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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