REA concurs with these views (Read More button below):
Electricity reliability is an issue of increasing concern with more frequent and severe weather events and a growing national reliance on sources that vary in their energy output, like wind and solar.
The fate of Electricity Markets here in the Northeast may be impacted by an important decision placed before President Biden by three of the New England Governors and three others, outside of New England. A letter was sent by the Governors requesting federal funding for off-shore wind projects. Would this mark the beginning of the end for wholesale markets in New England, if this funding request is approved? This federal funding would be used to acquire "out of market" resources that would provide electricity to the residents of New England.
I'm a big proponent for properly managing the energy transition to reduce GHG emissions, but not at the expense of reliable electricity that we all depend on, and are becoming more dependent on with electrification, i.e., EV's. I also believe that a properly functioning wholesale capacity market is the more economically efficient method to acquire grid services capacity to ensure a reliable electric grid. New England does NOT have a properly functioning capacity market today and reforms are desperately needed. But this is not the time to "throw out the baby with the bathwater" by funding out of market capacity resources; this is the time to fix the wholesale capacity market. Funding for off-shore wind projects from the federal government will not fix the capacity market problems we are experiencing in New England now, and for the foreseeable future.
Maybe it's time we look further east for innovative approaches to fund off-shore wind projects, such as what Poland is pursuing. A similar approach could be taken in New England to fund projects aimed at achieving State Energy Goals using a competitive capacity market exchange concept. The path chosen in New England was to seek federal "hand-outs" to fund these off-shore wind projects instead of the approach used by Poland which seeks to fund viable clean energy projects using a commercial approach attracting investors to projects.
The Commonwealth magazine article is insightful for the responses provided by legislators attitudes of "JUST SAY NO" to expensive wind projects. That didn't work with the war on drugs and it won't work now to achieve State Energy Goals. Saying no to wind projects means no real progress on State Energy Goals. This is a failing strategy either way and it certainly will not ensure a reliable electric grid.