Energy advocacy organizations contest Department of Energy's report on grid dependability
In a move that has sparked debate within the energy sector, the U.S. Department of Energy (DOE) published a report in July warning of potential widespread blackouts if coal and gas plants retire. The report has faced criticism from various clean energy organizations and utility regulators, who argue that it deploys a blunt instrument with a high ratepayer cost.
The DOE report suggests that grid operators like the PJM Interconnection have given gas-fired power plants a significant capacity accreditation haircut due to reliability issues. However, the report's analysis of gas-fired power plants' reliability does not account for the possibility of cascading fossil power plant failures during extreme weather events, such as Winter Storm Elliott in 2022.
Three clean energy organizations - Advanced Energy United, American Clean Power Association, and American Council on Renewable Energy - have criticized the report in a formal rehearing request. They argue that the DOE's resource adequacy document is arbitrary and capricious, and that the report discounts the ability of utility regulators and grid operators to ensure resource adequacy and shore up reliability over the next five years.
Kent Chandler, former chairman of the Kentucky Public Service Commission and resident senior fellow at the R Street Institute, has also criticized the assumptions in the DOE report as incomplete, unrealistic, and near-extreme. He believes that the report does not accurately represent the current and future state of resource adequacy moving forward.
On the other hand, the DOE report's load growth expectations for U.S. data center capacity from 2025 to 2030 are plausible but above some other credible estimates. The proliferation of energy storage in various forms, including utility-scale batteries and electric vehicles, is a significant factor in the transition to a cleaner, more distributed power system.
The Department of the Interior's Aug. 1 order refers to the capacity density of energy projects proposed on federal lands, specifically mentioning wind and solar as inefficient. This order has been criticized by clean energy organizations, who argue that it hinders the development of renewable energy projects on federal lands.
The DOE has 30 days to respond to the rehearing request. If they deny it, the clean energy organizations have 60 days to file a judicial appeal. Meanwhile, utility regulators and grid operators continue to grapple with the reliability issues highlighted in the report, while also working towards a more sustainable, cost-effective, and reliable energy future.
In a positive development, an 800-MW nuclear plant is expected to resume operations in Michigan later this year. This could provide a much-needed boost to the grid's capacity and reliability, especially as more fossil fuel plants retire.
The debate surrounding the DOE report underscores the complexities and challenges of transitioning to a cleaner, more sustainable energy system. It also highlights the importance of careful, evidence-based decision-making in this critical area. As the energy landscape continues to evolve, it is crucial that all stakeholders - from government agencies to clean energy organizations to utility regulators - work together to ensure a reliable, affordable, and sustainable energy future for all.
