EVs are Colorado’s biggest opportunity to reduce statewide emissions… and that’s just the beginning

In the wake of last Friday’s global climate strike, this week’s NYC Climate Week, and the forthcoming UNFCCC COP25 climate conference in Chile later this year, all eyes are focused on rapidly decarbonizing the worldwide economy. Of the many levers to pull, two in particular often sit front and center in the conversation: slashing power sector emissions with renewables and transportation electrification to get mobility off oil. 

As the thinking goes, they are most effective when used together as a one-two punch: 1) electrify vehicles (EVs) to eliminate tailpipe emissions and adopt hyper-efficient powertrains and 2) charge those vehicles on cleaner grids to drastically reduce their associated emissions. It’s a powerful combo, exemplified by a recent study focused on the state of Colorado.

Electric vehicles are Colorado’s biggest emissions-reduction opportunity

Vibrant Clean Energy conducted the Colorado study, and Vox last month had a fabulous summary dissecting the findings. Vibrant modeled three scenarios through 2040:

–Business as usual: Colorado’s electricity grid and transportation sector look in 2040 much as they do today, and emissions remain essentially unchanged

–Cleaner grid: coal plants are shuttered and replaced with oodles of wind, solar, and some natural gas, slashing power-sector emissions 55% and statewide emissions 16% overall

–Cleaner grid + EVs: power-sector emissions fall a more modest 46% (thanks to natural gas generation meeting some of the increased demand from EVs), but statewide emissions overall drop an impressive 42%, thanks to an 80% decrease in transportation-sector emissions

These are exciting findings, to be sure. Yet they only scratch the surface of possibilities.

Emissions-optimized EV charging can further slash Colorado’s climate profile

For one, emissions-optimized EV charging can further slash transportation emissions above and beyond the electrification switch from gasoline- and diesel-burning  internal combustion engine (ICE) cars to EVs. The idea is wonderfully simple in theory, though it takes some sophisticated software wizardry behind the scenes to implement in practice.

Several of the most-common EV charging scenarios—namely level 2 workplace charging during the day and overnight charging at home—don’t require the full charging time window in order to top off an EV’s battery. That difference between time needed to charge and time the EV remains plugged in to the grid allows an opportunity to optimize. More specifically, you can sync charging with moments of cleaner energy and pause EV charging during moments of dirtier energy.

recently released WattTime analysis examined just how much cleaner EVs could be with smart emissions-optimized charging vs. traditional “dumb” charging. Two of the four representative grid balancing areas WattTime analyzed included WACM (a good proxy for historically coal-heavy western Colorado) and SPP (a good proxy for Xcel Energy’s wind-rich service territory up and down Colorado’s Front Range and High Plains).

The study found that EVs could be up to almost 18% cleaner annually and up to 60% cleaner on individual days. Remember: these are incremental additional emissions savings on top of the beneficial switch from ICE autos to EVs. That’s huge. 

As Colorado’s grid gets more variable, emissions-optimized charging becomes even more important

For another, the Vibrant study’s view out to 2040 and Colorado’s potential grid mix reveals another key insight. As Colorado’s grid mix becomes dominantly wind and solar, supported by natural gas-fired generation, that grid will start to exhibit high emissions variability. To quote Vox article author David Roberts, Colorado’s “dispatch becomes much more volatile, with wind and solar providing almost 100 percent of energy at some points and natural gas almost 100 percent at others.”

This is highly consistent with WattTime’s findings in its study: “We should expect more grids across the country and around the world to exhibit emissions variability and emissions-reduction opportunities as they add more renewables to legacy fossil-fueled systems.” 

That variability is a twofold opportunity for emissions-optimized EV charging: a) It enables even deeper emissions savings as the grid exhibits greater amplitude in its moment-to-moment swings from “very clean” to “dirtier.” b) It also presents opportunities for EVs to aid further grid integration of renewable generation, reducing curtailment and absorbing what would otherwise be wasted surplus wind and solar, helping to reduce the total need for natural gas to balance renewables’ variability.

Demand flexibility—whether from EVs or other smart technologies—is the crucial arbiter of tomorrow’s electricity grid supply and demand

At the end of the day, “emissions-optimized EV charging” is a transportation-specific name for a term that has gained increasing traction in recent years: demand flexibility. In a future world—whether within Colorado or beyond—in which we have a renewables-rich and variable grid supply and a robust fleet of electric vehicle demand, flexibility sits at the dynamic interface between them.

It is an elegant software-based solution that does more than complement renewables and EVs and other advanced energy technologies; it downright unlocks their fuller potential in a transformational turnover in hardware infrastructure—solar panels and wind turbines in lieu of coal and natural gas power plants, electrified powertrains in lieu of internal combustion engine automobiles and other light-duty vehicles.

Yes, a cleaner grid and electrified transportation can drastically reduce Colorado’s climate impact. But both can be even better versions of themselves if flexible demand, vis-a-vis emissions-optimized EV charging, is at the heart of their dance together.

Photo by Nathan Anderson on Unsplash

National Drive Electric Week is here—as EVs grow in popularity, let’s make them even cleaner via smarter charging

It’s the 9th annual National Drive Electric Week (NDEW)! More than 300 events—mostly throughout the United States, but also in a growing number of locations around the world—will offer consumers a chance to learn about, test drive, and even buy an electric vehicle. Undoubtedly, electric vehicles (EVs) are surging in popularity right now. It’s a trend that shows little sign of slowing down.

There were already more than 1 million EVs on the road in the U.S. by the end of 2018. By 2030, that number is forecast to reach nearly 19 million, according to a report from the Edison Electric Institute. Similarly, Bloomberg New Energy Finance’s 2019 Electric Vehicle Outlook notes that annual EV sales totalled just a few thousand in 2010, and reached more than 2 million globally last year. BNEF forecasts global annual EV sales to hit 10 million by 2025 and 28 million by 2030.  

Delivering against the green promise of EVs

Nearly two-thirds of prospective car buyers in America have interest in electric vehicles (EVs), according to a recent survey from Consumer Reports and the Union of Concerned Scientists (UCS). Not surprisingly, some 73% say that EVs can help reduce oil use and 72% believe EVs can help reduce pollution. Those are both true statements. But how much cleaner can EVs become vs. their internal combustion engine counterparts? UCS and others, including us here at WattTime, have looked at the emissions associated with charging EVs on various grids—some with more polluting fossil-fueled generation and others with more clean renewably-generated electricity. The good news is that, relative to the U.S. light-duty fleet average fuel economy of 22 MPG, EVs are cleaner everywhere.  But it turns out that EVs can be even cleaner, and sometimes, much cleaner.

CO2 emissions per mile graph

Emissions-optimized charging unlocks EVs’ full potential

At a time when annual changes in overall electricity demand are pretty much flat (thanks in part to the effectiveness of energy-efficiency programs), EVs represent a unique source of new demand for utilities and our power grid. Meanwhile, it’s pretty much common knowledge that from coast to coast we’ve been rapidly adding more and more renewable energy to the power grid. These two forces present a golden opportunity for EV charging.

First, as we add more renewable energy to electricity grids that are transitioning away from their legacy fossil-fueled generation, we’re seeing stronger and stronger variation in emissions rates from the grid. Sometimes the grid is cleaner, and sometimes it’s dirtier, depending whether polluting power plants or clean renewables are making up the mix.

Second, with new demand from EVs, every time you plug in an EV charge, the electricity grid has to ramp generation up or down to account for that change in load. But what power plants are responding? Does the utility have to turn on an inefficient, heavier-polluting, fossil-fueled peaker plant? Is surplus wind or solar generation being thrown away because there isn’t enough demand at that moment to absorb the emissions-free electricity?

With the right kind of insights into real-time grid conditions—and the ability to send that information via software signal to EVs—they could time their charging to sync with moments of clean electricity and avoid moments of dirty energy, making EVs cleaner than they already are.

Emissions optimized MPGe boost to baseline EV charging graph

A new WattTime report shows EVs’ emissions-saving capability

Just on the eve of this week’s NDEW, we released a new report that analyzed the emissions-saving capability of smarter EV charging. We looked at four representative grids across the country, and two common charging scenarios: daytime workplace charging and at-home overnight charging. Our findings were nothing short of exciting. Using an emissions-optimized charging cycle, such as WattTime’s Automated Emissions Reduction software, EVs could become up to 20% cleaner annually and 90% on individual days… incredibly through nothing more than smart software that modulates when an EV starts and stops charging within its allotted charge window (while still leaving you with a full battery, of course).

This is a gamechanger for EVs. Without ever touching their already-superefficient powertrains, it’s like giving them a big MPGe boost. They can drive just as far, but with fewer associated grid emissions. Which in the end delivers on one of the big reasons why drivers flocking to EVs in the first place: they’re green.  Now, they can be greener still. With EV awareness on the rise—thanks in part to  high-profile events such as NDEW—it’s good to remind drivers that EVs are a solid bet for reducing your eco footprint. With emissions-optimized charging, that bet can pay ever higher returns.

Beyond Carbon: Satellite-based emissions monitoring can track much more than CO2

For most of the U.S. this summer, the air has been thick with a near-constant reminder that technological progress has come at a price. Bolstered by the growing global climate crisis, July 2019 was the world’s hottest month ever recorded. Many found it unpleasant, to say the least, but it was more than just an annoyance; according to the National Weather Service, extreme heat is the most fatal weather-related hazard for the country. In humanity’s haste to move society forward through just a few centuries, we’ve cast a deadly shadow of endangerment over our very lives. 

Zoom in on the energy sector and you’ll see this conundrum playing out clearly: Thanks to electricity, we have the ability to power our homes, businesses, schools, hospitals, and data centers. It’s obvious that access to reliable, affordable sources of energy is critical to improving well-being across the globe. But there’s no hiding the industry’s pollution problem. It’s bad news not only for our children and grandchildren, who will live the reality of climate change, but for anyone alive right now who’s gulping down fresh (or not so fresh) air. 

According to the World Health Organization, half of the urban population they monitor is exposed to air pollution that is at least 2.5 times higher than recommended levels. These people are at higher risk of serious, long-term health problems like heart disease and respiratory problems. A study several years ago even found that in 2012, 7 million people died as a result of air pollution exposure—a whopping one in eight global deaths. 

It doesn’t have to be this way. WattTime’s collaboration with Carbon Tracker on a Google-backed emissions monitoring project will help to change these alarming statistics—starting with a focus on CO2 and with the potential to go far beyond. 

Pollution is more than just CO2

As far as pollutants go, carbon dioxide (CO2) gets a lot of attention, and for good reason. The release of this heat-trapping gas into our atmosphere is the leading cause of global warming and must be greatly reduced as quickly as possible for the safety of all living things on this planet. Right now, CO2 levels are still on the rise. For this reason, the primary focus of our emissions monitoring project is to measure the release of CO2 from power plants around the world, and then make that information accessible for anyone working to keep it in check.   

But if we look at the world’s biggest health threats right now, there’s more than just CO2 causing premature deaths from breathing unclean air. Fossil-fuel fired power plants play a major role in an unsavory laundry list of those pollutants, which is why we’re exploring the potential of our emissions monitoring solution to track those air quality killers as well.

Sulfur Dioxide (SO2

Most of the SO2 found in our air comes from fossil fuel combustion at power plants and various other industrial facilities. Those emissions pack a nasty punch for the human body; even short-term exposure can harm the respiratory system and make breathing difficult. People with asthma—particularly children—are even more sensitive to these effects. Environmentally speaking, SO2 can damage and decrease the growth of trees and other foliage and is a known culprit in the formation of acid rain.  

Nitrogen Oxide (NOx) 

NOx is another dangerous byproduct released during fuel combustion. Inhaling it in high concentrations can cause inflammation of the airways and respiratory distress. This gas can combine with oxygen to form nitrogen dioxide (NO2), which—like SO2—can also interact with water and various chemicals in the atmosphere to form acid rain. NO2 is partially to blame for nutrient pollution in coastal waters.   

Mercury

If you’re a seafood lover, you're probably used to reading about the dangers of mercury poisoning from eating various and high quantities of certain fish. What you might not know is that mercury is one of many pollutants released through the smokestacks of coal-fired power plants, and it can easily make its way into surrounding bodies of water via deposition. That mercury is consumed by fish, which are then consumed by all of us. In high enough concentrations, mercury poisoning can cause problems with vision, hearing, speech, and movement. For children and infants especially, it can negatively impact cognitive thinking, memory, language, fine motor skills, and more. 

Particulate Matter (PM) 

PM encompasses a huge variety of different groups of chemicals which react to form tiny specks of polluting matter. They’re often emitted directly from smokestacks at power plants and can easily be inhaled or make their way into the bloodstream. Health issues caused by PM can range from heart attacks to asthma to premature death for those already predisposed to heart and lung disease. These harmful particles can be carried far and wide as they settle in lakes, streams, and soil. Those living in cities like Beijing—which struggles with PM 2.5 in particular—know this type of pollution is easy to spot and difficult to deal with, as it adds a thick layer of haze to their skies and makes air unpleasant to breathe.  

As with many health hazards that have infiltrated our society, poor air quality doesn’t affect us all equally. Multiple studies have shown that those with lower socioeconomic positions are disproportionately harmed by air pollution. This may stem from the simple fact that major sources of air pollutants, like fossil-fuel burning power plants, are more likely to be located near low-income communities and urban centers.   

Regardless of social status or zip code, exposure to air pollution is a problem that should concern us all. By someday measuring and monitoring emissions levels for a long list of pollutants coming from fossil-fueled power plants and beyond, WattTime will not only expose when and where this pollution is taking place, but will also empower people everywhere to guard their health and that of their families. Through our AER technology— which allows energy users to automatically shift their electricity demand to cleaner sources, like wind and solar—we’ll provide a way for people to do something with the pollution data we unveil. 

Thanks to federal regulations laid out by the Environmental Protection Agency (EPA)—especially those that require emissions monitoring—the air we breathe is cleaner than it was a few decades ago. But there’s still much progress to be made, especially as the EPA under the current White House administration is threatening to roll back air quality regulations

With our emissions monitoring work, WattTime hopes to enable that progress not just in the U.S., but around the world. Our project is a key step toward accurately evaluating the enormity of the global air pollution crisis while encouraging the growth of clean energy technologies that can carry us into a safer and healthier energy future. 

If you also believe innovation and human health can exist side by side with the right technology, we hope you’ll join us. For activists, environmentalists, academics, engineers, and hopeful volunteers interested in learning more, contact us today

How blockchain and emissions data can supercharge corporate sustainability

There’s a shift afoot in the world of corporate sustainability, and especially the clean energy slice of the corporate sustainability pie. A growing number of companies are taking a fresh, hard look at their efforts and asking how they can better leverage their energy-related investments to achieve a low-carbon future faster.

In practice, that has meant going above and beyond blindly procuring renewable energy, whether through the purchase of renewable energy certificates (RECs), installing on-site solar, and/or signing long-term contracts such as various flavors of power purchase agreements (PPAs). Now, corporations are increasingly also taking a look at their bottom-line impacts: How can they more aggressively reduce their greenhouse gas (GHG) emissions?

It’s here that blockchain—and better data—have a key role to potentially play.

From renewable energy to emissions reductions

Walmart presents an excellent case-in-point demonstrating the shift from a renewables-heavy focus to one that also includes a complementary focus on emissions reductions.

The company is one of the nationwide renewable energy leaders when it comes to installed rooftop solar capacity on its stores and distribution centers across the country. And while Walmart has lost its #1 ranking (Target surpassed it in installed rooftop solar capacity), last year Walmart announced it would install solar on another 120 stores, alongside also participating in Georgia Power’s green tariff program and announcing that it would also buy Midwest wind energy to help support its renewable energy goals.

This commendable, multi-pronged renewable energy strategy is what the market has largely come to expect from a leader like Walmart. But what comes next is what has caught our attention here at WattTime.

Two years ago Walmart announced its Project Gigaton, which has recently gained major traction. The initiative aims to prevent one gigaton (1 billion metric tons) of GHG emissions across the company’s global supply chain over a 15-year span. Though it launched in Spring 2017, Project Gigaton landed back in the headlines just recently when Walmart announced that 1,000 suppliers had joined the carbon-reduction push and that the company had already conserved 93 million metric tons of emissions through energy efficiency practices, renewable energy purchases, and sustainable packaging projects.

It might feel easy to dismiss these kind of achievements as only something a mega-company like Walmart can achieve. But blockchain—paired with new and better sources of data, insights, and full productized software solutions—just might be the way to help this approach scale across far more of the corporate sustainability world.

Four ways blockchain enhances corporate sustainability

Blockchain is a distributed ledger system that is proving its merits far beyond the world of cryptocurrencies such as Bitcoin. As a secure, auditable, immutable, and decentralized database, it’s finding favor in industries from healthcare and banking to, yes, energy and sustainability.

In the corporate sustainability context, blockchain appeals in at least four ways:

Blockchains still need better data to start with

The data stored on a blockchain may be highly secure, immutable, and auditable, but it’s still only as good as the data you add to the blockchain in the first place. The source and type of data matters.

When it comes to emissions data, that means going beyond business-as-usual long-term average emissions rates. For example, here at WattTime we leverage historical, real-time, and predictive data—alongside sophisticated algorithms and machine learning—to develop highly accurate location- and time-specific emissions rates.

We use this insight to power software solutions such as Automated Emissions Reduction (AER), which allows energy users large and small to do a simple software upgrade to their smart devices (e.g., building energy management systems, electric vehicle charging stations) so that they adjust their timing to use more clean energy and avoid dirty energy.

But that data and those insights can feed into other solutions as well, such as blockchain-based approaches.

Partnering with Swytch to unlock blockchain’s potential

Swytch is a blockchain platform committed to making our planet a little cleaner and greener. In their work with corporate customers, Swytch verifies the carbon reduction impact of renewable energy purchases and other actions and awards Swytch tokens (via a digital wallet) to users based on the results. Earlier this year, Swytch and WattTime announced an exciting partnership.

Swytch’s oracle now connects to WattTime’s API as one of its key sources of emissions data. Swytch is then able to provide its customers with the insight to make more informed and strategic energy decisions, from the development of renewable energy assets to the adoption of IoT devices like energy storage and EVs.

Our joint work is illustrating how blockchain and credible data can ensure that energy users have a more complete and accurate picture of their energy use and associated impact than they’ve ever had before. In this case and many others, the blockchain solution doesn’t work nearly as well without a strong foundation of data to leverage.

We now have a sightline to a world in which it’s arguably never been easier to make emissions reductions a central and direct focus of corporate sustainability efforts. Emissions-focused work need not be overly complicated, nor relegated to sophisticated teams like those at Walmart. With WattTime-powered data and blockchain-based solutions like that of Swytch, we’re excited to see many more corporations add an emissions lens to their great work.

Renewable energy beats coal for the first time (again)

As you read these words something incredible is happening throughout the United States: across the months of April and May, renewable energy is supplying more of the nation’s electricity than coal, according to estimates from the U.S. Energy Information Administration.

Make no mistake: this is another major milestone in the country’s energy transition. And this time next year, we expect even more of the same: renewable energy beating coal by a wider margin and for a longer period of time.

Even as we celebrate this as a “first” for the U.S., it joins a growing list of other, similar “firsts” that we’re hearing more and more.

Renewable energy keeps surpassing coal

The storyline has become increasingly common in recent years: renewables beating coal. This latest first—it turns out—is just the latest of many domestic and global examples:

In what feels like the ancient past of 2011, utility Xcel Energy—whose Colorado generation portfolio today still includes 44% coal, despite a sweeping shift in progress toward wind and solar—set a one-hour wind generation record, supplying 55.6% of demand with wind. Four years later, in 2015, Xcel set another record, supplying 54% wind power for an entire day.

Also in 2015, in Q2 the UK saw renewables overtake coal for the first time. The renewables-beating-coal motif has only strengthened there as the former gains momentum while the latter continues its drastic decline. In fact, in 2018 environmentalists and renewable energy advocates celebrated when the UK went 1,000 hours completely coal-free that year. And this year, the UK set a new record of 159+ continuous hours (6 days and counting) coal-free.

Meanwhile, in 2017 the entire EU—28 member countries—saw renewable generation surpass coal for the first time. While last year, Germany specifically saw renewables overtake coal for the first time.

As you might surmise, many other examples abound: from states such as Hawaii and California (where solar is leading the charge), to RTOs and ISOs like the Southwest Power Pool (where wind has begun to overtake coal).

With Automated Emissions Reduction, renewables can overtake coal faster and more often

Two key variables differentiate the various aforementioned renewables-beat-coal examples: a) the geographic extent (e.g., state, RTO/ISO, country, continent) and b) the duration of the time frame (e.g., an hour, a day, a week, a month, a year).

With some of these examples—and especially the U.S. EIA April-May numbers—there’s seasonal variation to take into account. For example, renewable generation tends to surge during spring (thanks to a seasonal bump from big hydro) while coal generation tends to sag during spring and fall (and rise during high-demand summer and winter periods).

This just goes to underscore the importance—sometimes significant—of timing.

Throughout the country, the electricity generation mix is constantly fluctuating. Solar ramps up during the day. Natural gas often ramps up in early evening as solar fades. Wind is often strongest overnight. In fact, the closer we look—with WattTime’s insights, all the way down to 5-minute increments—the more variation we see.

Inherent in that variation is the power to help renewable energy win vs. coal more often and by wider margins … if only we can harness that power.

How? By using software solutions such as Automated Emissions Reduction (AER) to shift flexible energy demand. AER allows any smart, energy-using device—from thermostats and HVAC systems, to refrigerators and electric water heaters, to batteries and electric vehicles—to sync their energy demand with times of clean energy while avoiding times of dirty energy.

Imagine the implications for the renewables-beating-coal storyline. Instead of surplus renewable energy being wasted through curtailment, we can shift our individual and collective energy demand to suck up that clean power, thus boosting renewable’s numbers. Conversely, we can actively avoid times when the dirtiest power plants (i.e., coal-fired) would run, further shrinking their numbers.

This is not a hypothetical scenario. The technology exists today. At a time when WattTime and partners are embarking on an exciting, bold project to monitor emissions from the world’s power plants, we can also leverage other WattTime technology to reduce those emissions and accelerate the renewable energy revolution.

Renewable energy is winning. So now what do we do?

All this week, people the world over are celebrating Earth Week. Media headlines and social media feeds alike have been awash in coverage—what has changed since Earth Day 2018; things you can do to reduce your environmental footprint; urgent calls to action to do more, faster to avert the worst effects of climate change.

This year’s edition of Earth Week comes on the heels of sobering news. Late last month, the International Energy Agency (IEA) noted that in 2018 global energy demand rose 2.3% and worldwide energy-related carbon emissions rose 1.7%, the latter to their highest level ever. It’d be easy to despair and conclude doomsday climate scenarios are now inevitable. But at WattTime, the more deeply we look at the data, the more we’re starting to see an entirely different story emerging.

The game has changed—renewable energy is winning

It’s true that 2018’s numbers backslide slightly. But looking back in hindsight from a few year’s hence, we’ll likely soon conclude that 2018 was a minor speed bump in a larger story of rapid, powerful progress. We sit today on the precipice of a paradigm shift for the world’s electricity systems. Today, renewable energy accounts for over a third of global power capacity, per the International Renewable Energy Agency (IRENA). But it’s changing fast—both last year and the one before it, two-thirds of new electric generating capacity built worldwide was renewable, led by solar and wind.

The tides of the global energy system have already turned. Now we’re amidst the rush of its flowing waters, even if it hasn’t finished yet. It’s much like the camera market in the early 2000s. Digital cameras had just arrived on the scene. And while analog cameras still enjoyed majority market share and briefly looked strong, in reality they were just a few short years away from near-total extinction.

Granted, power plants don’t turn over as fast as consumer goods like cameras. But similar writing is on the wall. If you look at the power generation mix forecast from Bloomberg New Energy Finance’s New Energy Outlook 2018it’s plain to see that we’re right at the threshold of a tidal shift that’s already begun. Coal, oil, and to a lesser extent natural gas are the analog camera equivalent; renewables are the shiny, new digital camera taking over the global market with impressive speed.

So what happens next?

The second renewable energy revolution: from generation hardware to timing software

In places where the renewable energy tides have advanced the furthest the fastest, we’re already seeing the need for new ways of thinking. Consider the case of California, which has more than 22.5 GW of installed renewable generating capacity. Over the past 3+ years, California has begun having moments of too much renewable energy, more and more frequently. In March 2019, California had to throw out or “curtail” a record 122,225 MWh of surplus solar and wind energy. Comparing Q1 2016 v2. Q1 2019 saw an incredible growth of 190% in California curtailment—all driven by a mismatch in timing, if people weren’t using energy at the same exact moments the wind was blowing or the sun was shining.

The world should and will continue installing more and more renewable energy generation—mostly solar panels and wind turbines. But scenarios like California’s strongly suggest that a second renewable energy revolution is on our doorstep. If the first revolution was about deployment of generation hardware, we’d argue the second revolution will be defined by the deployment of timing software.

Energy storage isn’t the (only) answer

Renewable oversupply like California is experiencing is generally—and rightly—considered a success story. We’ve deployed enough clean energy generation that at least in certain places, times, and/or seasons, we have even more renewable energy than we can use. But, obviously, if we are to continue adding more clean energy at the furious clip we need to stop climate change, the next step has to preventing that waste from growing and growing.

A common assumption is that energy storage (often, but not necessarily, batteries) is the solution. And, when deployed properly, storage can definitely help. But Earth neither has the time, nor even the need, for us to go out and buy billions of new batteries. Turns out, they’ve already been built! Literally tens of billions of smart devices in our buildings and on our roads—from thermostats to electric vehicles—are already deployed and have the physical hardware capable of soaking up excess renewable generation through smarter timing. As Rocky Mountain Institute and others have shown, flexible demand is a key, not-so-secret weapon. All it takes to give these devices such planet-saving capability is a software update.

Making ‘smart’ smarter with Automated Emissions Reduction

The final part of the equation is hidden in that word ‘smart.’ It’s used to describe everything from the latest generation of thermostats to grid-interactive water heaters to common appliances. But what does ‘smart’ really mean?

Here at WattTime, the definition is simple. A smart device is one that can be updated, now or later, to time its own energy consumption to run on clean energy. It’s capable of what we call Automated Emissions Reduction.So the next time you’re buying a smart light or a smart coffee machine that brews your cappuccinos on time, think about what else you’re really buying. Today, we think of that physical piece of hardware as a glorified toy. But this Earth Week, pause and appreciate that the massive proliferation of billions of such devices has also created the physical infrastructure for a global system to massively accelerate the growth of renewable energy and, before much longer, eliminate the need to ever use fossil fuels again.

It’s easy to see one bad year of news and get lost in despair. But if we want them to be, the days of fossil fuels are as numbered as analog cameras were not long ago.

Residential solar+storage is coming. But is it actually better for the environment?

In the world of pairings there are the classics: bacon and eggs, peanut butter and jelly, milk and cookies. To that list we may now need to add another: behind-the-meter energy storage with solar PV. According to a report released last year from GTM Research—now integrated into the Wood Mackenzie Power & Renewables group—by 2023 some 90% of residential energy storage installations will be paired with solar.

It’s hard to imagine another clean energy technology whose market growth is so closely tied to deployment of another complementary technology. The only other example that comes to mind would be electric vehicles (EVs) and EV charging stations. It’s near-impossible and almost laughable to imagine a residential customer installing a home charging station in their garage in the absence of also purchasing an EV.

By the mid-2020s, the residential solar+storage market is going to get big. According to WoodMac’s most recent U.S. Energy Storage Monitor—released in March earlier this year—by 2023 and 2024 residential storage installs will surpass 1 GW annually.

Multiple factors are driving growth of residential solar+storage

Residential customers are adopting storage paired with solar for a variety of reasons. Some are of course interested in the resilience benefits of having their own clean generation and backup power for storing that self-generated electricity. Others will undoubtedly be interested in using the storage part of their system to reduce residential demand charges and/or arbitrage utility time-of-use rates, depending on what type of rate structure plan they’re on. Customers in the most-expensive retail electricity markets may be looking to insulate themselves from high and/or rising retail prices.

But other customers will be looking to pair their storage with solar for another important reason: to self-consume their PV generation. In other words, they’ll look to store their solar-generated electricity in home batteries, then use that stored electricity to power their home’s energy use. Maybe they live in a utility service territory without net metering, one where residential solar power exported to the electricity grid is compensated at a rate well below the retail price. Or maybe they’re on a rate plan similar to Hawaiian Electric’s Smart Export, which provides no export compensation at all during the 9:00 am to 4:00 pm block of daytime hours. Or maybe they’re simply motivated by environmental ideals, with the idea that self-consuming their own solar energy using a storage system helps to reduce their climate footprint.

These are rational and noble intentions, but in reality, there may be a wrinkle or two to consider.

Solar self-consumption isn’t always the answer to reducing emissions impacts

For residential customers pursuing solar+storage paired systems, the logic seems rational enough: a) produce clean energy, b) store clean energy to use later when solar isn’t generating, c) reduce your emissions and climate footprint. Right? Not always.

Although it’s tempting to consider residential solar+storage systems as units unto themselves sitting behind a utility meter, the reality is that they remain interconnected to a broader electricity grid. That grid is dynamic, just like the home systems. At times, renewables are cranking out kilowatt-hours of electricity; at other times, fossil-fueled power plants are ramping up to meet grid demand.

To wit, researchers Robert Fares and Michael Weber—in a study published in the journal Nature Energy—found that residential storage systems paired with solar in Texas can actually increase net emissions, rather than decrease them (vs. stand-alone solar). This counterintuitive finding has big implications. For residential customers that want to reduce their environmental impact, it’s not enough to simply say, “I installed a home solar+storage system.”

Instead, they need to ask themselves a question along the lines of, “What happens when I do or don’t use the grid, buy kilowatt-hours, export solar-generated electricity, or store solar power in my battery to use later?” The answer will give them a much closer and more-accurate sense of their true emissions footprint.

How Automated Emissions Reduction unlocks potential in residential solar+storage systems

Of course, answering the question of “What happens when…” requires both a) a way to know the answer to a fairly sophisticated question and b) a way to tell smart devices, such as a home energy storage system paired to rooftop solar, what to do when. Is it better to self-consume my solar, or store it for use later tonight, or export it now to the grid? Which option(s) yield the best emissions and environmental benefits? (As you might imagine, that answer can continuously change, making automation a key ingredient to the equation. No one should expect customers to manually modulate their systems!)

This is where WattTime’s Automated Emissions Reduction (AER) technology truly shines. (Please pardon the solar pun.) AER is a simple software update that allows smart devices to use energy during times of cleaner electricity and avoid times of dirtier energy. Behind the scenes, AER uses 5-minte increments of historical and real-time data (and eventually, predictive data as well) along with sophisticated algorithms and machine learning to deduce the specific environmental impact of your energy use.

It’s like giving residential solar+storage systems an ‘easy button’ for making hard decisions about how they interact with the broader electricity grids and the emissions impacts that go along with it. We’ve already shown how AER could be a crucial lever for reducing the emissions associated with stand-alone storage systems, such as in the California market.

Residential energy storage system manufacturers, solar+storage system installers, and developers should take note. Homeowners—and not just the eco-minded ones—are demanding features like AER, in part because it allows them to achieve the environmental benefits and self-determined control they’re ultimately after with solar+storage systems. The smart companies that roll this out sooner than later stand to gain competitive advantage and win more customers. With residential installations approaching 1 GW annually by around 2023, there’s a lot to gain—delivering easy-to-capture benefits while we’re at it that deliver on the ultimate promise of solar+storage systems.

Suburban EV adoption ‘hot spots’ could require smarter approach to charging and grid operations

If you could hold planet Earth in the palm of your hand, it would feel nearly as smooth as a billiard ball. Up close, features such as Mount Everest and the Marianas Trench become more formidable. An August 2018 McKinsey study on the how electric vehicles could impact demand on power grids showed a similar dichotomy between the big picture and the details in which the devil feels so at home.

Using a Monte Carlo simulation of EVs in Germany as a frame of reference, McKinsey researchers found that as EV adoption rises—from <1% of vehicle stock today to 7% by 2030 to 40% by 2050—EV-related electricity demand (kWh of consumption) would add just 1% to total German power demand by 2030 and about 4% by 2050.

So the big picture looks smooth and no cause for major alarm from a grid operations perspective. But EV adoption is unlikely to be uniform, and national averages will hide sharper geographic differences. Especially when it comes to suburban ‘hot spots’ where EV adoption is expected to be greatest.

In suburbia, surging EV demand could also spike grid demand

When the McKinsey team looked at postal-code-level EV penetration, it found that, in suburban areas where EV uptake is expected to be strongest, peak load would spike about 30% in the evening hours after commuters return from work and plug in their wheels.

That model, based on load profiles for a September day in the U.S. Midwest, assumed a typical residential feeder circuit for 150 homes, each home with two cars. One in four cars would be an EV charging at an average plug-in power of 3.7 kilowatts. Without corrective action, the analysists say, the associated 30% bump in peak demand would be enough to require grid upgrades costing several hundred dollars per EV to alleviate overloaded feeder circuits.

A second analysis considered the load profile of a fast-charging station. That one came back with more startling results yet. According to the authors, “a single fast-charging station can quickly exceed the peak-load capacity of a typical feeder-circuit transformer.” No surprise there, when one considers that a single EV using a high-end fast charger sucks as much juice as the peak demand of 80 households.

A role for coordinated EV charging and complementary strategies

Fortunately, there are solutions less formidable than scaling Everest or plumbing the depths east of the Mariana Islands. Among those the McKinsey team suggests include collocating an energy storage unit with the transformer (or, alternatively, pairing batteries with EV charging stations, as ChargePoint is doing with its PowerBlock fast-charging system).

The big one McKinsey suggests, though, is implementing time-of-use rates for electricity users. That at least provides a business case for load shifting in the form of a price signal for EV drivers to bulk shift EV demand from on-peak times to off-peak hours. But that still doesn’t solve the problem of myriad EV drivers all plugging in around the same time—even if at off-peak hours—and surging grid demand beyond what local circuits have been built to handle.

Moreover, for many grids across the country, existing time-of-use pricing doesn’t always correlate with grid emissions, so EV drivers could inadvertently be economically incented to shift their charging to times of higher grid emissions. We need to solve the demand-price-emissions equation as a set, rather than focus on one or two at the expense of the others.

To avoid dozens of EVs simultaneously draining the local grid during what would historically have been an off-peak time, doing this right will require “centrally coordinated, intelligent steering of EV-charging behavior,” the McKinsey team says. Or perhaps a blend of central coordination by utilities, distribution system operators, and EVSE network operators and decentralized coordination via EV drivers, automakers, and others at the grid edge.

Doing more with smart EV charging

Fostering smart EV charging behavior would offer myriad benefits, the authors say. Of course, it would shave peak demand at the heart of McKinsey’s study findings. Second, it would provide a new lever for managing system demand and offer valuable system-balancing services to grid operators (akin to a flavor of vehicle-to-grid services sometimes written about but not yet realized). And, it could crank up charging at times of high solar and wind generation (or, similarly, times of low marginal emissions rates) and ramp it back down when generation and marginal emissions get dirtier.

This last point is important. McKinsey is saying that centrally coordinated, smart EV charging done right should involve more than shaving peaks and taming the roller coaster of grid demand. It should take into account the mix of electricity being produced in a way that favors renewables over fossil energy sources, a need that will persist even as coal-fired electricity generation continues to wane. McKinsey has separately estimated that roughly 80 percent of the forecast growth in U.S. electricity demand is expected to be met with natural gas generation.

Here is where technologies such as WattTime’s Automated Emissions Reduction (AER) system can play a vital role.

It’s not hard to estimate average EV emissions based on overall grid mix in a particular region—calculators such as this one by the Union of Concerned Scientists can do that for you. But that’s like viewing Earth as cue-ball smooth; averages show a general picture but lack the details necessary for impactful decision making.

The electricity mix—and especially those generators that are on the margin—in a given locale varies minute-by-minute with the ebbs and flows of demand, winds gusting through turbine blades, clouds passing between solar panels and the sun, and so on.

Built into EVSE networks, EV chargers, and EVs themselves (or some combination), WattTime’s AER software keeps tabs on power generation and marginal emissions rates in real-time. That opens the door to the tracking marginal emissions of power consumption in fifteen-minute increments—and, more importantly, using that knowledge to optimize charging not only based on peak-load considerations, but also on the environmental impact of charging at a given moment.

There are, after all, counterintuitive times when it could actually better to charge an EV during times of peaking grid demand. For one example, imagine that peak demand aligns with a particularly windy day, where surplus wind generation is being curtailed. Or perhaps early afternoon on a late spring or early fall day, when solar PV is cranking but even the grid’s peaking demand isn’t enough to suck up all those sun-powered electrons. Normal time-of-use rates might push EV charging demand off peak and miss an opportunity to charge during that time of surplus wind or solar.

Without smart, flexible charging and the insights of technologies such as WattTime AER, peaks and troughs will be as ingrained in EV charging as they are in our planet’s crust. Fortunately, we have the tools to navigate the ups and downs in the cleanest possible way.

Flexible charging can help the UK grid accommodate 60% more EVs—and make them even cleaner

Electric vehicles (EVs) are more efficient and less polluting than comparable rides powered by traditional internal combustion engines—even when EVs are charged on relatively dirty grids; plus, the greener that grids get with renewables, the cleaner EVs get with their associated emissions.

But there’s been the nagging question of whether, as sales continue to ramp up, EVs could become too much of a good thing for the power grid. For example, after 1.1 million new electric vehicles hit the roads globally in 2017, Bloomberg New Energy Finance forecasts that worldwide annual EV sales will hit 11 million by 2025 and 30 million by 2030. Can the electricity grid handle the coming wave of EVs and all the charging—some slow, some fast, and some superfast—that will come along with it?

A 2018 study from the UK’s Office of Gas and Electricity Markets (Ofgem) found reason for optimism—assuming that mass EV uptake comes hand-in-hand with intelligent charging systems. Ofgem found that “smart, flexible” charging solutions could allow at least 60% more EVs to connect to the existing UK power grid than would be the case without intelligent charging systems. With flexible fast charging, up to six times more EVs could connect, the authors found.

That’s possible, Ofgem says, because unlike inflexible EV charging—which blindly fills a big battery from the time it’s plugged in until it’s either topped off or the plug is pulled—flexible EV charging pays some attention to what’s happening beyond the outlet.

Charging flexibility makes all the difference

Inflexible EV charging, the authors say, increases peak demand, risks local outages, reduces system diversity, constrains areas that are already constrained, and forces all energy consumers to pay for new electrical infrastructure needed because of the added demand of EV owners.

Flexible EV charging, on the other hand, lowers the increase in peak demand, enables the more efficient use of existing assets, improves system diversity, defers or avoids power-infrastructure expansion, and can reward consumers—in pounds and pence (or dollars and cents, on this side of the Atlantic)—for their flexibility.

That’s a lot of cons and pros, but the big one has to do with peak demand. Depending on when peak demand occurs, and—more importantly—what power plants are called upon to meet that demand (often an expensive, polluting, fossil-burning peaker plant), there could be big implications for marginal grid emissions that risk casting a bit of a cloud over the clean EV story.

Keep in mind that the above doesn’t take into account vehicle-to-grid technology, which could harness EVs as a stored energy source, tapping into parked cars rather than peaking plants. For example, a Tesla Model 3 battery stores four to five times more electricity than a Tesla Powerwall battery. And overall, EVs that charge using a 240-volt outlet draw about as much power as six microwave ovens running simultaneously. Then imagine all that energy and capacity at coordinated scale. “As a pooled resource, the growing number of EV batteries could provide a wider range of valuable grid services, from demand response and voltage regulation to distribution-level services, without compromising driving experience or capabilities,” the Ofgem team explains.

How flexible charging unlocks greater grid value—while reducing emissions

Closer to home, the U.S. Department of Energy’s INTEGRATE study has estimated that with 3 million EVs—half of them using flexible charging and EV batteries as energy storage—peak demand would fall 1.5 percent. You read that right: adding 3 million electric cars could cut peak demand. Electricity costs would decline by 1 percent to 3 percent. In addition, renewable-energy curtailment would shrink by 25 percent and overall grid emissions could shrink, too.

That last bit about renewable energy curtailment and grid emissions is vitally important. Curtailment means wasting renewable energy that would otherwise be generated because the grid can’t accommodate it at a particular time.

Renewable energy’s contribution to the grid can change minute-by-minute. So, when we consider how to do smart, flexible charging of EVs for the optimization of power delivery, we should be asking not just if and how the grid can handle that demand but also what sources of generation are on the margin and/or at risk of curtailment at any point in time. In other words, how can smart, flexible EV charging help electricity grids from the UK to the U.S. not only handle more EVs but potentially do so while lowering their marginal emissions by charging at times of cleaner energy and avoid times of dirtier energy.

This sits squarely in the sweet spot of WattTime’s Automated Emissions Reduction (AER) technology. The software—including a recently updated EV charging module—uses a combination of real-time grid conditions and historical emissions data to track the precise mix of renewable and fossil energy coursing through a device such as an EV charger, in 5-minute increments.

This is especially important when it comes to EVs and marginal emissions. Yes, we can measure EV emissions based on overall grid mix in a particular region. But what arguably matters much more is marginal emissions. When I plug in my EV to charge (or unplug my EV to drive away), what power plant turns on or off in response to that demand? And can we ensure—through a combination of smart, flexible charging and the right signal, such as AER—that EVs are using as much clean energy as possible while avoiding dirty energy?

With the kind of smart, flexible charging envisioned in the UK Ofgem report and WattTime’s AER technology, the answer is yes. And that’s as big a story, we’d argue, as the UK grid being able to handle 60% more EVs.

As we ‘electrify everything,’ an opportunity for deeper, faster decarbonization

The last quarter of 2018 saw the release of several major climate change reports that all came to similarly dire conclusions, reinforcing the call to action to decarbonize the global economy as deeply and rapidly as possible. One major lever for doing so comes down to two words: “electrify everything.”

The punchline is this: As the percentage of renewables powering our grid continues to grow, electricity generation becomes cleaner and, by default, so does everything that uses electricity, from transportation to buildings.

In a 2018 analysis, The Economics of Electrifying Buildings, nonprofit think-and-do tank Rocky Mountain Institute (RMI) took a closer look at the “electricity everything” concept, exploring the financial and carbon impacts of electrifying commonly fossil-fueled residential energy loads such as space and water heating. (Disclosure: WattTime is an RMI subsidiary.)

RMI’s deep dive accounts for several factors when weighing the potential economic and carbon impacts of electrification: the degree of demand flexibility, electrification’s applicability for new homes versus retrofits, differing utility rate structures across the country, the wide variability in seasonal temperatures and grid mix, for a few examples.

The report, which is worth the full read, ultimately concludes that electrification is the most cost-effective option for many, but not all, home space and water heating use cases. For example, in the most coal-heavy regions of the country, the switch is not yet beneficial. RMI expects that the outlook for many scenarios explored will improve in the near future, as more renewables come online and electric appliances become more cost-competitive.

Marginal emissions are the key to overall emissions reductions through electrification, especially for achieving deeper reductions sooner

Those coal-heavy dark shadows in the report serve as a reminder of the important practice of looking at marginal emissions when considering the effects of electrification: As we electrify more and more energy loads, we’re also, in theory, increasing demand on the grid and asking more power plants to “turn on” in response. These “marginal” plants — whether powered by solar, wind, natural gas, or coal — can produce wildly different levels of carbon emissions, which we refer to as “marginal emissions.” And it’s those emissions that must be considered as we analyze the impact of electrification in various regions and scenarios.

This topic sits at the center of WattTime’s expertise. Through our research, we’ve successfully illuminated where and how the grid sources electricity for marginal electricity demand at any moment of the day, and then quantified the resulting emissions. This data became the key underpinning to RMI’s electrification report.

Moreover, this understanding of marginal emissions is also the foundation of WattTime’s core technology, which makes smart devices even smarter. Our software sends a signal to grid-connected devices like smart thermostats and electric vehicles (EVs) to tell them exactly when to kick into gear to effortlessly choose times of cleaner over dirtier energy. This simple-yet-effective solution has become known as “Automated Emissions Reduction” (AER).

Electrification, demand flexibility, and AER can unlock a lower-carbon future

As investment in renewables advances at record pace and clean sources of energy function alongside dirtier options, the power of this duality is revealing itself. Thanks to solutions like WattTime’s and the growth of smart device alternatives, the option to “electrify everything” is more enticing by the day. With thermostats, EV chargers, refrigerators, and more, the argument that more electricity demand must equal more emissions becomes invalid if and when a solution like AER is used. 

While it’s true that widespread energy efficiency upgrades will also play an important role in our progress toward emissions reductions, we cannot afford to ignore the opportunity presented by electrification, demand flexibility, and AER technology. These three pieces of the puzzle can work hand in hand to effortlessly, seamlessly, and automatically reduce emissions and move us closer to our decarbonization goals.

WattTime is proud to support important research in the cleantech space that will further enable our electricity grid’s monumental transition away from fossil-fueled energy. Every day we strive to give power to people and businesses that want the option to use cleaner energy. By partnering with innovators at like-minded organizations like Rocky Mountain Institute, we can work together to allow energy users worldwide to make a complicated choice much simpler.