{"id":16209,"date":"2017-08-25T15:54:27","date_gmt":"2017-08-25T19:54:27","guid":{"rendered":"http:\/\/blogs.edf.org\/energyexchange\/?p=16209"},"modified":"2017-08-25T16:53:55","modified_gmt":"2017-08-25T20:53:55","slug":"secretary-perry-continues-to-ignore-the-evidence-on-grid-reliability-even-his-own","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/energyexchange\/2017\/08\/25\/secretary-perry-continues-to-ignore-the-evidence-on-grid-reliability-even-his-own\/","title":{"rendered":"Secretary Perry continues to ignore the evidence on grid reliability, even his own"},"content":{"rendered":"

\"\"<\/p>\n

Late Wednesday night, the U.S. Department of Energy (DOE) released its so-called \u201cstudy<\/a>\u201d on grid reliability.<\/p>\n

Secretary Perry commissioned the report in this April memo<\/a>, asking the DOE to investigate whether our electric grid\u2019s reliability is threatened by the \u201cerosion of critical baseload resources,\u201d meaning coal and nuclear power plants. Perry took the unusual step of providing his own, pre-study conclusion, claiming that \u201cbaseload power is necessary to a well-functioning electric grid.\u201d<\/p>\n

His own report disagrees. It\u2019s largely a backward-looking report that sometimes argues with itself, but comes, albeit grudgingly, to the same conclusion as every other recent study<\/a>: the electric grid continues to operate reliably as uneconomic coal diminishes. Moreover, coal is declining because it can\u2019t compete, and other resources are ensuring reliability at more affordable rates.<\/p>\n

Perry seems undeterred by the evidence however, and the report\u2019s accompanying cover letter<\/a> and recommendations appear ready to double down on his pro-coal agenda. Here are three ways he tries to twist the facts in favor of dirty coal \u2013 a move that ignores more efficient, affordable, and innovative solutions and comes at a cost to Americans.<\/p>\n

The misdirection spin<\/strong><\/p>\n

Perry\u2019s letter accompanying the report included this nugget:<\/p>\n

\u201cIt is apparent that in today\u2019s competitive markets certain regulations and subsidies are having a large impact on the functioning of markets, and thereby challenging our power generation mix.\u201d<\/em><\/p>\n

Although Secretary Perry continues to blame \u201cregulations and subsidies\u201d for \u201cchallenging\u201d the power generation mix (despite the mix becoming more, not less, diverse as more renewables come online), he would be well advised to read his own report if he\u2019s looking for the real driver of coal retirements. The report he commissioned clearly states:<\/p>\n

\u201cThe biggest contributor to coal and nuclear plant retirements has been the advantaged economics of natural gas-fired generation.\u201d<\/em><\/p>\n

[Tweet “Secretary Perry continues to ignore the evidence on grid reliability, even his own”]<\/p>\n

This is hardly new information; extensive study has found<\/a> that \u201cdecreases in natural gas prices have had a much larger impact on the profitability of conventional generators than the growth of renewable energy.\u201d Coal is simply too costly to compete. And low natural gas prices, in addition to flat demand for electricity, are making energy more affordable.<\/p>\n

The reliability spin<\/strong><\/p>\n

On reliability, again Perry\u2019s letter takes one stance:<\/p>\n

\u201cThe industry has experienced massive change in recent years, and government has failed to keep pace.\u201d <\/em><\/p>\n

And the report states the opposite:<\/p>\n

Grid operators \u201care working hard to integrate growing levels of [renewable energy] through extensive study, deliberative planning, and careful operations and adjustments.\u201d <\/em><\/p>\n

Although Perry appears unaware of the thorough performance his own study references, grid operators are required by law to ensure reliable electricity at affordable rates. And indeed, government has kept pace. As the DOE report noted, the North American Electric Reliability Corporation\u2019s most recent annual State of Reliability <\/em>analysis concluded that the electric grid was reliable in 2016. And 2015. And 2014. And 2013. And although the DOE report neglected to mention it, this same State of Reliability <\/em>analysis found that reliability has been increasing.<\/p>\n

Certainly, more can and should be done. As the DOE report mentions, increasing the use of fast, flexible resources support a healthy grid. Unfortunately for Perry, coal can\u2019t provide what\u2019s needed, as the DOE report notes,<\/p>\n

\u201cFor a power plant to make money today, it must be able to ramp up and down to coincide with the variable levels of renewable generation coming online. That makes combined cycle natural gas plants profitable\u2026but coal plants have relatively high and fixed operating costs and are relatively inflexible.\u201d <\/em><\/p>\n

Coal, simply put, is too slow and old to respond nimbly.<\/p>\n

The resiliency spin<\/strong><\/p>\n

Perry also attempts to pivot from focusing on reliability to resiliency, a lesser defined term:<\/p>\n

\u201cCustomers should know that a resilient electric grid does come with a price.\u201d<\/em><\/p>\n

Like everything worth having, resiliency comes at a price, but that price should be cost-effective. But coal is part of the problem, not the solution to achieving affordable, resilient, and reliable electricity. Not only do coal-fired power plants unexpectedly break down more than any other resource, they have performed poorly during extreme weather events, as his report notes:

During extreme weather events in 2014 \u201cmany coal plants could not operate due to conveyor belts and coal piles freezing.\u201d<\/p>\n<\/div><\/p>\n

During extreme weather events in 2014 \u201cmany coal plants could not operate due to conveyor belts and coal piles freezing.\u201d<\/em><\/p>\n

\u201cForced outages,\u201d meaning the instance when a power station is unavailable to produce power due to an unexpected breakdown, are higher for coal<\/a> than any other resource \u2013 almost twice as high, in fact, as the next highest resource. Coal also needs twice as much scheduled maintenance, referred to as \u201cplanned outages,\u201d as any other resource.<\/p>\n

A terrible solution in search of a problem<\/strong><\/p>\n

When Secretary Perry originally requested the DOE report, he already knew the grid reliability answer he was looking for. Unfortunately for him, the final report \u2013 despite best efforts \u2013 only further illustrates why his pre-study pro-coal conclusion is wrong. The report\u2019s recommendations and his letter double down on coal despite the evidence, no matter the cost to the American public; no matter the cost to human health and the environment; and no matter the cost to the well-being of the electric grid itself.<\/p>\n

Now that the report is finally here, coal companies likely will continue complaining and seeking help for their uneconomic power plants. Meanwhile, America\u2019s grid will continue to embrace new, innovative technology that builds a cleaner, reliable, affordable, and resilient energy system.<\/p>\n","protected":false},"excerpt":{"rendered":"

Late Wednesday night, the U.S. Department of Energy (DOE) released its so-called \u201cstudy\u201d on grid reliability. Secretary Perry commissioned the report in this April memo, asking the DOE to investigate whether our electric grid\u2019s reliability is threatened by the \u201cerosion of critical baseload resources,\u201d meaning coal and nuclear power plants. Perry took the unusual step …<\/p>\n","protected":false},"author":39943,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[42996],"tags":[],"coauthors":[],"class_list":["post-16209","post","type-post","status-publish","format-standard","hentry","category-smart-power"],"acf":[],"yoast_head":"\nSecretary Perry continues to ignore the evidence on grid reliability, even his own - Energy Exchange<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/blogs.edf.org\/energyexchange\/2017\/08\/25\/secretary-perry-continues-to-ignore-the-evidence-on-grid-reliability-even-his-own\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Secretary Perry continues to ignore the evidence on grid reliability, even his own - Energy Exchange\" \/>\n<meta property=\"og:description\" content=\"Late Wednesday night, the U.S. Department of Energy (DOE) released its so-called \u201cstudy\u201d on grid reliability. 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