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Welcome to the fourth 2024 issue of Currents – our e-newsletter focused on energy topics.
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[co-author: Schenley Kent]
Solar Powered Generation Sees Significant Growth while Some Solar Energy is Increasingly Blocked from Production
Our Currents focus article this month is on developments in the growth of solar electric power generation and obstacles to future growth that are occurring around the U.S. from environmental groups and other energy producers attempting to limit the advancement of renewables. As someone who regularly writes about energy production and is Co-Chair of the firm’s MSHA and OSHA Safety practice groups, I will take a deep dive into these issues.
“West Virginia Gov. Jim Justice (R) vetoed a measure that would raise the allowable size for a solar plant operated by state utilities, citing concerns about its effects on the coal industry.”
“Pennsylvania’s energy future hangs in the balance amid a federal pause on liquified natural gas production, leaving taxpayers on the hook for more costly and less reliable power.”
Why this is important: This article discusses some critics’ concerns about the impact of President Biden’s temporary pause on liquefied natural gas (LNG) exports, arguing that it could lead to costlier and less reliable power in Pennsylvania. According to the article, advocates who support using LNG in the state believe that Pennsylvania’s natural gas resources should be utilized to support local workers and prevent the state from falling further behind Texas, Alabama, and Louisiana in energy production. Republican legislators argue that the hold on LNG exports undermines economic and environmental goals and they have proposed the creation of an LNG hub in southeast Pennsylvania to generate jobs and revenue for the state. Industry leaders argue further that the pause serves political interests and benefits foreign competitors like Russia, China, and Iran. — Schenley N. Kent
“Va.’s virtual power plant program enrolls hundreds of public facilities that agree to reduce or shift their electric demand to relieve strain on the grid.”
Why this is important: This article discusses the asserted benefits of “virtual power plants,” a phrase generally used to refer to a connected aggregation of distributed energy resources (think battery storage or electric water heaters and smart thermostats) that can be deployed collectively to address periods when grid stress (i.e., demand) is high. Rather than building new resources to address peak demand like a gas peaking unit, virtual power plants, which harness resources that already exist, can be deployed to reduce peak demand. Additionally, according to the article, these resources can avoid or delay the need for a utility to build costly new generation resources. As load growth is experienced around the country, including in service territories in our region (Virginia and North Carolina, for example) the value – and need for – these types of resources are growing.
Utilities are proposing programs that take advantage of these virtual power plants. The author notes an ongoing successful program deployed by Rocky Mountain Power in the western United States as well as other examples around the country. Duke Energy in North Carolina has recently obtained approval from the North Carolina Utilities Commission for such a program. Beginning…
Read More: Currents Energy Industry Insights: V 8, Issue 4, April 2024 | Spilman Thomas &