Electricity operators warn EPA: New climate rules may disrupt grid.
Proposed EPA Emissions Rules Could Jeopardize Electric Grid Reliability
Several independent electricity operators recently testified to the EPA, expressing concerns that the agency’s proposed new emissions rules could have a detrimental impact on the reliability of America’s electric grid.
In an Aug. 8 statement, a group of Independent Systems Operators and Regional Transmission Organizations (Joint ISOs/RTOs) emphasized that the EPA’s proposed emissions regulations “have the potential to materially and adversely impact electric reliability.”
The operators highlighted that the retirement of gas and coal power plants, due to a combination of new CO2 emissions regulations and efforts to reduce fossil fuels, is outpacing the installation of wind and solar plants. This imbalance raises concerns about potential power shortages in the future.
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Furthermore, the operators expressed concerns about the weather-dependency of wind and solar energy, which further exacerbates the loss of reliable backup sources. They warned that this situation could lead to power shortages in the future.
According to the U.S. Energy Information Administration (EIA), approximately 15.6 gigawatts of electricity generation, primarily from coal and gas-fired plants, will be retired in 2023. This retirement trend aligns with President Joe Biden’s goal of transitioning from fossil fuels to wind and solar energy across the country.
The operators also highlighted that their planning reserve margins (PRMs), which represent the difference between capacity and peak demand, are steadily decreasing. Currently, the PRM stands at 20.1 percent, above the regulatory minimum of 15 percent. However, if the current projections hold true, the PRM could fall below the requirement by 2027.
The operators’ report stated, “The combined impacts of decreasing resource capacity and increasing demand by current projections would lead to a significant decrease in the PRM over the next five years. If the projection were to hold true, it will fall below the requirement in 2027, and it will continue to drop to 9.7 percent by 2028.”
The reserve margin is crucial for ensuring uninterrupted electricity supply, especially during periods of high demand or unexpected events. Electricity is essential for various critical functions, including healthcare, water and sewage systems, transportation, and everyday household needs.
The operators emphasized the importance of maintaining dispatchable generating units, which can be turned on or off as needed, to ensure grid reliability. They expressed concerns that the focus on renewable energy sources could discourage investment in the maintenance and upgrades of existing gas and coal plants, potentially leading to breakdowns before their retirement dates.
The operators also criticized the EPA for pushing unproven technologies, such as hydrogen power generation and carbon capture, to meet emissions limits. They stressed the need for reliable and proven solutions, stating, “Hope is not an acceptable strategy.”
While the concerns raised by the operators primarily address potential supply issues, it’s important to note that other EPA regulations, such as the push for electric vehicles and the curtailment of gas-powered appliances, will significantly increase electricity demand.
Despite these concerns, an EPA spokesperson defended the proposed rule, stating that it provides ample lead time and flexibility for power companies and grid operators to make informed decisions. The EPA believes that the rule supports the continued delivery of reliable and affordable electricity.
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