetti.

CENACE’s grid plan sees future developments pushing east to Texas, including additional cross-border HVDC links at Ciudad Juarez and Reynosa and a possible East-West HVDC line tracking south of the border from Baja to close to the Gulf of Mexico. Those projects would expand exchanges with the Texas grid – a stand-alone AC zone managed by the Electric Reliability Council of Texas (ERCOT).

Power system experts are optimistic that the U.S.-Mexico agenda will survive the Trump era, since the action is between regional entities. “Things are just marching along underneath any type of political discussion at the higher elevations,” says Paul Roberti, executive director for power and utilities with EY México, a branch of global accountancy and consulting firm Ernst and Young.

As for President Trump’s border wall? Eight prototypes have been erected near the Otay Mesa border crossing between San Diego and Tijuana [see photo at top]. But the wall itself may be stillborn since, as Reuters noted this week, “Congress has so far shown little interest in appropriating the estimated $21.6 billion it would cost to build the wall.”

This post was created for Energywise, IEEE Spectrum’s blog about the future of energy, climate, and the smart grid

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Solar Microgrids May Not Fix the Caribbean’s Devastated Power Systems

After the destruction inflicted across the Caribbean by hurricanes Harvey, Irma, and Maria, renewable energy advocates are calling for a rethink of the region’s devastated power systems. Rather than simply rebuilding grids that delivered mostly diesel generation via damage-prone overhead power lines, renewables advocates argue that the island grids should leapfrog into the future by interconnecting hundreds or thousands of self-sufficient solar microgrids.

“Puerto Rico will lead the way for the new generation of clean energy infrastructure. The world will follow,” asserted John Berger, CEO for Houston-based solar developer Sunnova Energy in a tweet before meeting in San Juan with Puerto Rico Governor Ricardo Rosselló this week. Rosselló appears to be on board, inviting Elon Musk via tweet to use Puerto Rico as a “flagship project” to “show the world the power and scalability” of Tesla’s technologies, which include photovoltaic (PV) rooftops and Powerwall battery systems.

Some power system experts, however, say the solar-plus-batteries vision may be oversold. They say that the pressing need to restore power, plus equipment costs and other practical considerations, call for sustained reliance on centralized grids and fossil fuels in the Caribbean. “They need to recover from the storm. Unfortunately I think the quickest way to do that is to go back to how things were before,” says Brad Rockwell, power supply manager for the Kauaʻi Island Utility Cooperative that operates one of the most renewable-heavy grids in the U.S.

Now is a tough time for a debate, given the ongoing power and communications blackouts afflicting many Caribbean islands, including Puerto Rico, the U.S. and British Virgin Islands, Dominica, and St. Martin. As of Thursday 12 October—more than three weeks after Maria’s cyclonic wrecking ball crossed the region—over four-fifths of customers in Puerto Rico and the U.S. Virgin Islands remained without power, according to U.S. Department of Energy status reports.

Puerto Rico lost major transmission lines that dispatched electricity generated at oil, coal, and natural gas-fired power plants on its lightly populated South shore to all corners of the territory. Its outage level actually slipped from 88.3 to 89.4 percent earlier this week after a tie line went down near San Juan. But it bounced back slightly, to an estimated 83 percent outage level, by yesterday.

What is clear is that several firms are trying to move fast while they talk, equipping rooftop solar systems with battery storage that enables consumers to operate independently of stricken grids. For example:

  • German storage system manufacturer sonnen launched a PV-plus-battery collaboration with local Aguadilla-based solar developer Pura Energía early this month;
  • Sunnova is crafting storage options for roughly 10,000 customers in Puerto Rico that it has already equipped with PV systems;
  • Tesla says it is sending “hundreds” of its Powerwall battery systems to Puerto Rico and, after reports of price gouging by independent installers, plans to dispatch experienced installers from the mainland to expand its local teams.

Peter Asmus, a microgrids analyst with Navigant Research, says that such solar microgrids will deliver power to solar system owners far faster than grid restoration, which is still months away for many customers. He says microgrids will also make the island systems more resilient in the long run.

Asmus sees the situation as reminiscent of post-war Europe, when devastated European grids left a vacuum that enabled something better. “They built a more advanced grid than we have in the U.S.,” says Asmus. He says the Caribbean has a similar opportunity today: “The infrastructure was devastated so severely. They can start over with a cleaner slate.”

Some suppliers see microgrids actually supplanting some of the region’s largest transmission lines. “The grid in Puerto Rico will never be built back the way it used to be,” wrote John Merritt, applications engineering director for Austin, Texas-based Ideal Power in an email to IEEE Spectrum. Ideal Power’s multi-port power converters enable microgrids to efficiently swap power between their alternating current and direct current components, including PV systems, generators, and storage batteries.

Giving up big transmission lines sounds optimistic to Rockwell at the Kauaʻi Island Utility Cooperative (KIUC). It would, he says, represent a major system overhaul and thus lost time that Puerto Rico’s residents and economy can ill afford. “The people of Puerto Rico are not going to want to withstand any more delays than they have to while people figure out how to rebuild in a different way,” he says.

Rockwell adds that batteries are still a rather costly way to balance variable renewable generation. He speaks from experience. KIUC’s grid is over four-fifths solar-powered during some midday hours. Several utility-scale storage systems help integrate such a high degree of  variable power by quickly covering for lost PV generation when clouds pass overhead or by absorbing surplus midday generation and discharging it after the sun sets. But Rockwell says high battery costs mean KIUC still relies heavily on its diesel power plants.

Merritt at Ideal Power acknowledges that the same is true for microgrids. Integrating solar can cut an island microgrid’s fuel consumption by 60 to 70 percent, slashing operating costs and pollution, but he says diesel generators remain “important” assets. “Moving a site from 24/7 diesel-powered microgrid to a 24/7 solar + storage microgrid would be cost prohibitive in most cases,” says Merritt.

There are also questions about PVs’ hardiness. Harvey, Irma, and Maria left many PV systems in shambles. Merritt says that a microgrid for a commercial facility on Saint Croix that Ideal Power participated in assembling before storms is operating without its six 33-kilowatt solar arrays. While they are out of commission for the next few months, the microgrid is relying solely on its diesel generators, battery, and converters.

Some utility-scale solar plants also took a beating, especially Puerto Rico’s Humacao solar array. PV panels shattered and flew out of their frames when Maria’s Category-4 winds ripped over the Humacao solar plant, where its French owner Reden Energie was in the process of doubling capacity from 26 to 52 megawatts.

Houston-based microgrid developer Enchanted Rock advocates rugged microgrids supported by natural gas, which is cheaper and cleaner than diesel and more reliable than both diesel and solar during heavy weather. “You can build community-type microgrids that have some combination of natural gas generation, solar and storage,” says Enchanted Rock CEO Thomas McAndrew.

Enchanted Rock made a name for itself during Hurricane Harvey when its natural gas-powered microgrids at Houston-area grocery stores and a truck stop turned into hubs for first responders and weary residents. Diesel deliveries were hard to come by for 4-5 days, says McAndrew, but natural gas kept flowing underground throughout the storm.

At present few Caribbean islands have access to natural gas, and even Puerto Rico’s gas infrastructure is limited to one liquefied natural gas (LNG) import terminal that pipes the fuel to two power plants. Rosselló had been working to expand LNG imports so more of its oil-fired power plants could burn gas.

Enchanted Rock’s McAndrew favors a network to distribute the gas instead, which he says would be cheaper than putting power lines underground to protect them from weather. He acknowledges that his proposal is ambitious, but says the outside investors that Puerto Rico will need to attract to support its revival can insist on infrastructure that will survive future storms. As McAndrew puts it: “Whether it’s private or government money, there’s got to be some sense that we might want to do this differently so we don’t just end up rebuilding it every couple of years.”

This post was created for Energywise, IEEE Spectrum’s blog about the future of energy, climate, and the smart grid

Trump’s Impact on Clean-Energy Businesses

Published today at MIT Technology Review:

President-elect Donald Trump is a self-declared climate-change denier who, on the campaign trail, criticized solar power as “very, very expensive” and said wind power was bad for the environment because it was “killing all the eagles.” He also vowed to eliminate all federal action on climate change, including the Clean Power Plan, President Obama’s emissions reduction program for the power sector.

So how will renewable-energy businesses fare under the new regime?

Trump’s rhetoric has had renewable-energy stocks gyrating since the election. But the impact could be far less drastic than many worst-case scenarios. “At the end of the day what Trump says and what is actually implemented are two completely different things,” says Yuan-Sheng Yu, an energy analyst with Lux Research …

For the whole story see “Trump’s Impact on Clean-Energy Businesses

Arizona Utility Blinks in Bitter Battle Over Rooftop Solar

Arizona’s biggest utility, Arizona Public Service, is withdrawing its bid to jack up monthly fees for rooftop solar users in its territory. The retreat, tendered last week to the Arizona Corporation Commission (ACC), capped an eventful month in the high-stakes battle between utilities and solar advocates that’s raging across Arizona rooftops. The party with the most bruises is not Arizona Public Service (APS), however, but the ACC itself. The elected body referees the state’s power markets, but all five of its commissioners now face accusations of bias that challenge their ability to fairly adjudicate the rooftop solar dispute.

Arizona’s solar dispute is hot, but not unique. Across the United States utilities are fighting to contain or eliminate “net metering” policies Continue reading

Storing Solar Energy: A great idea caught on contested ground

Adding energy storage to sites with rooftop solar power generation offers a range of potential benefits. A battery can help smooth out solar’s inherently variable supply of power to the local grid, and even keep buildings powered during blackouts. Consequently, power-conversion innovators are developing a host of new products designed to reduce the cost and improve the efficiency of integrated solar-storage systems.

Some analysts project a boom in the co-location of solar and energy storage. GTM Research, for example, foresees that co-located PV and storage will grow from $42 million in 2014 to more than $1 billion by 2018. However, the market is moving slower than it might thanks to a little-discussed regulatory roadblock in the United States.

According to Vic Shao, CEO for the Santa Clara, California-based energy storage startup Green Charge Networks, tightly integrating storage with photovoltaics in some key states—including Hawaii and California—runs afoul of the “net metering” rules by which PV owners earn lucrative retail rates for the surplus power they feed to the grid. Adding storage can disqualify solar systems for net metering, in which utilities can pay their owners wholesale power rates that are several times lower than retail. “That is obviously a pretty big problem for anybody considering solar. That could kill a lot of projects,” says Shao. Continue reading

European Grid Operators 1, Solar Eclipse 0

Solar forecast for March 20 via Energy-Charts.de, with previous days' generation

Solar forecast for March 20 from Energy-Charts.de, with prior days’ solar output

Weather forecasts calling for bright sun today across Europe drove up tensions in advance of the partial solar eclipse that blocked the sun’s rays and plunged much of the continent into a brief period of darkness this morning. Grid operators were bracing for record swings in solar power generation because of the celestial phenomenon. Some power distributors in Germany had warned of fluctuations in frequency, notifying customers and suggesting that they shut down sensitive equipment.

In the end, while clear weather made for some excellent eclipse viewing, the electrical story ultimately felt more like Monty Python’s radio coverage of the 1972 eclipse. As if audio coverage of a quintessentially visual event isn’t absurd enough, the Pythons closed their fictitious report in the ultimate anticlimax, as a sudden rainstorm swept in to spoil the solar spectacle. Europe’s interconnected power grid brought about an equally anticlimactic ending today by delivering rock-solid stability throughout the 2.5-hour eclipse. Continue reading

Will Shuttering Coal Plants Really Threaten the Grid?

Does President Obama’s plan to squelch carbon emissions from coal-fired power plants really threaten the stability of the grid? That politically-charged question is scheduled for a high-profile airing today at a meeting in Washington to be telecast live starting at 9 am ET from the Federal Energy Regulatory Commission (FERC).

Such “technical meetings” at FERC are usually pretty dry affairs. But this one could be unusually colorful, presenting starkly conflicting views of lower-carbon living, judging from written remarks submitted by panelists.

On one side are some state officials opposed to the EPA Clean Power Plan, which aims to cut U.S. power sector emissions 30 percent by 2030 from 2005 levels. Susan Bitter Smith, Arizona’s top public utilities regulator, argues that EPA’s plan is “seriously jeopardizing grid reliability.” Complying with it would, she writes, cause “irreparable disruption” to Arizona’s (coal-dependent) power system.

Environmental advocates and renewable energy interests will be hitting back, challenging the credibility of worrisome grid studies wielded by Bitter Smith and other EPA critics. Some come from organizations that are supposed to be neutral arbiters of grid operation, such as the standards-setting North American Electric Reliability Corporation (NERC). Clean energy advocates see evidence of bias and fear-mongering in these studies, and they are asking FERC to step in to assure the transparency and neutrality of future analyses. Continue reading