California has been at the forefront of the energy transition, leading the way in adding renewable energy, promoting electric transportation, and phasing out fossil fuels. New York has closely followed suit in these efforts.
However, in August, the California Public Utilities Commission unanimously voted to expand the natural gas storage facilities at the Aliso Canyon Storage facility outside Los Angeles. Additionally, the state has decided to keep three large gas plants online longer and extend the life of its only major nuclear facility.
Despite the state’s promises to prioritize clean energy, this decision highlights the challenges that come with the operational realities of transitioning to alternative energy sources. It’s clear that flipping the switch on our electric system is not as simple as it may seem.
In New York, the grid operator NYISO has issued warnings about potential energy shortages if transmission lines are not upgraded quickly enough to compensate for the closure of older fossil fuel power plants. They suggest that these plants may need to remain in service for many more years. The rise in electric vehicles, heat pumps, and other electrification technologies is driving peak demand to new heights.
Four offshore wind projects in New York were supposed to provide crucial megawatts to replace natural gas and help the state achieve its goal of 70% renewable energy by 2030. However, all four projects are now asking for additional funding, and without it, they may not be able to proceed.
California’s challenges should serve as a warning to New York. Dispatchable resources like natural gas and nuclear power are currently the only reliable sources that can meet power demands regardless of weather conditions. While efforts to increase solar, wind, and energy storage are promising, they face permitting challenges, local opposition, and financial difficulties.
Policy choices are exacerbating the problem. Grid operators and regulators are increasingly concerned about the retirement of conventional power plants, which poses a threat to grid reliability. The proposed rule by the Environmental Protection Agency to shut down gas plants or implement new technologies adds to the strain. The gap between power demand and available supply is widening.
Policies alone cannot change the inherent engineering and physics of power generation. The fact that California, a leading environmentally focused state, is acknowledging this reality should be a signal to other states like New York. As we strive to add more clean energy to the grid and reduce emissions, we must be realistic about the current state of the grid. Instead of simply transitioning, we need to expand our energy sources while keeping existing options available to ensure reliable power supply.
Todd Snitchler, the President and CEO of the Electric Power Supply Association and former chair of the Public Utilities Commission of Ohio, emphasizes the need for clear-eyed policymaking in this energy transformation.
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