Mid-Atlantic electric grid operator plans $2.4 billion in upgrades due to fossil-fuel plant retirements

The operator of the mid-Atlantic electric grid has announced a need for $2.4 billion in grid upgrades to keep the lights on in the coming years, as fossil-fueled generators shut down.

PJM Interconnection LLC is the regional transmission organization that manages wholesale electricity markets and the transmission grid in all or parts of 13 states and the District of Columbia, covering about 60 million people.  In that role, PJM works with electric utilities and merchant generators to identify upgrades needed to maintain reliable electric service throughout its territory.  In 2012, PJM authorized more than 750 electric transmission improvement projects with a total cost of more than $5 billion.

PJM released its annual regional transmission expansion plan on March 7.  In that plan, PJM identified three major trends driving the need for further grid upgrades: upcoming power plant retirements, the rapid switch to natural gas, and the growth of wind power to meet states’ renewable energy requirements.

Of these, the large-scale retirement of fossil-fueled power plants may pose the greatest challenge.  Power plant operators must inform PJM if they plan to close their plants, and are doing so in droves.  PJM received 104 retirement requests between November 2011 and December 2012.  In all, these requests signal intents to shutter 13,868 megawatts of generation.  Retirement requests continue to roll in; in January 2013 alone, an additional 1,697 megawatts of generation filed notices of intents to retire.  This tide of closures is driven largely by relatively low electricity prices and increased costs for coal- and oil-fired generation due to environmental and emissions regulations. 

At the same time, 2012 brought a record amount of new generation to the PJM market, primarily fueled by natural gas. Meanwhile, the addition of new renewable resources to the grid - such as wind-powered generators - adds another layer of challenge, as these renewable projects are often located in relatively remote areas far from consumers in urban centers.

PJM must ensure enough power to keep its customers' lights on, a task that requires both having enough operating generators and the right amount of transmission to connect generators to customers.  As a result, PJM has identified 130 projects needed to maintain reliability.  These projects include new transmission lines, line rebuilds, equipment upgrades, and new and expanded substations, and substation additions.

Much of PJM's analysis is based on assumptions about which generation plants will close, which new generation plants will be built and come online, and how much consumer demand for electricity will grow.  Will PJM's predictions come true?  If so, consumers will bear the cost of PJM's identified grid fixes.

September 1, 2010 - vehicle energy efficiency; federal renewable power?

A stone wall, forgotten in the woods in Bath, Maine.  Most stone walls in New England were built between 1750 and 1850; in 1940, a United States government survey estimated that there were more than 250,000 miles of stone walls in New England -- almost all built by manual labor and power from draft animals, during a time of lower energy intensity.

 
From the vehicle energy efficiency department: the U.S. Environmental Protection Agency and Department of Transportation are jointly revising vehicle window stickers for the 2012 model year. This Wired article describes one option they are considering: assigning new vehicles letter grades for fuel efficiency.  (Examples from the article: Nissan Leaf: A+.  Plug-in Toyota Prius: A.  Toyota Camry: B-.)  Electric vehicles appear more likely to play a larger role in transportation in years to come.

Some may recall the day in 1979 when President Jimmy Carter installed solar panels on the roof of the White House.  They didn't stay there long; President Reagan removed them in 1986.  By 1990, they were donated to Unity College in Maine.  Now, Bill McKibben and others are taking the solar panels to Washington in an effort to convince President Obama to install solar or other renewable generation at his house -- not to mention the federal government's role as the nation's largest energy consumer.

I watched this week's deliberations of the Maine PUC as the Commissioners conditionally approved Central Maine Power's plan to upgrade a section of its 34.5 kV transmission line to 115 kV.  The reason?  To let power from Record Hill Wind LLC's project reach the grid.  The Commission required the wind developer to make a three-month prepayment to CMP of all construction costs, and report to the Commission quarterly as the project moves forward.

Island issues: I've written before about the difficulties of ensuring a water supply on island communities -- both potable water for drinking and any old water for firefighting.  Monhegan, for example, has a culture that is purposely very alert to fire danger.  Today's news has an example of why: fire destroyed a home on Pole Island in Quahog Bay in Harpswell -- despite valiant efforts by firefighters, neighbors and volunteers.