Would Northern Pass Swamp the Regional Market for Renewable Projects?

Dec 21, 2011 by  | Bio |  2 Comment »

photo credit: Witthaya Phonsawat

With the Northern Pass project on the table, as well as other looming projects and initiatives to increase New England’s imports of Canadian hydroelectric power, the region’s energy future is coming to a crossroads. The choice to rely on new imports will have consequences that endure for decades, so it’s critical the region use the best possible data and analysis to weigh the public costs and benefits of going down this road. To date, there have been almost no objective, professional assessments of the ramifications.

Today, CLF is making available to the public a technical report prepared by Synapse Energy Economics addressing a crucial issue: the potential effects of new imports on the region’s own renewable power industry. 

The report, Renewable Portfolio Standards and Requirements (PDF), explains how the Renewable Portfolio Standards (RPS) of each New England state and New York address hydropower and then examines the potential effects of allowing Canadian large-scale hydropower to qualify for incentives by allowing such power to count toward states’ goals for renewable power under RPS programs.

Vermont is currently the only state that allows Canadian hydropower to qualify for its (now voluntary) RPS. If Vermont elects to use Canadian hydropower to fulfill all or most of its RPS goal (which is contemplated by pending legislation that would make Vermont’s RPS mandatory), there would be a modest but important reduction in the incentives available to new renewable projects in the region. The report concludes that there would be a much more significant impact if the RPS programs in other states were changed to allow Canadian hydropower to qualify (as was proposed in New Hampshire and Connecticut earlier this year and is being discussed right now in Massachusetts). In that scenario, imports from Northern Pass (or import projects of similar size) would swamp the market, taking up 45% of the region’s mandate for new renewable power and deeply undermining the viability of new renewable development in the Northeast.

This finding is a new illustration of why CLF opposes changing RPS laws to count large-scale hydropower toward the region’s renewable goals, a result that would both harm local renewable projects and send incentives funded by New England ratepayers out of the country to suppliers that do not need them.

For their part, Northern Pass’s developers have downplayed any risks to local renewable energy but have refused to refrain from lobbying for and securing the very changes to the RPS laws that Synapse predicts would, when paired with new imports through Northern Pass, cut the legs out from under renewable energy based in New England. It is no wonder that it’s not only CLF sounding the alarm on this issue:  electric industry veterans like Cynthia Arcate and the trade association of New England’s competitive electric generating companies have also expressed concern.

The bottom line for CLF: any plan to increase imports will need a robust and comprehensive set of enforceable commitments – which are completely absent in the current Northern Pass proposal – for the region to ensure that New England’s own renewable energy industry will prosper and grow into the future. 

For more information about Northern Pass, sign-up for our monthly newsletter Northern Pass Wire, visit CLF’s Northern Pass Information Center (http://www.clf.org/northernpass), and take a look at our prior Northern Pass posts on CLF Scoop.

Clean Energy Solutions needed: Small, Medium, Large and Extra-Large

Nov 14, 2011 by  | Bio |  Leave a Comment

I often say that there are two phrases that a professional climate advocate, whether they like or not, ends up repeating.

The first one, which is not the subject of this post, is “The scary part is . . . “  As in “The scary part is that Daniel Yergin might be right when, in his new book, he suggests that climate science is right and fossil fuels are a systemic problem AND that peak oil/gas theory is wrong and we are not running out of fossil fuels.”  But that is the subject of another and different blog post to be written and just one of millions of examples of sentences beginning “The scary part is . . .” that you can write or utter about global warming.

The second one is “We have to do that too . . . ” As in, “Yes, we need to conserve more and be more efficient but we need to build wind farms, like the one proposed off of Cape Cod, too.”   As so many folks, including the folks at Princeton who are more famous for wedges than dairy farmers in Wisconsin, will tell you big systemic problem like global warming requires a huge range of solutions.  As some like to say, there is no silver bullet, perhaps multiple rounds of silver buckshot.

This last point causes me to do something I am reluctant to do – disagree with a very smart guy who has a record of knowing how to get things built.  In an opinion piece, Jiggar Shah, the founder of the solar development company Sun Edison and CEO of the very laudable Carbon War Room disagrees with the wisdom of the “jumbo” solar projects being undertaken by large energy companies like NRG Energy that are chronicled in a recent New York Times article.

My suggestion is simple: We need to do both.  We need the vast network of distributed solar on millions of rooftops that Mr. Shah envisions.  We need to do smart development of large solar as well.  We also need to be far more efficient in how we light and heat all our buildings and how we use energy to travel.

The array of technologies we will need to address global warming range from new smart heating devices for our homes, sidewalks to allow safe travel on foot in all our communities, shareable bicycles like the one I took to work this morning, electric cars powered by clean renewable energy, trains that connect cities and neighborhoods, and intelligently sited wind farms and solar installations on land and in the water.

We need to be relentless in our search for new solutions, recognizing dead-ends like the old nuclear power plants that have proved to be an expensive dead-end while aggressively evaluating new answers.

The good news about solar electric generation, as a source of new answers, is that the price of this technology continues to descend at a very steep rate.

While this is very bad news for folks trying to build a business that depends on making a profit by selling these modules, it creates many new opportunities to deploy solar electric generation as part of a large scale clean energy solution; and to do so in the form of a whole lot of Small on many rooftops, a fair amount of Medium on large roofs and appropriate locations on the ground, some Large and, where appropriate, even some Extra Large.

What are Friends For?

Nov 11, 2011 by  | Bio |  1 Comment »

Simulation of view of Cape Wind from Cotuit, MA. Photo credit: http://www.capewind.org

When three leading environmental organizations seek to get involved in a federal court case about a proposed development project, it’s not usually on the side of the developer. But, this week, CLF, NRDC and Mass Audubon filed a motion to participate as “Friends of the Court” in support of the defendants in five pending federal cases challenging federal approvals of the Cape Wind offshore wind energy project. The plaintiffs, unsurprisingly including the Alliance to Protect Nantucket Sound, are seeking to overturn the federal government’s 2010 approval of the landmark offshore wind project, the first to be approved in the United States.

Our federal court filing comes after more than a decade of exhaustive review undertaken by state and federal authorities, and by CLF and our colleagues in the environmental community – review that served to ensure Cape Wind’s approval was based on sound science and data, and that the project was thoroughly vetted through an open and transparent public process. Our support for the project reflects our findings that Cape Wind’s benefits far outweigh its impacts.

Between CLF, NRDC and Mass Audubon, we pack a couple hundred years of environmental advocacy and stewardship experience.  Collectively, we represent hundreds of thousands of Americans, from nearby Hyannis to far-flung Hawaii, who believe our country should prioritize a true clean energy agenda and move more quickly to deliver on the environmental, public health, energy security and economic benefits of responsible renewable energy. Backing the developer in the Cape Wind case may, at first blush, go against the grain of environmental advocacy history. But in this case, it is fully consistent with our longstanding missions to protect natural resources and public health – here, by advancing a key project that will begin to unleash the tremendous potential of offshore renewable energy, allowing Massachusetts and the region to dial back polluting fossil fuel power generation.

Mainers Want Energy Efficient and Clean Electricity

Nov 7, 2011 by  | Bio |  2 Comment »

                Wouldn’t it be great if Maine law required that our power companies must save their customers money by investing in the cheapest form of energy, known as energy efficiency, while simultaneously ensuring that the sources of power sold in Maine increasingly come from clean, renewable energy sources?  If you agree, you are not alone. A coalition of Maine businesses, workers, health professionals, citizens and public interest groups, including CLF, feels the same way and we have initiated a referendum for next year’s election that will make it happen—with your help.

                To do so, our coalition will have to gather more than 70,000 signatures from Mainers seeking to place this issue on a ballot for state-wide vote in November 2012. This Election Day (tomorrow- November 8—VOTE!) keep an eye out at your polling place for folks collecting signatures on our petition and join our cause.

                What exactly are we proposing? To make changes to existing law that would require that a portion of our electricity bills fund cost-effective energy efficiency efforts throughout the state. Cost-effective energy efficiency means reducing the amount of electricity that we use, by investing in improvements to our industries, businesses and homes in a manner that saves more money than was spent on the improvements. On average, these kinds of investments save three times as much as they cost. If left untouched, Maine’s currently planned investment in energy efficiency will capture only 25% or so of the potential available savings. These are savings that will reduce everyone’s electricity bill, avoid the need for new expensive electricity lines and limit the amount of electricity that needs to be generated—let’s not squander them.

                We are also proposing that a requirement in Maine law, providing that at least 10% of electricity sold in the state must come from new renewable energy sources, should be increased so that 20% of our electricity comes from clean renewables. The effect of this requirement would be to increase the development of home-grown renewable energy projects that generate jobs in Maine while reducing our energy-related pollution. In combination, energy efficiency and increased renewables will mean Mainers pay less to the power company while doing more to preserve their quality of air and place.

                Why are we undertaking this? Governor LePage and the current leadership in the Legislature have made clear that, not only do they not support money-saving energy efficiency and the development of renewable energy, but they are attempting to scale back both from their current levels. We don’t think that approach is good for Maine and we believe a majority of Maine people agree with us. This ballot initiative allows the people to decide this issue of critical importance for our economy and our environment.   

                If you are interested in helping us in this campaign, please contact the CLF Maine office.

A renewable energy resource . . . on the web

Nov 7, 2011 by  | Bio |  Leave a Comment

CLF is a proud founding member of Renewable Energy New England, a non-profit association that brings together companies working on and supporting clean renewable energy (including developers of wind farms, manufacturers of equipment that harvests wind and solar power, private builders of transmission lines that serve wind farms) with environmental advocates. RENEW (as the group is known) has a nice new revamped website worth visiting.

Solving our massive environmental and energy problems will involve a lot of saying no to bad projects but will also will require saying yes to what affirmative projects that can meet the needs of our society and economy in a cleaner and better way.

Environmental advocates like CLF will never agree with everything that businesses like renewable project developers say and we will scrutinize their projects and may even oppose some.  But we need to work with them as much as we can if we are truly serious about reaching our shared goal of a thriving New England.

Beacon Power bankruptcy: NOT “another Solyndra”

Oct 31, 2011 by  | Bio |  1 Comment »

The unfortunate news that Beacon Power, an innovative technology company based in Massachusetts,  declared bankruptcy has inspired a bit of a media feeding frenzy centered around analogies to the failed California solar company Solyndra,  because Beacon (like Solyndra) received  a federal loan guarantee.

This analogy simply doesn’t hold up for the following reasons:

  • Beacon Power has a fully operational facility in Stephentown New York that is an operating model of their flywheel technology, a innovative technology that provides an essential service to the electricity grid, providing stability to the power system at a very low cost.  This stability will allow smoother operation of the power grid and allow for integration of many more renewable resources like wind and solar smoothly at a reasonable price.
  • The Federal loan guarantee is structured in a way that protects the financial interests of the taxpayers – giving them the right to be repaid out of the assets of Beacon before other companies and people that are owed money.
  • Unlike Solyndra, which was effectively losing a price competition with Chinese and other US manufacturers, Beacon makes a unique product that is being developed here in the United States.
  • The Federal Energy Regulatory Commission, a mere 11 days ago, issued a detailed rule that requires utilities to compensate companies like Beacon that provide power system stability in a competitive manner.  This sets a clear trajectory for Beacon, and the handful of other companies providing similar services, to be economically successful.

Given the assaults on the environment and climate and continuing economic and social disruptions there is enough bad news out in the world without alarmist voices generating scary stories because of events like the Beacon bankruptcy.   While it is an unfortunate event for some private investors and employees of Beacon it is not a crisis for taxpayers and can and will not stop the development of innovative and important technologies that will be the backbone of a new clean energy economy.

Why we do what we do: Unfortunately Global Warming is real and having real effects here and now

Oct 31, 2011 by  | Bio |  Leave a Comment

Much of CLF‘s work these days is focused on the challenge of global warming and in particular reducing immediately, structurally and effectively the release into the atmosphere of carbon dioxide and the other “greenhouse gases” causing the problem.

This is, of course, not all that we do.  But much of our work on this over-arching problem overlaps with other important work like reducing air pollution that directly harms the health and lives of people or providing good transit access to urban communities, thus providing access to jobs for residents of those communities while reducing automobile trips and emissions. Still other CLF work, like protecting and nurturing our fisheries and forests, ensures that management of those resources is mindful of the changing climate while preserving unique ecosystems both for their own benefit and to ensure that future generations will be able to use and enjoy special places and resources.

When we step up and assert the benefit to the climate of, for example, wind farms in Maine or in Nantucket Sound or energy efficient light bulbs or the need to consider the climate in considering a transmission line across New Hampshire or in a merger proposed between utilities the question comes back to us: is it worth the cost?  Often it is a cost measured in dollars but sometimes it is a “cost” in terms of a view from a house or a beach or a mountain changing.

Responding to this question presents us with two challenges: first we need to show that the result we are advocating in favor of will actually reduce emissions and then we need to show that the need for those emissions reductions outweighs the cost of taking the action we are advocating.

One good example of how we show that an action will actually reduce emissions comes from the world of wind farms.  In those cases we can present expert testimony about how deploying wind resources will reduce emissions of carbon dioxide.  And that analysis isn’t just created by our experts, it draws upon reports done by the planners and operators of New England’s wholesale electricity system – work that is sometimes summed up in official summaries and nice presentations that include informative charts like this one showing how when the system gets 9% of its power from wind that emissions drop by 9% but when it gets 20% of its power from wind the emissions drop by 24% for reasons explained in the report:

 

 

 

 

 

 

 

 

And then we turn to the question of showing that this all matters and the cost of taking action outweighs the price of that action.  In our cases, again using the wind farm example, we use expert testimony.

But the bottom line is that we as a society are getting to the point where the cost of global warming is no longer a horrible possibility- it is an immediate reality, all around the world from Russia to Texas and points in between like New England.  And what we are experiencing is only a preview of what is to come and a strong reminder of the need to take action.

Bowers Mountain Wind Project

Oct 17, 2011 by  | Bio |  Leave a Comment

The Land Use Regulatory Commission has begun deliberations on the Bowers Mountain Wind project, which CLF supported as an intervener.  Sean Mahoney presented a closing statement in support of the project  (Sean Mahoney Closing Statement 10-5-11) which built upon the testimony of Abigail Krich (Abigail Krich Direct Testimony 6-10-11 and Dr. Cameron Wake (Dr. Cameron Wake Direct Testimony 6-10-11).  As with many wind power projects in Maine today, the biggest issue for LURC to resolve is the project’s impact on scenic resources in the area.  The testimony of Roger Milliken (Roger Milliken Direct Testimony 6-10-11) spoke to the push and pull of that issue eloquently.  A decision from LURC on the project is expected sometime in early November.

Salem (MA) looks to the future

Aug 13, 2011 by  | Bio |  2 Comment »

Salem News columnist Brian Watson presents a powerful case for moving forward with development of a wind turbine on Winter Island in Salem Harbor.   We can only hope that the good citizens of Salem, who are looking at a major transition as the coal fired power plant in their midst retires, will pay attention to his words and follow the leadership of Mayor Kim Driscoll, who has identified this project as (among other things) an important source of revenue for the City.  As the Mayor notes on Facebook regarding Watson’s column on the subject:

. . . While Brian doesn’t mention this in his piece, revenues from the proposed turbine will also directly help reduce the City’s +$1m annual electric bill, cutting those costs nearly in half and saving taxpayers substantial $.

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