Tag Archives: Trump

Vanishing Demand,
 Not Trump Coal Crusade
 Is Real Issue For Utilities

It’s planning time in the electric utility industry, and a raft of new reports make two points abundantly clear:

  • Efforts to “save” the coal industry are bound to founder since utilities, as a group coal’s largest customer by far, have moved on and are planning a cleaner future in which the black rock’s current share of the electricity market, in the low 30 percent range, is as high as it’s ever going to get.
  • Vanishingly small increases in demand (and the occasional outlook for declines) will be a major issue for the industry in the next 10 years.

In its latest 10-year power plant siting plan, for example, Florida Power & Light pointed out that it was continuing its efforts “to move away from coal-fired generation.” In total, the utility said it planned to take 1,216 MW of coal-fired generation off its system by the first quarter of 2019. (FPL’s site plan can be found here.)

Similarly, in its recently filed 2017 integrated resource plan (IRP), PacifiCorp, the sprawling utility holding company that serves 1.8 million customers in six western states, said its preferred generation portfolio going forward “reflects a cost-conscious transition to a cleaner energy future.” Through 2028, PacifiCorp said it would be able to meet its system-wide power needs through demand side management (DSM), new renewable (primarily wind) generation and short-term purchases on the wholesale market. Looking longer-term, the company said it planned to shutter 3,650 MW of coal-fired capacity by 2036. (PacfiCorp’s IRP and other backup information can be found here.)

Continue reading Vanishing Demand,
 Not Trump Coal Crusade
 Is Real Issue For Utilities

King Coal Still Rules
 In Trump Team’s
 Alternate Reality

“You’re going back to work.”

With that rhetorical flourish, President Trump signed his much-ballyhooed and loftily-titled executive order “to create energy independence.”

The president’s words—directed to a group of coal miners at the signing ceremony—may have made for great TV (and the president certainly has a knack for that), but that’s about it. The coal mining jobs aren’t coming back, and anyone willing to take a factual look at the current trends in the U.S. electric power sector knows that.

The order, essentially the new administration’s effort  to undo any and all climate change-related plans put forward by the Obama administration (the Clean Power Plan in particular), is chock-full of assertions about the U.S. energy industry that are, at best, little more than wishful thinking. Let’s take a look.

Continue reading King Coal Still Rules
 In Trump Team’s
 Alternate Reality

Utility Experience
 Blows Away Concerns
 About Windpower

The Southwest Power Pool said last week that it met 52.1 percent of the electricity demand in the sprawling transmission organization’s service territory with windpower during a portion of the overnight period on Feb. 13, marking the first time SPP had topped the 50 percent mark. What’s even bigger news is that hardly anyone noticed—these records have been falling consistently for the past several years with the steady increase in wind farm construction across the Midwest; SPP set its prior record of 49.2 percent just last year.

The real news, however, wasn’t the percentage itself, but what Bruce Rew, SPP’s vice president of operations, said later in the same press release concerning the changes that have occurred in the past 10 years. Then, the SPP release noted, a goal of 25 percent would have been deemed unrealistic.

Clearly, not anymore.

“Since then,” Rew said, “we’ve gained experience and implemented new policies and procedures. Now we have the ability to reliably manage greater than 50 percent wind penetration. It’s not even our ceiling. We continue to study even higher levels of renewable, variable generation as part of our plans to maintain a reliable and economic grid of the future.”

Continue reading Utility Experience
 Blows Away Concerns
 About Windpower

EIA 2017 Outlook
 Shows Energy Transition
 Will Trump Trump

The Energy Information Administration’s Annual Energy Outlook is always chock full of interesting data, and the 2017 version, released uncommonly early last week, is certainly no exception. For its part, EIA highlighted the prospect of the U.S. becoming a net energy exporter in the near future, a far cry from the import-dependent years that drove policymakers crazy in the late 1900s and early 2000s. But from my perspective, the key takeaways can be found in EIA’s analysis of electric sector market shares in a reference case including the outgoing Obama administration’s climate change-fighting Clean Power Plan and a second case assuming the CPP is withdrawn, as the incoming president and his team have said they intend to do.

For starters, regardless of its assumptions, EIA sees no growth going forward for the nuclear power industry. In both its reference case, which incorporates the CPP and should, as a result, favor the construction of non-carbon emitting generation resources, and its no-CPP case, EIA comes up with the same results. Nuclear generation is expected to decline slowly from now through 2040—falling from 797 billion kilowatt-hours in 2016 to 701 billion kwh in 2040 as units are retired (either due to economic or age-related reasons) and no new reactors (save the four currently under construction in Georgia and South Carolina) are brought online.  [Charts showing the generation outlook in both cases are included below; the complete EIA Outlook can be found here.]

Continue reading EIA 2017 Outlook
 Shows Energy Transition
 Will Trump Trump

New Cheerleader In Chief Can’t Change Coal’s Fall, Rise In Gas, Renewables

The bright shiny package the coal industry unwrapped Christmas morning—the one it hoped was filled with rising and lasting demand for the black rock—is actually little more than a pretty box filled with empty promises delivered by the country’s new cheerleader in chief.

Just 10 years ago, coal was the clear top dog, accounting for just under 50 percent of the electricity generated annually in the U.S. (Coal’s total in 2006 was 48.9 percent, the last year it actually topped the 50 percent level was 2003.) This year, coal is likely to play second fiddle to the surging natural gas sector; the Energy Information Administration’s latest Short Term Energy Outlook (released Dec. 8) estimates that coal will account for 30.4 percent of the nation’s electric generation this year, below the 34.1 percent stake controlled by natural gas. And no amount of industry wishful thinking or presidential conceit is going to change that—the markets have changed.

Continue reading New Cheerleader In Chief Can’t Change Coal’s Fall, Rise In Gas, Renewables