The Analysis Group has concluded that there is no evidence that the changing electricity mix in the United States’ will affect grid reliability. This new report effectively douses any fears of the newly-minted US Energy Secretary Rick Perry may had regarding long term reliability.
In the wake of recent studies exploring critical issues with grid stability, four national business groups representing the renewable energy industry submitted materials to the Energy Secretary.
In the cover letter penned by the four groups, they write,
“It is in the spirit of common purpose that we express our disappointment that the Department has apparently chosen not to make this review — which as outlined in your memo has the potential to upend energy markets around the country — public and open to input from industry, grid operators, state regulators, and other key stakeholders.”
Among the key findings of the report, Analysis Group concluded that it is market forces — primarily the rise of low-cost natural gas and a flat demand for electricity — that are behind the retirement of coal and nuclear plants across the US, and not federal and state policies supporting renewable energy development.
“The electricity system in the United States is stronger than it’s ever been,” said Graham Richard, CEO of AEE.
“Thanks to innovation and smart policy, we have a more diverse fuel mix, a more reliable grid, and lower electricity costs. The Analysis Group report highlights how advanced energy technologies are helping to modernize the grid and how grid operators are well equipped to manage this market change. As DOE finalizes its report on reliability, we hope the Department will incorporate these key findings, which reflect the true state of the grid.”
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