Official web site of the Western Energy Alliance

Last week, IPAMS released the findings of its report How Less Became More: Wind, Power and Unintended Consequences in the Colorado Energy Market, conducted by world renowned analytics firm BENTEK Energy.   The report is quickly gaining attention across the country as people take a closer look at how renewable energy is being integrated with coal and natural gas to meet standards set by government mandated Renewable Portfolio Standards (RPS).

IPAMS commissioned the study in 2009 to better understand how wind, coal and natural gas interact on Colorado’s largest utility PSCO (owned by Xcel).  In the near term, we hoped to better understand the trends and dynamics associated with a significant build-out in wind generation, specifically as it relates to gas demand and emissions.  Over the long-term, we knew this research would be critical for our industry as we become more involved in policy decisions that impact natural gas demand.

IPAMS members and staff, including the study’s author Porter Bennett, conducted a whirlwind tour of Washington D.C. last week, meeting with congressional leaders, allied trades and media to explain the study’s principle finding: the way in which utilities are integrating wind power with existing sources of electrical generation has actually caused an increase in emission rates in Colorado and Texas.

The release of this study seems to be well timed, as policymakers across the country are looking for energy solutions and accurate information about the ways in which traditional and renewable energy sources work together:

• Congress and the Obama Administration are considering a national Renewable Portfolio Standards (RPS). Before such a national standard is implemented, there is a compelling need to better understand how intermittent sources of energy such as wind can be integrated with existing nuclear, hydro, coal and natural gas capacity without producing “cycling-induced emissions” problems.  Cycling-induced emissions are prominent in Denver’s ozone non-attainment region and result from sudden increases and decreases in generation from coal-fired electric generation.  The IPAMS/Bentek study should raise important considerations for any state that is simultaneously trying to achieve compliance with a RPS and the new proposed federal ozone standard.

• Colorado recently passed legislation increasing its renewable portfolio standard to 30 percent, and 10 of the 13 states in the IPAMS region are committed “partners” or “observers” in emissions reductions goals of the Western Climate Initiative (WCI).  Most states in the WCI are looking to renewable energy as a principle means of reducing emissions in from electricity sector.

As expected, this study has stirred some controversy. Policymakers, climate champions and renewable energy advocates who promoted investment in wind energy as a cost-effective energy resource to reduce emissions are beginning to take a closer look at the issue of integration.  Soon they may even embrace the notion that emissions benefits of wind require a clean, flexible source of electrical generation like natural gas to back it up.

It’s important to be clear – the IPAMS/Bentek study does not conclude that our nation should abandon the pursuit of more wind energy (or any domestic energy sources for that matter).  What the study does indicate, however, is that policymakers need to take a much closer look at the unintended consequences of Renewable Portfolio Standards.  We think it’s an important first step toward productive and informed discussions on how our nation will meet its future energy needs through the integration of various energy resources.

Here are the key findings from How Less Became More: Wind, Power and Unintended Consequences in the Colorado Energy Market:

• State RPS mandate that wind energy be considered a “must take” resource. As such, when wind blows, generation from coal and natural gas must be adjusted to accommodate wind generation. This adjustment, called cycling, is defined as the sudden increase or decrease in generation.
• Most coal plants are not designed to be cycled, and doing so makes their operations inefficient, increasing SO2, NOx and CO2 emissions.

• Contrary to their stated goals, implementation of RPS in Colorado and Texas appear to be adding to the air pollution problem, especially in areas where older coal-fired plants are cycled more frequently. This is particularly problematic when cycled coal facilities are located near major urban centers.

• Emission issues related to cycling can be minimized by careful design of the generation mix. Incorporating adequate flexible fuel capacity, such as that provided by natural gas, reduces the need to cycle coal and facilitates the goals of RPS without increasing emissions.

Click here to read the Executive Summary

Click here to read How Less Became More: Wind, Power and Unintended Consequences in the Colorado Energy Market

In case you missed it, click here to read the Denver Business Journal’s “Gas-industry report claims wind-energy standards lead to pollution.”

I hope you will find the results as interesting as I did.  Please feel free to call me if you have any questions about the study.