With the rise of renewable energy, the way that energy is distributed is changing. The traditional top-down method of energy distribution, from the utility to the customer, doesn’t always apply to energy from solar, wind and other renewable sources — some of which may be generated by customers themselves.

In these cases, where power flow is actually bidirectional, virtual power plants (VPPs) are becoming a more common distribution option.

What is a virtual power plant?

A virtual power plant is a network of decentralized generation sources, such as wind farms, solar arrays and combined heat and power units, that work in coordination with storage systems and flexible energy consumers.

While VPPs may take a variety of different forms, they all operate with one goal: to relieve demand on the grid. They do this by distributing the power generated by individual units during peak hours.

How does a virtual power plant work?

Virtual power plant participants are connected to a central control system that can boost or decrease energy output in real time. VPPs can provide demand response automatically, responding immediately to price signals, shifting commercial and residential loads, or aggregating other distributed energy resources.

All participants are monitored and controlled with a single system, which makes it easy to initiate these distribution adjustments. The system can also show real-time data consumption of each distributed energy resource (DER) on the grid.

VPPs are not the same as a microgrid, which has a confined boundary and can disconnect from the larger grid to create a power island. VPPs can cover much wider geography and can grow or shrink depending upon real-time market conditions.

The goal of a virtual power plant

Overall, the purpose of a virtual power plant is to connect and network DERs, demand response programs and storage systems in order to monitor, forecast, optimize and distribute their generation or consumption. Including these various DERs in one VPP means the data can be forecasted and analyzed as though it was a single power plant.

The VPP also allows energy utilities to separate the DERs by type and location so they can segment customers. By using segmentation to their advantage, energy utilities can determine what kind of value the VPPs bring to customers.

Energy utilities and virtual power plants

Virtual power plants allow energy utilities to better assess and correct demand response issues. For example, Green Mountain Power in Vermont created a VPP with 500 batteries in homes to address peak demand, yielding $500,000 in savings in one one-hour peak demand period.

In some states, there is growing conflict between energy utilities and third party DERs over who has “control” over the VPPs. For example, PPL Corporation in Pennsylvania is currently in a heated debate against a distributed resource aggregation service business, Sunrun, regarding management of the DERs and the regulations put upon solar customers. In other areas, such as California, New England and New York, “third-party companies have signed bilateral contracts with utilities whereby the company is in the driver’s seat for DER management and the utility is a customer instead of a competitor.” These agreements naturally take away the debate and competition for control.

Despite the growing popularity of virtual power plants, these conflicts demonstrate the need for uniform regulations regarding ownership. Still, the cost savings and environmental benefits for both energy utilities and customers prove VPPs will be useful as energy distribution continues to evolve. In addition, they help make renewable energy more readily available on the grid and provide solutions to demand response efforts.

The future of virtual power plants may be murky as the operations continue to evolve, but one thing is clear: this is the future of energy distribution.

Learn how a digital marketing strategy from Questline Digital can help your energy utility promote the benefits of demand response programs.

Due to the global coronavirus pandemic, more people are working from home than ever. In fact, 42% of the U.S. labor force now works from home full-time. What does this mean for your customers’ energy consumption?

According to CBS News, California residential energy use has risen 15% to 20% during the pandemic and New York energy use is up 4% to 7%.This is comparable to the International Energy Agency’s projections, noting that working from home could increase energy consumption by as much as 23%, “depending on regional differences in the average size of homes, heating or cooling needs and the efficiency of appliances.”

As customers spend more time working at home, they are using home office electronics throughout the day along with increased use of lighting, heating and cooling — even using kitchen appliances instead of the breakroom microwave at work. Of course, this all leads to an increase in home energy bills as well.

Payment options and efficiency advice for work-from-home customers

Questline Digital deployed more 72 million COVID-19-related messages on behalf of energy utilities during the initial months of the crisis. Those performance metrics painted a clear picture of the information customers wanted from their energy utilities.

Based on this insight, Questline Digital developed two key recommendations for connecting with work-from-home customers:

  1. Provide useful energy efficiency advice so customers can take control of their bills.
  2. Proactively communicate billing options to customers who are unfamiliar with assistance programs.

At the beginning of the crisis, email newsletters were the most reliable way to reach customers, as most utilities suspended program promotions and other non-essential communications. eNewsletters delivered record levels of engagement in March 2020, with a 37% average open rate — 65% higher than the same month the previous year. One of the most popular content topics throughout the spring was energy efficiency, especially saving energy in a home office.

When energy utilities resumed marketing campaigns in the late spring and early summer, energy efficiency and paperless billing campaigns were the top performers. Energy efficiency messages achieved a 26% average open rate, surpassing the benchmark rate by 11%.

There is a more worrying trend lurking in the shadows of the work-from-home surge: The economic shutdown caused by the pandemic has left 30 million Americans without jobs. Some dual-income households have even faced the prospect of losing income from one family member while another continues working from home, driving up energy costs. Many of these people are facing financial hardship for the first time and may not be familiar with your utility’s billing options and payment assistance programs.

A major investor-owned utility in the Southeast sent a payment reminder email to more than 86,000 customers early in the crisis. The message provided an option to make partial payments and linked to the utility’s COVID-19 resource page. The email experienced extraordinary engagement rates with a 41% open rate and 5,850 total clicks.

A permanent shift in home energy use

As many companies continue to allow employees to work from home, it is clear that work culture is changing. For example, Google employees are working from home until at least summer 2021 and Twitter staff can do so permanently. Even when the pandemic ends, a survey by the Harvard Business School found that one in six workers is projected to continue working from home at least two days a week.

Despite growing questions about a continued work from home future, it is apparent that this is just the beginning. Your energy utility needs to continue to prepare customers for the increased costs that come with their home office, whether through payment options or energy efficiency tips.

The future of our work-from-home world may be unknown, but what is known are the numerous ways your energy utility can help your residential and business customers. Be a trusted resource as customers continue to work through the struggles of a pandemic.

Learn how proactive communications like Questline Digital‘s Payment Assistance Campaign connect customers with billing options when they need help the most.

Questline Digital energy expert Mike Carter shares his analysis of energy storage technology and the outlook for utilities.

Electrical energy is transitory in nature. It is generally consumed as soon as it is produced. This requires closely matching power generation with consumption, which is complex and costly. Energy storage systems (ESS) are a great enabler that can temper this requirement. In fact, energy storage can provide over a dozen general electricity services to the electric grid. Deployments of energy storage capacity almost doubled from 2018 to 2019 and were poised for explosive future growth prior to the COVID-19 pandemic, primarily from the residential market.

Policies like utility integrated resource plans (IRP) and favorable distributed generation interconnection rules have driven the front-of-the-meter (FTM) market. Federal Energy Regulatory Commission (FERC) Order 841, approved in February 2017, leveled the wholesale energy and capacity FTM markets by treating storage as a generation resource. Monetary incentives from states and utilities, plus improved resiliency have driven the behind-the-meter (BTM) market.

The Rocky Mountain Institute (RMI) has identified 13 services that energy storage can provide to three stakeholder groups from delivery of each service. The stakeholder groups and benefits are:

  • Independent system operators (ISOs) and regional transmission organizations (RTOs)
    • Energy arbitrage
    • Spin/non-spin reserve
    • Frequency regulation
    • Voltage support
    • Black start
  • Utilities
    • Resource adequacy
    • Transmission congestion relief
    • Transmission and distribution construction deferral
  • Customers (BTM only)
    • Time-of-use bill management
    • Demand charge reduction
    • Increased PV solar self-consumption
    • Backup power

For customers, energy storage can meet on-peak demand with excess energy produced by baseload generation and renewables during off-peak hours. This reduces or eliminates peak customer demand charges. ESS also makes it much easier and cost-effective to add wind and solar energy to the grid.

There are generally seven categories of energy storage technologies:

  • Electrochemical batteries — mainly capacitors
  • Kinetic flywheels — mechanical devices that harness rotational energy to deliver instantaneous electricity
  • Static chemical batteries — a range of electrochemical storage solutions, including advanced chemistry batteries
  • Thermal storage — capturing heat and cold to create energy on demand, including ice storage
  • Chemical flow batteries — batteries where the energy is stored directly in a circulating electrolyte solution for longer cycle life and quick response times
  • Compressed air energy storage — utilizing compressed air to create a potent energy reserve
  • Potential energy — pumped hydro-power creating large-scale reservoirs of energy with water or a tower out of stacked bricks (such as Energy Vault)

Lithium-ion chemistry dominates the static chemical battery market, accounting for 98% of power capacity in new deployments. It offers a much higher power density (smaller footprint), more cycle rates, greater depth of discharge and longer life than lead acid batteries. Li-ion batteries are almost exclusively used in electric vehicles and are making inroads into uninterruptible power supplies (UPS) for data centers.

  • Tesla commercial Powerpacks and residential Tesla Powerwalls have been available for some time.  
  • Green Charge, AES Distributed Energy and LG Chem are other major Li-ion battery storage suppliers.
  • Solar plus battery storage (solar+) is also a growing market sector.
  • Yotta SolarLEAF photovoltaic panels each come with 1 kWh of integrated Li-ion energy storage per panel for BTM applications.

Because there is inherent hazard from the malfunction of any kind of battery, NFPA 855 Standard for Installation of Stationary Storage Systems requires fire-rated separation of the ESS from other indoor occupancies in non-dedicated (unpopulated) use buildings. Every 50 kWh grouping of ESS is to be separated by three feet from each other and from the walls of the room. A maximum 600 kWh of batteries can be installed in one room. Fire detection plus suppression and control is required. Almost every type of battery must have built-in thermal runaway protection. UL9540 Standard for Energy Storage Systems and Equipment defines a test method to evaluate the fire characteristics of a battery energy storage system and can provide exceptions to NFPA 855 requirements.

Deploying solar+ energy storage has some major challenges. A recent report by the American Council for an Energy-Efficient Economy states, “Regulators often require utilities to offer energy efficiency and solar in separate siloed programs with different funding sources, cost-effectiveness tests, and reporting requirements.”

Also, it is not yet clear whether FERC Order 841 supports value-stacking of different energy storage services like backup power and peak demand reduction together. Thus far, only one service has been allowed per application. In addition, energy storage is a capital-intensive technology that does not fit well into a marginal cost-centric electricity market.

Energy storage can solve many problems along the energy supply chain. Utilities can advance the energy storage market by ownership of customer-sited storage, use of tariffs to encourage energy-storage deployment and grid integration of utility-scale energy storage. There are also several useful energy storage resources:

  • The U.S. Energy Storage Association (ESA) advocates and advances the energy storage industry.
  • ES-Select created by DNV GL in collaboration with Sandia National Labs allows users to screen energy storage technologies by calculating financial outputs.
  • DNV GL’s annual Battery Performance Scorecard provides independent ranking and evaluation of battery vendors based on testing performed in DNV GL’s laboratories.

Energy storage, by corralling the transitory nature of electrical energy, is presenting exciting opportunities not previously available.

Mike Carter is a Senior Engineer at Questline Digital. He has a BS in Engineering and an MBA degree from Ohio State University and is a Certified Energy Manager.

Keep your business customers up-to-date on energy trends and new technology with a Business eNewsletter from Questline Digital.

As an increasing number of U.S. cities focus on climate goals, city leaders are taking steps to reduce greenhouse gas emissions from public transportation systems. One of these environmentally friendly initiatives is the electric bus. Transit agencies across the country — from Seattle, Washington, to Portland, Maine — are beginning to incorporate this innovative technology into their fleets.

A sustainable solution     

With environmental concerns growing in importance, city leaders are considering the impact of public transportation, including emissions from traditional diesel buses. In dense urban areas, bus exhaust is also a major health concern for citizens. In the U.S., the transportation sector makes up nearly 30% of total greenhouse gas emissions.

Electric buses are one solution to counteract this negative environmental impact. Currently, there are about 650 electric buses on U.S. roadways — a small fraction of the total number around the globe. About 425,000 electric buses are in use worldwide, with 99% of them operating in China. Recognizing the advantages of the technology, U.S. cities are beginning to catch up by moving forward with clean public transit initiatives.  

A recent study finds nearly every state transit agency owns, or will own in the future, at least one electric bus. Showcasing this growth, the number of zero-emission buses in 2019 increased nearly 37% from the previous year.This number will continue to rise in the years and decades to come. In fact, several major metropolitan areas have long-term commitments to replace their fleets with battery-powered buses, including Los Angeles by 2030, San Francisco by 2035 and New York by 2040.

Benefits of electric buses

According to the Environmental and Energy Study Institute (EESI), electric buses offer many benefits over diesel-fueled versions — notably zero carbon emissions. They are also quieter, easier to maintain and have lower operating costs.

Just like charging a personal electric vehicle, electric buses utilize power from the U.S. electrical grid. However, some parts of the grid are more advanced than others, with greater reliance on renewable energy resources. A recent study finds that electric buses have lower carbon emissions than diesel buses in all regions of the country. As the U.S. electrical grid becomes cleaner and more diverse, cities will see even more positive impact from electric bus implementation.

Forward-thinking cities  

With a commitment to sustainability, the Port Authority of Allegheny County (Pennsylvania), in partnership with local energy utility Duquesne Light Company, purchased two new electric buses in March 2020. Duquesne installed fast chargers and electrical infrastructure to support the buses, which travel to and from downtown Pittsburgh. The Port Authority shares data on the buses, which gives the utility valuable insights into the demand on the electrical grid. They plan to purchase additional electric buses for a new downtown bus route.

King County, Washington, has been leading the country in battery-powered public transportation. The county, which includes Seattle, has 185 zero-emission buses with a range of about 140 miles per charge. The county is working with local utility Seattle City Light to ensure the power needs are met for the advanced electric infrastructure. An early adopter of electric buses, the county has an aggressive goal of 100% renewable energy-powered public transit by 2040.

In Austin, Texas, the Capital Metropolitan Transportation Authority (Capital Metro) purchased two electric buses. The battery-electric vehicles feature zero-emission technology, and will help reduce the city’s carbon footprint. This is just the start of cleaner transportation in Austin; the transportation authority has plans to purchase 80 electric buses in the next five years.

Overcoming speed bumps for electric buses

Perhaps the biggest challenges for electric bus adoption are high upfront costs and range anxiety. While many transit agencies are apprehensive about the higher upfront costs (approximately $770,000 per vehicle versus $445,000), EESI finds that powering electric vehicles is 2.5 times less expensive than diesel.

With improving battery technology, most electric buses nowadays have a range of 225 miles and can operate all day on one charge. Charging infrastructure requires construction buildout, which is both expensive and time-consuming. However, with the right partnerships, including coordination with local utilities and other city partners, these concerns can be mitigated.

As barriers continue to break down and cities make the environment a priority, it is clear that electric buses are here to stay for the long haul.

Learn how to drive Electric Vehicle adoption with a Questline Digital content marketing strategy.

Launched in 2008, Tesla’s battery-electric vehicles continue to take the industry by storm. The cutting-edge technology was first introduced with the Model S, which, according to Tesla, “has become the best car in its class in every category.” It boasts the longest range of any electric vehicle, 0 to 60 mph acceleration in 2.28 seconds and over-the-air software updates.

Are all of these impressive features worth the purchase prices? Questline Digital’s own Jeremy Harning, Senior Director of Software, purchased a Tesla in December 2018. Having a little over a year in the driver’s seat, Questline Digital sat down with him to hear his honest review of the vehicle.

When did you decide you wanted to purchase a Tesla?

I would say it was shortly after the Model 3 came out. I always admired the car, but I didn’t really have enough money for a Model S. When the Model 3 came out it was at least close to the ballpark of what I wanted to spend on a car. And there was about a $7,500 tax credit, which is basically like someone giving you that money to buy the car.

What led you to decide you wanted to own a Tesla? What did you admire?

Definitely environmental (reasons). I’m a big proponent that we need to get off fossil fuels for a lot of reasons. (Now) I could get this energy from a clean source, whereas before, with a gas-powered car, I couldn’t do that. That’s step one — to get us off of fossil fuels we have to stop driving around these cars that can only burn fossil fuels.

The other thing is a much more selfish reason — the performance value proposition. The car does 0 to 60 in three seconds. You have to spend serious, serious money to get into that kind of acceleration range for anything else. The first time you experience it you feel like you’re in a spaceship, not a car. So those things together kind of made it a no brainer for me.

Did you research the car before you went to a dealership?

Yeah. They actually don’t have dealerships, so you have to do a lot of research on your own. You can go to a showroom, but you can’t buy the car there — all the cars are bought online. Researching that, the tax credit, the likely cost reductions and the cost of ownership — those are all things I did prior to going to the showroom.

Was the showroom helpful in giving you new information?

Yes. It just helped clear up any questions I had about the process itself. I talked to them about wait time and how the car gets delivered and the options around leasing and buying and financing and all that. Then for me, personally, I wanted to sit in the car and see if my six-foot, five-inch body would fit in it. Being a very tall person, I wanted to make sure that the Model 3 wasn’t going to be too small for me.

What was the most surprising thing you learned about Tesla through your research and visit to the showroom?

When I started researching cost of ownership, I was surprised by how incredibly low it is. You don’t really understand that until you start doing the math, but there is literally no maintenance on the car besides tires and washer fluid.

When you start adding that up — and add in expected depreciation — you could buy a much cheaper car, but over the lifetime of that car you’re going to end up spending as much as you would on the Tesla. It actually compares to a Honda Civic as far as cost of ownership. The longer you own the (Tesla), the more that pays dividends because of the reduction in gas costs, the reduction in maintenance costs and then the high residual value the car maintains.

The lack of maintenance doesn’t even seem possible, and yet it is.

Yeah, people are most skeptical when you tell them you never have to replace the brakes, but the thing you learn when you drive the car is that you never use them. When you let off of the (acceleration) pedal, it turns the motors into chargers and the resistance of those spinning magnets slows you down at a very fast pace. So, you’re really only using the brakes when you have to stop quickly, which is a small percentage of all the driving you do.

Is there anything you wish you knew before purchasing it?

There are downsides. For one, if you live in a cold-weather climate, your range is drastically reduced when the temperature drops below 40 degrees. You’re talking probably 30% reduction from the range you can get in mild temps.

When you’re going on long trips, even though the car says you might get X number of miles, you have to keep an eye on it and watch what your energy consumption is, because if the battery gets cold as you’re driving it’s not nearly as effective.

Was range-anxiety ever a concern for you?

I would say it was and was not. I do most of my driving around town so I knew that if there was a problem, I could just use the other car, because we have a normal internal combustion car as well. For me, it wasn’t going to keep me from buying a Tesla.

I’ve actually taken it on several long trips since we bought it and Tesla’s charging network was specifically designed for long trips. They put them right next to the highway and put them at intervals that all their cars can handle, even in the winter. If I was going to drive from here to California, all along the way there are charging stops. The charging stations are integrated into the navigation computer so when you tell it that you’re going on a long trip it knows exactly when you’re going to need to stop, how long you’re going to need to stop, and how many spots are available at that stop at any given time.

Did working in the energy utility industry influence your decision to buy a Tesla?

Yes. This is technical, but for me, understanding how demand curves work and how much waste goes into keeping power lines tight between high peak and low peak demand. Basically, we waste a lot of energy trying to make sure that people’s power isn’t going to go out if they suddenly use more energy.  The more we dump that “wasted” energy into storage, the less we have to burn or convert from other sources. That’s a big part of Tesla’s vision for the future. It’s a part of things that I’ve learned from working in the utility industry, so I think it definitely influenced my decision to purchase an electric vehicle.

How much did you spend on gas every month with your old vehicle compared to now?

I was spending a little over $160 a month, which is four $40 tanks of gas a month. Now I use roughly 900 kWh of energy per month on my car, which at the current rate is $126. So, I save about $40 a month in gas.

What are your favorite features of the car?

I would say the fact that the features are all configurable, which means they can constantly update and iterate on the car. Since I bought it, they’ve added — I can’t even count how many things it can do now that it couldn’t do before. And those just come at night, over the air, while I’m sleeping. You wake up and it says your car had an update, here are your new features. As a software developer, that’s just awesome.

Promote EV programs and boost adoption rates with an Electric Vehicles Content Strategy from Questline Digital.