New England 2019 Regional Energy Outlook describes shifts, challenges

New England's electricity system is shifting toward a "hybrid grid," according to the operator of New England's wholesale electricity markets and electric transmission system. A recent report by ISO New England, Inc. describes the electric sector's transition towards generating resources with lower carbon emissions and the resulting implications for the environment and the economy.

ISO New England is the federally-designated regional transmission organization serving New England. The grid operator recently released its 2019 Regional Energy Outlook, a document described as “one of the many ways the ISO keeps stakeholders informed about the current state of the grid, issues affecting its future, and ISO initiatives to ensure a modern, reliable power system for New England.”

In the report, ISO New England emphasizes the region’s decarbonization and shifting resource mix, noting that “carbon emissions from the grid have fallen by roughly a third... the region is on its way from having an electric grid dominated by fossil-fuel and nuclear generation to one that includes large amounts of wind and hydro generation and hundreds of thousands of small solar and storage systems spanning the six states. The states’ next step in their decarbonization journey is to transition the emissions-heavy heating and transportation sectors to low-carbon electricity.”

ISO-NE describes the way these changes are happening as “challenging reliable system operations and competitive wholesale electricity markets.” ISO says that “for the foreseeable future, the region will remain vulnerable to energy shortfalls and wholesale price volatility as more and more resources with limited-energy ‘inventories’ (natural gas generation, wind, solar, battery storage) displace resources with on-site fuel that can sustain operation for extended periods (oil, coal, nuclear, dual-fuel generation).”

ISO New England says its competitive markets weren’t designed to telegraph future energy scarcity conditions, compensate resources for fuel inventory, achieve carbon reduction goals, or specifically lead to renewable development. It notes that state-sponsored resources suppress market prices when in markets, but would lead to overbuild if outside markets. ISO advocates, “Establishing a realistic price on carbon remains a more seamless and simpler way to achieve clean-energy goals through markets without distorting competition, but this is not in the ISO’s jurisdiction. State or federal policymakers could pursue this direction but have not done so to date.” ISO notes, “Nuclear resources will prove critical to meeting both decarbonization and energy-security goals for years to come, but how they can remain financially viable is still unclear.”

ISO-NE says it is focused on 3 elements to support the transition to the “hybrid grid”: supporting the rapid transformation of the region’s electricity supply and demand mix, maintaining a robust transmission system, and ensuring energy security. 

The grid operator also noted limitations on what tools it can use to address these challenges: “Importantly, ISO New England does not have the authority to dictate investments in energy infrastructure that can help ensure that the region’s energy needs can be met in all seasons, under all conditions. Our toolkit is to create financial stimuli through the wholesale electricity markets that will drive action. Opposition or impediments to infrastructure decisions will only exacerbate the region’s energy-security constraints.”

Electric vehicle pilot program proposed in Maine

A pilot program proposed by a Maine utility could lead to more electric vehicles on the road.  Central Maine Power Co. has asked the Maine Public Utilities Commission to approve its Electric Vehicle Pilot Project No. 2, which includes a limited number of grants to help customers purchase or lease an electric vehicle. 

As described in CMP's June 21 filing with the Commission, the electric vehicle pilot project consists of grant funding, CMP promotion of electric vehicles, and the collection of data on vehicle usage.  CMP envisions issuing cash grants of up to $15,000 each to ten selected organizations located in CMP’s service territory.  These organizations, selected through a public solicitation process, could use these grants to help them purchase or lease ten electric vehicles.  Each organization can also apply a portion of the grant toward the purchase and installation of a Level 2 (208V or 240V) rapid charging station, if it so chooses.

The project arises out of a requirement approved by the Commission as part of the settlement of a 2008 case over CMP's Maine Power Reliability Program, or MPRP.  As part of a deal allowing CMP to invest $1.4 billion in transmission infrastructure in its territory, the Commission required CMP to develop a process for pilot projects to facilitate the increased use of hybrid and electric cars in Maine, and to promote the storage of renewable and other energy generated off-peak to replace fuels with greater climate impacts.  Using off-peak electricity to power transportation could both save money for consumers and allow the utility to make more full use of its transmission and distribution grid.

Specifically, the stipulation required CMP to bring forward at least three pilot projects to facilitate the increased use of hybrid and electric cars by the end of 2012.  CMP's first pilot project entails integrating a limited number of electric vehicles into CMP's fleet.  This project, which is currently being implemented, is designed to give the utility first-hand experience with EVs, in a manner that minimizes costs and risks.

If approved, CMP's second project would introduce ten vehicles into the broader community.  The utility has said that its objective is to build awareness and lessen consumers' concerns by getting more of the new EV models into the public's hands.  Its ultimate stated goal is to create interest and "buzz" about EVs, particularly among innovative early adopters who would be most likely to purchase an EV.

A third phase is still under development, but CMP has said it will propose reducing barriers to EV use through education, participate in the development of public charging infrastructure, and assess a lower off-peak rate for EV charging.

The Maine Public Utilities Commission is reviewing CMP's proposal and is expected to issue its decision later this year.

July 29, 2011 - President Obama promotes vehicle energy efficiency

From the vehicle energy efficiency department: today President Obama announced a new fuel efficiency standard for motor vehicles.  The Corporate Average Fuel Economy or CAFE standard, developed by the Environmental Protection Agency and the Department of Transportation after input from stakeholders, sets a fleet-wide average standard of 54.5 miles per gallon by 2025.  According to the White House, this standard will save consumers money – $8,000 per vehicle – while also reducing greenhouse gas emissions by 6 billion metric tons and and oil consumption by 2.2 million barrels a day by 2025.

This fuel economy standard raises the bar significantly.  Existing fuel economy rules require cars and light-duty trucks to average 35.5 mpg by 2016.

Meeting today’s stepped-up fuel efficiency standards may not be easy for auto manufacturers, so it is notable that the standard has won the support of leading vehicle makers.  Two compromises may have won automakers over.

First, while 54.5 mpg is significantly higher than the current CAFE standard, it is nevertheless lower than either the 60 mpg promoted by environmental groups or the 56.2 mpg initially proposed by the administration.

Second, the agreement includes incentives and credits for advanced vehicles and technologies that reduce emissions.  EPA and the National Highway Traffic Safety Administration are considering incentive programs for market-changing technologies such as plug-in hybrid electric vehicles, fuel cell-based vehicles, and compressed natural gas (CNG) vehicles.

These incentive programs will follow on the heels of other federal grant programs for advanced vehicle efficiency R&D and commercialization, such as the $184 million Department of Energy research and development program announced last December.