Turn on the power

By Edward H. White

American utilities are facing a host of new challenges today. Challenges that urge us to re-think the landscape of available energy solutions we provide to our customers.

From global threats to our environment in the form of climate change, to dwindling and hard-to-reach domestic fossil fuel supplies resulting in an increasing dependence on foreign fuel, to unfortunate incidents that impact our natural resources and public image, the choices we make - as utilities and as a society - are worth examining. Further, our customers are becoming more aware of the impact that these traditional sources of energy have on our daily lives and the adverse effect they have on our environmental footprint. In fact, it is both logical and expected that utilities need to think differently if we are to change the landscape of energy solutions currently available to our customers. Utilities need to introduce a myriad of energy solutions that both suit our customers' needs and minimize any further impact on the environment.

Renewable energy needs to be an integral part of the solution. And why shouldn't it be? Renewable energy generations such as solar, wind and hydro-power are environmentally friendly, green, sustainable and are right here in the communities in which we live and serve.

National Grid believes that climate change is one of the most important challenges facing society today. While conservation and efficiency are the most affordable ways to reduce carbon emissions and energy costs, critical investment is needed in renewable generation and smarter grid technology across the industry. National Grid is looking to mitigate climate change with a diverse blend of energy efficiency, a smarter grid and renewable generation offerings.

As the second largest utility in the US, National Grid has been actively participating in and leading debates across the industry and beyond to address the challenges the utilities of the future will face. With more than 20 years of experience in delivering energy efficiency programs and installing solar generation systems, we are committed to being a leading advocate of solar generation and other renewable technologies across the Northeast. We have learned that the successful integration of renewables into the energy mix is only attainable when states and regions work collectively to share a similar vision of creating a green economy.

Recently, the Commonwealth of Massachusetts passed the Green Communities Act (GCA), which set goals to meet 20 percent of the Commonwealth's electric load by 2020 through renewable and alternative generation. Moreover, the Commonwealth set a target to install 250 megawatts (MWs) of solar generation by the end of 2017 and has challenged utilities to be part of that solution. National Grid rose to the challenge and was among the first utilities to submit a filing to the Massachusetts Department of Public Utilities (DPU) to construct, own and operate approximately 5 MWs of solar generation on five separate company-owned sites. Four of those sites that National Grid chose were former manufactured gas plant sites. The company is turning these brown fields that previously had very limited use into renewable energy generation sites. National Grid took the Commonwealth's challenge seriously and we hope that other states and utilities will join us.

The 5 MWs of solar generation in Massachusetts, while a small contribution to the state's entire renewable energy needs, will help decrease emissions by approximately 2.9 tons of sulfur dioxide, 6.37 tons of nitrogen oxide and 3044 tons of carbon dioxide per year. At that emission rate, 5 MWs of solar generation in Massachusetts would save approximately 160 tons of sulfur dioxide, 73 tons of nitrogen oxide and 76,100 tons of carbon dioxide over 25 years.

Evolving technologies such as smart grid are increasingly becoming part of the mix of the comprehensive energy solutions for customers. Several utilities in the US are either engaged in full-scale system implementations or pilot programs. It is widely believed that smart grids will be the fundamental service platform for future years. Smart grids have the potential to help customers reduce energy consumption and greenhouse gas emissions while enhancing the reliability of the electric grid.

As part of the American Recovery and Reinvestment Act of 2009, the US Department of Energy committed more than $4 billion of stimulus funds for Smart Grid Investment Grants and Smart Grid Demonstrations. Subsequently, National Grid was one of 54 smart grid work force training programs in the US that was awarded a share of nearly $100 million in DOE funding.

National Grid has proposed smart grid pilot programs in our Northeast service territory. National Grid's vision is to deploy smart grid technology to optimize the flow of green energy resources, enhance the performance of the electric transmission and distribution grid, and provide customers with the ability to make informed decisions about how they use energy.

In making the case for renewables, they should not be seen as an initiative or some temporary buzz word upon which forward-thinking utilities need to seize upon. Understandably there are some concerns that could affect the addition of renewables to the energy mix. For example, some renewable options are not as cost effective as others. Frequently, the market is slow to respond to providing funding to off-set the initial cost. Moreover, while some customers are early adopters and embrace cost-effective energy solutions, the reality is that there remain certain segments of consumers who are not ready or fully aware of the benefits of renewable energy. This should not be a deterrent to the utility model of the future. It just means that we need to work harder to engage and educate our customers, shareholders, governments and other stakeholders on the benefits of renewable energy that go beyond the initial implementation cost.

At National Grid, part of our vision is to ensure that we commit to being an innovative leader in energy management and in being environmental stewards who safeguard our global environment for future generations. It is critical that we, as the utility industry, realize that the actions we take today will serve to address climate change will benefit our customers and communities in multiple ways.