APPA Regional Exercise On Mutual Aid Yields High-Level Lessons Learned
May 11, 2022
by Paul Ciampoli
APPA News Director
May 11, 2022
A recent regional mutual aid held by the American Public Power Association (APPA) that was hosted by Ohio-based American Municipal Power (AMP) resulted in a series of high-level lessons learned.
The exercise took place on April 27 in Columbus, Ohio, and involved over 50 in-person public utility participants from four states and over 27 communities, including local county emergency managers and DOE regional emergency support function (ESF) #12.
The ESF #12 Annex is a construct established within the National Response Framework. ESF #12 helps manage the resources required to support energy infrastructure systems, and public and private services and resources.
The exercise was kicked off by introductory remarks from Brandi Martin, Program Manager at DOE’s Office of Cybersecurity, Energy Security, & Emergency Response.
The full day exercise featured in-depth discussion of emergency response issues including mutual aid and coordination with state, local and federal government. The scenario for the exercise was a major tornado event causing widespread grid disruptions. This exercise began after the tornado made impact and did not deal with preparatory actions.
Notable discussions during exercise or captured in a post-exercise review included the following:
- Supply chain concerns, specifically transformers. An interesting discussion (noted by most breakout groups) was about how to ensure public power utilities get needed materials during an emergency;
- Challenges of small utilities vs. large utilities. For example, one participating utility has only one lineworker;
- Mutual Aid agreements with non-public power utilities;
- Business Continuity vs Emergency Management topics;
- Discussion of elevating from local to state to regional to federal in terms of mutual aid needs;
- Identification of gaps in the Emergency Action Plans: decision making, delegations, backup personnel;
- Communication challenges and limitations, including use of communication groups and talk groups;
- Safety/operations issues;
- Impacts of social media and need to keep customers informed; and
- Knowledge transfer and generational employee differences
In terms of high-level lessons learned, the exercise was very well received. Participants commented on the importance of addressing emergencies during “blue sky” days.
Participants also commented that they appreciated the chance to participate and that DOE and APPA efforts made this possible.
Another lesson learned is the Importance of knowing peers at adjacent utilities and communities and sharing information with likely mutual aid participants.
The importance of having connections with local government decision-makers before the emergency response was another lesson learned.
Another lesson learned is the importance of having local experts as part of the facilitation teams. Each small group breakout session was led by a local power utility expert and an emergency management/exercise expert. The small groups and the local utility expertise helped draw participants into the discussions.
AMP is the nonprofit wholesale power supplier and services provider for 134 members in Ohio, Pennsylvania, Michigan, Kentucky, Virginia, West Virginia, Indiana, Maryland and Delaware.
The exercise was held under DOE CESER Cooperative Agreement DE-CR0000012.
APPA Urges FERC To Ensure Reliable And Affordable Supply Of Natural Gas
May 11, 2022
by Paul Ciampoli
APPA News Director
May 11, 2022
The Federal Energy Regulatory Commission (FERC) should clarify or revise aspects of draft gas policy statements issued in March by FERC that could interfere with FERC’s pursuit of policies that help ensure a reliable and affordable supply of natural gas in order to support a reliable and resilient power grid and reasonable electric rates for consumers, the American Public Power Association (APPA) said.
FERC on March 24, 2022, voted to seek additional comments on two policy statements it issued in February that provide guidance regarding the certification of interstate natural gas pipelines and consideration of greenhouse gas emissions (GHG) in natural gas project reviews.
“Public power utilities across the country continue to reduce their GHG emissions through a variety of means, such as fuel switching to lower-emitting resources, investments in renewable and other non-emitting resources, the integration of distributed energy resources, and a host of energy efficiency measures,” APPA said in comments submitted to FERC on April 25 (Docket Nos. PL18-1, PL21-3).
Public power utilities “also have been reducing GHG emissions by facilitating the electrification of the transportation sector in their communities, and by promoting the electrification of water and space heating, as well as appliances. As new technologies become commercially available and additional investments are made in clean energy technologies, public power utilities will further reduce their GHG emissions,” APPA said.
Meanwhile, natural gas-fired generation continues to play — and is expected to continue to play — an important role in the nation’s resource mix. In its most recent Annual Energy Outlook, the Energy Information Administration projects that natural gas resources will remain relatively constant as approximately one-third of the generation mix at least through 2050. “These resources, moreover, are expected to be critical to the overall reliability of the bulk electric system as the resource mix transitions to more intermittent renewable energy, a point that has been emphasized by the North American Electric Reliability Corporation,” APPA noted.
Public Power Utilities Rely On Gas-Fired Generation
Many public power utilities rely on natural gas-fired generation, either owned or contracted through bilateral or organized wholesale markets, and these utilities continue to have a critical interest in access to reliable and affordable supplies of natural gas.
“Even leaving aside the importance of natural gas to electric reliability, the price of natural gas often directly impacts the wholesale price of electricity, both within and outside the organized wholesale markets, and higher natural gas prices are likely to mean higher electricity bills for public power customers,” the trade group noted.
It said that a reliable and affordable supply of natural gas depends on adequate transportation infrastructure. APPA supports Commission policies that streamline the permitting process for needed interstate natural gas pipeline infrastructure, consistent with the Congress’ principal aim in enacting the Natural Gas Act to “encourage the orderly development of plentiful supplies of . . . natural gas at reasonable prices” and “protect consumers against exploitation at the hands of natural gas companies.”
“It is axiomatic that regulatory predictability and certainty help promote investment in necessary infrastructure; indeed, that is one of the stated purposes of the Commission’s revisitation of its gas pipeline certificate policies. APPA is concerned, therefore, by the degree of uncertainty and opposition that the Draft Gas Policy Statements have engendered among natural gas companies and other key stakeholders,” APPA said.
APPA agrees that it may be appropriate to reassess the Commission’s existing policies for evaluating the need for new pipeline infrastructure, particularly with respect to cases involving precedent agreements with pipeline affiliates, to ensure that costs are not being unfairly shifted to captive customers for unnecessary expansions.
But the Commission’s “proposed shift in focus from the economics of proposed pipelines to a more open-ended public interest balancing, however, could create significant uncertainty for the gas industry in trying to gauge the standards for pipeline approval. Such uncertainty could, in turn, constrain natural gas supply availability, potentially increasing electric prices and degrading grid reliability.”
APPA also said that uncertainty regarding how the Commission’s certificate policy will be applied may also perversely undermine decarbonization efforts by influencing electric utilities to retain older, less efficient generating units that might otherwise be displaced due to concerns about inadequate natural gas infrastructure, “notwithstanding the suggestion that the Commission will consider evidence that a proposed project ‘will displace more pollution-heavy generation sources’ in assessing project benefits.”
In this respect, a policy under which the Commission broadly examines the entirety of a proposal and balances all its benefits against all of its adverse impacts “is likely to leave a great deal of uncertainty in the minds of pipeline developers and their potential electric generation customers.”
APPA also urged the Commission to further consider and clarify the suggestion that the Commission will encourage applicants to mitigate indirect GHG emissions “given the substantial uncertainty that the proposed policy has created for natural gas pipeline companies, and the potential deleterious effects that such uncertainty could have on developing needed pipeline infrastructure.”
Voters in Barton Village, Vt., Decide Not To Sell Public Power Utility To Cooperative
May 11, 2022
by Paul Ciampoli
APPA News Director
May 11, 2022
Voters in Barton Village, Vt., elected not to sell Barton Electric to Vermont Electric Cooperative (VEC) in a ballot vote on May 10.
The decision allows Barton Village to continue owning and operating the public power utility that serves more than 2,000 customers in Barton, Brownington, Charleston, Irasburg, and Westmore.
“I’d like to thank the Barton Village residents for the commitment they’ve shown to their municipal electric utility,” said Ken Nolan, Vermont Public Power Supply Authority (VPPSA) General Manager.
“Over the past several weeks, voters dedicated themselves to learning as much as possible about the electric utility industry so they could make an informed decision,” he said. “Please know that VPPSA stands ready to assist the community as you move forward and explore the options for serving residents and customers of Barton Electric.”
Barton Village Trustees first announced their recommendation to sell the electric utility to VEC in March. Two informational meetings were held prior to the vote on May 10.
For more than 40 years, VPPSA has assisted Barton Electric with services and solutions to ensure safe, reliable, and affordable electric service, VPPSA noted.
VPPSA is a joint action agency. Its membership includes 12 consumer-owned municipals in Vermont and the Authority has broad statutory powers that enable it to provide such services as may be required in support of the activities of its member municipal utilities and to market its services to non-member utilities as it deems appropriate.
MISO Warns It Could Face Supply Shortfalls This Summer
May 10, 2022
by Peter Maloney
APPA News
May 10, 2022
The Midcontinent Independent System Operator (MISO) region could face electricity shortages this summer, according to a recent assessment by the grid operator.
MISO in late April projected a summer peak forecast of 124 gigawatts (GW) compared with 119 GW of projected regularly available generation within the ISO’s territory because of forecasted warmer-than-normal temperatures in the region.
“Under typical demand and generation outages, MISO is projecting insufficient firm resources to cover summer peak forecasts,” MISO said in a presentation during a late April workshop on summer readiness.
The projected shortfall would have to be filled with increased, non-firm imports and possibly emergency resources, it said.
“The seasonal assessment aligns with the cleared resources identified in the 2022-2023 Planning Resource Auction, which indicated capacity shortfalls in both the north and central regions of MISO and leaving those areas at increased risk of temporary, controlled outages to preserve the integrity of the bulk electric system,” J.T. Smith, MISO’s executive director of market operations, said in a statement.
Severe weather poses one of the key threats to the MISO region. “There is evidence that severe weather events that impact electric reliability have been increasing since the early 2010s,” a January 2022 MISO report found. “For example, in January 2021 the Electric Power Research Institute found that hurricanes are increasing in intensity and duration, extreme heat events are increasing in frequency and intensity, and cold events are increasing in frequency.”
At the same time, MISO today “operates with less excess capacity than in the past because MISO’s large footprint has facilitated the sharing of reserve capacity, a direct benefit to customer rates,” the report said. “Nevertheless, many thermal resources have recently retired from service due to economic, regulatory, and environmental pressures, and the aging thermal assets that remain in service may be more prone to unplanned outages and face supply chain issues.”
MISO said it is possible to reliably operate its system with substantially lower levels of thermal resources, but “we need to ensure that the resources that replace them provide the commensurate capabilities needed to ensure reliable operations,” it said.
Looking forward, MISO also is concerned that the growing trend toward electrification – of transportation and heating, for instance – “could transform the region’s grid from a summer-peaking to a winter-peaking system, and that uncontrolled vehicle charging and daily heating and cooling load could result in two daily power peaks in nearly all months of the year.”
In preparation for the summer season, MISO said it has implemented training sessions and is conducting exercises with member companies “to prepare for the worst-case scenarios and to implement lessons learned and best practices,” but added, “during real-time operations, unplanned outages and other variables may require additional actions to maintain grid reliability.”
“We closely monitor the many challenges the summer season can bring and coordinate with our members and other grid operators for situational awareness,” Jessica Lucas, MISO’s executive director of system operations, said in a statement.
BPA Joins CAISO’s Western Energy Imbalance Market
May 10, 2022
by Peter Maloney
APPA News
May 10, 2022
The Bonneville Power Administration (BPA) is one of the newest members of the California Independent System Operator’s (CAISO) Western Energy Imbalance Market (WEIM).
“Joining the Western EIM is a monumental and meaningful step in the modernization of our operations that unlocks a range of benefits for Bonneville and our customers,” John Hairston, BPA administrator and CEO, said in a statement.
BPA is a nonprofit federal power marketer that sells hydropower from 31 federal dams in the Columbia River Basin, as well as power from the region’s only nuclear plant. BPA delivers nearly one a third of the power generated in the Northwest to more than 140 electric utilities.
BPA was joined in its May 3 entry into WEIM by Tucson Electric Power (TEP), which provides electric service to more than 438,000 customers in southern Arizona.
“The Federal Columbia River Power System is a vital source of clean energy that will bring significant resource diversity and transmission capability to the WEIM,” Elliot Mainzer, president and CEO of CAISO, said in a statement. “And with the participation of Tucson Electric Power, we have another highly valued partner in the Desert Southwest.”
The WEIM uses its technology to find and deliver the lowest-cost energy to members across a broad, multi-state region. With the addition of the new members, the WEIM will be better able to provide increased reliability and environmental gains through the real-time transfer of energy, CAISO said.
CAISO has operated the WEIM since late 2014 and now has 19 participants serving 77 percent of electric demand in the Western United States. In March, Tacoma Public Utilities and Avista Utilities joined the WEIM.
Building on the growth of the Western Energy Imbalance Market, CAISO has been working with WEIM members to develop an Extended Day-Ahead Market (EDAM).
On April 28, CAISO released its EDAM straw proposal. The straw proposal seeks to establish the framework for key design elements of the day-ahead market, as well as areas requiring additional work and stakeholder input.
Current plans call for implementation testing in 2023 and onboarding the first set of EDAM participants in early 2024.
Minnesota’s Brainerd Public Utilities Details Reliability Efforts, Cryptocurrency Response
May 10, 2022
by Paul Ciampoli
APPA News Director
May 10, 2022
Scott Magnuson, Superintendent for Minnesota public power utility Brainerd Public Utilities, recently detailed the steps that the utility has taken to maintain high levels of reliability and safety and explained how Brainerd Public Utilities is responding to cryptocurrency data mining operations.
“In the last several years, we have put a lot of effort into vegetation management and system protection. Making sure that when we do have an event, the damage is very limited, and crews are able to dispatch to the problem very efficiently, do some switching and get most, if not all, meters back on right away,” Magnuson noted in a Q&A with Public Power Current.
Brainerd Public Utilities has received a Reliable Public Power Provider designation from the American Public Power Association (APPA).
“Our crews, water, wastewater and hydro, along with the electric crew take great pride in our safety record,” he noted.
“We use the services of our state association, the Minnesota Municipal Utilities Association (MMUA), for our safety training for all employees, and also the JT&S for the electric crews. I am currently a MMUA board member, and my Operations Manager is on the JT&S committee, so we have direct input to what is needed for safety training, and the MMUA does an excellent job at it.”
Magnuson also provided details on cryptocurrency data mining operations being set up in the region served by Brainerd Public Utilities and detailed how Brainerd Public Utilities is responding to these operations.
“This is definitely a new one for us,” he noted.
Back in 2006, the utility started engineering a substation and feeder upgrade project. “At the time, we served a papermill in town, and population was supposed to triple by 2025. So, we decided on three 47 MVA transformers for the substation.”
However, in 2014, the papermill shut down and the population growth did not happen. “We ended up with 141 MW worth of transformers and a summer peak of 43 MW. That meant we had a lot of extra capacity. Word got out, and we were contacted by some parties interested in setting up crypto mining operations in Brainerd,” he said.
“We are currently working with one group for a 50 MW load, and a local company for a 20 MW load. Contracts are signed, and both parties are procuring their equipment. One item both parties agreed to was they would be responsible for any upgrades, or new lines, that needed to be built for their loads, which we have completed,” Magnuson noted.
He also addressed the topic of supply chain issues.
“We have not yet been impacted too bad by this dilemma,” he said. “Some equipment has been delayed a couple weeks, but we have been able to continue with our projects. Transformers are another issue; for now, we have a decent inventory, but we think single phase transformers may become an issue for us in 2023. We have not seen the influx of home EV chargers yet, but we know it is coming and are making plans.”
Magnuson said his long-term goal for Brainerd Public Utilities “is to continue to move the utility forward in an everchanging environment, and provide our customers with safe, reliable and environmentally friendly utility services. Our team takes great pride in what they do, from the staff in the office, to the guys in the field, and everyone in between. We have really formed a good bond, and my goal is to keep it that way,” he said.
“Things are changing fast in all aspects of the utility business, from state and federal mandates, to technology, to customers, and what they expect from us. We need to stay on top of the changing landscape, and make sure we are giving the customers what they demand, while maintaining an affordable product, and protecting Mother Earth.”
Additional information about the utility is available here.
Fayetteville, N.C., Utility Planning To Install 1.5-MW Biogas Fuel Cell
May 9, 2022
by Peter Maloney
APPA News
May 9, 2022
Fayetteville PWC in North Carolina plans to install a 1.5-megawatt (MW) fuel cell that would be powered by multiple biogas streams.
The project is designed to use biogas captured from the public power utility’s Cross Creak Water Reclamation facility, an adjacent landfill, and methane gases captured from local and neighboring swine farms.
The Bloom Energy fuel cell is planned to sit next to the utility’s P.O. Hoffer water treatment facility and will be one of the first of its kind to blend multiple waste gas sources to produce clean, carbon dioxide-neutral electricity, Fayetteville PWC said.
“This project is an anchor for the broader plan to remediate and establish a Cleanfields Renewable Energy Demonstration Park in the community,” Elaina Ball, CEO and general manager of Fayetteville PWC, said in a statement.
The waste-to-energy project will complement the utility’s existing renewable energy sources and help the utility meet North Carolina Renewable Energy and Energy Efficiency Portfolio Standard requirements, by reducing harmful landfill and agricultural gases and providing pollution free electricity, PWC said.
“This is an innovative project that addresses both our challenging renewable energy mandates and one of the state’s largest industrial polluted sites,” Ball said. “We are excited that the project not only brings creative solutions but numerous other benefits including producing renewable energy, cutting power costs and productive use of local waste gases.”
The fuel cell installation would also border the former Texfi industrial site, which is considered one of North Carolina’s most polluted sites because of residual industrial pollution and contaminated groundwater that poses a threat to the community’s drinking water and the Cape Fear River Basin.
After seeking funds since the early 2000s, the City of Fayetteville and PWC received $220,000 in funding from the state to help launch a pilot program for removing the contaminated groundwater, which is now under way.
Fayetteville PWC is also contributing an additional $220,000 for the project. If proven successful, the pilot technology would be used in full-scale remediation efforts.
Once remediated, plans call for a 250-acre park to be developed into the state’s second Cleanfield Renewable Energy Demonstration Park, where renewable energy resources like fuel cells would be located.
Fayetteville PWC provides electricity to 80,000 customers and water services to 225,000 customers.
Conway, Ark., APPA-Funded Study Finds No Harmful Harmonics From Residential Solar
May 4, 2022
by APPA News
May 4, 2022
A study of residential solar power installations by Conway Corp. in Arkansas found that they did not generate harmonic patterns harmful to the public power utility’s electric system.
The study was done with financial support from the American Public Power Association’s Demonstration of Energy & Efficiency Developments (DEED) program.
“Our staff became aware of solar system harmonics while working on a 1-megawatt distributed energy resource solar project in 2019-2020,” Ronson Smith, electric systems engineer at Conway Corp., said via email.
Irregular loads, such as computer and solar power equipment, can create harmonic patterns that interfere with the smooth sine curve of non-linear loads and can damage the distribution grid by causing equipment to overheat or by creating the risk of disruptions or fires.
The utility’s engineers and technicians began to wonder if residential solar installations would also produce harmonic distortion. In particular, they were concerned that a large number of grid-connected solar photovoltaic inverters on a distribution network could cause power quality problems, especially since utility professionals know little about the effects of harmonics-generating equipment when it is widely distributed on a power grid.
For the study, 2021-Case Study: The Presence of Residential-Class Photovoltaic Induced Harmonics on the Distribution Network, Conway Corp. worked closely with E2C Engineering’s Electrical Consulting Engineers and hired two interns from a local university to test the individual harmonic distortion and total harmonic distortion limits on single phase residential houses with solar panels, as well as residential homes with solar panels and LED lighting.
Monitoring equipment collected data at various net metering test sites at varying degrees of magnitude on the electrical network.
The workers measured the harmonics in the same conditions while the solar system was turned off and then, during a similar period under similar conditions, with the solar system turned on to determine whether the solar system was creating harmful harmonics.
“We found that the harmonics generated are within the limits of the national standards such as IEEE-519 no matter the size PV solar system installed,” the utility said in its DEED report.
More specifically, the study showed that the typical total voltage distortion level from a house with a solar system was around 1.5 percent while the same house without the solar system connected had total voltage distortion of about 1.3 percent.
APPA’s DEED program awarded $45,520 to Conway Corp. on Oct. 2, 2020, and the project concluded on March 31, 2022. Conway Corp. contributed $71,531 to the cost of the project.
“This study will be a foundational building block for our knowledge and approach to power quality related to residential loads, as well as solar projects in general,” and it “will serve as a template for other possible power quality studies if needed in the future,” Smith said.
Conway is a quickly-growing city where more and more homes are installing solar power systems. While the utility does not have any current plans to make any changes to its net metering program based on the study results, it said it would continue to monitor the harmonics produced in different circumstances, as well as the harmonics from existing and new solar farms.
The data and analysis that came out of the study “will be helpful going forward with planning and operations,” Smith said. “It also enhanced the staffs’ understanding of net metering, solar power, and power quality.” And, Smith said, “we were able to engage local university students with a valuable internship experience at a municipal utility.”
The APPA-funded study will also provide other utilities with insight into the operational characteristics of residential solar, Smith said. “It could also give them a leg up on data and analysis strategies for similar challenges they may encounter in their own parts of the power grid.”
Nebraska Village Earns Award For Electric Distribution System Upgrade
May 4, 2022
by Paul Ciampoli
APPA News Director
May 4, 2022
The Village of Shickley, Neb., recently received a Project of the Year award from NMPP Energy for the village’s electric distribution system upgrade.
NMPP Energy presented its Project of the Year Awards to four communities at its annual conference in Lincoln, Neb., in late March.
The awards are presented annually to NMPP Energy communities to recognize projects or programs that create a more cohesive community, whether it was a project created for the entire community or one that makes it easier for city staff and employees to serve their customers. The award winners received $200 to be used for a community project of their choice.
The Village of Shickley’s project consisted of upgrading four blocks of the village’s 1950s-era electric distribution infrastructure to today’s modern standards. The project was completed in the summer of 2021.
“A safe and reliable electrical distribution system is very important to the Village of Shickley,” said Bart Brinkman, a village board member.
The village collaborated with Great Plains Power and local business Frieden Electric Company on the project.
The upgrade included installing a significantly higher voltage three-phase distribution system. Several secondary overhead wires were rerouted to clear buildings and new transformers, poles and other equipment installed that will improve system reliability and minimize maintenance for many years.
Nebraska-based NMPP Energy is a coalition of four organizations serving nearly 200 Midwest and Rocky Mountain communities.
NMPP Energy organizations include Nebraska Municipal Power Pool, Municipal Energy Agency of Nebraska, National Public Gas Agency and Public Alliance for Community Energy.
New York Power Authority Eyes Bulk-Scale Battery Storage Projects
May 4, 2022
by Paul Ciampoli
APPA News Director
May 4, 2022
The New York Power Authority (NYPA) recently issued a request for proposals (RFP) for the potential use of peaker plant sites and related electric infrastructure for the development of bulk-scale battery storage projects.
NYPA said that the RFP release comes after the review of promising study results indicating that NYPA’s peaker plants located in New York City could begin the transition to low or zero carbon emission technologies well ahead of NYPA’s VISION2030 goal of decarbonization by 2035 and the state’s goal of a zero-emission electricity sector by 2040.
The NYPA Small Clean Power Plant Adaptation Study, prepared in consultation with the PEAK Coalition, a group of environmental justice and clean energy advocates, demonstrates that four-hour duration battery storage has the potential to replace the energy currently provided by NYPA’s individual plants, if certain key conditions are met, by 2030, NYPA said.
The study was commissioned by NYPA to analyze potential clean energy options to decarbonize NYPA’s peaker plants.
Study researchers examined energy forecasts of changes in the New York electric supply mix as well as changes in demand over the next two decades, showing that as early as 2030, with the advent of more renewable energy coming into New York City, and a resulting decrease in the expected frequency and duration of run times, four-hour energy storage could provide enough energy to fully replace the operations of each individual small clean power plant unit.
NYPA said that the implementation of these technologies has the potential to also help accelerate progress in attaining the clean energy goals outlined in New York State’s Climate Leadership and Community Protection Act, legislation that calls for zero-emission electricity in New York State by 2040 and are complimentary to Governor Hochul’s 2022 State of the State commitment to phase out New York City’s older, most-polluting fossil-fuel facilities by exploring ways to repurpose and redevelop fossil-based electric infrastructure by 2030.
Further study will be needed to assess resiliency and reliability impacts at the plant level, as well as capacity requirements required by the New York Independent System Operator and Con Edison, the investor-owned utility that provides direct energy services to New York City residents.
Additional analysis will also be needed to ensure that any envisioned retrofit, replacement or retirement does not result in an increase in carbon emissions or other criteria pollutants from less efficient fossil-fired power plants in New York City, NYPA noted.
In 2001, NYPA installed natural gas-fired peaker plants at six locations in New York City and one on Long Island. They operate infrequently — roughly 10 percent of the time, in recent years, when directed to do so to meet energy demands — providing local reliability and resiliency.
The study’s analysis is focused solely on NYPA’s in-city peaker plants.
The following is a summary of the study’s key findings:
- Given site characteristics and battery density assumptions, each peaker plant site presents opportunities for adaptation strategies, including full, or close to full, replacement with battery storage by 2030;
- As electrification loads increase and New York shifts to a 100% decarbonized system by 2040, a system-wide reliability need is expected, that requires energy resources with capabilities for longer dispatch durations that batteries alone may not satisfy;
- Based on historical output levels, the frequency and duration of NYPA’s peaker plants’ run-times would make full replacement with battery storage impossible; however, by 2030, the frequency and duration of the plants’ run-times are projected to decline, allowing for the possibility of full replacement with 4-hour battery storage at each individual site;
- Under a more ambitious view of decarbonization in New York City, represented in an alternative scenario, there may be opportunities to further displace higher-emitting fossil generation, which would lead to significant reductions in local NOx emissions;
- As New York State adds more renewable energy, energy storage and transmission resources to meet the goals of the Climate Act, fossil-fired generation in New York City is predicted to decline significantly.
The findings of the study are dependent on production cost modelling assumptions, such as the future build-out and integration of more renewable resources and future transmission and distribution development and modernization.
While the study results indicate the potential of energy storage, the same results, also indicate that beyond 2030, as more electrification drives an increase in electricity demand, the system-wide energy need during periods of low renewable output will require perfect capacity (on-demand, reliable, and without duration constraints) energy resources or longer duration storage technologies to fill the gap and avoid reliability issues.
NYPA said it will be moving forward towards decarbonization through the implementation of several actions including the RFP’s issuance for the development of bulk-scale battery storage projects. Bids are due May 24, 2022, with potential awards announced July 1, 2022. For more information on the RFP go to NYPA’s Procurement website.
In addition, NYPA will:
- Continue Ongoing Stakeholder Engagement: NYPA said it is committed to continued engagement with community stakeholders to ensure that the peakers located in disadvantaged communities are prioritized for adaptation;
- Undertake Initial Reliability Analysis: NYPA will facilitate the necessary reliability assessments to advance towards the VISION2030 goal of decarbonization by 2035.
- Develop Strategic Roadmap: NYPA will develop an internal working roadmap for the organization’s near-term strategy for its peakers by end of 2022, in alignment with VISION2030. The roadmap will be revisited on a regular basis to reflect changes in reliability, system resilience, policy and technological feasibility.
The study, conducted by Energy and Environmental Economics, Inc. (E3) and General Electric Energy Consulting, was commissioned by NYPA in consultation with the PEAK Coalition, and was supported by Strategen Consulting, as part of an agreement signed in 2020 between the two groups to assess how NYPA could transition its natural gas fired small clean power plants to use clean energy technologies, such as battery storage and low to zero carbon emission resources and technologies, while continuing to meet the unique electricity reliability and resiliency requirements of New York City.
The study is available here.
The American Public Power Association’s Public Power Energy Tracker is a resource for association members that summarizes public power energy storage projects that are currently online. The tracker is available here.