What Order 2222 Could Mean for Customers – and What Grid Operators are Doing About It

Posted by Prusha Hasan on Jun 23, 2021 12:34:28 PM

FERC 2222 Use Cases

In September 2020, the Federal Energy Regulatory Commission (FERC) generated buzz across the advanced energy industry when it issued a long-awaited order (Order 2222) opening up wholesale energy markets to aggregated distributed energy resources (DERs). In a new report, AEE set out to illuminate the benefits Order 2222 can unlock by showing various use cases for aggregated DERs in wholesale markets. If grid operators, known as Regional Transmission Operators/Independent System Operators (RTOs/ISOs), create a level playing field, the Order could increase interest and investment in various DER aggregations, improve grid reliability, and lower consumer costs. But they’re just starting the process of developing the market rules to implement Order 2222, RTO by RTO.

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ELECTRICITY DELIVERY & MANAGEMENT: Energy Storage Takes Off, On Grid and in Microgrids

Posted by Bob Keough on Jun 21, 2021 4:00:00 PM

This post is the last in a series of excerpts from the Advanced Energy Now 2021 Market Report, prepared for AEE by Guidehouse Insights.

The year 2019 was one of the biggest for Electricity Delivery and Management, recording 13% growth globally and 14% in the United States; 2020 was strong as well, with global growth at 9% and 10% in the U.S.

Total revenue in the global market has traditionally been driven by large-scale transmission infrastructure, but Energy Storage has emerged as the fastest growing subsegment globally, with a CAGR of 47% from 2011 to 2020 and 35% growth last year, reaching $3.8 billion. Conversely, transmission, which comprised nearly half of Electricity Delivery and Management revenue in 2011, dropped from $6 billion to just over $3.2 billion in revenue since 2016.

In the United States, Transmission, which comprised nearly half of Electricity Delivery and Management revenue in 2011, has dropped from $6 billion to just over $3.2 billion in revenue since 2016. Meanwhile, Energy Storage has taken off, especially in the past year, jumping 139%, to $1.6 billion, in 2020, capping a run at 39% CAGR since 2011.

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Topics: Advanced Energy Now Market Report

Arizona’s Clean Energy Rules Are Back on Track – But Derailment Is Still a Danger

Posted by Shelby Stults on Jun 16, 2021 11:30:00 AM

ACC rules revived

On May 6, the clean energy train slid off the tracks in Arizona, taking with it the hope for the timely passage of the proposed Arizona Corporation Commission (ACC) Energy Rules to reach 100% clean energy by 2050. More than three years after the rulemaking train left the station, the ACC rejected the proposed rules in a surprise 3-to-2 vote. That decision came after nearly three years of official stakeholder engagement, bipartisan cooperation, and extensive participation of utilities, consumer advocates, and communities of faith in the robust process, with all of those groups ultimately supporting the proposed rules package. But it turns out this was not the end of the line for the proposed rules. They are now back on track, in a new form, although the journey is far from over.

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Topics: State Policy, PUCs, Arizona

ADVANCED INDUSTRY: Energy Management, CHP Drive Market Growth

Posted by Bob Keough on Jun 15, 2021 11:20:50 AM

This post is the seventh in a series of excerpts from the Advanced Energy Now 2021 Market Report, prepared for AEE by Guidehouse Insights.

Advanced Industry consists of two subsegments: Manufacturing Machinery and Process Equipment and Industrial Combined Heat and Power (CHP). Manufacturing Machinery and Process Equipment tracks sales of industrial energy management systems, which are software and services for energy management within an industrial facility or across an enterprise to meet efficiency, cost savings, and sustainability targets while maintaining optimal operation of production processes.

In the United States, Advanced Industry revenue grew 10% overall from 2019 to 2020, to $11.6 billion. Since 2011, U.S. Advanced Industry revenue has more than doubled, growing at a CAGR of 12%. U.S. Manufacturing Machinery and Process Equipment revenue increased 10%, to $7.0 billion, in 2020, based on sales of industrial energy management systems. CHP revenue increased by 9% year-over-year, to $4.6 billion, following 13% growth in 2019. Though smaller in the United States than Manufacturing Machinery and Process Equipment, Industrial CHP has grown faster over the 2011-2020 time period, at 18% CAGR versus 9% for Manufacturing Machinery and Process Equipment.

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Topics: Advanced Energy Now Market Report

For AEE, an Indiana Legislative Session with Real Progress and Minimal Setbacks

Posted by Caryl Auslander on Jun 10, 2021 12:12:46 PM

IN legislative round-up

In a blink of an eye, AEE Indiana ran through the finish line of the 2021 legislative session of the Indiana General Assembly at the end of April, and we’re just now catching up. While in the past two sessions we mostly  played defense, working to stop coal bailouts and moratoriums on plant closures. But this session the advanced energy industry got an opportunity to go on offense, with several bills that we favored making it to the Governor’s desk. We still had to temper a last minute Hail Mary from the Coal Council, which would have hindered utility efforts to move beyond coal, but overall the pros outweigh the cons in 2021. Here’s a rundown of where we ended up on our priority issues at the end of the Indiana legislative session.

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Topics: State Policy