Tag Archive for: Renewable Portfolio Standard

Sun and Wind 4EVER

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TAKE ACTION: Support the Renewable Portfolio Standard legislation

Sun and Wind. When we hear people say that solar and wind are new and variable energy sources, it calls into question their understanding of historical facts. The sun reportedly has been pumping energy out for 4.5 Billion years. The wind got started on Earth probably at around the same time as the Earth came to have air molecules to move, not long after it came together as a planet, also approximately 4.5 Billion years ago.

There is often an argument that the only reliable energy source is from fossil fuels. The next time some old duffer starts going on about fossil fuel reliability, you just tell them “hooey” – their vaunted fuels are just experimental in the grand scheme of things – the most mature fossil fuels are from a period a mere 419 million years ago. That is barely a blip compared to the reign of solar and wind energy. It makes sense that humankind plans to return rapidly to solar and wind energy after dabbling in strange, experimental energy like fossil fuel. Our sun and wind are ancestral, time-tested, ancient power sources, and people like a sure thing.

The cost to harness the oldest and best energy is falling by the day. Check out any graph comparing the cost of new solar installations with the price of natural gas and coal power generation. The price of solar energy has dropped precipitously over the past decade. Combine this with a federal infrastructure funding package that prioritizes renewable investments and sweetens the pot with tax incentives. Combine this again with a moral case for energy sources that don’t emit greenhouse gasses, and you have a recipe for change. Perhaps not as quick as some would want, or that is sufficient to save us from climate disruption, but a fundamental change.

Right here in Alaska, not only in one, but now in two legislative sessions, legislation has been introduced to force/mandate/require electric utilities to get free from high-cost fossil fuels and switch to 80% renewable sources for generating electricity by the year 2040. There is obviously a belief that electric utilities can achieve this goal, or else the bills would not have been introduced at all, much less receive hearings. Utilities are setting internal goals; for instance, the Homer Electric Association has a board policy that calls for 50% renewable electricity by 2025 – based on the State of Alaska’s own aspirational policy goal.

On Thursday, House Bill 121 had an introductory hearing in the House Special Committee on Energy. This bill would establish a Renewable Portfolio Standard (RPS) for Alaska’s utilities and drive investment in lower-cost renewable energy. As a Cook Inlet natural gas supply shortage and corresponding sharp energy price increases are looming on the horizon, it is high time our utilities act to incorporate more and more and more wind and solar, and battery storage. That is another reason why RPS legislation is getting airplay this year. Even the most stalwart fossil fuel devotee must face the fact that something has to give. If utilities do not diversify into renewable energy, and the state has to import liquified natural gas, the cost to consumers will skyrocket from a place that seems already pretty high. The economy will suffer, homeowners will suffer, business overhead costs and government operating costs will increase, and heads will roll. You get the picture.

The committee heard testimony from Hawaiʻi State Energy Office on the 50th state’s RPS and its transition away from imported fossil fuels. Price volatility in imported fuel drove consumer sentiment in Hawaiʻi toward a successful energy transition. Alaska and Hawaiʻi are related in their remoteness, the timing of their statehood battles, their otherness, and the fact that half of Alaska vacations in Hawaiʻi – these states have a ton in common, not to mention sun and wind. Ours is a different sun and a different wind but just as mighty and ancient. If Hawaiʻi can go renewable, there is no doubt that Alaska can follow suit.

Another hearing or two on HB 121 should be held this session. The bill has a good chance of passing next year with your support. Stay tuned, but first, get out in that spring sun and feel the 4.5 Billion years of past, present, and future awesomeness on your unique and very special face.

Sincerely,
The Alaska Center

Renewable Portfolio Standards drive innovation and economic development

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The role of government in pushing different sectors of the economy to innovate through policy, tax incentives, and funding is well established. While some may oppose a mandatory Renewable Portfolio Standard or RPS policy to push electric utilities to generate or purchase more renewable energy, there is at least a broad historical precedent for the success of the policy.

The benefits of an RPS include economic development and construction and maintenance jobs to create the new generation facilities. For customers, increased renewable energy will put (in the parlance of utility managers) “downward pressure” on the rates we pay per kilowatt-hour. The transmission constraints and bottlenecks will have to be addressed for Alaska’s railbelt to achieve the proposed 80% renewable energy by 2040, and that is a good thing. Transmission upgrades build a bigger freeway for electrons to travel on and build important resiliency in our Alaskan system that’s subject to the weather rigors we know and love, not to mention natural disasters.

Jobs, innovative technologies, likely lower electric rates, and increased transmission system efficiency are not bad things. Considering that transportation and industry are both likely to move toward electric power soon and increase the load on the system as a whole both day and night, and considering the rapid advancement of battery storage to levelize the peaks and valleys of some renewables (as well as old and proven storage technology option of pumped hydro) the concerns of utility managers about renewable energy load variability are surmountable.

Judging by the discussion in the first Senate hearing on the Governors RPS legislation, there seems to be an interest expressed by some committee members in adding micro-nuclear reactors as an option for utilities to meet their RPS goals. This is a non-starter and likely would be opposed even by the Governor. Adding an unproven technology like micro-nuclear reactors into a policy that puts utilities on a time-sensitive course for achieving renewable energy goals could be a hindrance, not to mention the other negatives associated with nuclear (security threat, waste storage, etc.) There is a stand-alone bill pertaining to small nuclear generators, and in a stand-alone bill, it should remain.

Next week, the House Energy Committee will hold two hearings on the RPS bill (HB 301). The first hearing is on Tuesday, March 8 at 10:15 a.m., and the second on Thursday at 10:15 a.m. These will be excellent opportunities for the public to learn more about the RPS. In addition, The Alaska Center will be hosting a webinar on March 10 at noon with House Energy Committee Chair, Representative Calvin Schrage as well as members of the National Renewable Energy Laboratory to discuss what an RPS is, the outlook for the policy this session, and how you can be involved.

If you’re interested in attending here is the registration information!

It is an exciting week ahead for the future of Alaska. Plan to tune in!

Renewable Energy Goals

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[cs_content][cs_element_section _id=”1″ ][cs_element_layout_row _id=”2″ ][cs_element_layout_column _id=”3″ ][cs_element_text _id=”4″ ][cs_content_seo]We don’t often say nice things about our Governor, and that is because we disagree with many of his policies and tactics wholeheartedly. For instance, one of his first moves as Governor was to dismantle the Climate Action Leadership Team that The Alaska Center, Alaska Youth For Environmental Action, numerous partners, and frontline community members worked hard to help establish under the previous administration. However, in the case of a policy that will help our state do its part to combat emissions, we agree wholeheartedly with his proposed Renewable Portfolio Standard introduced today.
What is a Renewable Portfolio Standard, or an RPS as it is commonly called? It is a policy that requires utilities to sell electricity from renewable sources by specific dates or face financial penalties.
In short, an RPS for Alaska will push our electric utilities to accelerate their trajectory away from fossil fuel power generation. It will push utilities toward wind, solar, geothermal, tidal, and hydro projects, either funded by the utility itself or purchased from a company called an Independent Power Producer.
We at The Alaska Center, through programs such as Solarize Anchorage, Solarize MatSu, and Solarize Fairbanks, have actively organized Alaskans in support of increased renewable energy. We have helped elect members to Utility Boards that support increasing renewables. An RPS is something we are confident Alaska utilities can achieve when working together.
SB 179 and HB 301, the Governor’s bills call for regulated electric utilities to achieve benchmark renewable energy goals: 20% by the end of 2025, 30% by 2030, 55% by 2035, and 80% by 2040. Numerous exemptions are designed to accommodate utilities and help them reach the goal. For instance, should a major natural disaster impact a utility’s ability to meet its renewable goal, it would grant an exemption from the non-compliance penalty.
Faced with steadily increasing natural gas prices, many utilities, pushed by their members and their boards of directors, have moved toward renewable energy. The Homer Electric Association has adopted an aggressive goal of achieving 50% renewable energy by 2025. Large batteries are being incorporated into the renewable energy strategy to help balance the variable energy inputs of renewable energy production.
The recent passage of legislation requiring the Regulatory Commission of Alaska to approve an Integrated Resource Plan for the railbelt will help guide the process of integrating an increase in renewable energy and will provide the public and utilities with a process-oriented approach to the construction of new generation facilities. This legislation will help Alaskans avoid an ad-hoc, willy-nilly scramble by individual utilities toward renewable energy projects and instead will set standards and requirements for the projects on a regional basis.
While the Governor’s bills have a long and winding road through the committee process, the fact that this policy has been introduced is a good thing.
In hope,
 The Alaska Center

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