Reliability vs. Advocacy Dogma – Climate Act Conundrum

One notable feature of New York’s Climate Leadership & Community Protection Act (Climate Act) implementation process has been the emphasis on environmental justice (EJ) for disadvantaged communities.  A dogmatic concern of New York City EJ advocacy organizations is peaking powerplants which are alleged to be a primary air quality problem in disadvantaged communities.  Unfortunately, those generating facilities fulfill a critical reliability service so the New York Independent System Operator (NYISO) has been warning that premature shutdown of the facilities will cause reliability problems.  This post highlights a relevant NYISO filing that concisely summarizes their concerns and recent comments by EJ advocates.  Get your popcorn, it will be interesting to see how this gets resolved.

I have been following the Climate Act since it was first proposed, submitted comments on the Climate Act implementation plan, and have written over 350 articles about New York’s net-zero transition.  I have devoted a lot of time to the Climate Act because I believe the ambitions for a zero-emissions economy embodied in the Climate Act outstrip available renewable technology such that the net-zero transition will do more harm than good.  The opinions expressed in this post do not reflect the position of any of my previous employers or any other company I have been associated with, these comments are mine alone.

Climate Act Background

The Climate Act established a New York “Net Zero” target (85% reduction and 15% offset of emissions) by 2050.  It includes an interim 2030 reduction target of a 40% reduction by 2030 and a requirement that all electricity generated be “zero-emissions” by 2040. The Climate Action Council is responsible for preparing the Scoping Plan that outlines how to “achieve the State’s bold clean energy and climate agenda.”  In brief, that plan is to electrify everything possible and power the electric grid with zero-emissions generating resources.  The Integration Analysis prepared by the New York State Energy Research and Development Authority (NYSERDA) and its consultants quantifies the impact of the electrification strategies.  That material was used to write a Draft Scoping Plan.  After a year-long review the Scoping Plan recommendations were finalized at the end of 2022.  In 2023 the Scoping Plan recommendations are supposed to be implemented through regulation and legislation. 

One of the implementation issues to be resolved is the subject of a New York State Public Service Commission (PSC) “Order initiating a process regarding the zero-emissions target” that will “identify innovative technologies to ensure reliability of a zero-emissions electric grid”.  The ultimate problem with wind, solar, and energy storage technologies proposed to replace fossil-fired electric generation is that they do not work all the time.  The Integration Analysis, NYISO, New York State Reliability Council, and the PSC order all recognize that a new technology is needed to support the grid during those periods.  The problem is exacerbated because the periods when wind and solar resources provide the least power are frequently the periods of highest load when peaking power plants are needed to prevent blackouts.  

Peaking Power Plants

I set up a page dedicated to this issue.  The following is a top-level summary.

In order to provide electricity to everyone who needs it when they need it the NYISO must balance power availability with the load on the system.  NYISO is responsible not only for the real-time delivery of power but also for reliability planning.  If the load did not vary, then this would be much less difficult but the reality is that load varies diurnally and seasonally.  Most important is meeting demand when loads are highest in the summer and winter because it is necessary to provide electricity to maintain the health and well-being of customers. Ultimately the problem boils down to the fact that there are short periods when so much load is needed that there are generating units dedicated by intent or circumstances to provide power during peak load demand. 

About fifty years ago, when Consolidated Edison was responsible for generating power and providing it to their customers, they developed a fleet of around 100 simple cycle combustion turbines at locations within New York City to provide this peaking power.  Those units were cheap but relatively inefficient and had high emission rates.  In a considered process the Department of Environmental Conservation, NYISO, and the owners of the facilities are in a regulation that ensures that the units either meet more stringent NOx emission limits or shutdown if the NYISO and Consolidated Edison do not identify specific reliability issues.  My point is that there is already a process in place to address the units that have always been considered peaking units.

The 2020 PEAK Coalition report entitled: “Dirty Energy, Big Money” is a primary reason that environmental justice organizations vilify all New York City peaking power plants.  I described this work in three posts.  I published a post that provided information on the primary air quality problem associated with these facilities, the organizations behind the report, the State’s response to date, the underlying issue of environmental justice and addressed the motivation for the analysis.  The second post addressed the rationale and feasibility of the proposed plan to replace these peaking facilities with “renewable and clean energy alternatives” relative to environmental effects, affordability, and reliability.  Finally, I discussed the  Physicians, Scientists, and Engineers (PSE) for Healthy Energy report Opportunities for Replacing Peaker Plants with Energy Storage in New York State that provided technical information used by the PEAK Coalition.  

There are two relevant aspects of the PEAK Coalition report.  That report did not make a distinction between the traditional peaking simple cycle combustion turbines and other power plants that were originally designed for frequent operations.  The fuel costs to burn oil at New York power plants is so expensive that they do not generally operate except in peak load periods.  “Dirty Energy, Big Money” only defined a peaking unit as one that operates infrequently so the EJ advocates consider these relatively large steam boiler units peakers.  The second point is that I found that the presumption of egregious harm from all the peaking facilities is based on selective choice of metrics, poor understanding of air quality health impacts,  and ignorance of air quality trends.  This is not as dire a problem as it is portrayed.

Peaking Power Plant Shutdowns

Environmental justice advocates believe that it is a problem.  Marie French recently wrote a Politico article that noted that “Shutting the units down is a top priority for environmental justice groups in the city”.  The article quoted Daniel Chu, the energy planner for the NYC Environmental Justice Alliance: “We think it’s unacceptable that for the sake of reliability, we would have to sacrifice communities for two more years or potentially even longer just to ensure that we don’t have blackouts or brownouts”.  He went on to say: “We don’t want blackouts or brownouts, but we also don’t want continued pollution.”

Raya Salter who is the founder of Energy Justice Law & Policy Center and is a member of the Climate Action Council never misses an opportunity to emphasize her belief that these facilities are a root cause of air quality health impacts in New York City disadvantaged communities.  In a recent Equity and Climate Justice Roundtable session, she argued that the New York Cap-and-Invest program should make shutting down the peaking units a priority.  She believes that equity is only achieved when fossil plant emissions are zero saying that “Anything less than shutting down power plants is a distraction from the goals of the Climate Act”.  However, she also says getting to zero mush be done “in a way that prioritizes emissions and co-pollutant reductions in front line communities and does not disproportionately burden disadvantaged communities”. 

The disconnect between those goals will have to addressed in another post.  You cannot have your cake and eat it too.  In this post I will consider the unconditional demand for shutdowns relative to the concerns of NYISO.

NYISO Reliability Concerns

Last month NYISO released its quarterly assessment of reliability of the bulk electric system which found  a deficit in reliability margins for the New York City area beginning in summer 2025.  I explained that report found that without changes to existing load pattern the summer peak load demand in New York City would be “deficient by 306 MW in 2025 for a duration of 7 hours”.  It is possible, due to uncertain load demand forecasts, that the deficiency could be “446 MW over 9 hours.”  They found that: “The deficient margin is primarily due to the increased demand forecasts within New York City combined with the planned unavailability of simple-cycle combustion turbines to comply with the DEC’s Peaker Rule in 2025”.   

On August 25, 2023 NYISO submitted comments on a petition filed by Alliance for Clean Energy New York, Inc. seeking modification to Clean Energy Standard Tier 1 Renewable Energy Certificate purchase and sale agreements as part of Case 15-E-0302 – Proceeding on Motion of the Commission to Implement a Large-Scale Renewable Program and a Clean Energy Standard.  The submittal includes a succinct description of the replacement power problem. 

In the introduction to the comments, the letter states:

The NYISO is committed to operating an electric system that provides reliable service 24 hours a day, 365 days a year, and to planning a reliable system for the future grid. The Climate Action Council’s Scoping Plan accurately notes, “[w]hile transitioning away from fossil fuel use, maintaining reliable access to power, whether through centralized or distributed energy sources, is crucial for maintaining good public health in our energy-dependent society.”  The NYISO takes no position on the issue of whether, and if so how, REC Agreements should be modified as requested in the Petition and related dockets. The NYISO offers these comments to highlight the importance of developing and deploying generation resources that comply with the CLCPA requirements in a manner that is rationally coordinated with the retirement of existing fossil resources so that system reliability is not jeopardized.

The following is the letter’s comments section (without footnote references):

New Yorkers have long enjoyed reliable electric service and will expect the same level of service to continue. Reliable electric generation supports every aspect of New Yorkers’ daily lives and is vital to the state’s economy. Economic development within the state is driving the interconnection of large loads to the grid and increasing the demand for electricity. As transportation and building heat turn to the electric grid to drive the required economy-wide greenhouse gas emission reductions, people will become even more dependent on reliable electric service for their health, welfare, and safety. Reliable electric service is critical today and will become more critical to everyone’s daily life and general well-being as other sectors of the economy electrify.

Reliable, dispatchable electric generation is in jeopardy as generation retires faster than new resources become operational. Electric system margins have decreased to unprecedentedly low levels. In fact, the NYISO’s Short-Term Assessment of Reliability for 2023 Quarter 2 concluded that the New York City locality is deficient by as much as 446 MW for a duration of nine hours on the peak summer day under expected weather conditions, after accounting for forecasted economic growth and policy-driven increases in demand for electricity. The deficiency would be significantly greater if New York City experiences a heatwave or an extreme heatwave. The narrowing margins and the identified deficiency in New York City demonstrate that the addition of new resources is timely and critical.

NYISO’s ability to facilitate a reliable electric system, including delivery to consumers, requires that the introduction of new resources be coordinated with and occur prior to the orderly retirement of any existing generators. This order of operations is critical for maintaining reliability after such retirements. Electric system reliability margins are already close to minimum reliability requirements in certain areas across New York and continue to tighten, as discussed above. If these margins are totally depleted, the reliability of the grid would be at risk and power outages could disrupt normal life or negatively impact public health, welfare, and safety.

The figures below demonstrate the trend of shrinking reliability margins. Figure 1 shows how resource retirements are beginning to outpace resource additions, notably over the last three years. Figure 2 depicts how this trend is leading to tighter reliability margins in the coming years. While the state’s bulk electric system meets current reliability requirements, risks to reliability and system resilience remain. One key factor driving this risk continues to be resource retirements outpacing additions.

A sufficient fleet of new generation resources that satisfy the CLCPA must be available before more of the existing, traditional generators retire voluntarily or are forced out of service. New generation resources are required now to serve consumers’ needs and to maintain electric system reliability as load increases and existing generators retire. Large-scale renewable energy

generation, offshore wind generation, storage, and distributed energy resources are needed to satisfy CLCPA mandates and to support electric system reliability. Renewable energy generation must still increase substantially to achieve the CLCPA’s 70 percent by 2030 renewable energy requirement and then increase further between 2030 and 2040. This transition will facilitate new renewable resources entering service in the near term, fossil generation will operate less and less prior to retiring, but remain available for when it is needed to serve load and maintain system reliability.

Conclusion

Two opposing viewpoints must be reconciled to resolve the direction of Climate Act implementation.  On one hand, there are ideologues who have so far been setting Climate Act policy.  Despite their lack of energy system qualifications, they argue that the Climate Act mandates require zero emissions.  On the other side NYISO says that introduction of new resources to get to zero emissions must be coordinated with and occur prior to the orderly retirement of any existing generators. Failure to acknowledge this requirement will risk and power outages that could disrupt normal life or negatively impact public health, welfare, and safety.

I believe that those who believe that the Climate Act law has no implementation restrictions are wrong.  There are reliability and affordability safety valve provisions in New York Public Service Law  § 66-p (4). “Establishment of a renewable energy program”.   §66-p (4) states: “The commission may temporarily suspend or modify the obligations under such program provided that the commission, after conducting a hearing as provided in section twenty of this chapter, makes a finding that the program impedes the provision of safe and adequate electric service; the program is likely to impair existing obligations and agreements; and/or that there is a significant increase in arrears or service disconnections that the commission determines is related to the program”. 

I have never seen anyone else suggesting that this is a possibility so it is likely that I am wrong.  In any event, is the Hochul Administration so invested in appeasing the EJ constituency that they are willing to risk causing a blackout or out of control energy costs?  In my opinion if the pragmatic approach to put the implementation on hold until the costs are known and reliability risks are minimized, the ideologues will have a meltdown and call for Hochul’s head.  There is no sign whatsoever that they will accept any compromises or delays to their demands.  As noted in the introduction, get out the popcorn watching this unfold is going to be fascinating.

Renewable Electricity in New York State Review and Prospects

On August 1, 2023 the New York State Comptroller’s Office released Renewable Electricity in New York State Review and Prospects (“Comptroller Report”) that addressed progress and prospects for attaining New York’s Climate Leadership & Community Protection Act (Climate Act) 2040 mandate for a zero-emissions electric grid.  This post discusses the findings of that report.

I have been following the Climate Act since it was first proposed, submitted comments on the Climate Act implementation plan, and have written over 350 articles about New York’s net-zero transition.  I have devoted a lot of time to the Climate Act because I believe the ambitions for a zero-emissions economy embodied in the Climate Act outstrip available renewable technology such that the net-zero transition will do more harm than good.  The opinions expressed in this post do not reflect the position of any of my previous employers or any other company I have been associated with, these comments are mine alone.

Climate Act Background

The Climate Act established a New York “Net Zero” target (85% reduction and 15% offset of emissions) by 2050.  It includes an interim 2030 reduction target of a 40% reduction by 2030 and a requirement that all electricity generated be “zero-emissions” by 2040. The Climate Action Council is responsible for preparing the Scoping Plan that outlines how to “achieve the State’s bold clean energy and climate agenda.”  In brief, that plan is to electrify everything possible and power the electric grid with zero-emissions generating resources.  The Integration Analysis prepared by the New York State Energy Research and Development Authority (NYSERDA) and its consultants quantifies the impact of the electrification strategies.  That material was used to write a Draft Scoping Plan.  After a year-long review the Scoping Plan recommendations were finalized at the end of 2022.  In 2023 the Scoping Plan recommendations are supposed to be implemented through regulation and legislation. 

Annotated Press Release

The press release DiNapoli: State Needs to Supercharge Efforts to Meet Renewable Electricity Goals is as good a place as any to discuss the report.  In this section I will comment on the points made.

My overarching concern with the Comptroller Report is that it underestimates the technological challenges of the net-zero transition.  That is entirely consistent with the Scoping Plan and the beliefs that the politicians who dreamed up the Climate Act and the ideologues who controlled the Climate Action Council can develop rational energy policy.  The introduction basically says all we must do is try harder:

New York state will have to take multiple steps to increase renewable electricity generation to achieve the objectives of the Climate Leadership and Community Protection Act (Climate Act). Success will also require state agencies to consistently and proactively identify and address problems, continue streamlining permit and interconnection study procedures, and develop the necessary infrastructure to connect renewable projects to the grid and New Yorkers’ homes, according to a report issued today by State Comptroller Thomas P. DiNapoli.

“New York State has rightly pursued an aggressive campaign to reduce greenhouse gas emissions to limit the most dangerous impacts of climate change,” DiNapoli said. “New York’s energy goals are attainable, but require careful attention and management to address challenges, meet ambitious deadlines and avoid future pitfalls.”

My first thought when I heard that the Comptroller had issued this report was why in the world did he get involved.  The definition of comptroller, a public official who audits government accounts and sometimes certifies expenditures, wasn’t much help.  The responsibilities listed on State Comptroller website includes “Providing independent fiscal oversight on State, New York City and local finances” which I suppose could provide justification. 

Fiscal oversight means numbers and the report quotes New York Independent System Operator numbers:

DiNapoli’s report found that renewable generators in New York would need to produce an additional 78,073-gigawatt hours above 2022 levels, an increase of over 200%, to reach the Climate Act’s 2030 goal of 70% renewable electricity consumption. The analysis is based on projections from the New York Independent System Operator (NYISO).

NYISO has also projected that the state would need to add 20 gigawatts of installed renewable capacity by 2030, which is triple the 2022 capacity of approximately 6.5 gigawatts. In the last 20 years, New York added 12.9 gigawatts of total electric generation, including both fossil fuel and renewable sources.

The press release discusses the actions taken to try to meet the targets:

The state has taken steps to address these challenges:

  • Increased and consistent funding under the state’s Clean Energy Standard facilitated increases in the development of renewable electricity generation. Between 2017 and 2021, at least 1,100 megawatts of projects came under contract annually, compared to between 0 and 726 megawatts annually in the preceding years.
  • The Department of State’s Office of Renewable Energy Siting (ORES) was formed to streamline the permitting process, and the NYISO has also been improving the interconnection process to bring renewable electricity generation projects online more quickly. Continuing to improve the renewable electric project permitting and interconnection processes to allow for timely approvals, while ensuring community responsiveness and project impacts are mitigated, is critical to achieving the Climate Act goals.

The solutions proposed here are supposed to be a good thing.  I am not impressed.  Increased and consistent funding translates to throw more and more money at it without a plan that defines what the affordability tolerance level is.  ORES is a gift to the renewable energy developers that circumvents environmental protections, home rule, and anything else that could slow down much less stop renewable development.  Here is a new flash to the Albany bureaucrats – not all projects deserve to be built.  ORES has no responsible solar siting requirements in place so solar developers routinely exceed the Department of Agriculture and Markets guidelines for protection of prime farmlands.  My solar development scorecard found that prime farmland comprises 21% of the project area of 18 utility-scale solar project permitted applications which is double the Ag and Markets guideline.

The following paragraph talks about the transmission requirements.  All the points raised are legitimate and there are few technological barriers to development.  It is just a matter of cost and no one has owned up to the expected costs.  The subsequent paragraph acknowledges the problem and implies the problem can be resolved can be resolved if the state wishes hard enough to hold down the costs.

The state will also face challenges given the volume and scale of new projects. The transmission capacity for connecting upstate regions to New York City is limited and renewable facilities in some upstate regions are already being forced to curtail generation due to transmission constraints. Significant new electric transmission infrastructure is needed to allow for the transmission of renewable electricity to customers throughout the state, including interconnect offshore wind projects and additional export capacity from Long Island, and bulk transmission connecting New York City and Long Island to upstate.

The costs of incentives to encourage renewable siting and the costs of transmission projects approved by the Public Service Commission are borne almost exclusively by New York’s utility customers. The state should make every effort to clearly identify how these costs will affect consumer electric bills and must hold down these costs to the state’s electric customers.

The final section of the press release explains “where New York ranks”.  It is not clear how relevant the numbers are vis-à-vis Climate Act implementation or why the 2022 data presented in the report were not used.  Also conspicuous by its absence is where New York ranks relative to global emissions.  Clearly, acknowledging that New York GHG emissions are less than one half of one percent of global emissions and global emissions have been increasing on average by more than one half of one percent per year since 1990 is not a fact that the Comptroller wants to acknowledge lest someone ask what is the point?

In 2020, New York produced 124,912 gigawatt hours of renewable energy, ranking 6th in the nation. This figure includes both renewable fuels, such as biodiesel, and renewable electricity sources, including hydropower, solar, and wind. New York was 3rd in the nation after Washington and Oregon in the generation of hydroelectric power, 10th in generation of solar electricity, and 18th in generation of electricity with wind.

As of 2022, approximately 29% of the electricity generated in the state came from renewable sources. Of this renewable generation, roughly 75% came from hydroelectric generation, with the remaining 25% primarily split between wind and solar.

Report Topics Not Included in Press Release

The press release was not an exhaustive summation of the contents of the Comptroller Report.  The report also addressed the renewable energy goals,

The Comptroller Report notes that:

The State’s renewable electric generation averaged 20 percent of total electric generation between 2005 and 2016. Since then, the share grew to approximately 29 percent of State generation in 2022. To reach the CLCPA goal of 70 percent in 2030, renewable generators in New York would need to produce an additional 78,073 gigawatt hours above 2022 production levels, an increase of over 200 percent.

It goes on to describe the New York Independent System Operator 2021-2040 System & Resource Outlook projections for the renewable energy needed.  It concludes that the State will have to increase the rate at which renewable electricity projects are permitted and approved for interconnection to the State electric grid.

This leads into a more detailed explanation of the challenges to meet the Climate Act goals.

There are three interrelated processes that play a role in the development of renewable electric generation resources in New York, and the State has faced challenges in each of these processes. These processes work on a parallel basis and project developers do not need to have completed any of the processes before they can enter one of the other processes.

Two of them, permitting and grid interconnection, are required for any all-new sources of generation.

  • Incentives – Through various programs, particularly renewable energy certificates, incentives are provided to stimulate the market and ensure that there are enough renewable electric generation projects to meet State goals.
  • Permitting and Siting – The permitting process is intended to ensure that projects are sited in areas and under conditions consistent with State and local laws and regulations.
  • Interconnection – The interconnection process is intended to ensure that there is sufficient electric transmission and distribution infrastructure to move the electricity generated by the facilities to consumers and that electric service reliability standards are met.

The State faced three key challenges that hindered its progress: inconsistent provision of incentives; project cancellations; and lengthy project timelines due to delays in siting and operationalization.

In the discussion of the inconsistent provision of incentives the report stated that “New York State has used two basic approaches to incentivize the development of renewable electricity generation: contracts for the purchase of renewable energy certificates (RECs) from project developers proposing to build large scale facilities that sell electricity into the State grid; and incentives to reduce the cost of installing small facilities sited behind a customer meter that primarily generate electricity for the customer’s use, but also sell unused electricity into the distribution grid (BTM solar).”

The BTM solar incentive was cited as a success because distributed solar generation has grown steadily.  They claim that “the total combined capacity of complete projects and those in the pipeline for all years was approximately 7.1 gigawatts” as the result of increased funding commitments.  I don’t think the authors of the report understand that the electric energy planning commitment to providing reliable power at all times is hindered by this program.  There is no question that distributed solar generation reduce load requirements, but it creates operating challenges including short, steep changes in load that must be balanced, an oversupply risk when all the solar is operating at peak rates, and decreases resiliency when less resources are operating and available to automatically adjust electricity production to maintain grid reliability.  When the costs to address those problems are considered it is clear that success is limited.

The Comptroller Report argues that the RECs program has had mixed results. Each REC represents a megawatt hour of electricity sold into the State’s electric grid.  To date: “Most, but not all, of the large-scale renewable electricity generators that move through the permitting and interconnection processes are recipients of REC contracts.”   However, an analysis by the Comptroller’s Office shows a lot of variation in the projects that have had contracts:

Funding commitments under the State’s CES increased dramatically, resulting in a significant increase in the projects under contract, as shown in Figure 5. Whereas the last procurement under the RPS in 2016 carried a commitment of $360 million, the funding commitment for the 2017 procurement was approximately $1.4 billion.

The Comptroller Report seems to be surprised by the number of project cancellations:

Between 2005 and April 2023, 28 projects totaling 1.3 gigawatts were canceled—an amount equal to 11.3 percent of capacity under contract during those years—with the largest amount of capacity canceled in 2017, 2018 and 2020. In these years, canceled projects represented 20.4 percent of contracted capacity. Projects may be canceled for a variety of reasons including opposition to the project, changes in the finances of the developer, or unforeseen costs for transmission needed for grid integration.

The report notes that facilities that are operating but have lost their REC subsidies “could potentially enter into long term contracts with consumers outside of the State, which could prevent their generation from counting toward State goals.”  However, there is no mention of the operating facilities that already are under contract out-of-state.  Robert Bryce reviewed data published by the Department of Energy and the New England Power Pool and found that “of the nearly 4 million megawatt-hours of wind energy produced in New York in 2018, the state exported 1.2 million megawatt-hours, or 30 percent, to New England.  Furthermore, the Cassadaga Wind Project that was commissioned in 2021 produces power that was procured through the New England Clean Energy request for proposals’ in 2016 for a group of seven New England utilities.  Note that I have never seen an acknowledgement of this in any of the Scoping Plan documentation.

Two additional considerations are mentioned.  Getting the power from the wind and solar facilities to where it is needed is described:

New electric transmission and distribution capacity will be needed to connect the new renewable electric generation required to meet the CLCPA goals to the grid. Transmission capacity connecting upstate regions to New York City is limited and renewable facilities in some upstate regions are already being forced to curtail generation due to transmission constraints.

The other issue is affordability.  The report notes:  “The costs of incentivizing renewable electricity development and transmission upgrades are borne almost exclusively by New York’s utility customers through a charge per kilowatt hour of electricity consumed.”    The RECs described earlier are funded by the ratepayers.  In addition, the investments necessary to develop the transmission upgrades are buried in the rate cases.  The document suggests without justification that this problem will be addressed by existing programs.

Conclusion

Not surprisingly this political document proposes political solutions.  The acknowledged problems of the timeline can be resolved if “the projects currently under contract to sell RECs to the State and the projects in the NYISO’s interconnection queue are able to move through the interconnection and construction process and needed transmission and distribution infrastructure is completed in a timely way, the CLCPA’s goal of generating 70 percent of the State’s electricity with renewable technologies appears to be in reach.”  The Comptroller’s Report falls back on the it is only a matter of political will faith-based creed.  Reality is very likely to make that impossible.

In addition to political will, the report suggests that we can resolve issues by throwing more money at projects.  The State’s prior poor performance is chalked up to inconsistent funding commitments. At the same time, it acknowledges that “mechanisms to hold down the cost of meeting its goals on the State’s electric consumers” are necessary.

Against the background that New York’s contribution to global GHG emissions is less than the rate of increase in global emissions my frustration is unbounded.  Is it too much to ask Albany politicians to document the expected costs, the potential risks to reliable energy, and the environmental tradeoffs of the net zero transition called for in the Climate Act? 

New York Zero-Emissions Resource Proceeding

The New York State Public Service Commission (PSC) recently initiated an “Order initiating a process regarding the zero-emissions target” that will “identify innovative technologies to ensure reliability of a zero-emissions electric grid”.  Implementation of the Climate Leadership & Community Protection Act (Climate Act) started soon after the law was passed at the end of 2019.  It was recognized early that “as renewable resources and storage facilities are added to the State’s energy supply, additional clean-energy resources capable of responding to fluctuating conditions might be needed to maintain the reliability of the electric grid” but here we are three and half years later finally getting around to address this critical requirement.  This post summarizes the proceeding, gives an overview of the questions raised by the PSC, and describes the comments I submitted.

I have been following the Climate Act since it was first proposed. I submitted comments on the Climate Act implementation plan and have written over 300 articles about New York’s net-zero transition.  I have extensive experience with meteorological aspects of electric generation because I have worked in the sector as a meteorologist for over four decades.  I have devoted a lot of time to the Climate Act and the issues raised in this proceeding because I believe the ambitions for a zero-emissions economy embodied in the Climate Act outstrip available renewable technology such that the net-zero transition will do more harm than good.  I represent the Environmental Energy Alliance of New York on the New York State Reliability Council Extreme Weather Working Group.  The opinions expressed in this article do not reflect the position of the Alliance, the Reliability Council, the Extreme Weather Working Group, any of my previous employers or any other company I have been associated with, these comments are mine alone.

Climate Act Background

The Climate Act established a New York “Net Zero” target (85% reduction and 15% offset of emissions) by 2050 and an interim 2030 target of a 40% reduction by 2030. The Climate Action Council is responsible for preparing the Scoping Plan that outlines how to “achieve the State’s bold clean energy and climate agenda.”  In brief, that plan is to electrify everything possible and power the electric grid with zero-emissions generating resources by 2040.  The Integration Analysis prepared by the New York State Energy Research and Development Authority (NYSERDA) and its consultants quantifies the impact of the electrification strategies.  That material was used to write a Draft Scoping Plan.  After a year-long review the Scoping Plan recommendations were finalized at the end of 2022.  In 2023 the Scoping Plan recommendations are supposed to be implemented through regulation and legislation.  The zero emissions analysis is part of that effort.

Overview of Process

The press release describes the process to “identify innovative technologies to ensure reliability of a zero-emissions electric grid”:

The New York State Public Service Commission (Commission) has initiated a process to examine the need for resources to ensure the reliability of the 2040 zero-emissions electric grid mandated by the Climate Leadership and Community Protection Act, or Climate Act.

“The Commission’s action reaffirms efforts to ensure New York has the needed clean-energy resources to replace existing fossil fuel-fired power plants,” said Commission Chair Rory M. Christian. “I am proud that New York continues to lead by advancing important clean energy initiatives, such as the one commenced today.”

The Climate Act, passed by the State Legislature in 2019, directs the Commission to establish, among other things, a program to ensure that by 2030, at least 70 percent of electric load is served by renewable energy, and that by 2040, there are zero emissions associated with electrical demand in the State. The initiative will help deliver on the Climate Act zero-emissions electric grid mandate and will enable the necessary types of clean energy to reach all New Yorkers. The Commission’s decision follows a substantial climate package announced by Governor Kathy Hochul in the FY24 enacted State Budget that will advance sustainable buildings, clean energy, and an affordable Cap-and-Invest program.

Today’s action recognizes that as renewable resources and storage facilities are added to the State’s energy supply, additional clean-energy resources capable of responding to fluctuating conditions might be needed to maintain the reliability of the electric grid. The Commission’s work to meet the Climate Act targets must include exploration of technologies that can support reliability once fossil generation has been removed from the system. The order initiates a process to identify technologies that can close the anticipated gap between the capabilities of existing renewable energy technologies and future system reliability needs. Within the order, the Commission asks stakeholders a series of important questions, including how to define ‘zero-emissions’ for purposes of the zero emissions by 2040 target, and whether that definition should include cutting edge technologies such as advanced nuclear, long duration energy storage, green hydrogen, and demand response. The order further elicits feedback from stakeholders on how to best design a zero-emissions by 2040 program, consistent with the Climate Act’s requirement of delivering substantial benefits to disadvantaged communities and New York State’s electric grid reliability rules, while also leveraging other state and federal efforts to research, develop, and deploy zero-emission resources.

After a 60-day public comment period, Commission staff will convene at least one technical conference to examine a series of issues and questions raised in this important proceeding. The Commission may take additional actions on zero-emission resources based on the information obtained through those processes.

Questions Asked

I have included the questions asked with some brief commentary.  I chose to only address one question related to my expertise and one short-coming in the Proceeding.  The Commission wants answers to “assist the Commission in determining what, if any, subsequent actions should be taken, which may include refinements to existing policies or establishing new policies.”

Question 1: How should the term “zero emissions,” as used under PSL §66-p(2)(b), be defined?

It has taken three and a half years to define what qualifies as “zero emissions” and address the problems associated with this resource.  Given its importance this should have been an immediate and high priority for the Climate Action Council.  The Order notes:

Following enactment of the CLCPA, the Commission issued the Order Adopting Modifications to the Clean Energy Standard, which aligns the existing Clean Energy Standard (CES) with the CLCPA renewable energy targets.

The pathway established by the CES Modification Order focuses on options for procuring sufficient renewable energy resources to meet CLCPA requirements. However, several studies indicate that renewable energy resources may not be capable of meeting the full range of electric system reliability needs that will arise as fossil generation is replaced. These studies suggest that there is a gap between the capabilities of existing renewable energy technology and expected future system reliability requirements. The Independent Power Producers of New York, Inc., New York State Building and Construction Trades Council, and New York State AFL-CIO (Petitioners) also raised this issue in a petition filed in this proceeding on August 18, 2021 (Zero Emissions Petition or Petition).

I did not provide any comments on this question.

Question 2: Should the term “zero emissions” be construed to include some or all of the following types of resources, such as advanced nuclear (Gen III+ or Gen IV), long-duration storage, green hydrogen, renewable natural gas, carbon capture and sequestration, virtual power plants, distributed energy resources, or demand response resources? What other resource types should be included?

If I were to respond to this question, I would simply say the only one of these resources that has a realistic chance of providing the services necessary is advanced nuclear.  That answer is obvious to anyone who has looked at the other options pragmatically.  I do not believe that a state that shut down 2,000 MW of operating nuclear will ever pivot to nuclear so I am not going to dilute my comments by stating the obvious.

Question 3: How should a program to achieve the Zero-Emission by 2040 Target address existing and newly constructed nuclear energy resources. Should the program be limited to specific types of nuclear energy technologies and exclude others?

It is obvious that keeping existing nuclear in operation as long as it is safe should be a priority but this is New York.  Responding to the specific types of nuclear question is beyond my existing knowledge and I do not have time to research a response.

Question 4: Should new measures adopted to pursue compliance with the Zero-Emission by 2040 Target focus exclusively on generation and resource adequacy, or should they also encompass a broader set of technologies that could be integrated into the transmission or distribution system segments, or installed and operated behind-the- meter?

Responding to this is beyond my existing knowledge and I do not have time to research a response.  My impression is that the broader technologies being considered are all magical solutions that are only being included to appease the green energy advocates.  They may play a role but it will be inconsequential.

Question 5: Should any program to achieve the Zero-Emission by 2040 Target specify subcategories of energy resources based on particular characteristics, such as ramp rates, the duration of their operational availability, or their emissions profile with respect to local pollutants?

I am sure that New York’s reliability experts will address the technical aspects of the energy resources needed.  I am not qualified to do so.  My comments do address the duration of the operational availability of this resource.

Question 6: What role does technology innovation need to play to meet the CLCPA’s Zero-Emission by 2040 Target?

Given that the Commission by way of this proceeding, the New York Independent System Operator (NYISO), and the New York State Reliability Council (NYSRC) all agree that there is no commercially available resource available that meets the need identified for dispatchable emissions free generation, I would say that technology innovation is an obvious prerequisite to the 2040 target.  My comments address the reliability and affordability implications of the technological innovations needed.

Question 7: Should life cycle emissions impacts be considered when characterizing energy resources? If so, how?

It would be inappropriate for me to respond to this question because my comments would be unprofessional.  I doubt that something along the lines of the following would be considered: “Why would the State want to start becoming unbiased in its consideration of energy resources now?  All of the possible life cycle impacts of fossil sources are included and none of the life cycle impacts of wind and solar are considered.  When there was no obvious characterization methodology for fossil fuel impacts available, they just made something up – so do the same.”

Question 8: Given that the feedstocks and other resources required to produce renewable natural gas are limited and will be in demand in other sectors of New York’s economy, how should this fuel be considered in the context of this proceeding?

This question answers itself.  There will never be enough renewable natural gas available to provide a meaningful contribution.  On the other hand, there are instances where emission reductions will be required and the capture and use of renewable natural gas makes sense.

Question 9: In what ways might a program to meet the Zero-Emission by 2040 Target require reexamination and possibly revision of different tiers of the Clean Energy Standard? Should one or more of the policy approaches that have been used to implement the CES be considered to meet the Zero-Emission by 2040 Target?

Responding to this is beyond my existing knowledge and I do not have time to research a response. 

Question 10: What is necessary to align a program to meet the Zero- Emission by 2040 Target with the priority of just transition embedded within the CLCPA?

The Just Transition rubric is a political construct.  I pride myself on pragmatic comments that balance impacts, costs, and benefits.  Those are not considerations that will be included in the just transition priorities so I did not submit a response to this question.

Question 11: How might the benefits of a program to meet the Zero- Emission by 2040 Target be measured for the purpose of ensuring that, consistent with PSL §66-p(7), it delivers “substantial benefits” to Disadvantaged Communities?

The substantial benefits to Disadvantaged Community rubric is another political construct.  It is disappointing that the State has so far ignored the benefits of a reliable and affordable electric grid relative to the alleged benefits and significant affordability and reliability risks to Disadvantaged Communities.

Question 12: NYISO has adopted an effective load carrying capacity (ELCC) rubric and treatment of Zones J and K as load pockets with special resource adequacy requirements. How should these constructs and other NYISO market rules inform design of a program meant to support the development and deployment of resources capable of achieving a zero emissions grid?

Responding to this is beyond my existing knowledge and I do not have time to research a response. 

Question 13: What additional studies, if any, should the Commission undertake with respect to the development and deployment of resources capable of achieving a zero emissions grid?

In the following section I describe my response to this comment.

Question 14: Given that New York is not the only jurisdiction investigating options and opportunities for the research, development, and deployment of new technologies capable of achieving a zero emissions grid, how should the State seek to coordinate with and otherwise draw upon efforts that are underway elsewhere?

This is another question that answers itself.  Given the challenges we need all the help we can get.  How to do that is beyond my pay grade.

My Comments

My comments addressed two concerns: duration of the operational availability of the zero-emissions resources and the need to address the feasibility and affordability conditions in  New York Public Service Law  § 66-p (4). “Establishment of a renewable energy program”.

In order to determine whether any of the innovative technologies to “ensure reliability of a zero-emissions electric grid” are adequate it is necessary to determine how much energy they can provide relative to the amount needed in the worst case.  I have been whining about the ultimate problem in the Integration Analysis for nearly three years.  On September 16, 2020 In their presentation to the Power Generation Advisory Panel E3 included a slide titled Electricity Supply – Firm Capacity.  Their presentation states: “As the share of intermittent resources like wind and solar grows substantially, some studies suggest that complementing with firm, zero emission resources, such as bioenergy, synthesized fuels such as hydrogen, hydropower, carbon capture and sequestration, and nuclear generation could provide a number of benefits.”  Those are the zero-emissions resources addressed by the Proceeding.  Of particular interest is the graph of electric load and renewable generation because it shows that this problem may extend over multiple days.

My comments explained that in New York the winter solar resource is poor because the days are short, the irradiance is low because the sun is low in the sky, and clouds and snow-covered panels contribute to low solar resource availability.  If there is a period of low winds, then the zero-emissions resource is needed to provide an economically viable resource solution.  Note that the magnitude of the zero emissions resource needed to address this issue will be a  significant percentage of system peak load and that the technology (green hydrogen, long-term battery, etc.) does not presently exist for utility scale application.

I also pointed out that the reliability concern is exacerbated for several reasons.  The future peak load will be in winter because the primary decarbonization strategy is electrification.   During extreme cold weather periods, natural gas used at power plants is diverted to other users and power plants must switch to oil.  There are fewer plants that have dual-fuel capability and over an extended event or a series of events the oil in storage could be depleted.  Finally, the coldest periods are also associated with wind lull periods because extreme cold is associated with large high-pressure systems that suppress wind resources.

If there are insufficient generating resources available to serve peak loads, then a disastrous blackout will result.  In February 2021, the Texas grid was unable to provide support load and resulted in as many as seven hundred deaths and billions in damages.  I stated that this proceeding must ensure that this situation does not happen in New York.

I described the NYISO resource adequacy planning process in my comments.  It has developed over many years and provides reliability planning projections based on the current mix of electric generating resources.  One of the important characteristics of the current system is that there is insignificant correlation between the unavailability of generating resources.  I believe that one of the significant findings of the New York State Reliability Council (NYSRC) Extreme Weather Working Group (EWWG) will be the observed correlation of the frequency and duration of low-wind episodes across the entire state, including the offshore wind development areas.  I emphasized that this finding must be considered in future planning. 

I have no doubt that these issues will eventually be addressed in the resource adequacy planning process and the reliability standards for the electric system.  However, in order to determine how to do this it is necessary to understand the worst case. In order to determine how large the DEFR capacity needs to be, the State must know how much energy was available for low renewable resource episodes of different lengths.  The EWWG is addressing this issue.  However, because of its importance I believe a more extensive analysis and possibly independent analysis by different organizations would be appropriate.  It is too important to rely on a single analysis of the expected worst-case availability.  Therefore, I recommend this study be addressed as part of this Proceeding.

My comments on this topic recommended what should be included in a worst-case analysis.  The most important aspect of any such analysis is to use as long an analysis period as possible.  Fortunately, meteorological reanalysis data generated by modern weather forecast models but using original observations since 1950 are available for this application.  The analysis should identify potential periods of low wind and solar availability and their frequency and duration.  Once worst case periods are identified, modeling that projects the specific resource availability during the worst periods should be performed.  That information can be used for future resource planning.

My second comment addresses the feasibility and affordability conditions in  New York Public Service Law  § 66 “Establishment of a renewable energy program”.  The Hochul Administration has not acknowledged that there is a “safety valve” if the implementation does not work out as imagined in the Scoping Plan.

Specifically, New York Public Service Law  § 66-p (4) states: “The commission may temporarily suspend or modify the obligations under such program provided that the commission, after conducting a hearing as provided in section twenty of this chapter, makes a finding that the program impedes the provision of safe and adequate electric service; the program is likely to impair existing obligations and agreements; and/or that there is a significant increase in arrears or service disconnections that the commission determines is related to the program”.  The plain reading of that is that if implementation cannot feasibly maintain reliability standards or adversely affects affordability can “temporarily suspend or modify the obligations” of the Climate Act.

In my opinion, if the Climate Action Council had spent time looking at overarching issues rather than getting bogged down in arguments about wording and the pet concerns of its members then this would have been addressed.  In this instance, they should have defined the reliability obligations, and affordability conditions for the commission.  They could have specified the metrics to be used and the limits at which it would be appropriate to pause implementation.  Because the Climate Action Council failed to provide recommendations, I commented that the Commission must establish those criteria.

Once the criteria are established then they can be used as a test for the acceptability of the proposed zero emissions resources.  As part of the process a feasibility analysis for each resource to determine the technological risks for the resource and potential costs must be prepared.  If the analysis projects that the § 66-p (4) criteria will be exceeded then the resource should not be considered.

Finally, I noted that my primary problem with the Climate Act is the mandate to go to zero without consideration of tradeoffs.  In this instance that mandate precludes an obvious solution.  New York’s oil-fired steam-electric generating stations could be used to provide the dispatchable generation needed for the worst-case extremes.  The facilities have on-site storage, significant capacity availability, and experience operating units that run rarely.  The units could be kept on-line, used for testing, training, and to be available for use in these extreme events.  The extreme events are easily forecasted days in advance so the units can be brought on-line to be available as needed.  I suspect that the cost to maintain those facilities will be far less than the cost of any zero-emission resource.  Overall, the emissions and air quality impacts will be far less of an issue than the ramifications of a blackout.  I recommended that this option be considered as part of this Proceeding.

Conclusion

This proceeding puts to rest the myth that the technology necessary for the electric system transition is available today.  In order to meet the 2040 “zero emissions” electric generating resource requirement, this zero emissions resource is needed. 

My comments were confined to two overarching issues that must be resolved in order to evaluate New York’s “zero-emissions” resources.  The energy that the resource needs to provide to replace wind and solar resources during low availability periods must be known in order to determine how much will be needed.  I recommended that an analysis that uses as long a period as possible be included as part of the Proceeding.  My other concern is that the acceptability of zero-emissions resources should be based on well-defined standards of reliability feasibility and affordability.  I recommended that the Proceeding define these criteria.

This is a necessary component of the net-zero transition.  Unfortunately the need for this Proceeding has been known since the implementation began and it should have been part of the discussions of the Climate Action Council in 2020. 

Micron Chip Plant Impact Update

A recent report by the Syracuse Post Standard described the most recent environmental impact assessment for the Micron Technology’s planned semiconductor plant.  Last month I described the keynote address for the Business Council of New York 2023 Renewable Energy Conference Energy by Richard Ellenbogen.   I contacted Ellenbogen to let him know that the original projection of for energy use that would be the same as the state of Vermont has been expanded to the same as Vermont and New Hampshire.  This post describes Ellenbogen’s reaction to that news.

Ellenbogen is President [BIO] of Allied Converters and frequently copies me on emails that address various issues associated with New York’s Climate Leadership and Community Protection Act (CLCPA).  I have published other articles by Ellenbogen because he truly cares about the environment and the environmental performance record of his business shows that he is walking the walk.   When he sent a copy of the presentation I asked if I could it post after the conference.

Why NY State Must Rethink Its Energy Plan

Ellenbogen’s keynote address was titled “Why NY State Must Rethink Its Energy Plan and Ten Suggestions to Help Fix the Problems.”  My post on the presentation  summarized the power point presentation for his keynote address.

One of his suggestions concerned the Micron plant:

Allow Micron Technologies to build a combined cycle plant the size of Cricket Valley Energy Center on their property. The Micron facility will use more energy than the state of Vermont. With generation on-site, the thermal energy could be used at the plant and the 350 GWh of annual line loss will be eliminated. Instead of making them look “green” on paper by buying carbon credits, let them be green in reality with high efficiency generation and have lower energy costs to make them more competitive and able to recoup the $5 billion rebate without faking it. That will eliminate the increase in statewide energy use related to the facility.

Micron Environmental Impact

Glen Coin and Tim Knauss provided an update (subscribers only unfortunately) on the environmental impacts of the facility.  Their article included the following statements:

The new estimates of water and energy use are for entire the complex when finished 20 years from now. The company plans to build the four fabrication plants, or fabs, sequentially: Construction of fab 1 starting in November 2024, and work on the fourth fab completed by 2043.

When the Clay complex is complete in 2043, it would use more water and more electricity than all of the company’s factories and offices in use today. The Clay complex will consume 16 billion kilowatt-hours of electricity per year; according to the 2023 sustainability report, all of the company’s fabs now use a combined 11 billion kilowatt hours

Sixteen billion kilowatt-hours per year is enough for more than 2 million average households.

The Micron fab would use about the same amount of electricity as Vermont and New Hampshire combined, according to data from the U.S. Energy Information Administration.

Ellenbogen Update

Ellenbogen prepared the following update after I sent him the article:

I have been using the Micron facility as an example of how the CLCPA is actually going to increase NY State’s carbon footprint because transmitting all of that energy to the Micron site, as much as is used by the state of Vermont,  over long distances was going to result in an amount of lost energy on the wires that could operate 1-3/4 Cornell Universities.  One of my readers sent me an update of energy use because now it is projected that the Clay complex will consume 16 billion kilowatt-hours of electricity per year, as much as Vermont and New Hampshire combined, or 16,000 Gigawatt Hours annually (16 Tera-watt hours).  That is double the original projections and the idea that this could be supported with renewable generation is laughable.  16,000 GWh is an 11%  increase in NY State electric usage just related to the one facility.  The line loss will also double to consume the output of about  a 100 megawatt fossil fuel plant under continuous operation.

To put the Micron facility’s usage into perspective, in its last full year of operation the 2 Gigawatt Indian Point nuclear plant generated 16.3 Tera-watt hours so the Micron facility will need to be supported by a 2 Gigawatt fossil fuel or nuclear plant on site or  2.1 Gigawatts of generation off site, 5% more.  NY State’s policy makes absolutely no sense.  To run the Micron facility would require using about 4 GW of the projected 9 GW of offshore wind to support the plant or 16 GW of solar arrays covering 128,000 acres (80 acres per 10 MW)  or 200 Square miles.  NY State has 7 million acres of farmland so solar arrays to support the Micron facility  would use almost 2% of the farmland in the state and would also require an enormous amount of battery storage, the cost of which would greatly exceed the cost of a nuclear plant on site.  A combined cycle generating plant on site would be about 75% less than the cost of the nuclear plant.  Both the combined cycle gas plant and the nuclear plant on-site offer the option of recovering the waste heat and using it in the plant to make Micron even more energy efficient.  With regard to the solar and wind, NY State is having major difficulties getting all of their renewable projects finished because of cost issues and interconnection issues, let alone adding this gigantic lead weight to the Camel’s back.

The politicians can say whatever they want about the wonders of the CLCPA but the mathematical analysis of the project says that the CLCPA and the mandate for Micron to buy Carbon credits is going to raise NY State’s carbon footprint substantially while also raising Micron’s costs.  It’s a Lose-Lose proposition for everyone.

That’s what happens when you outsource utility planning to Climate Scientists and environmental activists that have no understanding of what they are doing, which is what NY State has done.

Conclusion

I agree with Ellenbogen’s points.  The obvious approach for the energy needed by Micron would be co-generation.  As much as I would like to say that this should be provided by nuclear, I agree with him that costs and implementation time preclude that option now so a combined cycle natural gas-fired plant is the pragmatic choice.  Either option produces waste heat that can be used at the facility which increases the energy efficiency.  As he says the expectation that renewables can provide the necessary power on top of the existing load needs is laughable.  Importantly, a facility like this must have uninterruptible power and providing that from wind and solar is an extreme challenge. Finally, I want to close with one of Ellenbogen’s points from his presentation: “When fantasies meet reality, reality always wins.”  The Climate Act renewable plans are fantasy and the inevitable clash with reality is going to be interesting to watch.

The Problem with Overbuilding Wind and Solar

The Climate Leadership & Community Protection Act (Climate Act) net-zero transition plan includes a requirement for “zero-emissions” electric generating by 2040.  New York’s irrational energy policies preclude the only proven zero-emissions choice (nuclear energy) to meet that requirement.  Instead, the emphasis is on solar and wind development.  A recent post at Trust, yet verify includes a great graphic that illustrates an inherent flaw with wind and solar that Climate Act implementation must address.

I have been following the Climate Act since it was first proposed. I submitted comments on the Climate Act implementation plan and have written over 300 articles about New York’s net-zero transition. The opinions expressed in this post do not reflect the position of any of my previous employers or any other company I have been associated with, these comments are mine alone.

Climate Act Background

The Climate Act established a New York “Net Zero” target (85% reduction and 15% offset of emissions) by 2050 and an interim 2030 target of a 40% reduction by 2030. The Climate Action Council is responsible for preparing the Scoping Plan that outlines how to “achieve the State’s bold clean energy and climate agenda.”  In brief, that plan is to electrify everything possible and power the electric grid with zero-emissions generating resources by 2040.  The Integration Analysis prepared by the New York State Energy Research and Development Authority (NYSERDA) and its consultants quantifies the impact of the electrification strategies.  That material was used to write a Draft Scoping Plan.  After a year-long review the Scoping Plan recommendations were finalized at the end of 2022.  In 2023 the Scoping Plan recommendations are supposed to be implemented through regulation and legislation. 

Implementation

In order to get a sense of the magnitude of the renewable resource development necessary to implement the Climate Act this section shows the expected changes to load and generating resources. 

The New York Independent System Operator (NYISO) 2023 Load & Capacity Data Report (also known as the “Gold Book”) 2023 Load & Capacity Data Report (Gold Book) lists the 2022 observed load and projections out to 2053.  The following excerpt shows Table I 1-a baseline energy and demand data to 2040.

There are two relevant projections for future generating resources.  The “official” Hochul Administration projections are in the Final Scoping Plan.   The NYISO projections are in the 2021-2040 System & Resource Outlook  I compare the installed capacity for Scoping Plan and the Resource Outlook in the next table.  For this post I am only concerned with the total generation projections.

In 2022 the peak observed load was 31,709 MW and the installed summer capability 37,178 MW. In 2030 the NYISO Gold Book baseline predicted summer peak load is 32,490 MW and 36,930 MW in 2040.  The peak winter load is 28,970 in 2030 and 44,800 in 2040. In the following table, I list the maximum capability and peak load data and calculate the capability to peak load margin. 

The NISO Gold Book Table V-3 lists the historical Installed Reserve Margin (IRM) values for the New York Control Area and the historical minimum Locational Capacity Requirements (LCRs) approved by the NYISO for Zones G-J, Zone J, and Zone K.  The IRM requirements are established each year by the New York State Reliability Council (NYSRC).  The IRM represents the minimum level of capacity, beyond the forecasted peak demand, which utilities and other energy providers must procure to serve consumers.  This post is not going to address the LCRs. 

As shown here New York will require an unprecedented level of new wind and solar development in order to meet the net-zero transition mandates of the Climate Act.  Note that the capability to peak margin calculated in the preceding table is not exactly the same as the IRM but the expectation is that the IRM will increase significantly in the future.  The reason for this IRM shift is that wind and solar are intermittent and overbuilding those resources is necessary to address that intermittency.  While overbuilding is suggested as the solution for the best energy plan the question is how much is enough and whether it is a solution that eliminates the need for any new resources.

One Third on Average

I am convinced that overbuilding is not as viable a solution as its proponents claim.  However, trying to explain the reasons why is complicated so I have been looking for a more-easily understood graphical explanation.  Michel Opdbe wrting at the at Trust, yet verify blog has just such a graphic.

Opdbe lives in Belgium and writes about renewable energy policies in Belgium and adjoining countries.  His recent post addressed a claim that on average of 1/3 of the total electricity demand in the Netherlands is now supplied by sun, wind and water. The post was based on a tweet with this message (translated from Dutch):

An average of 1/3 of the total electricity demand in the Netherlands is now supplied by sun, wind and water. The record is from Sunday 24 April, with a nice 68%.
The low of last winter was on November 30, with only 4%.
#graphoftheday

It was accompanied by a graph showing the daily energy production by solar, wind and water as percent of total demand of the Netherlands:

He explains:

The thick yellow line is the four weeks moving average and, indeed, it ends up at roughly one third of demand at the beginning of 2023. That is however only part of the story, as also hinted by the two values that are mentioned in the text of the tweet.

Although the average ends up around one third of demand, it is derived from a incredibly wide range. According to the tweet, solar and wind together with water produced between 4% and 68% of total demand in 2022 in the Netherlands.

There is also something in this graph that drew my attention, but it is not that clear from that graph. Unfortunately, I don’t have the data from the Netherlands. Luckily, this dynamic is not unique to the Netherlands, it is exactly the same in Belgium and the Belgian data is readily available.

In my opinion this dynamic is universal across all jurisdictions that are moving to a reliance on wind and solar.

This is a recreation of that graph using the Belgian data (only solar and wind, water power in Belgium is negligible):

The Belgian figures are close to that of the Netherlands, albeit a bit lower. The average share of Belgian solar and wind as percent of demand is roughly one fourth (compared to one third of the Netherlands). The range of the Belgian data is also somewhat smaller (between 1 and 58%) compared to the Netherlands (between 4 and 68%). The overall shape is however similar. There is the same funnel shape that is widening the more capacity is added.

The following graphic illustrates the problem well.

Now it is easier to highlight a bit more the wide range that this average is derived from. These are the minimum and maximum values of the share of solar and wind in demand of each year:

It is clear that the lower and upper boundaries don’t increase in the same way The lower boundary is hardly budging, it keeps close to the x-axis over the entire period. In 2022, the lowest daily share supplied by solar and wind was only about 1% of total demand. This didn’t change much over the years: it was roughly between 0.7% and 1.8% of demand between 2014 and 2022. This tells us that a lot of dispatchable capacity will still be needed at specific times of the year (in this case, pretty close to the expected demand and, looking at its shallow slope, that might be the case for quite a while).

The upper boundary behaves different. It shoots up exponentially. In 2022, the highest daily share supplied by solar and wind was 58% of total demand, coming from around 20% in 2014.

Meaning that the difference between the lower and upper boundary will keep increasing over time. Basically, electricity production by solar and wind will at times start to exceed demand, while the need for backup at specific times of the year will stay high.

The key point illustrated in this graph is that over building wind and solar does not help much for those periods when wind and solar resources are low due to the weather.

Some people also seem to recognize this type of dynamic. Already the first comment below the tweet nails it (translated from Dutch):

If we now just install three times as much, then we have more than twice too much at the peak and are almost 90% short at the lowest point.

I couldn’t have said it better.

Discussion

Based on every study of intermittent wind and solar that I have seen, the difference between the lower and upper boundary of wind and solar output will keep increasing over time as these resources are added to any electric system.   New York is not as bad as Belgium and Netherlands but it is the reason that the New York IRM will increase from around 20% to on the order of 150% in 2040.   The reason for this universal truth is that meteorological conditions that cause light winds are geographically large.  When the wind is light at one site in New York it is very likely that winds are light across the state.  Data from Australia shows a similar effect across that entire continent.

There are a couple of ramifications.  First, overbuilding is not a complete solution.  Grid operators must always match load with generation.  Therefore, resource adequacy planning must have a solution even at the minimum wind and solar generation output.  If the overall state-wide wind generation capacity is only 10% you would need to overbuild by a factor of ten to provide power at night.  Aside from the cost I believe that amount of wind development exceeds the expected wind resource availability in New York.  In order to address this a new technology is needed.  The New York State Public Service Commission (PSC) recently initiated an “Order initiating a process regarding the zero-emissions target” that will “identify innovative technologies to ensure reliability of a zero-emissions electric grid” for this reason.

The other part of the problem is that when wind and solar resources are over-built there will be more and more periods when their output exceeds demand. When that happens the electricity market has issues.  Many wind and solar contracts are written such that the operators are paid whether or not the energy produced is needed.  For example, the Ontario Independent Electricity System Operator must get rid of the unneeded power by selling it to neighboring control areas at below market costs.  New York is a big purchaser of this cheap power.  While those purchases drive costs down for ratepayers it also adversely affects the viability of in-state generating facilities.  On the other hand, during the light wind conditions in-state generating facilities are needed so it may reach the point that they have to be subsidized to be available.  Eventually New York will be in a similar position to Ontario.  It turns out that the low- price sales are subsidized by Ontario ratepayers.  When everyone has over-built I also wonder where the excess power will be dumped.

Conclusion

The graph of solar and wind generation resources as a fraction of the total resources shows a characteristic shape that proves that over building wind and solar generation does not help always fulfill load requirements.  Electric grid operators must match the output of generating resources  at all times so this means the problem has to be addressed.  Further compounding the problem is the fact that peak loads are associated with temperature extremes that are linked to high-pressure systems that also create light winds.  In other words the over-building effect is most pronounced when energy demand peaks exacerbating the risks to reliability when electricity is needed most.

At least one commenter understands the problem when he said “If we now just install three times as much, then we have more than twice too much at the peak and are almost 90% short at the lowest point”.  I agree with Opdbe – I couldn’t have said it better.

The unanswered questions are how will the Climate Act implementation address this problem, what will it cost, and will it be able to maintain current standards of reliability.

Finger Lakes Times Alternate Energy Scoping it Out Conclusion

On June 24, 2023 the Finger Lakes Times published a commentary, Alternate Energy: Scoping it out, Part VI: My humble opinion, conclusion by Jim Bobreski, a process control engineer from Penn Yan.  The commentary concludes a series on the Climate Leadership & Community Protection Act (Climate Act) Scoping Plan.  I started this post soon after his article was published but just got around to completing it.  While I admire Bobreski’s efforts to try to decipher the Scoping Plan he makes a couple of mistakes that should be addressed.

I have been following the Climate Act since it was first proposed, submitted comments on the Climate Act implementation plan, and have written over 300 articles about New York’s net-zero transition.  I have devoted a lot of time to the Climate Act because I believe the ambitions for a zero-emissions economy embodied in the Climate Act outstrip available renewable technology such that the net-zero transition will do more harm than good.  The opinions expressed in this post do not reflect the position of any of my previous employers or any other company I have been associated with, these comments are mine alone.

Climate Act Background

The Climate Act established a New York “Net Zero” target (85% reduction and 15% offset of emissions) by 2050 and an interim 2030 target of a 40% reduction by 2030. The Climate Action Council is responsible for preparing the Scoping Plan that outlines how to “achieve the State’s bold clean energy and climate agenda.”  In brief, that plan is to electrify everything possible and power the electric grid with zero-emissions generating resources by 2040.  The Integration Analysis prepared by the New York State Energy Research and Development Authority (NYSERDA) and its consultants quantifies the impact of the electrification strategies.  That material was used to write a Draft Scoping Plan.  After a year-long review the Scoping Plan recommendations were finalized at the end of 2022.  In 2023 the Scoping Plan recommendations are supposed to be implemented through regulation and legislation. 

Author Background

According to the article: Jim Bobreski of Penn Yan is a process control engineer in power production for 43 years. He writes a monthly OpEd on Alternate Energy for the Finger Lakes Times and is the author of “Alternate Energy and Climate Change in the Age of Trump,” available Amazon.com.  The Barnes and Noble overview of the book says:

In the age of Trump, energy, is as big and important an issue as it ever has been. The decisions we make as nations, and as individuals about energy are as important as always to our present, and more so to our future. However, in this age of Trump, there are delusions and confusion that he and his regime has perpetrated. Trump has succeeded in creating so much doubt that the average person thinks that up is down and down is up. He has turned science upside down as well. His interference with science has so obstructed the truth that Scientific American came out to for the first time in its 175 year politically neutral history and endorsed Joe Biden. This book is a collection of articles about the politics, economics, and technology of alternate energy and its importance to the future of civilization.

Commentary

In this section I will critique the commentary.  Renewable energy advocates commonly make similar mistakes relative to the electric system.  Although Bobreski was in power production his expertise in process control is not particularly relevant for electric system resource adequacy issues.  Consequently there are misconceptions similar to those Richard Perez made arguing that New York should embrace a solar energy future.

The commentary is a mixture of good and bad points.  He starts out explaining that technology advances are necessary to make the Climate Act Scoping Plan work.

A call to grandma cost about $5 back in 1970 which is about $38 today. Now the same call is almost nothing. My point: Technology today comes in leaps and bounds and fast. It improves so fast that as soon as you buy some new device, it is obsolete in some way the minute you use it.

My concern is are we becoming dependent upon technology’s rapid evolution to solve our problems? The scoping plan appears to count on this very thing to be successful. Can it happen? I think the answer is yes, but it’s a cautionary yes.

There are limits to this analogy for the electric system.  Wind and solar energy have been subsidized for decades in the hopes that the technology would evolve to the point where it could stand on its own.  However, there is no sign that the need for those subsidies will disappear anytime soon.

Theresa Hansen of “T&D World” magazine says, “Some locations in the US might meet President Biden’s goal of 100% clean energy by 2035, but I don’t see the entire country being fueled by zero carbon sources 12 years from now.”

“T&D World” is a trade publication for the power transmission industry and they ought to know!

It may be true that “some” locations may have 100% clean energy by 2035 but I don’t expect that it will be any large jurisdiction.  I recently described problems with the transition including the European experience showing that wind is not viable, the costs of wind and solar in Germany are untenable, and that a rapid energy transition has many risks but that information is being ignored.  There is a reason trade publications are called trade rags.  They will publish anything to appeal to their readership.

In the past five columns, I have tried to put together some information about the directives of the Scoping Plan for the energy future of NYS. I concentrated on solar, wind, the grid and storage systems.

I would like to call this a story, because the efforts made by the state to go “green” stretch back over 40 years. In 1982 PASNY — now NYSERDA — planned to place a wind turbine on the shore of Lake Ontario. Numerous studies in NY have been performed on wind power over those years. Whatever became of this? I have filed Freedom of Information requests on the wind turbine projects proposed by PASNY, but have had no luck finding this information. I was attempting to garner what was already known then and why it wasn’t implemented at the time.

There is one mistake here.  The state power authority changed its acronym from PASNY to NYPA not NYSERDA.  The New York State Energy Research & Development Authority probably did wind turbine assessments for Lake Ontario but I have never seen them either.

A history of learning from others’ mistakes

Back in the early 1980s Germany embarked on an ambitious plan to go solar and wind. The wind turbines in 2022 provided 17.2% of Germany’s electrical power; solar provided about 8%. The problem that is now realized is the cost of making this decision. It was at a time when nuclear was the “energy cure” for clean and cheap energy, production solar panels were only 10% efficient and were very expensive.

To demonstrate my point, Hoffman Electronics in 1955 offered the first solar cell at 1785/watt at 2% efficiency and at today’s prices a solar cell at 21% efficiency by comparison would cost over $18,000 a watt. Germany proceeded anyway. Today the situation is diametrically reversed. Solar is now the cheapest form of providing electrical power. Nuclear is the most expensive. Although Germany produces about 25% from solar and wind it came at too big a cost.

This argument is based on the presumption that solar is currently the cheapest form of electric power.  However, that is only true if the reference is to power capacity (MW).  Even if solar capacity is half the cost of fossil capacity the cost for delivered energy is much more.  We pay for the kWh electric energy we use each month and we expect it to be available 24-7 throughout the year.  In order to provide usable energy, other things must be considered that destroy the myth that utility-scale solar is cheaper than other types of power plants.  On average a well-designed solar facility can provide (round numbers) 20% of its potential energy possible in New York.  A natural gas fired power plant can operate to produce at least 80% of its potential energy over a year.  In order to produce the same amount of energy, that means that you need four times as much solar capacity.  Even if the solar capacity cost is half the cost for the capacity the energy cost is double simply due to this capacity factor difference. 

But wait, there is more.  In order to make the energy available when needed storage must be added to the cost of the solar capacity.  Also consider that the life expectancy of solar panels is half of the observed life expectancy of fossil-fired power plants.  There are unintended financial consequences that affect the viability of other generators that are needed for reliability that add to ratepayer costs. Because the solar resource is diffuse, it is necessary to support the transmission system to get the energy produced by solar from where space is available to site acres of solar panels to where it is needed.  There are inherent characteristics of conventional generation that contribute to the stability of the transmission system that are not provided by solar or wind generation.  Someone, somewhere must deploy a replacement resource to provide those ancillary transmission services and that cost should be included the cost comparison.  Finally, the Integration Analysis, NYISO, New York State Reliability Council, and the Public Service Commission all agree that another resource that can be dispatched and is emissions-free (DEFR) is needed when the electric grid becomes dependent upon solar and wind resources.  The state’s irrational fear of nuclear generation precludes the only proven resource that meets the necessary criteria so an entirely new resource must be developed, tested, and deployed.  The Integration Analysis and NYISO 2021-2040 System & Resource Outlook both project that the DEFR resource will be comparable in size to existing fossil resources but will operate no more than 9% of the time.  I have yet to see an expected cost for this resource but have no doubts that it will be extraordinarily expensive.  Summing all the costs necessary to make solar power usable for electric energy reliable delivery and there is no doubt that solar is much more expensive.

The weak link in NYS’ ambitious clean energy plan is the power storage medium. Choosing the right storage medium is critical and the answer may be to wait until these technologies prove themselves. Right now lithium and fuel cells are the only “off the shelf” storage mediums we have. Both have their issues. Lithium has its safety issues of thermal runaway and current fuel cells are expensive and use platinum, a very limited resource. Lithium too is limited as to availability.

I agree with this paragraph.

It has been said that one form of insanity is repeating a past failed experiment and hoping to obtain different results. The Scoping Plan, to put it mildly, is a highly ambitious plan. It treads in uncharted waters. Its success is hinged upon technologies that are not yet developed or not fully developed. Sure technology has been transformative but is the Scoping Plan actually built around an undetermined future? Will these ambitious plans repeat the mistakes of the past?

These are relevant points and I agree.  Interpretation of the mistakes of the past is a challenge.  For example, I think that the energy transition problems of Germany were due to the inherent challenge of using intermittent and diffuse wind and solar to power modern electricity and not because solar was expensive at the time it was installed.  Overcoming all the reasons why solar produced energy is more expensive than fossil-fired energy is likely an impossible challenge.

Like Germany’s ambitious plan for which the country is now left holding the bag. With NYS’ plan the storage system can be viewed in the same way as the German situation. In my humble opinion, large-scale storage battery technology is the linchpin for the Scoping Plan’s success, a technology essentially at its marketable infancy. You may raise a skeptical eyebrow and note the first accessible battery was invented in 1804! Yes, that is true but there was no practical use for it, ergo no market motivation. Now that also is diametrically reversed. A plethora of battery technologies have come out of the metaphorical woodwork. Improved lithium ion, magnesium, zinc, aluminum, carbon, boron, graphene, iron and who knows what. Each promising their own unique benefit such as size, power density, rechargeability, increased life expectancy.

I agree with this paragraph.  New York GHG emissions are less than one half of one percent of global emissions and global emissions have been increasing on average by more than one half of one percent per year since 1990.  That does not mean we should not do something but it does mean that we have time to address this problem.  If the storage problem cannot be solved then there cannot be a transition so I suggest that New York should focus more on developing technology that will enable the transition than on reducing emissions that cannot have any measurable effect on global warming impacts.

Recently the House Ways and Means proposed the “Limit, Save and Grow Act” (talk about a euphemism!) which has passed Congress. This act will greatly impede the change that we can meet the goals of clean energy. Instead it wants to cripple the Inflation Reduction Act, which provides for the advancement of alternate energy and a clean energy for the future. The GOP- sponsored bill should have been implemented during the 2017-21 era when that president authorized a $2.25 trillion-a-year spending spree that is responsible for the inflation we have today. This careless spending did not improve health care, education, clean energy or our infrastructure. With this act the GOP wants to stop advancement in alternate energy and a clean environment. Let’s hope the Senate feels differently.

I don’t have any comment on this.

In questioning average citizens, they respond with the three main concerns: the plan does not seem feasible in the amount of time, the cost of converting their homes to all electric, and the costs changing the system in New York.

The Scoping Plan is highly dependent upon Biden’s IRA, which as mentioned is under attack by the GOP. The Scoping Plan is also highly dependent upon technologies which have yet to be proven.

This is an excellent synopsis of my concerns.  The Scoping Plan does not include a feasibility analysis relative to existing reliability standards, did not provide cost impacts for the citizens of New York, and failed to provide justification for the ambitious schedule.  It does not matter if the IRA is under attack by Republicans.  The question is whether it can provide sufficient support for Climate Act implementation.

My conclusion

Yes, we have to do something! Continuing to process oil by shale or sand sites and clear cutting to get there is consequentially damaging our forests and fresh water supplies. Not to mention the added expense of cleaning up these sites. Nuclear power is way too expensive. While solar and wind power have their flaws, they are far less than the path of oil and nuclear. Gov. Hochul must make the right decisions. It might be better to wait on the predictable advance of technology than to build a questionable foundation.

Conclusion

My over-riding concern about the Climate Act is that there is insufficient support to prove that the plans will not do more harm than good.  The analyses comparing environmental impacts are biased and incomplete.  At this time the Hochul Administration has not prepared a cumulative environmental impact statement that considers the effects of all the wind and solar generation projected in the Scoping Plan.  Affordability and reliability concerns have been ignored and it is obvious that technological advances are needed if the transition is to be successful.  I agree that the it is better to make implementation contingent upon necessary technology.

Goals for PSC Annual Informational Report and NYCI Reference Case

The goals for two proceedings associated with the Climate Leadership & Community Protection Act (Climate Act) are not clear.  The Public Service Commission (PSC) Order on Implementation of the Climate Act  (Case 22-M-0149) is supposed to “both track and assess the advancements made towards meeting the CLCPA mandates and provide policy guidance, as necessary, for the additional actions needed to help achieve the objectives of the Climate Act”. The New York State Department of Environmental Conservation (DEC) and New York State Energy Research & Development Authority (NYSERDA) are implementing the New York Cap-and-Invest (NYCI) proposed by Governor Hochul which is a market-based program to raise revenues for the strategies necessary to meet the mandates of the Climate Act.  The question for both programs is whether their goal is to address the Climate Act itself or the entirety of the effort needed to make the transition targets mandated by the Climate Act.

I have been following the Climate Act since it was first proposed, submitted comments on the Climate Act implementation plan, and have written over 300 articles about New York’s net-zero transition.  I have devoted a lot of time to the Climate Act because I believe the ambitions for a zero-emissions economy embodied in the Climate Act outstrip available renewable technology such that the net-zero transition will do more harm than good.  The opinions expressed in this post do not reflect the position of any of my previous employers or any other company I have been associated with, these comments are mine alone.

Climate Act Background

The Climate Act established a New York “Net Zero” target (85% reduction and 15% offset of emissions) by 2050 and an interim 2030 reduction target of a 40% reduction by 2030. The Climate Action Council is responsible for preparing the Scoping Plan that outlines how to “achieve the State’s bold clean energy and climate agenda.”  In brief, that plan is to electrify everything possible and power the electric grid with zero-emissions generating resources.  The Integration Analysis prepared by the New York State Energy Research and Development Authority (NYSERDA) and its consultants quantifies the impact of the electrification strategies.  That material was used to write a Draft Scoping Plan.  After a year-long review the Scoping Plan recommendations were finalized at the end of 2022.  In 2023 the Scoping Plan recommendations are supposed to be implemented through regulation and legislation.  This post addresses a couple of implementation components.

PSC Order on Implementation of the Climate Act

The order implementing this proceeding explains that:

The changes contemplated by the CLCPA are expected to profoundly transform the State’s regulatory landscape and impact every sector of the economy. The Public Service Commission (Commission) will play a critical role in these efforts as it continues to implement a variety of clean energy initiatives, including those related to the deployment of renewable energy resources to support the State’s transition to a zero emissions electric grid, energy efficiency, building electrification, and zero emission transportation.

The Commission has already begun to implement the many objectives of the CLCPA through a number of existing proceedings. To date, the Commission has authorized the offshore wind solicitations necessary to achieve the CLCPA goal of procuring nine gigawatts (GW), funded programs to support the electrification of buildings’ heating load and the transportation industry, supported both large scale and distributed clean energy project development, funded programs to reduce natural gas and electricity usage in the State, and instituted a coordinated planning process to evaluate local transmission and distribution system needs to support the State’s full transition to renewable generation.

The Commission has quickly taken action related to items within its jurisdiction to help put the State on a path to meet the aggressive CLCPA targets. However, in consideration of the scope of the CLCPA and the extensive work necessary to achieve its mandates, continuous monitoring of the progress made will be crucial to ensure the State remains on track to achieve these objectives. In addition, there are existing policies that will need to be reviewed, and new policies that will need to be developed, to further the enablement of the CLCPA. This proceeding will be the forum for such policy development. By this Order, the Commission institutes this new proceeding to both track and assess the advancements made towards meeting the CLCPA mandates and provide policy guidance, as necessary, for the additional actions needed to help achieve the objectives of the CLCPA.

On July 20, 2023 the first annual informational report for this proceeding was released.  The Power Point presentation summarizing the results includes the following slide describing the purpose, requirements, and goals for the annual report.  It explains that the PSC has statutory responsibilities in implementing the Climate Act that must be consistent with its “core mission to ensure that utilities can provide safe and adequate service at just and reasonable rates along with the reliability and resiliency of the system.”  My interpretation is that the PSC is required to address all actions, both pre-and post-Climate Act enactment by the Commission to achieve the mandates of the Act.

  The report describes the information provided:

The cost recoveries, benefits, and other information reported here are mainly focused on the direct effects of CLCPA implementation. Notably, the estimates of total funding authorized by the Commission to date for various clean energy programs in some instances reflect actions that pre-date the enactment of the CLCPA. With respect to both pre- and post-CLCPA measures, this report focuses only the portion of those direct effects arising from programs over which the Commission has oversight authority and does not account for programs implemented by other state agencies that are funded from other sources (e.g., Regional Greenhouse Gas Initiative (RGGI) funding). Examples of effects not captured here include property tax revenues to localities from newly developed renewable generation facilities, workforce development and job growth, and local air quality impacts, among others. It should also be noted that the benefits and costs of the measures discussed in this report do not accrue uniformly across stakeholders, and in some cases one stakeholder’s benefit is another’s cost. As such, this report generally describes a subset of benefits and costs related to the CLCPA and does so from the perspective of New York as a whole by using the Societal Cost Test. In instances where this report adopts a different perspective, it indicates what that perspective is. For those benefits that are difficult to quantify, this report includes qualitative descriptions of the nature, extent, and incidence of the benefit.

The issue I want to raise in this post relates to this description and the PSC core mission “to ensure that utilities can provide safe and adequate service at just and reasonable rates along with the reliability and resiliency of the system.”  In particular, consideration of just and reasonable rates needs to consider the effect of other programs that directly impact rates.  Although the Commission has no oversight authority for programs like RGGI and NYCI, the costs associated with those programs are passed through to ratepayers.  Therefore, I believe that this report should include those costs and any other programs that directly affect ratepayer costs in its assessment.

New York Cap-and-Invest

In June 2023, DEC and NYSERDA hosted a series of webinars addressing NYCI implementation.  The Cap-and-Invest Analysis Inputs and Methods webinar (Inputs and Methods Webinar Presentation and View Session Recording) on June 20, 2023 described proposed policy modeling.  In order to evaluate the effects of different policy options, this kind of modeling analysis forecasts future conditions for a baseline or “business-as-usual” case, makes projections for different policy options, and then the results are compared relative to the baseline case.

The proposed modeling approach uses a unique approach.  The Scoping Plan modeling used a reference case that included “already implemented” programs instead of the usual practice of a “business-as-usual” base case. The NYCI Cap-and-Invest Analysis Inputs and Methods webinar proposed to use the same framework.  Starting with the reference case developed for the Scoping Plan, the NYCI modeling proposal will add policies enacted since then. 

It is more appropriate to compare the policy cases to a base case that excludes all programs intended to reduce GHG emissions.  Putting the pre-Climate Act programs and costs in the reference case means that the cost forecasts will not include all the measures necessary to meet the Climate Act mandates.  One of the goals of NYCI is to “minimize potential consumer costs while supporting critical investments” but the proposed approach will only consider a subset of the total costs necessary to meet the Climate Act mandates.

Discussion

The question for both proceedings is whether the goal is to consider all the costs and benefits of the Climate Act or some sub-set.  The Hochul Administration has never released its estimate of the total costs to meet any of the Climate Act targets.  Instead of providing the cost and benefit components themselves only net numbers are provided to support the misleading and inaccurate party line statement that the costs of inaction are more than the costs of action.  In order to make that statement the Administration used the reference case approach that hides the total implementation costs.

There are implications for these two proceedings.  In order to provide the total costs, both should cover as many programs as possible.  The PSC has statutory limits on its Climate Act Implementation analysis that precludes many aspects of the transition but I believe that they should incorporate the costs of Climate Act-related expenditures that get incorporated into ratepayer assessments even if they are not in a rate case proceeding.  There was one relevant item not addressed in the PSC Climate Act Implementation Report.  New York Public Service Law  § 66-p. “Establishment of a renewable energy program” has safety valve conditions for affordability and reliability that are directly related to the PSC core mission “to ensure that utilities can provide safe and adequate service at just and reasonable rates along with the reliability and resiliency of the system.”  § 66-p (4) states: “The commission may temporarily suspend or modify the obligations under such program provided that the commission, after conducting a hearing as provided in section twenty of this chapter, makes a finding that the program impedes the provision of safe and adequate electric service; the program is likely to impair existing obligations and agreements; and/or that there is a significant increase in arrears or service disconnections that the commission determines is related to the program”.   I think that this mandate calls for including ratepayer costs that are not related to a rate case proceeding.

With respect to NYCI the question is what is the expectation for the revenues.  The revenues needed to make the necessary changes to the energy system are not related to the legislation or regulation that drives the initiative.  Therefore, the proposed modeling should evaluate the policy scenarios against a business-as-usual base case that excludes any program that exists to reduce GHG emissions.  Furthermore, the proposed approach will not be able to provide an estimate of necessary revenues to meet the Climate Act mandates because it excludes already implemented policies and their associated costs.

Conclusion

The goals for these two programs should be clarified.  I believe that I am not the only resident of New York that wants to know the all-in costs necessary to meet the Climate Act mandates.  In order to provide those numbers both proceedings should address as many program costs as possible for the effort needed to make the transition targets mandated by the Climate Act.

I intend to evaluate the reported costs in the PSC Climate Act Implementation Analysis relative to the NYCI modeling proposal included programs.  At this point I can only say the NYCI approach will be mis-leading for the revenue needs of the Climate Act transition costs but cannot estimate the magnitude of the error.  Arbitrarily eliminating some costs is nothing more than a politically expedient ploy to downplay the total costs of the Climate Act.

Syracuse Post Standard Response to View of NY Solar Energy Potential Commentary

On July 2, 2023 the Syracuse Post Standard published my letter to the editor Expert’s view of solar energy’s potential in NY is far too sunny that responded to an earlier commentary  Five Reasons New Yorkers Should Embrace a Solar Energy Future by Richard Perez, Ph.D.  On July 16, 2023, a couple of rebuttal letters responded to my commentary: In defense of solar energy development in New York

Given that there are limitations on how often I can get letters published I must settle for responses here. 

New York’s response to climate change is the Climate Leadership & Community Protection Act (Climate Act).  I have been following the Climate Act since it was first proposed, submitted comments on the Climate Act implementation plan, and have written over 300 articles about New York’s net-zero transition.  I have devoted a lot of time to the Climate Act because I believe the ambitions for a zero-emissions economy embodied in the Climate Act outstrip available renewable technology such that the net-zero transition will do more harm than good.  The opinions expressed in this post do not reflect the position of any of my previous employers or any other company I have been associated with, these comments are mine alone.

Climate Act Background

The Climate Act established a New York “Net Zero” target (85% reduction and 15% offset of emissions) by 2050, an interim 2030 target of a 40% reduction by 2030, and 100% “zero emissions” electricity generation by 2030. The Climate Action Council is responsible for preparing the Scoping Plan that outlines how to “achieve the State’s bold clean energy and climate agenda.”  In brief, that plan is to electrify everything possible and power the electric grid with zero-emissions generating resources by 2040.  The Integration Analysis prepared by the New York State Energy Research and Development Authority (NYSERDA) and its consultants quantifies the impact of the electrification strategies.  That material was used to write a Draft Scoping Plan.  After a year-long review the Scoping Plan recommendations were finalized at the end of 2022.  In 2023 the Scoping Plan recommendations are supposed to be implemented through regulation and legislation. 

According to the New York Independent System Operator (NYISO) “Gold Book” load and capacity report, in 2022 there were a total of 4,444 MW of solar nameplate capacity (154 MW of utility-scale solar and 4,290 MW of behind-the-meter) on-line in the state.   However, implementation of the Climate Act transition to net-zero will significantly increase that amount by 2030.  By 2030 the New York State Energy Research & Development Authority (NYSERDA) and consultant Energy + Environmental Economics (E3) Integration Analysis that provides quantitative estimates of resources for the Scoping Plan projects a total of 18,852 MW and the NYISO 2021-2040 System & Resource Outlook projects 14,731 MW.

Rebuttal to Letters to My Commentary

There were two letters published in response to my commentary.  The first by Shelley Conture from

Syracuse and the second by Gary McDermott from Chittenango.  I have attached all the commentaries below for your information.  Conture basically repeated everything Perez said and insinuated that because he has “notable credentials” he must be right.  McDermott addressed the points I made and raised a couple of points that deserve clarification.

Perez claimed the Earth receives more solar energy than the total annual energy consumption of all economies, combined, in a week.  I argued that ignores that availability when and where needed is a critical requirement. In New York, the winter solar resource is poor because the days are short, the irradiance is low because the sun is low in the sky, and clouds and snow-covered panels contribute to low solar resource availability. 

McDermott responded: “No one is claiming solar power will be the only source, but rather a major source of power in the future. We will always use hydropower in New York.”  Both statements are true but both are naïve.  The Integration Analysis projects that by 2035 there will be more installed solar capacity than today’s fossil capacity so the issue is the magnitude of the reliance on solar.  My concern with hydro is that we cannot add significantly more capacity so its advantages are tapped out.

McDermott goes on to address specifics associated with solar abundance.  He states that “The suggestion that winter days are too short for solar fails to recognize that we also have 15-hour long days in the summer, three hours longer than Florida” but ignores the implication that reliability requires electric planners to consider the worst case.  When everything is electrified, the peak load will be in the winter so we must address 9-hour long days.  He says “As far as snow on panels is concerned: It’s simple to brush snow off a 35-degree slope panel, especially since we don’t get as much annual snow.”   Not considering the worst case is problematic here too.  It may not be so simple to brush snow off panels if it is not possible to get to the panels because there is too much snow or ice.  Better would be a requirement that the utility-scale solar installations use tilting-axis panels so that they can be adjusted to minimize snow accumulation, albeit that only works if there is no power outage.  More of a problem is that roof-top distributed systems may not accessible to clear off.  He again ignores the worst case when he states “Also, wind power occurs at night.” Wind lulls can occur at night and then what?

I firmly believe that most people do not understand the ramifications of the Climate Act.  McDermott appears to be knowledgeable but does not understand the Climate Act targets when he says “During low sunshine conditions, natural gas energy can temporarily fill in, but with greater volumes of solar power, our net gas usage would grow much smaller.”  The goal of the Climate Act is no natural gas by 2040.  The practicality of that mandate is the issue.  

I made the point that there is no mandate that solar developments meet the Department of Agriculture and Markets prime farmland protection goal and that projects approved to date have converted 21% of the prime farmland within project areas to unusable land.  I do not disagree with McDermott’s response except that I stand by the prime farmland protections.  Responsible solar siting that includes agrivoltaics is appropriate but not enough.  He states:

In Boulder, Colorado, farmers grow tomatoes, turnips, carrots, squash, beets, lettuce, kale, chard and peppers under 8-foot-high solar panels. I recommend that state laws require solar farm panels to be built this high, to maintain farming. With this reality in mind, the greatest threat to farm land is not solar, but rural housing developments.

McDermott’s other comments do not stand up to scrutiny.  He said that “It’s pointless to complain about new transmission requirements when any new source of electricity will require additional power lines.”  The point is that diffuse renewables require much more transmission and getting offshore wind into the existing grid system is extraordinarily expensive.  I disagree with his statement that “Solar panels last 30 years, whereas combined-cycle gas turbines last only between 25 and 30 years, and produce more pollution.”  The life expectancy of a gas plant is on the order of 40 years and I have never heard a solar developer claim 30 years.  In addition, solar panels degrade 0.8% per year but fossil plants do not degrade.  There are also significant environmental impacts associated with mining the rare earth metals necessary for solar panels.

Both Conture and McDermott claim solar is cheaper.  McDermott says “On average, it costs about $200,000 more per megawatt to build a gas plant than it does a solar farm.”  Conture just repeats what Perez said.  In the limited space I had, I said:

Perez claims that “utility-scale solar electricity has become the least expensive form of electricity generation” but that only refers power capacity (MW). When you consider the relative amount of energy that can be produced annually, the storage needed to provide energy when the sun isn’t shining, the shorter life expectancy of PV panels, transmission support service requirements and the need for a new dispatchable, emissions-free resource, then the cost of solar energy provided when and where needed is much higher than conventional sources of electricity.

In my post providing background material for the commentary, I expanded on this description.  The claim that “utility-scale solar electricity has become the least expensive form of electricity generation” refers only to power capacity (MW).  Even if solar capacity is half the cost of fossil capacity the cost for delivered energy is much more.  We pay for the kWh electric energy we use each month and we expect it to be available 24-7 throughout the year.  In order to provide usable energy, other things must be considered that destroy the myth that utility-scale solar is cheaper than other types of power plants.  On average a well-designed solar facility can provide (round numbers) 20% of its potential energy possible in New York.  A natural gas fired power plant can operate to produce at least 80% of its potential energy over a year.  In order to produce the same amount of energy, that means that you need four times as much solar capacity.  Even if the solar capacity cost is half the cost for the capacity the energy cost is double simply due to this capacity factor difference. 

But wait, there is more.  In order to make the energy available when needed storage must be added to the cost of the solar capacity.  Also consider that the life expectancy of solar panels is less than the observed life expectancy of fossil-fired power plants.  There are unintended financial consequences that affect the viability of other generators that are needed for reliability that add to ratepayer costs. Because the solar resource is diffuse, it is necessary to support the transmission system to get the solar power to New York City.  There are inherent characteristics of conventional generation that contribute to the stability of the transmission system that are not provided by solar or wind generation.  Someone, somewhere must deploy a replacement resource to provide those ancillary transmission services and that cost should be included the cost comparison. 

Finally, the Integration Analysis, New York Independent System Operator (NYISO, New York State Reliability Council), and the Public Service Commission all agree that another resource that can be dispatched and is emissions-free (DEFR) is needed when the electric grid becomes dependent upon solar and wind resources.  The state’s irrational fear of nuclear generation precludes the only proven resource that meets the necessary criteria so an entirely new resource must be developed, tested, and deployed. 

The Integration Analysis and NYISO 2021-2040 System & Resource Outlook both project that the DEFR resource will be comparable in size to existing fossil resources but will operate no more than 9% of the time.  I have yet to see an expected cost for this resource but have no doubts that it will be extraordinarily expensive.  Summing all the costs necessary to make solar power usable for electric energy reliable delivery and there is no doubt that solar is much more expensive.

Conture brings up an issue that McDermott does not address. She says:

With regard to reliability, he discusses the emerging solutions to the concern about solar energy’s intermittency. In his words these solutions, (which he enumerates) “will ensure a continuous power supply which will be available day and night year round without fail.”

Perez discounts the need for and difficulties associated with DEFR technologies that the organizations responsible for electric system reliability all agree are necessary.  The NYISO’s recent reports all emphasize the point that DEFR is not “commercially available” and the PSC Proceeding is devoted to this issue.  I believe that a ensuring a continuous power supply is much more difficult than Perez thinks.

Conclusion

Sadly, readers of the Post Standard will likely remember the last opinions and not mine despite the fallacies of the writers.  Conture appeals to authority and simply repeats what Perez said.  McDermott at least tries to address my points.  Part of his reasoning is that my arguments are invalid because he underestimates the magnitude of the solar resources projected in the Scoping Plan and the Climate Act target that mandates zero emissions by 2040.  My concerns are directly related to the impacts of those considerations. 

Perez subscribes to the academic belief that exiting renewable technologies are sufficient and deployment will result in lower costs.  The fatal flaw in the arguments supporting those points is that they don’t address the worst-case renewable energy droughts that will coincide with future larger peaks in the winter.  The organizations responsible for reliability in New York State all agree that unless nuclear power is deployed that a resource that is not yet commercially available must be developed, tested, and deployed.  I think that is an incredible risk unacknowledged by Perez and the authors of these letters.

I stand by the concluding remark in my commentary. This is a recipe for disaster because if the resource adequacy planning does not correctly estimate the worst-case period of abnormally low wind and solar energy availability then the energy needed to keep the lights on and homes heated will not be available when needed most. People will freeze to death in the dark.

Caiazza Commentary

The June 12, 2023, commentary “Five reasons New Yorkers should embrace a solar energy future” by Richard Perez, Ph.D., claims to “clarify common misunderstandings about solar energy and demonstrate its potential to provide an abundant, reliable, affordable and environmentally friendly energy future for New York.” I disagree with his reasons.

Perez claim the Earth receives more solar energy than the total annual energy consumption of all economies, combined, in a week but ignores that availability when and where needed is a critical requirement. In New York, the winter solar resource is poor because the days are short, the irradiance is low because the sun is low in the sky, and clouds and snow-covered panels contribute to low solar resource availability.

“Solar technology is improving” is another claimed reason but solar energy in New York is limited because of the latitude and weather so there are limits to the value of technological improvements. If it is so good, then why does deployment rely on direct subsidies?

While solar energy may not have environmental impacts in New York, that does not mean that there are no impacts. Instead. they are moved elsewhere, likely where environmental constraints and social justice concerns are not as strict. The rare earth metals necessary for solar, wind and battery technology require massive amount of mining and the disposal of all the solar panels are significant unconsidered environmental issues.

Perez dismisses land use issues because “a 100% renewable PV/wind future for New York would require less than 1% of the state’s total area.” There is no mandate that solar developments meet the Department of Agriculture and Markets prime farmland protection goal. Projects approved to date have converted 21% of the prime farmland within project areas to unusable land. There is no requirement for utility-scale solar projects to use tracking solar panels, so more panels are required than originally estimated.

Perez claims that “utility-scale solar electricity has become the least expensive form of electricity generation” but that only refers power capacity (MW). When you consider the relative amount of energy that can be produced annually, the storage needed to provide energy when the sun isn’t shining, the shorter life expectancy of PV panels, transmission support service requirements and the need for a new dispatchable, emissions-free resource, then the cost of solar energy provided when and where needed is much higher than conventional sources of electricity.

The suggestion that a system depending on solar energy will be more dependable than the existing system would be laughable if it were not so dangerous. The reliability of the existing electric system has evolved over decades using dispatchable resources with inherent qualities that support the transmission of electric energy. The net-zero electric system will depend upon wind and solar resources hoping they will be available when needed, additional resources to support transmission requirements, and a new resource that is not commercially available. This is a recipe for disaster because if the resource adequacy planning does not correctly estimate the worst-case period of abnormally low wind and solar energy availability then the energy needed to keep the lights on and homes heated will not be available when needed most. People will freeze to death in the dark.

Conture Response

I am writing to express my disagreement with a letter in the paper on Sunday, July 2, 2023, “View of NY solar energy potential is far too sunny.” The letter writer refers to the essay, “5 reasons New Yorkers should embrace a solar energy future,” by Richard Perez, Ph.D., published June 12, 2023.

This writer even refers to Perez’s stated goal which is to “clarify common misunderstandings about solar energy and demonstrate its potential to provide an abundant, reliable, affordable environmentally friendly energy future for New York” in a way that suggests that there is something questionable about this goal. I have read Perez’s essay and strongly disagree with these negative implications.

Perez is far more than a concerned citizen expressing his strong opinion. Along with other notable credentials, he heads solar energy research at SUNY Albany’s Atmospheric Sciences Research Center and has served multiple terms on the board of the American Solar Energy Society.

As intended, he covers the topics of the growth of solar technology as well as solar energy’s abundance, affordability, reliability and significantly lower environmental footprint — and he does so very well. He also addresses the concerns about its affordability and reliability in ways that should reassure people who are concerned about these issues.

With regard to reliability, he discusses the emerging solutions to the concern about solar energy’s intermittency. In his words these solutions, (which he enumerates) “will ensure a continuous power supply which will be available day and night year round without fail.”

And with regard to affordability, as with his other responses to common misunderstandings, Perez is careful to back up his statement that, “solar power is now considerably cheaper than new coal, natural gas or nuclear energy.”

What I especially objected to in the July 2 letter is the writer’s calling what Perez suggests “dangerous” and implying that we would do much better by continuing to stay with our conventional sources of electricity. This would, of course, involve the burning of fossil fuels, which is known to be the primary cause of the greenhouse gases that cause climate change.

I totally understand why people might prefer to do this. It would be more convenient and more familiar. But what I, along with many others, believe is that this is no longer a real choice. Our choice is actually between staying addicted to fossil fuels and believing the misinformation promoting them, or making difficult but ultimately better choices which could halt the continuing destruction of the planet.

Shelley Conture

Syracuse

McDermott Response

In response to Roger Caiazza’s letter on solar power, “View of NY solar energy potential is far too sunny.”

No one is claiming solar power will be the only source, but rather a major source of power in the future. We will always use hydropower in New York. The suggestion that are winter days are too short for solar fails to recognize that we also have 15-hour long days in the summer, three hours longer than Florida. As far as snow on panels is concerned: It’s simple to brush snow off a 35-degree slope panel, especially since we don’t get as much annual snow. During low sunshine conditions, natural gas energy can temporarily fill in, but with greater volumes of solar power, our net gas usage would grow much smaller. Also, wind power occurs at night.

In Boulder, Colorado, farmers grow tomatoes, turnips, carrots, squash, beets, lettuce, kale, chard and peppers under 8-foot-high solar panels. I recommend that state laws require solar farm panels to be built this high, to maintain farming. With this reality in mind, the greatest threat to farm land is not solar, but rural housing developments.

It’s pointless to complain about new transmission requirements when any new source of electricity will require additional power lines. On average, it costs about $200,000 more per megawatt to build a gas plant than it does a solar farm. Solar panels last 30 years, whereas combined-cycle gas turbines last only between 25 and 30 years, and produce more pollution. People pay less for solar electricity.

Gary McDermott

Chittenango

Offshore Wind Contradictory Views

A few articles and notices about Off Shore Wind (OSW) came to my attention this week.  The contradictions in the viewpoints were so different that I thought a post was appropriate.

I have been following the Climate Act since it was first proposed. I submitted comments on the Climate Act implementation plan and have written over 300 articles about New York’s net-zero transition.  I have devoted a lot of time to the Climate Act because I believe the ambitions for a zero-emissions economy embodied in the Climate Act outstrip available renewable technology such that the net-zero transition will do more harm than good.  The opinions expressed in this post do not reflect the position of any of my previous employers or any other company I have been associated with, these comments are mine alone.

Climate Act Background

The Climate Act established a New York “Net Zero” target (85% reduction and 15% offset of emissions) by 2050 and an interim 2030 target of a 40% reduction by 2030. The Climate Action Council is responsible for preparing the Scoping Plan that outlines how to “achieve the State’s bold clean energy and climate agenda.”  In brief, that plan is to electrify everything possible and power the electric grid with zero-emissions generating resources by 2040.  The Integration Analysis prepared by the New York State Energy Research and Development Authority (NYSERDA) and its consultants quantifies the impact of the electrification strategies.  That material was used to write a Draft Scoping Plan.  After a year-long review the Scoping Plan recommendations were finalized at the end of 2022.  In 2023 the Scoping Plan recommendations are supposed to be implemented through regulation and legislation. 

Off Shore Wind (OSW) will be a major renewable resource in the net-zero electric energy system.  The Climate Act mandates 9,000 MW of Off Shore Wind (OSW) generating capacity by 2035.  The Integration Analysis modeling used to develop the Scoping Plan projects OSW capacity at 6,200 MW by 2030, 9,096 MW by 2035 and reaches 14,364 MW in 2040.  On the other hand, the New York Independent System Operator 2021-2040 System & Resource Outlook expects 5,036 MW in 2030 and 9,000 MW in 2035 with no additional development after that.  By 2030 the Integration Analysis predicts that 14% of the electric energy (GWh) produced will come from OSW and the Resource Outlook predicts nearly as much (12%).  This is an extraordinary build-out for a resource that is currently non-existent and there are significant differences in the buildout projections that deserve to be reconciled.

New Yorkers for Clean Power

I subscribe to a New Yorkers for Clean Power mailing list.  Under the heading “ICYMI: Major Milestone Reached for State’s First Offshore Wind Project!” a recent mailing included this summary describing Governor Hochul announcement on June 22 that “South Fork Wind, New York’s first offshore wind farm, has achieved its “steel in the water” milestone with the installation of the project’s first monopile foundation.”

Boskalis Bokalift 2 wind turbine installation vessel. Photo: Boskalis/South Fork Wind

Late last month, Governor Hochul announced that the South Fork Wind project, New York’s first offshore wind farm, has achieved its “steel in the water” milestone with the installation of the project’s first monopile foundation. 

This is the first of many major milestones for New York’s first offshore wind project and South Fork is on track to become the United States’ first completed utility-scale offshore wind project in federal waters.

Once completed, the wind farm will generate enough renewable energy to power roughly 70,000 homes helping New York meet its ambitious Climate Act goals, while eliminating up to six million tons of carbon emissions, or the equivalent of taking 60,000 cars off the road annually over a 25-year period. Hundreds of U.S. workers and three Northeast ports will support South Fork Wind’s construction through late fall helping to stand up a new domestic supply chain that’s creating hundreds of local union jobs across the Northeast.

Learn more about this exciting development! 

The description did not add anything beyond what was contained in the press release.  The website for the project notes:

What is it?

New York’s first offshore wind farm — with 12 turbines and a state-of-the-art transmission system that will generate enough clean energy to power 70,000 average homes and offset tons of emissions each year

Who’s behind it?
50/50 partnership between Ørsted and Eversource

When is it happening?
Expected to be operational by the end of 2023

Where is it?
35 miles east of Montauk Point; the underground transmission line will deliver power to the local grid in the Town of East Hampton, NY

Despite the accolades there are issues associated with OSW as noted in the following.

Offshore Wind Costs

James Hanley wrote an article The Rising Cost of Offshore Wind that describes two issues affecting all OSW projects across the world:

But this recent growth in the offshore wind industry does not necessarily reflect its long-term health. Two substantial headwinds threaten to make projects uneconomical. One is the recent high inflation, which raised the costs of materials and labor across all industries, and the other is bottlenecked supply chains that are causing a bidding-up of the prices of materials and components needed for building wind turbines.

 Hanley explains the ramifications to the OSW projects in New York:

The price of offshore wind is about to go up, and electricity users across the Empire State will be on the hook for it. Two firms developing offshore wind projects — Sunrise Wind and Equinor-bp — have gone to the state Public Service Commission asking for an increase in the price they’ll receive per megawatt-hour of electricity produced.

It is not just Hanley that is raising this issue.  Sheri Hickok, Chief Executive for onshore wind, GE Renewable Energy Wind farm costs are not falling:

The state of the supply chain is ultimately unhealthy right now. It is unhealthy because we have an inflationary market that is beyond what anybody anticipated even last year. Steel is going up three times…It is really ridiculous to think how we can sustain a supply chain in a growing industry with these kind of pressures…Right now, different suppliers within the industry are reducing their footprint, they are reducing jobs in Europe. If the government thinks that on a dime, this supply chain is going to be able to turn around and meet two to three times the demand, it is not reasonable.

The Climate Act includes language that requires the agencies consider the experiences of other jurisdictions.  This mandate is selectively used to justify the preconceived strategies in the Scoping Plan but never to consider the potential for warning signs.  As if the request for adjustments to the contracts described by Hanley is not enough, a similar situation is playing out in Great Britain.  Net Zero Watch reports that:

In a move that gives the lie to years of propaganda claiming falling costs, the wind industry’s leading lobbyists have written to the Government, threatening to abandon the UK unless there are hugely increased subsidies for their companies (see RenewableUK press release).
 
The industry is claiming that unforeseen rising costs now necessitate and justify three actions:
 
1) A vast increase in the budget for the fifth auction (AR5) of Contracts for Difference subsidies, with an increase of two and half times the current levels for non-floating offshore wind alone;
 
2) Special new targets and thus market shares for floating offshore wind, one of the most expensive of all forms of generation, and, most importantly of all,
 
3) a revision to the auction rules so that the winners are not determined by lowest bids but by an administrative decision that weights bids according to their “value” in contributing towards the Net Zero targets.
 
This would in effect not only increase total subsidy to an industry that was until recently claiming to be so cheap that it no longer needed public support, but also provide it with protected market shares, all but entirely de-risking investors at the expense of consumers.

It would also be an open invitation to graft and corruption.

This blackmail was predicted by Net Zero Watch.  Clearly the same playbook will be used by OSW developers here.  Hanley explains:

Given the fiscal realities of the situation, PSC’s only two options are to grant the request or delay the development of wind energy while the state seeks new offshore wind construction bids. Either way, costs will rise.

OSW Environmental Impacts

Earlier this year I described the Citizens Campaign for the Environment virtual forum entitled Whale Tales and Whale Facts.  The sponsors wanted the public to hear the story that there was no evidence that site survey work was the cause of recent whale deaths.  I concluded that the ultimate problem with the forum was that they ignored the fact that construction noises will be substantially different than the ongoing site surveys and will probably be much more extensive when the massive planned construction starts. Jim Lovgren writing at FisheryNation.com describes OSW environmental issues: Offshore Wind Electrical Substations; The Secret, Silent Killers that substantiate my concern:

Despite government and wind supporters denying any proof that could link the unseen before amount of strandings to the coincidental use of geological sonar and seismic research, [usually only of a type performed by oil companies] in the near vicinity of the strandings, the evidence mounts. This week, two Humpback Whales washed ashore in Martha’s Vineyard, coincidentally only a few days after Piledriving started at a nearby wind site. Piledriving of the turbine stanchions creates a 260 DBs level sound, that no amount of “Bubble Curtains” can contain. It is deadly. A few weeks before that beaches on the south shore of Nantucket had a carpet of dead crabs, clams, and other benthic organisms that are susceptible to seismic testing, which coincidentally was taking place nearby, [“sparkers” and sub- bottom profilers are seismic equipment]. The relationship of marine animal deaths while unsafe level industrial noises are being produced in the same vicinity are too numerous to ignore, worldwide. So, stop denying them.

Lovgren argues that there is another environmental impact that should be considered.  The industrial OSW developments require electrical substations.  He explains:

In an official BOEM document written by Pamela Middleton and Bethany Barnhart called, “Supporting National Environmental Policy Act Documentation for Offshore Wind Energy Development related to High Voltage Direct Current Cooling Systems” the authors contend that the only feasible cooling system for a HVDC Substation is a once through, or open system. The kind that is not allowed for new power plant construction, because of its devastating effects on aquatic life. This embarrassing Official BOEM  document concerning the effects of offshore wind substations admits it knows nothing about how many substations are planned, how big, and where they will be. NEPA concerns such as environmental and economic costs to other industries are totally ignored within the enormous expanse of information contained within the 4 ½ pages of actual text. Up until the Green new deal a NEPA supporting document would be hundreds, and even thousands of pages long, detailing all aspects of a proposed project.

This is another example of an issue that was the focus of an intense and emotional lobbying effort when it was related to electric power plants using once-through cooling but now this is not an issue by the environmental organizations who demanded the prohibition for new power plants.

Summary of All OSW Issues

Mark Sertoff, a science/technology educator, published an article at Natural Gas Now that argued that the “stampede to build offshore wind turbines to replace fossil fuel generation is loaded with concerns that have not been thought through or been resolved.”  I recommend reading the whole article.  He made the general points that all this is unnecessary.  There is no climate crisis and all the hysterical claims supporting that narrative evaporate upon close examination.  He also pointed out that replacing the existing electrical system will lead to higher costs.

The article then documents specific OSW concerns.  He lists the many direct environmental impacts, the seabed use requirements, and the disposal problem.  Then he addresses the experiences in other countries and notes all the problems that should be a wakeup call for New York. Finally, he offers an alternative approach that will reduce emissions and costs.

Conclusion

The contrast between the positions of New Yorkers for Clean Power and the authors of the articles described here is stark.  Most disappointing to me is that the climate activists ignore many issues that caused previous angst.  If it was so important in the past, why is it not an issue now?  If they don’t demand that all construction work cease when the critically endangered North Atlantic Right Whales migrate through the OSW facilities then they will be exposed as hypocrites.  The gulf between a model projection of future weather and its impacts on whales and the imminent and potentially fatal consequences of OSW development on whales is so clear how can the activists claim to be for a sustainable future unless they step up?

I cannot improve on Sertoff’s conclusion:

Entities profiting by promoting renewables are happy to pave the road to hell. Superior solutions exist backed by solid facts.  We ignore them at our peril.

Why NY State Must Rethink Its Energy Plan

At the Business Council of New York 2023 Renewable Energy Conference Energy Richard Ellenbogen, President [BIO] Allied Converters, gave the keynote address.  This post summarizes the power point presentation for his address: “Energy on Demand as the Life Blood of Business and Entrepreneurship in the State –  Why NY State Must Rethink Its Energy Plan and Ten Suggestions to Help Fix the Problems.” 

Ellenbogen frequently copies me on emails that address various issues associated with New York’s Climate Leadership and Community Protection Act (CLCPA).  I have published other articles by Ellenbogen because he truly cares about the environment and the environmental performance record of his business shows that he is walking the walk.   When he sent a copy of the presentation I asked if I could it post after the conference.

Climate Leadership and Community Protection Act Background

The CLCPA established a New York “Net Zero” target (85% reduction and 15% offset of emissions) by 2050 and an interim 2030 target of a 40% reduction by 2030. The Climate Action Council is responsible for preparing the Scoping Plan that outlines how to “achieve the State’s bold clean energy and climate agenda.”  In brief, that plan is to electrify everything possible and power the electric grid with zero-emissions generating resources by 2040.  The Integration Analysis prepared by the New York State Energy Research and Development Authority (NYSERDA) and its consultants quantifies the impact of the electrification strategies.  That material was used to write a Draft Scoping Plan.  After a year-long review the Scoping Plan recommendations were finalized at the end of 2022.  In 2023 the Scoping Plan recommendations are supposed to be implemented through regulation and legislation. 

Richard Ellenbogen

I have published other articles by Ellenbogen because he truly cares about the environment and the environmental performance record of his business shows that he is walking the walk.   His bio is available at the Business Council website.

Ellenbogen’s presentation covers four major points before making recommendations.  I summarize each of these points in the following.

Energy System

Ellenbogen  describes the energy system as an introduction to the problem and what he thinks we should do.  He explains that we want an energy system that provides reliable, affordable, and clean power but that based on what has been happening in Germany the current plan will negatively impact all those features.  He argues that climate change is a real issue and that methane also needs to be addressed.  He makes a good argument that the plans to eliminate natural gas before zero emission sources of electrical generation will decrease the rate of decarbonization.  He projects that the costs of CLCPA implementation will exceed $4 trillion because the entire electric transmission, distribution, and electric service system will have to be replaced.  These costs are far in excess of anything that the Hochul Administration has  claimed.  His introduction concludes that we need to adjust the plan.

Implementation

Ellenbogen describes obstacles to implementation in the next section.  He lists ten specific obstacles and then goes on to highlight a few issues.  He addresses heat pumps and gas stoves.  His presentation points out that converting to heat pumps “will not reduce GHG emissions or energy prices on a generation system supported by fossil fuels”.  Germany has tried to do this and it has not worked out as planned.  In particular, he explains in Germany that “it just moved the CO2 emissions to a different location with an as large or larger CO2 footprint and with much higher operating costs!”.  He points out that Germany’s past 30-year history is New York’s future.  There are similar concerns about gas stove and explains why the conclusions of recent gas stove studies are “extremely questionable” that are being used to justify banning those appliances.

In order to describe the difficulties associated with implementation he delves into the physics of power and energy.  They are not the same thing as shown in the following slide.  CLCPA  proponents often do not properly recognize the distinction and that misleads the public on the capabilities of wind and solar generation.  He also describes the capabilities of different types of generation.

CLCPA Fantasy

The physics lessons are necessary to show why the CLCPA Scoping Plan is a fantasy.  He compares the power and energy projections in the Integration Analysis and then explains why the documentation is using unrealistic energy estimates.  As a result, he points out that “the solar energy output is being over-estimated in the CLCPA by 72%”.  There is a slide that describes the CLCPA generation plan that concludes that the assumptions are unrealistic.  Keep in mind that the Integration Analysis model back calculated the resources required to meet the CLCPA targets but did not incorporate a feasibility analysis to determine if those assumptions were realistic.  He points out that the benefits claimed do not consider state emissions relative to the rest of the world:  “NY state could eliminate 100% of its GHG emissions and not affect damages caused by climate change”.  He also notes that “in the last two years the rest of the world GHG emissions increased seven times as much” as New York total emissions.

Reality

Ellenbogen summarizes New York State energy in a chart with four columns that list energy use in  gigawatt-hours:

  1. Total existing energy use
  2. Energy use if it was fully converted to electric systems
  3. The amount of storage expected to be installed by 2040 according to the recently released NYSERDA NY state energy roadmap
  4. The amount of new renewable generation that will be installed by 2035.

He makes two points with the graph.  The renewable energy installation schedule is falling behind as he predicted in March 2019.  The other point is that converting buildings to all electric energy has a hidden problem.   Natural gas deliveries to homes are “used with an efficiency over 80% to 95% during onsite combustion so replacing it will require staggering amounts of electrical generation.”  In order to replace it power plants will have to generate the needed electricity because the renewables won’t be reading in time.   Power plant efficiencies are in the range of 33% – 50% and there is another 7% energy loss on transmission lines delivering it to the end user.

Short-term Recommendations

 His presentation explains that we need to decrease energy use and increase renewable energy development to reduce the carbon footprint.  He goes on to describe problems with energy storage.  All this leads up to his recommendation to keep onsite gas combustion in place so that less energy is needed to heat homes and energy storage is not needed.  He makes a total of ten short-term recommendations that will rapidly reduce GHG emissions with much lower installation costs while also slowing or reversing utility bill increases.  The ten recommendations are:

1 – Do not electrify buildings that run on natural gas – while it will reduce GHG at the building, it will increase it as much at the generating plants While forcing residents and the utilities to incur enormous rewiring costs. There will be no reduction in column a (fossil fuel consumption).  Also, the gas stove analysis that was done recently was mathematically flawed and should not be used to set public policy. However old gas stoves should be replaced with new ones and a gas detector.

2 – Focus heat pump efforts on locations that use oil heat or that use radiant electric heat. Those locations will see a significant reduction of GHG and heat pumps will reduce grid load when compared to radiant electric heat.

3 – Focus resources on expanding grid infrastructure. This will reduce the cost of installing solar in upstate locations and reduce the number of system cancellations allowing the state to increase renewable energy development.

4 – Increasing grid infrastructure will also help with the installation of chargers for the electric vehicle wave that is about to arrive, with or without the state mandate.

5 – Do not install large amounts of battery storage until there is sufficient renewable generation to support the storage. It will increase fossil fuel usage while incurring an enormous capital outlay and starving other projects of funding. They will also decay well before sufficient renewable generation is installed.

6 – Replace older generating plants with higher efficiency combined cycle natural gas generating plants. The state will need the energy to support the EV’s and the newer plants are far more efficient. It will lower energy use, reduce gas usage and put downward pressure on the commodity price.

7 – Develop technologies other than electrolysis to generate green hydrogen (thermochemical, pyrolisis, etc.) Place an emphasis on hydrogen injection into natural gas combustion plants. It will decrease gas usage and increase combustion temperatures which reduces NOx emissions and overall energy use It will greatly lower GHG emissions at those generating Plants

8 – Focus available natural gas resources on combined heat and power systems. It will reduce the utility bills for the system owners while also reducing requirements for grid infrastructure. Allow multiple buildings to form micro-grids to utilize the thermal output and increase the generation capacity. It will greatly reduce statewide energy use and reduce the need for as much transmission infrastructure

9 – Allow Micron Technologies to build a combined cycle plant the size of Cricket Valley Energy Center on their property. The Micron facility will use more energy than the state of Vermont. With generation on-site, the thermal energy could be used at the plant and the 350 GWh of annual line loss will be eliminated. Instead of making them look “green” on paper by buying carbon credits, let them be green

in reality with high efficiency generation and have lower energy costs to make them more competitive and able to recoup the $5 billion rebate without faking it. That will eliminate the increase in statewide energy use related to the facility.

10 – Figure out how the utilities can interconnect the 9 GW of offshore wind because at the moment, no one is certain how to do it. There is limited space for underwater cables. Without that, energy curtailments will occur and impede the increase of renewable energy development, unless they use the alternative idea which is to run transmission lines across Long Island where there will be inevitable NIMBY delays.

Long-Term Recommendation

His long-term recommendations call for the development of 12 GW of nuclear generation.  That is equivalent to six facilities the size of the recently closed down Indian Point plant.  He suggests that they should use a circular fuel cycle to cut down on nuclear waste and be located near existing plants that already have necessary infrastructure.  He argues that the fatal flaw of the state’s plan is the cost of the energy storage required to backup wind and solar.  Even though nuclear is expensive the costs will be much lower than the any storage options.  In addition, the land required to provide the power would only be 3% of the land for just the solar developments.

Conclusion

Ellenbogen provides a rational and pragmatic approach to greatly reduce GHG emissions at costs that would be far less expensive than the costs of the CLCPA.  At some point the Hochul Administration is going to have to confront the reality that no amount of dodgy cost benefit analysis can avoid the reality of enormous costs.  Also ignored are the technological challenges associated with a new resource that can be dispatched without generating emissions.  Ellenbogen proposes to use the only proven resource that meets those requirements and I agree that his long-term recommendation to develop nuclear power is the only chance to succeed.   I fully support his argument that New York State is headed down a path that has not worked elsewhere as described in the following slide.