Off-Peak Electric Heat Blog

Some of you have heard us talk about the ETS program in Summerside, PEI. They are using Grid-interactive ETS (GETS) space and water heaters to help the municipal utility integrate the wind energy from their 4 turbines. The wind turbines are not only providing green electricity but they are also reducing the need for imported oil used for heating.  The Summerside municipal utility is developing a city wide “intranet” to have two way communications with each heating device. This is truly a smart grid application that is beneficial to the consumer, the utility, and the community.

They talk about ETS heaters at the 2:30 mark of the video found here: http://www.cbc.ca/video/#/News/Canada/PEI/Compass/2179017826/ID=2194825538

According to this article by smartgridnews.com, the California Public Utilities commission is considering making storage its own asset class. This would allow utilities to offer long term contracts to energy storage companies and developers. Since Steffes Grid-interactive Electric Thermal Storage (GETS) is the low cost electric storage option, setting up storage as its own assets class should create opportunities for GETS programs in California. Analysis by the Cooperative Research network shows the value for electric storage to be between $2000 and $12,000/kW. The cost of GETS space and water heating is between $100 and $200/kW.  Setting up storage as an asset class and deploying GETS space and water heating will be provide a positive return for the rate payers in California.

Other states would be wise to explore this as well.

Paul Steffes has been in the news a couple of times in the last few weeks. The first time was for receiving first place for his white paper at the Power Gen conference recently held in Las Vegas. The paper was in the renewable energy category. The paper was on Grid-interactive Electric Thermal Storage (GETS) for space and water heating. The award can be found here.

There is also a nice article on Paul in the City magazine. The content is on being an engineer-entrepreneur in western North Dakota.

Main story

http://www.thecitymag.com/image/cache/jan_2012_cm.pdf

Extra Content

http://www.thecitymag.com/?id=103&form_data_id=1589

Nice Job Paul.

The New York Times had an article last week by Matthew L. Wald commenting on a FERC ruling that states that Bonneville Power Authority (BPA) must re-write its rules to cope with events that cause an excess of renewable energy. Last spring and summer BPA dealt with large river flows and fast ramping wind events. BPA’s solution to these events was to curtail the wind.  This made the wind developers not happy.  At the end of Mr. Wald’s article he refers to a “radical program that installs equipment in consumer’s homes”.  Much of the equipment in this radical program is Steffes Grid-interactive Electric Thermal Storage (GETS). 

The Steffes GETS systems are able to receive signals to ramp up or down quickly to productively use this “excess” of green energy productively. As more renewable generation from wind and solar sources comes on line, the need to have fast acting resources will continue to grow. These types of articles will continue to pop up as grid operators are faced with the challenges of balancing variable demand and variable generation.  As such we will continue to promote the Steffes GETS space and water heating as a low cost solution.

On 11/10/11 Senators Wyden, Collins, and Bingaman introduced legislation for the Storage Technology for Renewable and Green Energy Act of 2011. The implications for Steffes Heating Systems are that there will be a 30% federal tax credit on room units, Comfort Plus, Comfort Plus Hydronic, and ThermElect. If this legislation can get passed paybacks for homeowners will typically be less than 3 years. For commercial customers ROI of greater that 50% may be possible. I will keep you updated of how this bill progresses. Below is the press release from the authoring Senators:

Wyden, Collins, Bingaman Legislation Will Increase Investments in the Storage of Renewable Energy

Washington, D.C. – As the nation takes steps to improve energy efficiency and develop renewable resource technologies, not enough is being done to ensure that electricity infrastructure is being used efficiently.  The focus on building transmission and generation capacity to meet peak demand for electricity means that consumers pay more while producers are forced to rely on less cost-efficient energy sources.

U.S. Senators Ron Wyden (D-Ore.), Susan Collins (R-Maine) and Senate Energy Committee Chairman Jeff Bingaman introduced the Storage Technology for Renewable and Green Energy Act of 2011 (STORAGE) to jump start the development of energy storage technology to better manage capacity to meet peak energy needs and make it possible for intermittent energy sources like wind and solar power to reach their potential.

As the percentage of energy from wind and solar increases, the energy grid must also adjust to the intermittent nature of these technologies. Renewable generation capability changes with the weather and the time of day and not necessarily when power is most needed.  Advancements in energy storage technologies will provide more efficient management of peak energy needs while simultaneously promoting the growth of clean, renewable energy technologies.

“The missing piece of the renewable energy debate has always been how to make those technologies reliable when the sun doesn’t shine or the wind doesn’t blow,” Wyden said. “Technologies that not only store energy to cover for intermittent output but also make the existing grid more efficient could be the very thing renewable energy technologies need to break through to the mainstream.”

“Deployment of storage technologies will make our nation’s electricity grid more reliable while also enabling more efficient use of existing energy sources as well as new ones, such as wind and solar,” said Bingaman.  “These technologies have the potential to cut electricity bills, reduce peak power demand and lower greenhouse gas emissions.  The incentives in this bill also will make storage technologies more affordable for businesses and homes.”  

“Storage systems comprise a broad range of technologies and can be used in a variety of ways,” said Senator Collins.  “The STORAGE Act would help advance energy storage technologies to improve the efficiency of the nation’s electricity grid, and energy storage for industrial, commercial, and residential establishments, while helping to promote wider use of clean, renewable energy.”  

According to the Electric Power Research Institute, more than 25 percent of the equipment and capacity of the U.S. electric distribution system and 10 percent of transmission equipment are needed to meet the demands of less than 400 hours of peak electricity use each year. The only resources currently agile enough to meet that demand are fossil fuels. The STORAGE Act offers business incentives for the development of technologies that can better store energy created during non-peak hours and distribute it to meet peak demand. This will make the grid more efficient than it is now, reduce reliance on burning fossil fuels and minimize a barrier preventing intermittent energy sources like solar and wind from breaking through into the mainstream.

The STORAGE Act provides a 20 percent investment tax credit of up to $40 million for storage systems that are connected to the electric grid and a 30 percent investment tax credit of up to $1 million to businesses and homeowners for on-site storage projects.  It provides tax credits to businesses and homeowners who install energy storage on their own property to help serve their own energy needs efficiently or capture energy from on-site renewable energy generation. The bill does not pick “winners and losers” and allows the market to decide which technologies are the best and not specifically singling out any one resource.

On 11/8/2011 I sat in on a webinar “A Legislative & Regulatory Review” with Glenn English, CEO of NRECA. It was a very informative and casual video conference. Glenn covered several issues. Below are some of the highlights.

• He talked about the triangle of issues that must be met by electricity providers.  This triangle really struck a chord with me. When I think about the value proposition for Steffes Heating Systems, or more generically grid-interactive electric thermal storage (GETS), affordability, reliability, and environmental (renewable integration) are it. GETS is the low cost way to increase renewables while maintaining and enhancing reliability.
• Smart Grid: Glenn had an interesting comment on the smart grid. “Coops have been working on the smart grid since before it was called the smart grid”. I found that interesting because I also feel that the grid has been smart for a long time. It is true that grid will need to continue to evolve and become smarter.
• Renewable Energy: He feels that Congress will be cutting tax credits for renewable resources. If states have a large renewable resource standard, their rates will need to increase more quickly.
• Wind Industry: Transmission is the single largest hurtle to developing more wind energy, according to Mr. English.  Of course, affordable electric storage would relive the need for more transmission lines.
• Glenn English concluded by saying that the US really needs a nation energy policy. He doesn’t feel that one is forthcoming any time soon.

According to EIA’s This Week in Petroleum, the retail price of propane and fuel oil continue to be high. The retail price of propane is up nearly 15% compared to the same time last year. Heating oil’s retail price is up nearly 29% compared to last year. The average price of both of these fuels is equivalent to 11.7¢/kWh electricity. Making off-peak electricity an excellent value in most regions.

Below is what EIA wrote:

Residential heating oil and propane prices increase
Residential heating oil prices increased during the period ending October 31, 2011. The average residential heating oil price rose $0.05 per gallon last week to reach $3.85 per gallon, an increase of $0.86 per gallon from the same time last year. The wholesale heating oil price increased by $0.05 per gallon last week to $3.16 per gallon; $0.84 per gallon more than last year at this time.

The average residential propane price increased two and a half cents to $2.82 per gallon. This is a rise of $0.36 per gallon compared to the $2.45 per gallon average from the same period last year. The wholesale propane price increased by more than $0.01 per gallon, rising from $1.49 per gallon to a price just shy of $1.51 per gallon, as the only regional price gain occurred in the Midwest. This was an increase of $0.22 per gallon when compared to the November 1, 2010 price of $1.29 per gallon.

The municipal utility in Madison, Maine has started a new ETS program. They have developed a nice video describing their program. Enjoy!

In this week's "The News", they did a article on the benefits of hydronic heating. The title is "Hydronics are in High Demand."

Even though the first cost of hydronic equipment is usually more expensive than forced-air units, customers often remain willing to pay the premium for the constant, even temperatures a properly designed hydronic system can provide. 

I find that people that have hydronic heat really do love it. The Steffes Comfort Plus Hydronic (5100 series) is the off-peak heating systems for hydronic heating. The Comfort Plus Hydronic can provide hydronic radiant heating and with the addition of an Air Handler it can also do forced air heating. A very common application for a Steffes 5100 series would be to have radiant in-floor heating in the lower levels of the home and forced air in the upper levels.

The Steffes Air Handler can be combined with an heat pump to provide heating and cooling for force air areas of the home. The heat pump will also increase the system efficiency in heating.

 For Commercial systems that need hydronic heat we have ThermElect 9100 series.

Recently the Federal Energy Regulatory Commission (FERC) issued a ruling on pay for performance for fast acting frequency control.  The ruling states that the compensation must be given for the actual benefit that the resource can provide. Traditionally regulation compensated has been given to base load generation that is relatively slow in its response to the needs of the grid. Studies have shown that a fast acting resource can provide greater benefit with smaller energy bid in to the market.

Today’s final rule involves compensation for regulation service, an ancillary transmission service that protects the grid

by correcting deviations in grid frequency and balance on transmission lines with neighboring systems. Frequency

regulation service is provided by generators and from storage technologies such as flywheels and electric vehicles,

demand resources and possibly even residential water heaters. Adjusting the compensation for regulation service

providers will recognize the amount of service resources provide, thus correcting the price signal for faster-ramping

resources. This will allow market operators to take advantage of the capabilities of faster-ramping resources to

improve operational and economic efficiency of the transmission system and reduce costs to consumers in organized

wholesale markets.

Steffes Grid-interactive Electric Thermal Storage (GETS) for space and water heating can provide fast response to market needs. We are very excited about this ruling and how it will further enhance the economics of our room units, Comfort Plus, and ThermElect product lines.