econintersect.com
       
  

FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.



posted on 09 November 2016

In California: Dawn Of A Technology Revolution

from the Richard Stavros

Investing Daily Article of the Week

There’s something really big going on in California.

Some of the most aggressive carbon-emissions laws in the world were recently passed. And meeting these ambitious targets will require an unprecedented increase in renewables, as well as the development of new technologies.

These policies could be revolutionary for California’s Big 3 utilities and the sector in general.

In the third and final part of our series, we take a closer look at the technologies that will be necessary to achieve California’s expansive low-carbon vision.

As we’ve noted in previous articles, we believe developments in California could have wide-ranging implications for utilities throughout the U.S. That’s because if the state is successful then its experience could serve as a model for the rest of the country - or, if not, a cautionary tale.

But that’s a more open-ended consideration. In the more immediate future, we’re also trying to determine whether the Golden State’s three big investor-owned utilities, PG&E Corp. (NYSE: PCG), Edison International (NYSE: EIX) and Sempra Energy (NYSE: SRE), which have a collective market cap of nearly $80 billion, will become the most valuable companies in the sector thanks to operating at the vanguard - or whether they’ll share the same disturbing fate as some of their European peers.

In our first article, we established that rather than being disrupted by these new policies, California’s utilities are actually leading the way, which would seem to bode well for their continuing viability as well as shareholder value.

In our second article, we found that similar policies implemented in other countries such as Germany have not been disruptive to system reliability. In fact, Germany’s solar installations manage to generate electricity at an overall cost similar to that of California and Texas, despite the fact that the country receives only half as much annual sunshine as these two U.S. states.

In this final report, we take a look at battery technologies that are still in their infancy, yet whose rapid technological development is crucial for California to achieve its carbon-emissions goals.

During our research, we discovered that an extraordinary expansion in battery technology is underway in the state, but not for the reasons you might expect.

The Pressure to Innovate

While California has long striven to promote battery technology, last year’s gas leak at Sempra’s Aliso Canyon storage field may have done more than anything to advance the expansion of battery technology on a scale and speed never before seen.

If there has ever been an energy utility equivalent to John F. Kennedy’s call to put a man on the moon in 10 years, some are saying the amount of storage being built in response to the biggest natural gas leak in U.S. history could be it.

Here’s the background: The Aliso Canyon field supplies natural gas to power plants that generate nearly 10,000 megawatts of electricity to the Los Angeles area. But regulators say that the gas shortage resulting from the leak means that the region faces the possibility of interruptions to electric service, or even widespread blackouts.

Consequently, the leak has led to plans for the fast-track authorization of two energy-storage projects totaling 37.5 megawatts that are being built by The AES Corp. (NYSE: AES) for Sempra’s subsidiary utility San Diego Gas & Electric. The projects would be built in six months, about a third of the time it would take to build a gas-fired power plant.

Bloomberg also recently reported that Tesla Motors Inc. (NSDQ: TSLA) won a bid to supply grid-scale power in Southern California to help prevent blackouts.

Tesla will supply 20 megawatts of energy storage to Southern California Edison with lithium-ion batteries. The company’s Powerpacks will be operational in record time - by the end of this year.

These technologies may prove to be economic, as they will provide power during peak periods of demand, while supporting grid reliability when demand is low.

A study by investment bank Lazard has predicted significant cost declines over the next five years, based on a survey of industry experts.

For instance, the cost of lithium-ion storage is expected to drop by 47% within five years. The study also found that storage costs are within “striking distance" of conventional alternatives.

This time around, economics may actually align with policymaking, which means California’s utilities could be on the cusp of transforming the sector and reinventing utilities’ value proposition for investors.

>>>>> Scroll down to view and make comments <<<<<<

Click here for Historical News Post Listing










Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, using Livefyre just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.



You can also comment using Facebook directly using he comment block below.





Econintersect Contributors


search_box

Print this page or create a PDF file of this page
Print Friendly and PDF


The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.


Take a look at what is going on inside of Econintersect.com
Main Home
Analysis Blog
The Destruction of the Existing Workforce
Minsky’s Theory of Asset Prices: Why Minsky Was NOT a Neo-Monetarist
News Blog
Most Flags Combine Red, White And Blue
Electroconvulsive Therapy: A History Of Controversy, But Also Of Help
Super Bowl Ad Prices Doubled In A Decade
What We Read Today 21 January 2017
People Who Laughed At TRUMP...and Said He Would Never Be President
Disentangling Cyclical From Structural
Rent Growth For Lower-Priced Rental Homes Stayed Strong, But Higher-Priced Rental Homes Slowed In 2016
How Do Imports Affect Manufacturing Jobs?
Active Vs Passive Investing: And The Winner Is ...
Infographic Of The Day: The Incredible Pigeon
Early Headlines: Global Unaffordable Housing, Trump Signs ACA Exec Order, Trump Orders Halt To Regs, HealthCare.gov Enrollments Increase, Greek Tragedy, China Household Debt Surges And More
The Rise Of The Gluten-Free Diet
Who's Smoking In The U.S.
Investing Blog
Technical Thoughts: Three From The Trading Room
Why Are Investors Moving To ETFs?
Opinion Blog
Economics, Society, And The Environment: What's Wrong With This Picture?
How To Read Theresa May's Brexit Speech
Precious Metals Blog
Four Catalysts Drive Gold And Silver For 2017
Live Markets
20Jan2017 Market Close: U.S. Stocks Were Up But Off Their Highs Of The Session, Crude Prices Continue To Climb, Next Week May Be Volatile
Amazon Books & More






.... and keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government





























 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2017 Econintersect LLC - all rights reserved