R.I. Works On Creating Right Mix of Renewable Energy
By TIM FAULKNER/ecoRI News staff
Offshore wind will likely need to play a prominent role in Rhode
Island’s renewable-energy future. (istock)
Rhode
Island’s path to 100 percent renewable energy by 2030 is being cleared, but
it’s not a simple, straight route, as numerous options need to be considered.
There
will likely be plenty of wind and solar power coming online during the 2020s to
meet the benchmark. But the renewable-energy directive
from Gov. Gina Raimondo requires an analysis of jobs, costs to ratepayers, and
economic benefits of lower climate emissions.
A
study underway by the Rhode Island Office of Energy Resources (OER) and The
Brattle Group, a Boston-based energy consultant, has a simple goal but lots of
moving parts, including myriad sources of renewable energy.
The
state must choose from renewable-energy certificates (RECs), direct purchases
of power from large wind and solar projects, and retail power generated by
thousands of smaller installations.
The
latest update by The Brattle Group looked at using these options independently
and combining them in energy portfolios.
To
look at these options, the report noted that Rhode Island has to meet a gap of
4,600 gigawatt-hours of renewable energy on top of what it already expects to
be procuring by 2030 through mandates, such as the Renewable Energy Standard
(RES).
A few more energy contracts like the one with Revolution Wind would fill the state’s gap of 4,600 gigawatt-hours of renewable electricity. (The Brattle Group)
If
a single source of renewable energy is relied on, such as offshore wind, the
state could meet the 2030 target with just two or three additional contracts
from projects like the 400-megawatt Revolution Wind facility. The goal could
also be met with about 10,000 more small solar arrays.
Land-based
wind power and wholesale electricity purchased from large solar arrays presents
limitations, such as land scarcity and limits imposed by moving the electrify
through the power grid.
The
cost to ratepayers in the recent report is determined by the acquisition costs
of the energy, minus the market revenue. The economic benefit is defined by
gross domestic product (GDP), jobs, and construction. GDP is determined by
in-state construction expenditures, operation and maintenance expenses after
projects go online, and the cost to ratepayers for the project. It doesn’t
include the overall economic impacts of a new industry expanding in the state,
like what offshore wind is doing in the Ocean State.
Filling
the state’s renewable-energy gap with RECs, pegged at $30 per megawatt-hour, is
the least-expensive method for buying power. But it has the lowest economic benefit
in terms of GDP and fostering development of in-state renewable projects.
Land-based wind, offshore wind, and large solar arrays require similar costs to
acquire the energy.
If
each source of renewable power is used to fulfill the entire gap of 4,600
gigawatt-hours, the typical retail customer would pay about $11 more a month
for a portfolio of RECs. Offshore wind also adds $11 a month. Land-based wind
adds $13 a month and small-scale solar adds $31 a month, according to The
Brattle Group.
The cost per month for using a single type of renewable energy to meet Rhode Island’s goal. (The Brattle Group)
Land-based
wind power is relatively inexpensive, but economic benefits are low because the
energy will likely be imported from other states and it offers few local jobs.
Electricity from net metering is expensive because it shifts costs to
non-net-metering customers. But it has a strong local economic benefit due to
the construction work it creates.
Without
getting into specifics, OER commissioner Nicholas Ucci said he supported using
a blended energy portfolio. Those offered by The Brattle Group had similar
costs.
Ucci
advocated for expanding the state’s RES to 100 percent by 2030, which would
require approval by National Grid and the General Assembly. Energy consumption
can be decreased through renewing energy-efficiency programs, he said, and by
shifting electricity usage during peak periods of demand, a process known as demand response.
Steps
will be taken to improve siting, energy storage incentives, and distribution
systems, according to state officials. The state Renewable Energy Fund, which offers grants
to developers, will likely be extended before the program ends in 2022.
Incentives will be expanded for building energy projects on brownfields and
building newer technologies such as microgrid systems.
The
cost assumptions don’t include new incentives, such as tax credits, that may be
offered by President-elect Biden, so without specifics they can’t be
calculated. But permitting for offshore wind is expected to happen more
quickly, along with improvements to the electric distribution system.
Ucci
emphasized that offshore wind is “here to stay” and said the state remains
committed to building a hub for the industry. Offshore wind will likely be a
major source of energy in the future, as evidenced by the governor’s executive order for
600 megawatts of offshore wind, because it can be built at scale and can be
easily connected to the power grid.
Policy
and planning changes to prepare the grid for the increased workload through
2050 will be launched in 2021, according to Ucci. He said this effort will
include planning with municipalities, National Grid, state agencies, and
neighboring states and seeking ways to reduce interconnection costs.
Environmental
equity for frontline communities, land use, and the growing demand for
electricity, as the heating and transportation sectors decarbonize, are expected
to be addressed in the upcoming report.
Yasmin Yacoby, OER’s energy justice program manager, spoke of the mistrust marginalized communities have in authority figures and by extension large initiatives. She said OER will host meetings with established community organizations to address systemic racism and legacy inequities.
She also noted
that OER and National Grid will create an energy equity group in 2021. She said
traditionally overlooked people will be included in this effort and in future
projects by making sure assumptions aren’t being made about their needs. There
will also be localized job training and education programs, according to
Yacoby.
“This
is going to be a long process and a difficult one,” she said. “There is a lot
of mistrust and there is a lot of work to be done to build that trust back up.
But that is a priority we are working on.”
Based
on an OER study, the agency
is hoping to ensure equitable benefits and equitable costs.
”It’s
not just focusing on bill savings,” Yacoby said. “It’s really focusing also on
pollution reduction, increase to in-home comfort and health and climate
change.”
Ucci
described Rhode Island’s energy goal as bold, but he noted that the process he
will be proposing soon has been written with input from the Rhode Island
Division of Public Utilities and Carriers, the Public Utilities Commission, and
the Department of Environmental Management.
“We
know how to do it, and we have a suite of policies and programs that can
already help foster that success,” he said.
Ucci
added that a blended portfolio offers the greatest cost, job, and reliability
benefits to meet the goal of reducing climate emissions, but it won’t be cheap.
“Achievement
of our clean energy future requires ratepayers to support those investments in
order to drive the energy, economic, and environmental outcomes we seek,” he
said.
The public will have an opportunity to comment during online listening sessions scheduled for Dec. 10 and Dec. 14. The public comment period ends Dec. 15. A final analysis with recommendations is expected to be released by Dec. 31. Comments can be emailed to energy.resources@energy.ri.gov.
The
six portfolios with mixes of renewable energy have similar costs. (The Brattle
Group)
