Wind power wins big under the EPA’s Clean Power Plan
Greentech Media reported that many prognostications have been made about the impact of EPA’s Clean Power Plan, the rules to reduce carbon pollution from existing power plants, issued on August 3rd.
Despite what you may have heard, EPA doesn’t dictate any particular outcomes, instead deferring to states to develop implementation plans, and those plans aren’t due until 2018.
Still, modeling and recent trends point to one big winner: wind power.
Mr Rob Gramlich, senior vice president for government and public affairs for the American Wind Energy Association, speaking at the National Clean Energy Summit 8.0 in Las Vegas said that “We think wind will be a major compliance solution for many states and utilities. It is well suited as a carbon solution, because of its geography. There is cost-competitive wind in places that emit a lot of carbon, like central states in the MISO and SPP regions.”
The Midwestern wind belt has seen an explosion of wind power in recent years, with three states getting more than 20% of their power from wind.
Credit trading between states and regions, if it is taken up by states in their implementation plans, would provide an additional boost to wind, expanding virtual access to the wind belt.
Modeling from EIA and EPA show huge growth in wind power as a least-cost bulk compliance option.
EIA’s analysis of the draft rule, released in May, found wind doubling or tripling by 2030, adding between 65 GW and 130 GW of new capacity, with a central scenario of just over 100 GW. Wind supplied over half of the compliance response to the Plan, while energy efficiency, solar, and natural gas made up the other half in the central scenario. At this level, wind would make up 12% of total US power demand by 2030, double what it would do without the Plan.
Mr Ernest Moniz, Energy Secretary, speaking at the AWEA conference in May, said that “We believe very much in the central role of wind in meeting our climate challenges, and we’re very committed in this direction.”
As if this wasn’t rosy enough, Michael Goggin of AWEA thinks that EIA overestimates wind-power capital costs.
He said that “Because it uses a wind-cost estimate that is about 20% too high, last month’s EIA analysis may have actually been a conservative estimate of the role wind energy will play in Clean Power Plan compliance.”
Source : Greentech Media