In the sometimes irrational debate regarding energy policy and climate change, natural gas has slowly turned from hero to goat – in the views of some unenlightened extremists – when it is among the primary reasons for the steady decline in coal use for generating power.
Natural gas cuts greenhouse gas emissions in half and eliminates nitrogen oxide and sulfur dioxide emissions that are present with coal.
The New York competitive electricity market is – or was – based on taking the cheapest generators into the system first, then bringing on others until the balance of demand and supply is achieved. Natural gas – absent subsidies – crushes the competition, which is why the Huntley and Dunkirk plants closed locally.
The last two coal plants, Somerset and Cayuga, will close primarily due to the recent changes in emission standards in New York that are making coal plants noncompliant. The plants hung in there for a handful of “peak demand” periods, when power prices spike, and seldom-operated plants can come on line and make enough money to survive.
That is the other way power plants make money – “capacity payments” for demonstrating that they can operate if needed, and then receiving payments for simply “being available” when needed during peak demand periods.
Capacity plants keep the lights on when it counts the most – extreme heat and cold, and cost-effective replacements should be contemplated for emission reductions and reinforcing state energy independence through “made-in-New York” energy development, not more imports.
Zero-emission nuclear generation was wisely, and much more cost effectively than wind or solar, spared the head-to-head competition with natural gas, through the creation of the “zero emission credit,” which rewards the zero-carbon attribute of nuclear generation. That was a very wise move by our governor.
Wind and solar could not compete with natural gas absent the generous subsidies – never mind the reliability challenges as deeper market penetration approaches with the problem of intermittency unresolved on a scale many unenlightened advocates claim it is ready for. Even if it were resolved, the price tag would bust the price of electricity wide open.
We should be very careful to ensure that solid facts and statistics advance policies – energy or otherwise. Let’s be a model for continued pragmatic leadership and not one that went off the rails chasing business from the state due to policies advanced by the loudest screamers, often lacking real knowledge.
Phil Wilcox of Pendleton is a former business representative for the International Brotherhood of Electrical Workers, Local 97.
Read it from BuffaloNews – Photo by Pixabay from Pexels
