ERCOT recently released the results of an analysis it performed on the impact of the Clean Power Plan (CPP) to its asset generation mix in the region. The study results indicate the plan could cause at least 4,000 megawatts (MW) of coal-fired generation capacity in the ERCOT region to be retired, possibly beginning as soon as 2022. Additionally, energy prices are projected to increase at least 16% by 2030.
On October 5, 2015, the Balancing Authority of Northern California (BANC) announced its withdrawal from discussions related to developing a centrally cleared energy dispatch market (CCED) in the northwestern United States. BANC, the third- largest balancing authority in California, is the latest in a series of recent departures from the group of thirteen Northwest Power Pool (NWPP) members involved in the CCED discussions. The other withdrawals came in September with Portland General Electric (PGE) and Idaho Power Corporation announcing they will consider participating in CAISO’s Energy Imbalance Market (EIM) instead of the CCED.
On October 23, 2015, the final version of the Environmental Protection Agency’s (EPA) Clean Power Plan, designed to limit carbon dioxide emissions from U.S. power plants, was published in the Federal Register. Following publication, 24 states and multiple industry groups promptly filed suit challenging the plan.
The Rocky Mountain Institute (RMI) recently released a new report examining battery storage and the energy services they can provide the electric grid. RMI concludes that storage can have the most grid impact the farther downstream energy storage is located (e.g., behind the meter).
On August 13, 2015, the California Public Utilities Commission (CPUC) issued a proposed decision (R.14-10-003), which seeks for the first time to create a regulatory framework to provide consistency for the integration of demand-side and distributed energy resources (DERs).The intention of the rulemaking is to consider how to best enable the integration of these resources in a holistic way that includes not only what the utilities offer customers (demand-side management) but also what customers offer utilities (demand-side resources). The proposed framework will consider the impact and interaction of demand-side resources on an individual customer’s energy usage as well as the electric distribution system as a whole. In addition, the proposed framework will include relevant valuation methodologies and sourcing mechanisms for DERs and enable customers to effectively and efficiently choose from an array of demand-side and DERs.
On September 29, 2015, the National Renewable Energy Laboratory (NREL) released a new report detailing the nascent offshore wind industry in the United States. The report estimates 15,650 MW in the development pipeline covering 21 projects located in 12 states.
The Tennessee Valley Authority (TVA), a corporate agency of the United States that provides electricity for business customers and local power distributors serving nine million people in parts of seven southeastern states, is completing the final regulatory requirements to begin commercial operation at Unit 2 of its Watts Bar Nuclear Plant. Watts Bar 2 will diversify TVA’s power generation sources (to ~40% nuclear) and contribute to its sustainability initiatives through added carbon-free power generation. The move comes as TVA works to adapt to the EPA’s recently released final rule Clean Power Plan (CPP), which sets the first-ever national standards for CO2 emissions from power plants.
SolarCity signed a contract with Kaua’i Island Utility Cooperative (KIUC) to provide energy from a utility-scale solar project with battery storage during evening peak. The companies believe the project is the first utility-scale solar system in the United States to provide dispatchable solar energy.
On September 15, 2015, the American Council for an Energy-Efficient Economy (ACEEE) released a report that concludes “next generation” energy efficiency can meet 22% of total projected electricity sales in 2030.
In the final hours of the 2015 session, the California legislature approved the Clean Energy and Pollution Reduction Act of 2015, which outlines a process to establish the first-ever regional transmission organization (RTO) in the West and boost the state’s renewable portfolio standard (RPS) to 50% by 2030. Governor Brown is expected to sign the bill as it encompasses aspects of his major environmental initiatives.
As of July 31, 2015, there were 436 nuclear reactors operating in 32 countries with a combined capacity of 379 GWe. In 2014, these reactors produced 11% of all electricity generated globally; down from a peak of 18% in 1996. According to a recent report released by the World Nuclear Association (WNA), global nuclear capacity is expected to rise 45% to 552 GWe by 2035 under its reference scenario. The report also provided lower and upper scenarios for future nuclear capacity. The lower scenario saw global nuclear capacity stagnating until 2030 before declining, with several shutdowns, prior to 2035. The upper scenario saw global nuclear capacity growing to 720 GWe (an 89% increase) by 2035.
In August 2015, Southern California Edison (SCE) announced the integration of approximately 1,118 MW of demand response resources into wholesale energy markets managed by the California Independent System Operation (CAISO).
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