Energy Supply
Offshore Wind Turbines
Offshore Wind power advocates claim it is cheaper than fossil fuels. The `cheaper’ is done by excluding transmission line cost, grid connection cost and ignoring reliability. Wind costs are climbing because of inflation, rising interest rates and supply chain problems. One Massachusetts project has been canceled unless the payment rates are increased. PSEG is reconsidering its 25% purchase of the Ocean Wind #1 complex due to increased costs. (1)
The New Jersey BPU is concerned about rising costs on the offshore wind projects. Expect higher payment rates to Orsted and others?
Solar Power
There are two solar industry developments in December,
#1
The BPU has approved a new program to develop 300 MW of grid solar power (2). Its details and costs are unknown. Naturally it will lower costs and create jobs.
A current solar problem is solar developers do not want to pay for the transmission line and connection cost to the grid. They want these costs to be socialized as grid modifications. Will this new program do this? Who knows?
Solar power is 15% of the state’s installed electrical capacity. It provides 6% of the state’s electricity. The BPU and solar industry think this is marvelous.
#2
There is a time limit to complete solar projects to obtain state subsides.(3) Numerous rooftop and carport projects are running out of time and developers want the BPU to extend the subsidy deadline. Without subsides the projects are economically unfeasible. Will the BPU grant the time extension? Who knows?
Transportation
Electric Vehicles (Cars-Trucks)
There are multiple complaints from environmental organizations there are insufficient car (4) and heavy truck (5) chargers in the state. Finding companies to finance and operate charging stations is difficult.
What the BPU is not doing is the engineering to determine the quantity of electricity required, its supply source, wind, natural gas, other, and the wiring path to the chargers.
Grid Improvements
Storage
The BPU desires encouraging more private investment in grid storage batteries. The state is very far behind in the Murphy Plan of storage. The plan requires 600 MW by 2021 and 2000 MW by 2030 and only 500 MW have been installed. The BPU wants utilities excluded from owning grid storage batteries because these go into the utilities rate base. (6) Independently owned grid batteries are paid on a different schedule
The BPU does not understand storage requirements which are measured in MW-hrs not MW. Currently grid storage batteries cost about $600,000 per MW-hr.
Green Energy Buying Group
New Jersey is part of the PJM Grid. All electricity generated or purchased, whether wind, solar hydro, nuclear, natural gas, coal or other is tossed and mixed on the grid and distributed to consumers. Consuming `green’ electricity is impossible and is merely an accounting measure. This annoys the Environmental Groups.
New Jersey environmental groups want the state to develop a `green’ energy buying market. (7) Exactly what it is is undefined but it is reasonable to assume they believe they can deliver wind or solar electricity directedly to the `green’ consumers. Will this this buying group work? Who knows? It will probably require its own grid.
Naturally this green buying group will be cheaper than the current mixing operation. No environmental group advocate has ever explained how the `cheaper’ green electricity always increases electric rates significantly.
References
(1’) https://www.njspotlightnews.org/2022/11/nj-clean-energy-offshore-wind-power-fiscal-challenges-nj-murphy-goal/
(3’) https://www.njspotlightnews.org/2022/12/nj-solar-developers-want-extension-fear-loss-of-state-incentives/
(7’) https://www.njspotlightnews.org/2022/12/nj-bpu-report-recommends-new-clean-energy-market/
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