Background on Renewable Energy Topics |
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Welcome to the ninth installment of Sterling Ranch's crash course on energy! In this email, we'll look at how much renewable energy is in our contemporary energy mix, how renewables are changing our energy grid, and how clean energy is accounted for in sustainability tracking! |
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A Changing Energy Landscape |
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According to the U.S. Energy Information Administration, a significant change occurred on our energy grid in 2020: renewable energy overtook coal and nuclear power to become the second-most prevalent source of energy used to produce electricity in the United States.1 Overall, renewable energy represented 21% of all electricity generated on the grid, demonstrating an upward increase of 9% from 2019 generation levels. This growth is part of a larger trend in the expansion of renewables that is projected to continue with similar momentum in future years.
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While this increasing share of renewables on our grid is something to celebrate, it's not without its complexities. Solar and wind energy are produced in variable amounts dependent on weather, which can make it challenging for utilities to rely on these resources to meet energy demand in their planning. Additionally, solar energy generation tapers off as the sun sets, which happens for the most part before peak demand hours when energy is needed most.
Meeting these key challenges has required a novel level of innovation in our energy system, as well as further highlighted the necessity of building a more modern, adaptable grid to accommodate the emerging technologies key to harnessing the full power of green energy.
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Grid Modernization
As introduced in a previous email segment, our energy grid has traditionally consisted of energy being transported unidirectionally in three major stages: the generation of energy at large scale production facilities, the long distance movement of energy over high voltage transmission lines, and the short distance movement of energy over low voltage distribution lines. Besides this model of energy production and transportation becoming increasingly outdated with more Distributed Energy Resources (DERs) coming onto the grid, a 2015 Department of Energy report found that 70% of transmission lines were 25 years or older.2 As it becomes more apparent day by day, our energy system's design and equipment both need a refresh.
The influx of Distributed Energy Resources (DERs) into our energy landscape is one of the most notable changes that our grid has had to respond to. DERs are small scale energy resources that are typically found close to where their produced energy will be consumed, largely "behind the meter" (connected directly to the energy user). A solar system installed on the rooftop of a home is an example of a DER. DERs add complexity to our existing grid through Net Metering programs in which utilities buy the excess energy produced by DER systems to augment the supply on the grid for other customers. As shown in the graphic above, this arrangement requires infrastructure that can support a bidirectional flow of energy: the traditional flow of energy from the grid to the DER owner's meter, and the novel flow of energy from behind the meter back to the grid.3
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Understanding Renewable Energy Credits (RECs) |
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The production of coal, natural gas, and wind energy all have drastically different climate impacts, but once electricity is generated from each of these sources and sent to the grid, it all mixes together. With this being the case, how do you tell whether the clean energy that you purchase for your home is actually clean?
The short answer is that you can't. Unless your home is powered directly and fully by DERs, there's no way to track the physical origin of the energy that you use. What you can do, however, is track the "greenness," or environmental benefit of the energy that you buy through Renewable Energy Certificates (RECs).
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A REC is a tradable token that's generated as clean electricity is produced. 1 REC is equivalent to the production of 1 megawatt-hour of clean energy. Under this system, the actual electricity produced and the REC (which represents the electricity's status as clean energy) are bought and sold on separate markets. RECs can be traded multiple times, but the environmental benefits of the REC can only be claimed by the party that "retires" the REC.
When a REC is initially generated, it's assigned a unique serial number that allows it to be reliably tracked as it trades hands. This ensures that RECs aren't double counted, and that the number of RECs on the market correspond directly to the amount of renewable energy actually produced.
Sterling Ranch encourages homeowners with solar to enroll in Xcel Energy’s Net-Metering program to ensure they retain the RECs they produce. Participants in Xcel Energy’s Solar*Rewards® program do not own the RECS they produce, as they are bought and retired by Xcel Energy in exchange for the bill credit participants receive.
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Keeping up with developments in renewable energy in your community is a great way to stay keyed into opportunities for you to take energy action! As a customer of a utility highly committed to sustainability, you have access to a lot of public information about your utility's strategy to navigate the energy transition. Track Xcel Energy's progress toward their commitments and keep learning more about new programs and initiatives to get involved in on Xcel Energy's Our Energy Future page .
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The topics outlined in this email are helpful things to understand as a residential energy user looking to take energy action, but they're by no means a comprehensive set of everything there is to know about the complex and evolving interactions of renewables with our energy system. Continue doing your own research to learn more about energy by paying special attention to energy content from news outlets or going out of your way to subscribe to renewables-specific newsletters.
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If you don’t own solar but still want to claim renewable energy benefits, consider enrolling in Windsource®
- Energy efficiency is also important for clean energy. Efficiency helps with renewable energy adoption, as it decreases electricity demand so less renewable energy has to be installed. Check out previous emails for tips on improving your energy efficiency.
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