Saturday, March 14, 2015

EPA Doubling our Electricity Costs

EIA: 13 Gigawatts of Coal Capacity to Retire in 2015 Due to EPA Regulation Posted on March 14, 2015 Written by canadafreepress.com
From data reports pro­vided to the Energy Infor­ma­tion Admin­is­tra­tion (EIA), about 16 gigawatts of gen­er­at­ing capac­ity will be retired in 2015, of which nearly 13 gigawatts is coal-fired. The coal-fired capac­ity will be retired pri­mar­ily because of EPA’s Mer­cury and Air Tox­ics Stan­dards (MATS), which requires coal– and oil-fired elec­tric gen­er­a­tors to meet stricter emis­sions stan­dards by incor­po­rat­ing emis­sions con­trol tech­nolo­gies or retire the gen­er­a­tors. Most of the retir­ing coal capac­ity (8 gigawatts) is in the Appalachian region–Ohio, West Vir­ginia, Ken­tucky, Vir­ginia, and Indiana—where job losses have already occurred. [ i ]
Elec­tric gen­er­at­ing com­pa­nies reported that they will add over 20 gigawatts of utility-scale gen­er­at­ing capac­ity to the power grid, but only about 6 gigawatts of these new capac­ity addi­tions are reli­able (i.e. dis­patch­able) sources of elec­tric­ity gen­er­a­tion needed to counter bal­ance the clo­sure of coal and petro­leum gen­er­a­tors. Twelve gigawatts of unre­li­able (i.e. non-dispatchable) wind and solar will be added to the elec­tric grid.
Because of vary­ing capac­ity fac­tors for the dif­fer­ent gen­er­at­ing tech­nolo­gies that are being added to the grid, the capac­ity mea­sure is not equiv­a­lent to the amount of gen­er­a­tion that can be expected. For exam­ple, 1 gigawatt of nuclear capac­ity will pro­duce over 3 times the amount of gen­er­a­tion that 1 gigawatt of wind capac­ity can pro­duce. Fur­ther­more, unlike wind which obvi­ously depends on the vagaries of weather, nuclear gen­er­a­tion is reliable.
Elec­tric gen­er­at­ing com­pa­nies reported that they will add over 20 gigawatts of utility-scale gen­er­at­ing capac­ity to the power grid, but only about 6 gigawatts of these new capac­ity addi­tions are reli­able (i.e. dis­patch­able) sources of elec­tric­ity gen­er­a­tion needed to counter bal­ance the clo­sure of coal and petro­leum gen­er­a­tors. Twelve gigawatts of unre­li­able (i.e. non-dispatchable) wind and solar will be added to the elec­tric grid.
Because of vary­ing capac­ity fac­tors for the dif­fer­ent gen­er­at­ing tech­nolo­gies that are being added to the grid, the capac­ity mea­sure is not equiv­a­lent to the amount of gen­er­a­tion that can be expected. For exam­ple, 1 gigawatt of nuclear capac­ity will pro­duce over 3 times the amount of gen­er­a­tion that 1 gigawatt of wind capac­ity can pro­duce. Fur­ther­more, unlike wind which obvi­ously depends on the vagaries of weather, nuclear gen­er­a­tion is reliable.
Note that the capac­ity val­ues in this graph are net changes, i.e. capac­ity addi­tions minus retirements.
Gen­er­at­ing Capac­ity Addi­tions in 2015
The addi­tions reported by elec­tric gen­er­at­ing com­pa­nies to EIA fol­low­ing the trend of recent years are dom­i­nated by wind (9.8 gigawatts), nat­ural gas (6.3 gigawatts), and solar (2.2 gigawatts). The wind capac­ity addi­tions are mostly in the Plains states, with almost 8.4 gigawatts (85 per­cent) of total wind addi­tions located between North Dakota and Min­nesota in the north, to Texas and New Mex­ico in the south. Solar capac­ity addi­tions larger than one megawatt are mostly located in Cal­i­for­nia total­ing 1.2 gigawatts. Cal­i­for­nia and 28 other states have a renew­able port­fo­lio stan­dard (RPS) requir­ing a spec­i­fied amount of qual­i­fied renew­able gen­er­a­tion. These solar fig­ures do not include small-scale instal­la­tions such as res­i­den­tial rooftop solar pho­to­voltaic systems.
Nat­ural gas capac­ity addi­tions are located through­out the United States, with Texas adding more than dou­ble any other state (1.7 gigawatts or 27 per­cent of total nat­ural gas addi­tions) in 2015. The Ten­nessee Val­ley Authority’s Watts Bar 2 nuclear facil­ity (1.1 gigawatts) in south­east­ern Ten­nessee is expected to come on line in Decem­ber 2015. It will be the first new nuclear reac­tor brought online in the United States in nearly 20 years.
Coal Retire­ments in 2015
Nearly 16 gigawatts of gen­er­at­ing capac­ity is expected to retire in 2015 of which 12.9 gigawatts is coal-fired—10.2 gigawatts of bitu­mi­nous coal and 2.8 gigawatts of sub­bitu­mi­nous coal. The 85 coal-fired gen­er­a­tors retir­ing this year are smaller than the aver­age coal-fired units in the United States with an aver­age capac­ity of 158 megawatts com­pared to 261 megawatts for the other coal-fired units. Most of this retir­ing coal capac­ity is found in the Appalachian region where coal-fired capac­ity has already been shut­tered due to EPA regulations.
The capac­ity of the coal-fired units retir­ing this year is over 3 times the amount that retired last year because EPA’s MATS requires that they add emis­sions con­trol tech­nolo­gies this year, although some units have been granted exten­sions to oper­ate through April 2016. EIA expects an addi­tional 5.2 gigawatts of coal retire­ments in 2016.[ii] If adding emis­sions con­trol tech­nolo­gies is cost-prohibitive, oper­a­tors of gen­er­at­ing units will retire their units instead. MATS require sig­nif­i­cant reduc­tions in emis­sions of mer­cury, acid gases, and toxic metals.[iii] It should be noted that, accord­ing to EPA, the ben­e­fits of reduc­ing mer­cury and air tox­ics total $500,000 a year, but the rule costs $9.6 bil­lion a year. [iv]
The 12.9 gigawatts of coal-fired capac­ity reported to be retired by elec­tric util­ity oper­a­tors in 2015 is also 3 gigawatts larger than EIA expected in July of 2012 when the agency reported 27 gigawatts of coal-fired capac­ity to retire between 2012 and 2016, with 9.9 gigawatts of coal-fired retire­ments in 2015.[v]
Despite the 21 gigawatts of coal-fired retire­ments between 2009 and 2014 that EIA has recorded, coal remains the num­ber 1 gen­er­at­ing source in the United States with a 39 per­cent share, fol­lowed by nat­ural gas and nuclear. (See graph below.)
Con­clu­sion
Pres­i­dent Obama and his EPA are liv­ing up to the President’s procla­ma­tion in 2008, “So, if some­body wants to build a coal plant, they can – it’s just that it will bank­rupt them.”[vi]  But the EPA is not just deal­ing with new coal-fired power plants, but exist­ing coal-fired plants as well. The MATS reg­u­la­tion is just the begin­ning with over 39 gigawatts of coal-fired plants being retired.
EPA released its pro­posed rule man­dat­ing car­bon diox­ide emis­sion cuts for exist­ing power plants on June 2, 2014. This rule is designed to com­ply with the president’s plan to make elec­tric­ity rates “nec­es­sar­ily sky­rocket” by reduc­ing the use of coal-fired elec­tric­ity gen­er­a­tion from exist­ing power plants—one of the cheap­est sources of elec­tric­ity gen­er­a­tion. EPA is man­dat­ing the reduc­tion of car­bon diox­ide emis­sions from the power sec­tor by 30 per­cent from a “2005 base­line” by 2030. The pro­posed rule pro­vides each state with a tar­get and a set of options that EPA has deter­mined will allow them to reach their assigned require­ments. While the rule will result in increas­ing elec­tric­ity rates, the rule will not have any mate­r­ial cli­mate ben­e­fit despite the fact that the cli­mate is the jus­ti­fi­ca­tion for the rule. EPA’s cli­mate model cal­cu­lates that the tem­per­a­ture reduc­tion from the pro­posed rule to be a mere 0.018 degrees Centi­grade by 2100.[vii]
EPA also issued a pro­posed rule lim­it­ing car­bon emis­sions on new power plants. The rule lim­its car­bon diox­ide emis­sions from new coal plants to 1,100 pounds per megawatt-hour, although the aver­age cur­rent coal-fired power plant emits close to 1,800 pounds. The EPA jus­ti­fies these num­bers by sug­gest­ing that new coal-fired plants can meet the limit by installing car­bon cap­ture and seques­tra­tion tech­nol­ogy. How­ever, that tech­nol­ogy is not com­mer­cially avail­able, mean­ing no new coal-fired plants will be built.[viii]
As we see from the EIA data above, coal-fired power plants are the back­bone of our elec­tric gen­er­at­ing sec­tor and should be encour­aged to con­tinue to pro­vide low cost elec­tric gen­er­a­tion rather than be forced to retire when the elec­tric gen­er­a­tion sec­tor has already done a yeoman’s job at reduc­ing cri­te­ria pol­lu­tants and car­bon diox­ide emis­sions from its power plants.
[ i ]
Energy Infor­ma­tion Admin­is­tra­tion, Sched­uled 2015 capac­ity addi­tions mostly wind and nat­ural gas; retire­ments mostly coal, March 10, 2015,
[ii] Daily Caller, EPA Rules To Force 85 Coal-Fired Gen­er­a­tors To Close By The End of This Year, March 10, 2015,
[iii] EPA,
[iv] Fed­eral Reg­is­ter, Feb­ru­ary 16, 2012,
[v] Energy Infor­ma­tion Admin­is­tra­tion, 27 gigawatts of coal-fired capac­ity to retire over the next 5 years, July 27, 2012,
[vi] Wash­ing­ton Times, Chance to block Obama’s war on coal, June 19, 2012,
[vii] Cato Insti­tute, 0.020C Tem­per­a­ture Rise Averted: The Vital Num­ber Miss­ing from the EPA’s “By the Num­bers”  Fact Sheet, June 11, 2014,
[viii] Wall Street Jour­nal, How to Fight the Uni­lat­eral Pres­i­dent, Feb­ru­ary 17, 2014

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