Investing in the Clean Trillion: Closing the Clean Energy Investment Gap

In 2010 world governments agreed to limit the increase in global temperature to two degrees Celsius (2 °C) above pre-industrial levels to avoid the worst impacts of climate change. To have an 80 percent chance of maintaining this 2 °C limit, the IEA estimates an additional $36 trillion in clean energy investment is needed through 2050 -- or an average of$1 trillion more per year compared to a "business as usual" scenario over the next 36 years.This report provides 10 recommendations for investors, companies and policymakers to increase annual global investment in clean energy to at least $1 trillion by 2030 -- roughly a four-fold jump from current investment levels

Final Report: Market and Economic Modelling of the Intelligent Grid

The overall goal of Project 2 has been to provide a comprehensive understanding of the impacts of distributed energy (DG) on the Australian Electricity System. The research team at the UQ Energy Economics and Management Group (EEMG) has constructed a variety of sophisticated models to analyse the various impacts of significant increases in DG. These models stress that the spatial configuration of the grid really matters - this has tended to be neglected in economic discussions of the costs of DG relative to conventional, centralized power generation. The modelling also makes it clear that efficient storage systems will often be critical in solving transient stability problems on the grid as we move to the greater provision of renewable DG. We show that DG can help to defer of transmission investments in certain conditions. The existing grid structure was constructed with different priorities in mind and we show that its replacement can come at a prohibitive cost unless the capability of the local grid to accommodate DG is assessed very carefully.Distributed Generation. Energy Economics, Electricity Markets, Renewable Energy

Distributed Resources Shift Paradigms on Power System Design, Planning, and Operation: An Application of the GAP Model

Power systems have evolved following a century-old paradigm of planning and operating a grid based on large central generation plants connected to load centers through a transmission grid and distribution lines with radial flows. This paradigm is being challenged by the development and diffusion of modular generation and storage technologies. We use a novel approach to assess the sequencing and pacing of centralized, distributed, and off-grid electrification strategies by developing and employing the grid and access planning (GAP) model. GAP is a capacity expansion model to jointly assess operation and investment in utility-scale generation, transmission, distribution, and demand-side resources. This paper conceptually studies the investment and operation decisions for a power system with and without distributed resources. Contrary to the current practice, we find hybrid systems that pair grid connections with distributed energy resources (DERs) are the preferred mode of electricity supply for greenfield expansion under conservative reductions in photovoltaic panel (PV) and energy storage prices. We also find that when distributed PV and storage are employed in power system expansion, there are savings of 15%-20% mostly in capital deferment and reduced diesel use. Results show that enhanced financing mechanisms for DER PV and storage could enable 50%-60% of additional deployment and save 15 /MWh in system costs. These results have important implications to reform current utility business models in developed power systems and to guide the development of electrification strategies in underdeveloped grids

On the Frontiers of Finance: Scaling Up Investment in Sustainable Small and Medium Enterprises in Developing Countries

Outlines the economic, social, and environmental benefits of investing in sustainable small and medium enterprises; the lending practices of financial intermediaries; and barriers. Includes case summaries and recommendations for sectoral growth

Large Scale Deployment of Renewables for Electricity Generation

Comparisons of resource assessments suggest resource constraints are not an obstacle to the large-scale deployment of renewable energy technologies. Economic analysis identifies barriers to the adoption of renewable energy sources resulting from market structure, competition in an uneven playing field and various non-market place barriers. However, even if these barriers are removed, the problem of ‘technology lock-out’ remains. The key policy response is strategic deployment coupled with increased R&D support to accelerate the pace of improvement through market experience. The paper suggests significant contributions from various technologies, but does not assess their optimal or maximal market share

Comparing the Costs of Intermittent and Dispatchable Electricity Generating Technologies

Economic evaluations of alternative electric generating technologies typically rely on comparisons between their expected life-cycle production costs per unit of electricity supplied. The standard life-cycle cost metric utilized is the “levelized cost” per MWh supplied. This paper demonstrates that this metric is inappropriate for comparing intermittent generating technologies like wind and solar with dispatchable generating technologies like nuclear, gas combined cycle, and coal. Levelized cost comparisons are a misleading metric for comparing intermittent and dispatchable generating technologies because they fail to take into account differences in the production profiles of intermittent and dispatchable generating technologies and the associated large variations in the market value of the electricity they supply. Levelized cost comparisons overvalue intermittent generating technologies compared to dispatchable base load generating technologies. They also overvalue wind generating technologies compared to solar generating technologies. Integrating differences in production profiles, the associated variations in the market value of the electricity supplied, and life-cycle costs associated with different generating technologies is necessary to provide meaningful comparisons between them. This market-based framework also has implications for the appropriate design of procurement auctions created to implement renewable energy procurement mandates, the efficient structure of production tax credits for renewable energy, and the evaluation of the additional costs of integrating intermittent generation into electric power networks.- Massachusetts Institute of Technology. Center for Energy and Environmental Policy Research

Market and Economic Modelling of the Intelligent Grid: Interim Report 2011

The overall goal of Project 2 has been to provide a comprehensive understanding of the impacts of distributed energy (DG) on the Australian Electricity System. The research team at the UQ Energy Economics and Management Group (EEMG) has constructed a variety of sophisticated models to analyse the various impacts of significant increases in DG. These models stress that the spatial configuration of the grid really matters - this has tended to be neglected in economic discussions of the costs of DG relative to conventional, centralized power generation. The modelling also makes it clear that efficient storage systems will often be critical in solving transient stability problems on the grid as we move to the greater provision of renewable DG. We show that DG can help to defer of transmission investments in certain conditions. The existing grid structure was constructed with different priorities in mind and we show that its replacement can come at a prohibitive cost unless the capability of the local grid to accommodate DG is assessed very carefully.Distributed Generation. Energy Economics, Electricity Markets, Renewable Energy

Growing a Green Economy for All: From Green Jobs to Green Ownership

This Democracy Collaborative report provides the first comprehensive survey of community wealth building institutions in the green economy. Featuring ten cases, the report identifies how policy and philanthropy can build on these examples to create "green jobs you can own.

Planning and operating energy storage for maximum technical and financial benefits in electricity distribution networks

PhD ThesisThe transmission and distribution networks are facing changes in the way they will be planned, operated and maintained as a result of the rise in the deployment of Low Carbon Technologies (LCTs) on the power grid. These LCTs provide the benefits of a decarbonised grid and reduce reliance on fossil fuels and large centralised generation. As LCTs are close to the demand centres, a significant amount will be deployed in distribution networks. The distribution networks face challenges in enabling a wide deployment of LCTs because they were traditionally built for centralised generation and most are operated passively as demand patterns are well understood and power flows are unidirectional to load centres. The opposite will be the case for distribution networks with LCTs. Utilities that own and operate distribution networks such as the DNOs in the UK will face a host of problems, such as voltage and thermal excursions and power quality issues on their networks. Traditional reinforcement methods will be expensive for DNOs, so they are considering innovative solutions that provide multiple benefits; this is where Energy Storage Systems (ESS) could play a role to provide multiple technical and economic benefits across the grid from voltage and power flow management to upgrade deferral of network assets. This is due to the multifunctional nature of ESS allowing it to act as generation, transmission, demand or demand response based on requirements at any specific time based on the requirements of the stakeholder involved with the asset. ESS is technically capable of providing benefits to DNOs and other stakeholders on the electricity grid but the business case is not proven. Unless multiple benefits are aggregated, investment in ESS is challenging as they have a substantial capital cost and some components will require more frequent replacement than traditional network assets which typically last between 20 – 40+ years. As a result there is a reluctance to include them in future distribution network planning arrangements. IV Furthermore, the electricity regulatory and market design, which was set up in the time of traditional centralised generation and networks, limits investment in ESS by regulated bodies such as DNOs. The regulations and market structures also affects revenue streams and the resulting business case for ESS. This thesis investigates the feasibility of ESS in distribution networks by first studying the effect of current electricity regulatory and market practices on ESS deployment, investigating how ESS can be used under the present rules, and establishing whether there are limitations that can be reduced or removed. Secondly, short and medium term planning is carried out on model Medium Voltage distribution networks (6.6 kV) provided by the IEEE and Electricity North West Limited to establish the technical and financial viability of investing in ESS over conventional reinforcement methods by: Assessing the impact of the proliferation of LCTs in distribution networks using both deterministic and stochastic methods under different scenarios based on current developments and government policies in the UK. This stochastic evaluation considers both spatial and temporal aspects of LCTs in distribution networks with datasets obtained from real distribution network customers; Developing and applying ESS voltage and power flow management, and market control algorithms to resolve distribution network issues resulting from growing LCTs and allowing ESS to participate in the electricity spot market over a planning period up to the year 2030; Providing a framework for assessing the business case of ESS under a DNO or third-party ownership structure where technical and commercial benefits from network asset upgrade deferral, energy arbitrage, balancing market and ancillary services (frequency response and short term operating reserves), distribution and transmission system use of system benefits are evaluated; V Optimising the operation of ESS considering multiple technical and commercial objectives to establish the technical benefits and revenues that can be obtained from an ESS deployment and the trade-off of benefits that applies for differing ownership types. The simulation results show that, under the scenarios investigated, ESS can be used as a technical solution for DNOs. They show that the ESS capital costs can be offset by aggregating benefits from both technical and commercial applications in distribution networks if regulatory and market changes are made. The conclusions offer a perspective to DNOs and third parties’ considering investing in ESS on the electricity grid as it evolves towards a more active, decarbonised system.Electricity North West Limited and Scottish Power Energy Networks sponsored my stud

The Green Investment Report: The Ways and Means to Unlock Private Finance for Green Growth

This report is a first step by the Green Growth Action Alliance to deliver on the G20 Leaders' request. It aims to provide a common point of reference to guide policy-makers, financial institutions and investors as they seek to better understand, and address, the global gap in green investment. This report documents and synthesizes the best available green investment data, research and case studies from a number of leading organizations, including Bloomberg New Energy Finance, the Climate Policy Initiative, the International Energy Agency, the Organization of Economic Cooperation and Development, the United Nations Environment Programme, the World Bank Group and the World Resources Institute, and provides important messages for different groups of stakeholders. New analysis is also presented on clean-energy asset finance flows, the findings of which can be used to guide investment decisions and priorities in other sectors