| Spotlight
Left: Significant electricity is needed to power new data centres
37.2GW of installed capacity, all carbon free energy, some of it to sell into the markets in the US and Canada. The proponents and opponents have a multitude of arguments that delay these projects for varied reasons. Logically one might expect more cooperation when one provider can deliver large blocks of carbon free energy into the market that seeks to decarbonise for the common good. On the demand side of the equation the story is the same, when looking at the overall desire for a carbon-free energy future. Two states offer different visions as to how to achieve 100% carbon free energy. Washington State, in its zest to work to get to 100% zero emissions electricity and reach that goal, has instituted carbon taxes that fall squarely on the state’s energy consumers. While the state’s carbon tax, paid by the energy producers, is passed through to end users as part of the cost of the product, which includes gasoline and diesel, as well as natural gas used for home heating, among other applications. As in the above example in the Northeast US,
Washington State and California for that matter, have access to carbon free hydroelectric energy from British Columbia Canada. The big “but” here is that Washington State already receives about 60% of its energy from hydroelectric generation. The conflict is amongst various competing interests that advocate removing four large dams on the Snake River that generate 3033MW of carbon free power, not to mention providing navigation and recreational benefits.
Michigan, on the other hand, has legislated 100% clean energy by 2040 to meet statewide electrical energy demand, while meeting a 50% mandate by 2030. So how confusing is that approach where the state currently has about 20,000MW of installed capacity with only a small percentage carbon free. The state mandates 50% carbon free by 2030, so the state needs to find quickly approximately 10,000MW of carbon free energy.
Recognising that nuclear energy is carbon free, the
state of Michigan is now trying to restart the 805MW Palisades nuclear plant that was just a few years ago shut down by the plant’s owners with years left on its operating license. If restarted, which is by no means guaranteed, it would be the first in the US. The federal government has authorized and will contribute $1.6 billion to the restart effort. Michigan could also take a different approach
and look to Hydro Quebec, or others to explore another option to achieve its carbon free goals before covering the state with wind turbines or solar farms that might consume one third of its agricultural lands. Michigan is yet another state that could or should be looking to Canada for opportunities to buy large blocks of carbon free energy from Canadian exporters. Global energy policy makers will be watching these and other states closely. There will be significant growth in electric energy consumption and demand over the next decade to power EVs until we reach this threshold of 100% EVs in at least these thirteen states, not to mention the technology industry which needs to power its data centres, estimated to consume 80GW by 2030 according to McKinsey, which is rapidly adding to demand. Tech companies like Microsoft, Amazon and Google are working cooperatively to use the entire output of nuclear powerplants both large in the case of Microsoft and small modular reactors that Google and Amazon are pursuing with private sector developers. The regulatory obstacles are significant, fragmented along with the grid, amongst the states, internationally between the US and Canada that has untapped hydroelectric resources. These can be big contributors with long lasting installations if governments and regulators can decide to simplify approaches likely to impede getting from here to there in the US anytime soon. Clean energy states total 24 in the US and make up 53% of the population nationwide. Should any of these states be looking north to Canada which can meet some of the demand, like Hydro Quebec that has a business plan to export power to the northeast US with 7974MW available for export. The overarching question for the markets is how we
get from here to there, where governments that make policy look past and do not consider the lead times and engineering expertise that is in place currently and available to achieve these lofty goals and objectives. The task at hand is herculean, but uncoordinated either nationally or regionally when it comes to marshalling the talents of engineers and others to pursue these investments. If there is a climate crisis, you would think there would be more coordination and cooperation on energy policy amongst the 50 states in the US that seek carbon free sources of energy. We will just have to wait to see what happens.
More information
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www.waterpowermagazine.com | December 2024 | 11
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