21st Century Energy Transition Symposium
by Allen Best
As the national climate advisor, Gina McCarthy has the ear of President of Joe Biden in all matters climate.
But in the opening session of the 21st Century Energy Transition Symposium on Tuesday, she barely mentioned climate except to vaguely affirm “the science” and to describe the Biden response to climate change as a “very different framing than we’ve had before.”
The framing she described is that of opportunity in the clean energy economy—including the potential for Colorado to be part of the solutions needed in the energy shift.
“We have to look at the opportunities (in a clean energy economy) and get people excited about the benefits it brings to them,” she said before describing cleaner air and jobs.
“(Biden) embraced this not as a wonky science problem but fundamentally a people problem,” she said.
McCarthy described her job as sitting at the table with the cabinet secretaries, making sure that there’s a climate change overlay in all matters, whether housing or transportation, and helping knit together the response. It isn’t to be just an Environmental Protection Agency problem or a Department of Energy problem.
“It has to be a whole government approach because without that we would lose these synergies and these momentums,” she said.
Biden, she said, saw the response to climate change delivering answers to how we get out of the pandemic and restart the economy. Economic strategies that result in investment of “tremendous resources in a way that wins the clean energy future” will also fuel economic growth. As for covid and climate, addressing their challenges both require acceptance of science.
Another major driver of Biden’s view of domestic policy was the new lens of equity, including that of environmental or energy justice. The pandemic showed that impacts did not hit all communities equally, and by extension, energy systems of the past had more deleterious impacts to some groups than others. This understanding should be seen less as a challenge than a reckoning, said McCarthy.
Not all answers to reducing greenhouse gas pollution are yet evident, even if there are strong winds in the sails of renewable generation of electricity. That’s OK, she said.
“We don’t always need the answer,” she said. “We need to be leaning forward and looking at where we want to go.”
That was a theme in the two-day conference. In session after session, speakers described both clear direction going forward in reducing greenhouse gas emissions from energy, but uncertainties that they hope will be resolved in the next 5 to 10 years.
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“That we don’t have all the answers shouldn’t be a barrier to action in the short term,” said Bryan Willson, executive director of the Energy Institute at Colorado State University.
“We don’t need to let the perfect get in the way of the good,” said Steven Hamburg, a senior scientist with the Environmental Defense Fund. If uncertainties should not delay forward movement of the broad strokes of action, he counseled caution to avoid “big and expensive mistakes.”
Executives at Colorado’s two largest electrical utilities, Xcel Energy and Tri-State Generation & Transmission, described a similar mix of bold actions and uncertainty.
In 2020, coal-fired generation delivered 26% and natural gas 38% of electricity distributed by Xcel. The company projects coal generation will fall to 4% and natural gas 16% by 2030.
That remaining coal-fired power will come from Comanche 3, the only coal-fired plant in Colorado that Xcel plans to continue operating, but at a reduced rate. Why not also close Comanche 3?
Alice Jackson, chief executive of Xcel’s Colorado division, explained that continuing operation of Comanche 3 will ensure a softer financial transition for Pueblo County, where the plant is located. The plant will also be needed to ensure reliability, as storage needs technological advancement and lower prices. “It’s really a broad evaluation and not just one factor,” she said.
Tri-State also awaits some technological innovation. It plans to close its three units at Craig in 2025, 2028 and 2029. Duane Highley, the chief executive, said Tri-State has closely been monitoring technological innovation in hopes of technology that can store energy for days, not just hours. “We’re looking hard at hydrogen and also looking at ammonia,” he said.
Transmission also figures prominently into the thinking about the energy systems of the next decade. One Colorado energy official calls it the “secret sauce” necessary for deep decarbonization.
In Colorado, electrical demand is projected to grow 50% in the next 30 years as we electrify transportation and, a little more slowly, replace fossil fuels in heating our homes and water. Xcel has proposed investment of $1.7 billion in new transmission lines in eastern Colorado. Other utilities have not yet played their cards.
But some energy analysts see need for even more ambitious investment in a grid that better links different parts of the country so that renewable energy can be matched with demands.
The Texas disaster in February helps illustrate why. Texas was ill-equipped for the deep freeze. It lost natural gas generation because of lack of winterization. But it almost completely lost wind generation, which plummeted from 68,000 megawatts to 2,000 megawatts as the storm began dropping a rare three-inch snowfall on Houston. Had Texas been connected with regions of the country where the sun was shining or the wind blowing, it might have imported enough power to keep on the lights.
It wasn’t just Texas, though. The same loss of wind generation that accompanied the deep freeze posed worrisome problems to Fort Collins-based Platte River Power Authority, which issued a precautionary warning. Tri-State also noted the loss of wind generation in the still atmosphere that accompanied the cold.
More transmission can allow utilities to draw on a broader menu of renewables in such situations, even on a daily basis. The Great Plains boast great winds, the Southwest blazes with solar.
How is this knitting together to be done? Transmission in western states must inevitable cross the vast public lands. In Colorado, 36.2%of the state is administered by federal land agencies, principally the Bureau of Land Management and the U.S. Forest Service. New Mexico is close behind at 35%. Wyoming is 48%. In Utah, it’s 70%.
“On public lands, as important as they are, a balance has to be struck,” said McCarthy, “but the balance cannot get in the way of effectively addressing climate change, which is an existential threat to all of us.” And, she added, hewing to the sales pitch of the Biden administration, “to take advantage of the economic benefits that a clean energy jobs provide.”
McCarthy, a live wire herself in her public appearances, also pointed to the joint announcement by the federal transportation and energy departments of a plan to expand use of rights of way for highway and railroads for transmission. This will help more expeditious investment in transmission, she said.
“There are probably 20 areas where we would be able to immediately make investments in transmission in ways to utilize those rights of ways to open up new transmission and opportunities for renewable energy,” she said.
Colorado has a goal of 80% decarbonization of the electrical grid by 2030 and 50% decarbonization of its economy altogether. Biden had offered a far more aggressive target, 100% decarbonization of the electrical grid by 2035 and a 50% to 52% economy wide target.
To push this decarbonization of electricity, McCarthy said she leans toward a clean energy standard, as advocated by Holy Cross Energy, an electrical cooperative, and 12 other utilities from New York to California, in a letter sent to Biden in April. The letter called for a federal requirement that electrical utilities be able to supply 80% of their power from non-carbon sources by 2030 as compared to 2005 levels.
“If you nationalize, you get some terrific opportunities,” said McCarthy. “Most of us are shifting from cap and trade, because of the complexity, but looking more at direct investments and things like the clean electricity standard.”
Carbon pricing, she added, “is not something that is going away. I just find it less satisfying.”
In all this, the Biden administration sees need for more research. McCarthy mentioned technological innovations that have occurred in the last 50 years since the United States put Neil Armstrong’s footprint on the moon. The federal government has often played a role in instigating technological innovation, she said, using federal funds to spur innovation and investment in the private sector.
McCarthy said the Department of Energy has billions of dollars of loans and an accelerator that uses the green bank model.
Colorado State University has already played a role in the Biden administration’s view of innovation, Ritter told McCarthy in what he described as a “shameless plug.”
A group of researchers and academics at CSU was the source of an idea contained in the Biden campaign Energy and Environment Platform. That idea, to create an advanced research project agency for climate, also called an ARPA-C, within the Department of Energy, has become part of the Biden budget proposal.
It would stand alongside the existing ARPA-E, which is devoted to technical solutions. For example, it recently announced a $35 million grant program for ideas to reduce emission of methane from oil and gas supply chains, coal mines and other sources.
CSU’s idea, Ritter explained, is to offer a multi-disciplinary—and not purely technical approach—to climate solutions. Those in the social sciences would be included.
“When you are making a shameless plug, it’s good to be telling the truth,” McCarthy replied. “It’s well deserved.”
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