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Connecticut is situated within the midst of the nation’s costliest electrical markets. Solely Hawai’i and Rhode Island rank larger. The excessive price of electrical energy is prompting Connecticut alawmakers to write down laws to decrease these electrical energy charges. The hitch is that buried within the 80-page invoice are decreases in residence photo voltaic incentives and will increase for nuclear energy renewable vitality credit.
A listening to final month for the invoice introduced out Connecticut residents who praised the doubtless lowers prices — in addition to other people who decried the hazards that the modifications may current to renewable vitality.
Democratic Governor Ned Lamont had implored lawmakers through the State of the State deal with in January to maneuver past what he termed “cosmetic changes” to electrical technology and, as an alternative, turn to a combination of both renewables and fossil fuels to unravel Connecticut’s electrical energy technology issues. “These high prices impact all of us: working families, seniors on fixed incomes, small businesses, big manufacturers,” Lamont stated. “Everyone was mad as hell looking at their bills following the hottest July in recorded history, and I can see why.”
Connecticut residents pay round 15% extra in wire and different infrastructure prices, that are included within the supply portion of utility payments, in comparison with neighboring states. This supply portion includes a number of expenses, similar to transmission and distribution expenses, federally mandated congestion expenses, and electrical system enchancment expenses, all of which add as much as enhance the general price of electrical energy for Connecticut residents.
The proposed laws requires:
- the creation of an in-state procurement authority to look at the facility markets and buy electrical energy at favorable charges
- elimination of the gross sales tax on electrical energy bought by business and industrial customers
- growth of variable time-of-use charges, which conjures up customers to be aware about once they draw vitality as a result of larger charges throughout high-demand instances
Of explicit concern to renewable vitality advocates is defining existing nuclear power generation within the state as a Class I renewable vitality supply. If the prevailing Millstone Energy Station had been allowed to promote Class I RECs, it may accomplish that at a lot decrease costs than different clean energy sources as a result of the nuclear plant is already constructed and working with out this added monetary help, said Francis Pullaro, president of renewable vitality nonprofit RENEW Northeast, as reported by Canary Media.
There would even be no need for photo voltaic or wind RECs available in the market if Millstone had been allowed to promote credit. If enacted, householders would obtain credit just for the availability of extra energy they generate. Not would they be credited for the prices of distribution or transmission, that are at present a part of the compensation calculations.
The Finance, Income, and Bonding Committee voted favorably on the invoice in April. The subsequent steps are to have the Power and Know-how Committee weigh in for additional consideration and revision.
The Downside With Connecticut’s Pipelines
Connecticut and its neighbors are largely powered from pure gasoline that’s fed to energy crops by way of a community of pipelines. These pipelines stretch hundreds of miles throughout a number of states earlier than reaching New England. But it surely’s not simply energy crops that these pipelines provide — it’s additionally residence warmth, gasoline stoves, scorching water heaters, and native industries, all of which depend on the pure gasoline supply, too.
With a lot demand, costs soar. And it’s even worse within the winter chilly, which compels demand for gasoline to maneuver even larger. Pipelines are pushed to their limits. Older “peaker” crops assist out, however they’re solely good for brief durations of time, and so they burn gasoline oil.
The entire variables on this equation drive Connecticut’s excessive price of electrical energy up and up.
“It’s New England, end of the pipeline, more than anything else,” stated state Senator Norm Needleman, (D-Essex), who co-chairs the Power and Know-how Committee. “I think we’re trying to make the best of a situation that has little room to maneuver.” With out plentiful assets for hydroelectric, wind, or solar energy or fossil fuels, New England can’t reasonable its excessive price of electrical energy as do different areas of the US.
As John Moritz explained on the CT Mirrorstates like Connecticut have directed their utilities to enter into long-term energy buy agreements at set charges, reasonably than the fluctuating costs discovered on wholesale vitality markets. That makes it simpler for builders to cowl prices and to advertise carbon-free energy.
Lawmakers and trade specialists concur that including new sources of technology can enhance competitors and decrease the excessive price of electrical energy all through New England. Paradoxically, nevertheless, within the closing months of 2024, Connecticut officers declined to enter into any new buy agreements with offshore wind tasks to deflect what would seemingly have been public stress over the potential prices for ratepayers.
Offshore Wind May Be A Approach To Reduce Electrical energy Prices
The Connecticut Wind Collaborative is among the many stakeholders making the availability chain case for the home offshore wind trade. The Atlantic coast has been ideally suited for launching the US offshore wind industrywith the benefits of comparatively shallow coastal waters, a great deal of energy-hungry coastal communities close by, and ample seaport assets. Harnessing that energy, nevertheless, requires the development of gigantic generators and transmission strains to convey the electrical energy on shore.
The primary wind farm serving Connecticut, Revolution Wind, is at present set to come back on-line someday in 2026, at a price of roughly $1.5 billion. Revolution Wind is the primary US multi-state offshore wind undertaking. Building of the undertaking is underway, with construction updates available every week online.
The undertaking will generate sufficient clear vitality — 704 MW of offshore wind vitality — to energy greater than 350,000 Connecticut and Rhode Island houses and displace, by eliminating future emissions, a couple of million metric tons of carbon air pollution.
Offshore wind is an more and more cost-effective type of clear vitality that stabilizes vitality costs for purchasers, based on the Revolution Wind website. It would assist to mitigate New England’s winter worth spikes, specifically, by diversifying the vitality combine and lowering the dependency on pure gasoline.
Each the Rhode Island Public Utilities Fee and the Connecticut Public Utilities Regulatory Authority have authorized 20-year energy buy agreements with native utilities for the undertaking.
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