Alternative energy
The recent surge in electric vehicles (EVs) highlights the crucial role of electric utilities in developing comprehensive charging networks, including public charging stations. As more EVs draw electricity from distribution systems, state regulators must balance reliability, cost-effectiveness, and utility planning.
Ever more states are embracing pro-renewable policies by committing to clean energy and ramping up their clean energy targets despite federal policy uncertainty under the Trump administration. Frontrunners like California, Hawaii, New York, and Massachusetts are encouraging other states with nascent markets to follow suit.
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Ever more states are embracing pro-renewable policies by committing to clean energy and ramping up their clean energy targets despite federal policy uncertainty under the Trump administration. Frontrunners like California, Hawaii, New York, and Massachusetts are encouraging other states with nascent markets to follow suit.
The wind industry is facing new problems just as developers are rushing to get new projects in the pipeline ahead of the 2019 expiration of the federal production tax credit, a key driver of growth. Roadblocks include efforts to slash payouts to wind farms under PURPA, delays in connecting to the grid, and even a State moratorium on new projects.
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The U.S. wind energy industry has grown significantly over the past decade thanks to federal and state support, along with technology advancements improving costs and performance. The federal production tax credit (PTC) has left the greatest impact on the industry. However, the PTC expires in 2019 narrowing the window for new projects as the industry prepares for a slowdown. Other challenges, such as attempts to redefine PURPA terms and assess the impact of wind farms on tourism, along with slow growth in electric demand, make the outlook on wind less certain.
The New York Independent System Operator says the deactivation of the Indian Point nuclear plant in 2021 will not affect system reliability if approximately 1,800 MW of gas-fired generation come online as planned. Competition from cheap natural gas and Westinghouse reactor design failure have caused nuclear operators and developers to retire their plants early and cancel new projects. Amid state and federal actions to help nuclear power plants remain operational in the face of financial pressures, it remains to be seen whether advanced technologies bring a resurgence and expansion.
The New York Independent System Operator says the deactivation of the Indian Point nuclear plant in 2021 will not affect system reliability if approximately 1,800 MW of gas-fired generation come online as planned. Competition from cheap natural gas and Westinghouse reactor design failure have caused nuclear operators and developers to retire their plants early and cancel new projects. Amid state and federal actions to help nuclear power plants remain operational in the face of financial pressures, it remains to be seen whether advanced technologies bring a resurgence and expansion.
The Michigan Public Service Commission has finalized a formula to determine the avoided cost that Consumers Energy Co. must pay to buy power from qualifying facilities under the federal Public Utilities Regulatory Policies Act (PURPA) of 1978. The new methodology extends the power purchase contract period to up to 20 years, and boosts the capacity of eligible projects to 2 megawatts, up from 100 kilowatts. While current contracts are based on the costs of running a coal plant, new contracts will be based on the energy and capacity costs of natural gas-fueled plants. The ruling, which marks the first update to avoided cost payments in almost 30 years, is expected to increase certainty for distributed energy resources, such as solar.
The Michigan Public Service Commission has finalized a formula to determine the avoided cost that Consumers Energy Co. must pay to buy power from qualifying facilities under the federal Public Utilities Regulatory Policies Act (PURPA) of 1978. The new methodology extends the power purchase contract period to up to 20 years, and boosts the capacity of eligible projects to 2 megawatts, up from 100 kilowatts. While current contracts are based on the costs of running a coal plant, new contracts will be based on the energy and capacity costs of natural gas-fueled plants. The ruling, which marks the first update to avoided cost payments in almost 30 years, is expected to increase certainty for distributed energy resources, such as solar.
The Public Utilities Commission of Ohio has revised its net metering rules requiring regulated electric utilities to offer a standard tariff to standard service offer customers, while competitive retail electric service providers can offer diverse net metering products and service to shopping customers. The Ohio rule comes after months of review and seeks to address the interests of distributed generation customers, electric utilities, and competitive providers. Importantly, the ruling opens doors to energy marketers, some of which might be able to offer better rates than the utilities.
The Public Utilities Commission of Ohio has revised its net metering rules requiring regulated electric utilities to offer a standard tariff to standard service offer customers, while competitive retail electric service providers can offer diverse net metering products and service to shopping customers. The Ohio rule comes after months of review and seeks to address the interests of distributed generation customers, electric utilities, and competitive providers. Importantly, the ruling opens doors to energy marketers, some of which might be able to offer better rates than the utilities.
The Connecticut Governor has signed legislation that could allow the state’s only nuclear plant to compete for long-term contracts with renewables provided such rule change is corroborated by a currently ongoing study into the plant's viability. Recently, additional states including Pennsylvania and Ohio have joined in with policies supporting their nuclear facilities. These actions coincide with the Department of Energy’s recently-proposed grid resiliency pricing rule offering hope for financially struggling nuclear power plants.