Climate Change and the Grid

August 20, 2010


Ken Silverstein
EnergyBiz Insider
Editor-in-Chief


Efforts to enact legislation that would limit carbon emissions have seemingly stalled. So it would appear that new standards to make the transmission wires more amenable to transporting green electrons are untimely. But those who are in charge of ensuring the dependency of the electric grid say that such measures are vital.

The essence of the argument presented by the North American Electric Reliability Corp. is that climate change initiatives are ongoing and that utilities are already incorporating those standards into their business plans. As such, if greenhouse gas emissions are to be cut, then it would require those power companies to diversify their generation portfolios and to offer more sustainable energy.

That, in turn, will require new or upgraded transmission as well as the dissemination of demand-side management that curbs power consumption during peak periods. The efficiency of utility operations under such conditions could be further enhanced by using energy storage -- now in its nascent stage but which has huge potential.

"The reliability of the bulk power system must be part of the ongoing discussion on climate change," says Gerry Cauley, chief executive of NERC. "Meeting emissions goals suggests unprecedented changes in the fuel mix and the composition of our nearly one million megawatt electricity supply system. Sufficient time will be needed to ensure reliable integration of the new technologies and resources needed to meet the emissions goals of proposed climate change initiatives."

While the group used the previously passed U.S. House legislation that would make significant cuts in carbon dioxide emissions as a catalyst to make suggestions, it is now clear that this legislation is indefinitely stalled. That's because the U.S. Senate withdrew its carbon reduction provisions from an energy bill now pending before it.

Senate Majority Leader Harry Reid, D-Nev., said simply he did not have the 60 votes needed to defeat a filibuster. Furthermore, he deleted provisions from the Senate bill that would set a national renewable portfolio standard -- again, for the same reasons. That drew the ire of green groups like the American Wind Energy Association that disagreed, saying not only that the Senate had the support to defeat stall tactics but that such a law was needed to help grow the wind industry that has retrenched over the last year.

"It does mark a realization that there is simply no easy path to comprehensive energy and climate change policy," says Frank Maisano, senior principal at Bracewell & Giuliani. "With the economy still in a difficult place, lingering questions regarding energy prices, timing, industrial production, and the current state of technology still need to be resolved before the road to 60 votes in the Senate will become clear."

Reliability Resumes

For his part, President Obama has said that he will take a modified and smaller energy bill that -- for now -- focuses on fixing oil spills, enacting energy efficiency measures and bringing electric vehicles to markets. But he went on to say that he is committed to pushing through a broader energy bill and one that would make firm cuts in carbon.

As to when that newfound push would occur is another question. Some say it should happen in September, or at least after the November mid-term elections. Others say that the current Congress hasn't the stomach for the fight before any election and especially one in which Republicans may take control of the House.

And thus the question resurfaces why the reliability corp. is pushing ahead with better standards centered on climate change initiatives. For starters, its job is to ensure greater reliability and therefore economic growth. And it has been stampeding for such assurances for a long time.

The total number of transmission miles is projected to rise by 8.8 percent, or 14,500 circuit miles in the United States over the next decade, says NERC. But those same experts say that expansion will still not be enough as each peak season puts increasing strains on the system, especially in those areas already congested. Moreover, it adds that if action is not taken to build out the national grid, it will harm the growth of renewables that must be transported from isolated regions to urban areas.

To be sure, legislative gridlock in combination with an economic recession has doused the cause. Even the reliability group has reduced its electricity demand forecast: Future expected growth is down from 2 percent a year to 1.5 percent annually.

But that dip will be short-lived, it adds, insisting that the time is now to address capacity and resource concerns as well as transmission siting and the integration of renewables. The group says that over the next decade it expects 260,000 additional megawatts of renewable power to be added to the mix. Of that, wind will make up 229,000 megawatts, or 88 percent. Solar, it adds, will comprise 20,000 megawatts.

"Now the only question is whether Congress and the administration will step up and enact the policies -- particularly a strong Renewable Electricity Standard and robust transmission legislation -- that will allow us to get there," says Denise Bode, chief executive of AWEA.

Regardless of whether Congress passes a climate change bill or does more to facilitate the building of transmission, it is already apparent that corporate America is moving forward with its own green initiatives. Those same trends are also captivating the utility world where roughly half the states require power companies to supply green energy.

And this, of course, is NERC's point as it makes a new push to build out and to modernize the grid so as to accommodate varied generation sources. The demands on the transmission network will invariably evolve and the nation's reliability standards must also progress to incorporate those changes.



 

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