Credit Crunch = Lights Out?

A report recently released by the NextGen Energy Council poses an unsettling question: Could the U.S. face blackouts as early as next summer?

It’s certainly possible according to NextGen’s recent report, “Lights Out In 2009?”, which warns that if Western regions experience prolonged hot temperatures, “the potential for local brownouts or blackouts is high, with significant risk that local disruptions could cascade into regional outages that could cost the economy tens of billions of dollars.”

The report outlines the problem in simple terms:

1. U.S. baseload generation capacity reserve margins have declined to 17 percent in 2007 (down 30­–40 percent since the 1990s).

2. A 12–15 percent capacity reserve margin is the minimum required to ensure the stability of our grid.

3. The projected U.S. demand for electricity in the next 10 years has grown by 18 percent (well beyond the projected eight percent between now and 2016).

On top of all this, the Wall Street Journal reported this week that American utilities are feeling the credit crunch.

You see, the utilities need cash to build plants and transmission lines that help us keep the lights on. Given the tighter national purse strings, utility companies—just like the rest of us—are finding it tougher to secure the funds they need.

The situation is so dire that NextGen is recommending at least a $300 billion investment in generation and transmission facilities by 2016 just to keep the grid stable.

On top of the financial challenges, NextGen cites a handful of other barriers to getting new plants and transmission lines built, including the “opposition of well-funded environmental groups that oppose and file lawsuits against virtually every new infrastructure project proposed.” Among the thwarted new energy projects: clean coal plants and technologies that take our most abundant resource and turn it into an affordable source of baseload power for millions.

As we’ve said before, coal needs to be part of America’s energy solution. Does that solution include wind and solar? Absolutely. But as NextGen has shown us this week, coal is still one of our best options for producing baseload electricity. With a little support and ingenuity, coal can help us alleviate the pain our current economic and climate crises. 

Read more.

 

Comments

[Michael]

from your twitter page" Coal provides 50% of our electricity. neither wind nor solar can provide baseload power like coal."Only true because we keep funding you instead.You said this above"You see, the utilities need cash to build plants and transmission lines that help us keep the lights on"What? world record profits 8 yrs running and you need us to pay for more plants for your profit?I would ask you to watch this video. http://www.youtube.com/watch?v=RPixjCneseE And then explain to me how this is CLEAN.IF you have nerve to even post this that is.

[Monica from ACCCE]

Michael: according to a report by the Department of Energy, your hard earned dollars would be put to good use – because clean coal technology pays off.

Currently, there are more than 300 clean coal research projects underway around the country – many of which are devoted to carbon capture and storage. On our America’s Power Factuality Tour, we visited the Tenaska Energy headquarters in Omaha, Neb., where they’re working on two new facilities that capture and store carbon dioxide. I encourage you to check it out.