ISO New England, along with the region’s gas and electric distribution companies, published the problem statement to “help inform the discussions” ahead of a Federal Energy Regulatory Commission meeting on gas-electric coordination scheduled for Sept. 8 in Burlington, Vermont.
“By raising awareness of this issue ahead of the upcoming forum, ISO New England and the region’s utilities hope to begin the process of developing a strong, coordinated response with the New England states, NEPOOL, and regional stakeholders to assure that energy adequacy is consciously addressed as the region charts a course toward a clean power system,” ISO-NE President and CEO Gordon van Welie said in a statement.
One issue is a lack of long-term fuel and electricity commitments in the region, said the ISO.
Most buyers of electricity in New England “generally have a short position in the market and are not making long-term commitments to electric energy suppliers, nor do these suppliers have a ‘firm fuel’ obligation under the ISO’s FERC-regulated tariff,” the grid operator said.
Without more firm LNG buyers, Constellation can’t make the investments and procure gas supplies needed to keep the import terminal running. New England’s power grid depends on a reliable gas system, the ISO said, but “the regulatory oversight of the two systems is not fully compatible.”
The need to maintain the Everett terminal “will extend for a finite period” beyond Mystic’s planned closure in June 2024, the ISO said, “and until the required infrastructure investments are made to reliably enable the envisioned clean energy future.”
“Energy adequacy is an under-appreciated, poorly-understood, but vitally-important component of a successful clean energy transition,” van Welie said.
The ISO’s problem statement contemplates the development of an “energy reserve” to help the region “manage through extended periods of severe weather or energy supply constraints.” This could be achieved in several ways, the ISO said, including:
The ISO also said the region should develop a “comprehensive study of both the energy adequacy problem and the potential solutions for addressing the problem.” The grid operator anticipates the electrification of heating and transportation end uses will more than double the size of the region’s power system over the next two decades.
The region has plans to add large amounts of wind, battery storage and solar, but the ISO has said some “balancing resources” will remain necessary for reliability. There are some concerns, however, about the long-term cost of LNG.
The United States is the world’s largest exporter of LNG, according to the U.S. Energy Information Administration. Exports grew 12% in the first half of this year, compared with the latter half of 2021, according to the agency.
Sen. Angus King, I-Maine, at a May Senate Energy and Natural Resources Committee hearing, pointed to the increase in LNG exports as a cause for rising electricity prices. He said the U.S. exports about 15% of its gas production today, but approved export applications could push that north of 50%.
Get the free daily newsletter read by industry experts
Topics covered: smart grid tech, clean energy, regulation, generation, and much more.
Utilities are using a variety of new resources and connected devices to balance the grid and meet demand, drawing on everything from smart thermostats to large-scale batteries.
A $104 million funding opportunity for decarbonization technologies accompanied the Biden administration’s release of the comprehensive industrial strategy.
Subscribe to Utility Dive for top news, trends & analysis
Topics covered: smart grid tech, clean energy, regulation, generation, and much more.
Get the free daily newsletter read by industry experts
Topics covered: smart grid tech, clean energy, regulation, generation, and much more.
Utilities are using a variety of new resources and connected devices to balance the grid and meet demand, drawing on everything from smart thermostats to large-scale batteries.
A $104 million funding opportunity for decarbonization technologies accompanied the Biden administration’s release of the comprehensive industrial strategy.
The free newsletter covering the top industry headlines
Topics covered: smart grid tech, clean energy, regulation, generation, and much more.