Connect with us

Published

on

 

Reykjavík, Iceland: A City Powered by Geothermal Energy

Introduction Reykjavík, Iceland: A City Powered by Geothermal Energy

Nestled amidst the dramatic volcanic landscapes of Iceland, Reykjavík, the capital city, stands as a shining example of sustainable living. This vibrant metropolis boasts a unique claim to fame: it’s powered almost entirely by geothermal energy. 

This renewable resource, harnessed from the Earth’s heat, has transformed Reykjavík into a model for cities around the world seeking to reduce their carbon footprint and embrace clean energy.

Harnessing the Earth’s Heat

Iceland’s location on the Mid-Atlantic Ridge, where tectonic plates diverge, grants it an abundance of geothermal energy. Hot springs, geysers, and volcanic activity are not just tourist attractions; they are the lifeblood of Reykjavík’s energy system. Deep beneath the city’s surface lie reservoirs of hot water, harnessed through a network of wells and power plants. This geothermal water is used to generate electricity and heat homes, businesses, and even sidewalks, keeping the city warm during the long, cold winters.

A Geothermal Oasis

The benefits of geothermal energy extend far beyond the environment. Reykjavík’s reliance on this clean source of power has resulted in a number of positive outcomes:

  • Reduced dependence on fossil fuels: Reykjavík has virtually eliminated its use of coal and oil for energy generation, significantly reducing its greenhouse gas emissions.
  • Energy security: Iceland’s domestic geothermal resources provide the country with a reliable and independent energy source, reducing its vulnerability to fluctuations in global energy markets.
  • Economic benefits: The geothermal industry has created jobs in Iceland, boosting the local economy and fostering innovation in renewable energy technologies.
  • Improved quality of life: Residents of Reykjavík enjoy cleaner air, lower energy costs, and comfortable living conditions thanks to geothermal heating.

Beyond the City Limits

Reykjavík’s success with geothermal energy has inspired other countries and cities to explore this sustainable resource. Iceland itself is a global leader in geothermal research and development, exporting its expertise to help other nations tap into their own geothermal potential.

Visiting Reykjavík:

For travelers interested in experiencing the power of geothermal energy firsthand, Reykjavík offers a variety of attractions and activities:

  • The Laugavegur Hiking Trail: This scenic trail winds through geothermal valleys and hot springs, offering stunning views of the Icelandic landscape.
  • The Blue Lagoon: This geothermal spa, located in a lava field, is a popular spot to relax and soak in the warm, mineral-rich waters.
  • The Reykjavík Geothermal Exhibition: This interactive museum educates visitors about Iceland’s geothermal resources and how they are used to power the city.
Reykjavík, Iceland: A City Powered by Geothermal Energy
Geothermal Power Plant in Reykjavík, Iceland

Hellisheiði vs. Nesjavellir: Reykjavik’s Geothermal Powerhouses

Reykjavík boasts two powerhouse geothermal energy plants, each playing a critical role in powering the city with clean, sustainable energy. Let’s dive into the specifics of each:

Hellisheiði Power Station:

  • The Gigawatt Giant: With a combined capacity of 303 MW electricity and 400 MW thermal energy, Hellisheiði is not just Iceland’s largest, but one of the world’s top ten geothermal plants. Think of it as the engine driving Reykjavík’s energy ecosystem.
  • Dual Duty Master: Hellisheiði utilizes a flash steam combined heat and power (CHP) system. This means it doesn’t just generate electricity but also pumps out hot water for district heating, warming homes and businesses across the city. Talk about efficiency!
  • Accessibility Champion: Located 25km east of Reykjavík, Hellisheiði is accessible for curious visitors. Their Geothermal Exhibition, Orka náttúrunnar, offers interactive exhibits and tours delving into the plant’s operation and the magic of geothermal energy.

Nesjavellir Power Station:

  • The Trailblazer: Opened in 1990, Nesjavellir holds a special place in Reykjavík’s history. It was one of the first large-scale geothermal plants in the city, paving the way for the widespread adoption of this clean energy source.
  • Hot Water Hero: While smaller than Hellisheiði (90 MW electricity, 130 MW thermal), Nesjavellir focuses on heating Reykjavik. Its hot water flows through a vast network of pipes, keeping the city cozy even in the harshest Icelandic winters.
  • Nature’s Playground: Nestled amidst geothermal valleys and hot springs, Nesjavellir offers a picturesque setting for visitors exploring the wonders of the Hengill area.

Reykjavík’s Geothermal Powerhouses: Hellisheiði vs. Nesjavellir

Feature Hellisheiði Power Station Nesjavellir Power Station
Capacity (Electricity) 303 MW 90 MW
Capacity (Thermal) 400 MW 130 MW
Primary Function Combined Heat and Power (CHP) – electricity and district heating District Heating
Year Commissioned 2006 1990
Location 25 km east of Reykjavík Near Hengill area, southwest of Reykjavík
Unique Features Largest geothermal plant in Iceland, flash steam CHP system, Geothermal Exhibition Pioneered geothermal use in Reykjavík, focus on district heating, scenic location
Visitor Accessibility Yes, with Geothermal Exhibition Limited

Additionally:

  • Hellisheiði is one of the world’s top ten geothermal power plants, while Nesjavellir played a crucial historical role in Reykjavík’s geothermal adoption.
  • Both plants are essential for providing clean, reliable energy to Reykjavík residents.
  • Geothermal energy is a sustainable and environmentally friendly way to generate electricity and heat.

The Takeaway:

Both Hellisheiði and Nesjavellir are crucial players in Reykjavík’s geothermal success story. While Hellisheiði reigns supreme in size and versatility, Nesjavellir holds historical significance and excels in district heating. Ultimately, they work together to provide clean, reliable energy for Reykjavík’s residents and showcase the potential of geothermal power to the world.

Reykjavík, Iceland: A City Powered by Geothermal Energy

Geothermal Energy Statistics in Reykjavík, Iceland

Geothermal Energy Statistics in Reykjavík, Iceland: A City Powered by Fire and Ice

Reykjavík, Iceland, nestled amidst breathtaking volcanic landscapes, has become a global leader in harnessing the power of geothermal energy. This renewable resource, fueled by the Earth’s internal heat, has transformed the city into a shining example of sustainable living. Let’s delve into the impressive statistics showcasing Reykjavík’s geothermal mastery:

Electricity Generation:

  • 99.94% renewable: Iceland’s electricity production boasts a nearly perfect score – a whopping 99.94% comes from renewable sources, primarily geothermal and hydropower. This percentage dwarfs the global average of just 26% in 2023. (Image of pie chart showing breakdown of Iceland’s electricity generation sources)
  • Geothermal powerhouse: Over 27% of Iceland’s electricity is generated by geothermal power plants, providing clean and reliable energy to power homes, businesses, and even streetlights. (Image of geothermal power plant in Iceland)
  • Five major plants: Hellisheiði, the largest geothermal plant in Iceland, leads the pack with a capacity of 303 MW, followed by Nesjavellir (90 MW), Reykjanes (100 MW), Svartsengi (270 MW), and Theistareykir (60 MW). These powerhouses work together to keep the lights on and the city humming.

District Heating:

  • Warm embrace: An astonishing 85% of all houses in Iceland, including the entirety of Reykjavík, are heated with geothermal water. This translates to over 66% of the total geothermal energy used in the country being directed towards providing cozy comfort during the long, cold winters. (Image of geothermal district heating system in Iceland)
  • Reduced dependence: By relying on geothermal for heating, Reykjavík has virtually eliminated its use of fossil fuels for this purpose, significantly reducing greenhouse gas emissions and air pollution.

Economic and Environmental Benefits:

  • Green jobs: The geothermal industry has created numerous jobs in Iceland, boosting the local economy and fostering innovation in renewable energy technologies.
  • Energy security: Iceland’s domestic geothermal resources provide the country with a reliable and independent energy source, reducing its vulnerability to fluctuations in global energy markets.
  • Climate champion: Reykjavík’s commitment to geothermal energy has significantly lowered its carbon footprint, making it a global leader in the fight against climate change.

Beyond the Numbers:

Reykjavík’s success story with geothermal energy is not just about impressive statistics. It’s about demonstrating the power of innovation and commitment to sustainability. This vibrant city offers a glimpse into a future powered by clean energy, inspiring other communities around the world to embrace renewable resources and build a more sustainable future.

Reykjavík, Iceland: A City Powered by Geothermal Energy

Reykjavík’s Geothermal Advantage: A Statistical Snapshot

Reykjavík, nestled amidst Iceland’s fiery landscapes, has become a global champion for harnessing geothermal energy. Let’s dive into the impressive statistics showcasing this clean energy haven:

Feature Statistic Image
Renewable Electricity 99.94%
Geothermal Power 27% of total electricity
Major Plants 5 (Hellisheiði, Nesjavellir, Reykjanes, Svartsengi, Theistareykir)
Geothermal Heating 85% of all houses
Reduced Fossil Fuel Use Virtually eliminated for heating
Global Inspiration Leader in sustainable energy and climate action

Bonus Facts:

  • Hellisheiði, Iceland’s largest geothermal plant, boasts a capacity of 303 MW.
  • Reykjavík’s geothermal district heating system is the biggest in the world.
  • The Blue Lagoon, a popular geothermal spa, is powered entirely by renewable energy.

Unleashing the Earth’s Heat:

Reykjavík’s success story goes beyond mere numbers. It’s a testament to innovation, environmental commitment, and a glimpse into a future powered by clean energy. This vibrant city inspires communities around the world to embrace geothermal potential and build a sustainable future.

Experience the Magic:

For travelers seeking a firsthand experience, Reykjavík offers:

  • Laugavegur Hiking Trail: Hike through geothermal valleys and soak in breathtaking scenery.
  • Blue Lagoon: Relax and rejuvenate in this iconic geothermal spa.
  • Reykjavík Geothermal Exhibition: Learn about Iceland’s geothermal resources and how they power the city.
  • Hellisheiði Power Station: Visit the Orka náttúrunnar – Geothermal Exhibition to delve into the world of geothermal power generation.

Remember, Reykjavík’s geothermal journey is a beacon of hope, showing us that a clean and sustainable future is not only possible but also thriving in the heart of the North Atlantic. Let’s turn up the heat on sustainability and learn from Reykjavík’s geothermal wisdom!

Reykjavík, Iceland: A City Powered by Geothermal Energy

Conclusion Reykjavík, Iceland: A City Powered by Geothermal Energy

A Sustainable Future

Reykjavík’s story is a testament to the power of innovation and commitment to sustainability. 

By embracing geothermal energy, this city has not only secured its own clean energy future but also provided a roadmap for other communities around the world seeking to break free from their dependence on fossil fuels. As the world grapples with the challenges of climate change, Reykjavík’s example offers a beacon of hope, demonstrating that a sustainable future is not only possible but also thriving in the heart of the North Atlantic.

Reykjavík’s story is an inspiring testament to the power of harnessing the Earth’s heat to create a clean and sustainable future. By embracing geothermal energy, this city has not only secured its own energy independence but also provided a roadmap for other communities seeking to break free from their dependence on fossil fuels. So, let’s turn up the heat on sustainability and learn from Reykjavík’s geothermal wisdom!

https://www.exaputra.com/2024/01/reykjavik-iceland-city-powered-by.html

Renewable Energy

Off-Grid Solar Power Simplified – Off-Grid 101 

Published

on

A few years ago, many Australians wanted to switch to solar energy, but the cost sometimes didn’t match their expectations.

But today, the landscape has changed dramatically. 2025 is poised to be a pivotal moment for the adoption of renewable energy in Australia. Wondering why?

With a range of generous government rebates and support programs available, particularly in Victoria (VIC) and New South Wales (NSW), going solar has never been more accessible or affordable.

Whether you’re a homeowner, renter, or involved in community housing, these federal and state solar rebates can significantly reduce installation costs, making the transition to solar energy more achievable than ever.

Therefore, in this article, we’ll focus specifically on the types of government rebates available for Solar Panels in VIC & NSW.

We’ll also highlight how these expanded federal incentives, upgraded state schemes, and new battery rebates are helping Australians lower their electricity bills while boosting energy independence.

So, let’s get started!

Federally Available Rebates for Both VIC & NSW

From the abundant sunshine of Australia, we get around 58 million petajoules of clean, reliable solar energy each year, which is nearly 10,000 times more than we actually need.

So it’s no surprise we’re making the shift to solar in a big way.

To help in this energy transition, the government offers solar rebates through Small-scale Technology Certificates (STCs) under the Renewable Energy Target (RET).

Isn’t it a smart move toward a cleaner, greener future? Surely it is!

So let’s explore the available rebates and incentives further in the following section:

Small-scale Renewable Energy Scheme (SRES) | Solar Rebates via STCs

In this federal SRES, your installer applies for Small-scale Technology Certificates (STCs) when installing solar systems up to 100 kW, delivering an immediate discount on upfront costs.

However, please note that the value depends on your system’s size and geographical location. For example:

  • In Victoria, a 6 kW system might yield around $1,748 based on 46 STCs, each at $38.
  • In New South Wales, the same system could attract approximately $2,052. These figures typically reduce installation costs by 30% to 40%.

So, what are STCs?

STCs are energy certificates generated by authorized solar retailers. For each megawatt of energy saved by the solar, one STC is generated.

These energy certificates serve as a financial inducement for home and small-business owners to adopt different energy-saving techniques, including solar water heaters and solar panel systems.

Is the homeowner responsible for generating these certificates? Do you get a cheque in the mail in exchange for them? No, that’s not how it works.

The CEC (Clean Energy Council) approved solar retailer with whom you make the deal is responsible for generating these certificates and handing them over to the energy retailers.

The Small-scale Technology Percentage (STP) determines how many STCs the energy provider must submit. The price against each STC is determined by the demand and supply curves of the financial quarter.

What’s in it for you?

Here’s the good part: these Small-scale Technology Certificates (STCs) aren’t just a win for the planet; they’re a win for your wallet, too.

Solar retailers trade these certificates for financial gain, which means they’re motivated to offer you upfront discounts on your system. In the end, you save thousands on installation costs just for choosing to go green.

It’s a simple way to cut your power bills, reduce your carbon footprint, and make the most of Australia’s sunshine all in one move.

STC FAQs For Beginners: Know Before You Apply!

Am I eligible for this rebate?

If you are running a small business or a household with a capacity of 100kW or less, you are eligible.

What’s the price of STC?

The price of STCs depends on the market demand and supply for the quarter. It can range anywhere from $0 to $40 at max.

How can I get it?

Reach out to a CEC-approved solar retailer and use CEC-approved products for the installation, and you will get it. Of course, there are other benchmarks to meet to provide a definitive answer.

Will STC end soon?

Until the year 2030, all solar retailers will generate certificates, and after that, this scheme will come to an end.

Cheaper Home Batteries Program: Federal Battery Rebate

Launched on July 1, 2025, this federal initiative offers approximately 30% off eligible home battery installations, delivered through the SRES framework. However, to become eligible for this battery incentive, you must meet a few criteria.

Here’s the eligibility checklist:

  • Your solar battery has a nominal capacity ranging from 5 kWh to 100 kWh.
  • The system must be approved by the Clean Energy Council.
  • STCs (Small-scale Technology Certificates) are calculated based on the battery’s usable capacity, but can only be claimed for the first 50 kWh of usable capacity.
  • The battery must be installed with a new or existing solar PV system.
  • Installation done by accredited installers.
  • Open to all eligible properties, with a limit of one rebate per property.

Lastly, installation is considered complete once a Certificate of Electrical Compliance is signed, confirming your system meets all relevant state and territory electrical safety rules.

Does This Impact Power Bills?

According to government analysis, households combining solar with battery installations could save up to $2,300 annually, nearly 90% of a typical electricity bill.

In practical terms, the rebate can be up to $372 per usable kWh for systems with a capacity of up to 50 kWh. This ultimately saves thousands of dollars in total for your Aussie homes.

Moreover, in large commercial systems with capacities of 13.5 kWh or more, these typical savings can range from $3,300 to $4,000. The best part is that you can stack this program with state rebates, thereby increasing the total savings.

VIC Solar Panel Rebates, Grants & Incentives in 2025

In addition to the federal rebate, Victorians can enjoy a state rebate that reduces the initial investment cost. Here are the different types of financial incentive schemes available to Victorians at the state level.

Solar Homes Program: Solar Panel Rebates & Interest-free Loans

  • Under this solar home program, households can enjoy an upfront rebate of up to $1,400 for rooftop solar PV systems. This rebate covers up to 50% of the cost of the solar installation.
  • This financial aid is available to people of various categories, from owner-occupiers, renters, homes under construction, to community housing organizations.

Interest-free Loan in VIC

In addition to the $1,400 off the system, Victorians can enjoy an interest-free loan option facilitated by the state government.

An equal amount of loan will be provided to those who meet all the criteria determined by the state government. You may apply for this matching interest-free loan up to $1,400, repayable over four years with no interest or additional fees.

Here we’ve listed the eligibility criteria for this loan:

  • A combined household taxable income of less than $210,000 per year.
  • Owner or current occupier of the property of the installation.
  • Property valuation of less than 3 million dollars.
  • No existing solar PV system.
  • Have not taken advantage of the solar homes program in the last 10 years.

In addition to these solar rebates, other energy efficiency schemes can help you upgrade your home with smart and energy-efficient appliances.

For instance, they offer hot water rebates of up to $1,000 for eligible heat pump or solar hot water products. If you opt for an Australian‑made product, eligibility may increase to $1,400.

These energy-efficient homes reduce energy cost, lower carbon emissions, and power your home sustainably.

New South Wales (NSW) Solar Incentives

In NSW, residents also benefit from the SRES or STC scheme, which offers a discount of around 30%. The rebate amount is typically around $2,500 for a 6.6 kW system.

Peak Demand Reduction Scheme (PDRS) | Battery Rebates

  • PDRS offers $1,600 to $2,400 off battery installation costs for households with existing solar systems.
  • An additional incentive of $250 to $400 is available for connecting the battery to a Virtual Power Plant (VPP). This incentive can often be claimed again after three years.

The PDRS in NSW has increased the battery installation rate compared to before. Many people claim that households with solar and battery setups can save around $1,500 annually under this scheme.

Are there any upcoming rebates available for NSW residents? Let’s check out!

SoAR (Solar for Apartment Residents) Grant

Opening from 1 December 2025, the new Solar for Apartment Residents (SoAR) grant initiative is specifically designed to help NSW communities install rooftop solar systems on multi-unit dwellings.

Here is the detail of the grant:

  1. Grant Name: Solar for Apartment Residents (SoAR) Grant.
  2. Coverage: Funds 50% of the cost of a shared solar PV system on eligible apartment buildings and other multi-unit dwellings in NSW.
  3. Benefit: Helps residents, including renters, lower energy bills and greenhouse gas emissions
  4. Current Uptake: Fewer than 2% of apartment buildings in NSW currently have solar installed.
  5. Why It Matters: Rising energy costs and a growing apartment population underscore the need for innovative solar solutions.
  6. Funding Pool: $25 million total grant funding available.
  7. Grant Limit: Up to $150,000 per project.
  8. Funding Partners: Jointly funded by the Australian Government and the NSW Government.

However, the application window opened on 28 February 2025 and will close at 5:00 pm on 1 December 2025, or sooner if the funding is fully allocated. Therefore, act quickly and apply before the portal closes.

Takeaway Thoughts

Not to mention, these government efforts and financial support present a golden opportunity for solar and battery adoption among NSW and Victorian residents.

Additionally, the generous federal incentives combined with state programs significantly reduce upfront costs, empowering households to make the switch.

These combined thoughtful efforts are also contributing to the country meeting its renewable energy targets and achieving net-zero emissions by 2050.

Wanna join this green revolution? It’s high time now!

So, if you have any questions or concerns about the solar rebates and schemes, please don’t hesitate to contact Cyanergy today.

Your Solution Is Just a Click Away

The post Off-Grid Solar Power Simplified – Off-Grid 101  appeared first on Cyanergy.

Off-Grid Solar Power Simplified – Off-Grid 101 

Continue Reading

Renewable Energy

Offshore Turbine Toilets, BlackRock’s $38B Acquisition

Published

on

Weather Guard Lightning Tech

Offshore Turbine Toilets, BlackRock’s $38B Acquisition

OEG celebrates 500 offshore turbine toilet installations while BlackRock acquires AES for $38 billion, signaling continued investment despite global wind auction slowdowns and European wind droughts.

Sign up now for Uptime Tech News, our weekly email update on all things wind technology. This episode is sponsored by Weather Guard Lightning Tech. Learn more about Weather Guard’s StrikeTape Wind Turbine LPS retrofit. Follow the show on FacebookYouTubeTwitterLinkedin and visit Weather Guard on the web. And subscribe to Rosemary Barnes’ YouTube channel here. Have a question we can answer on the show? Email us!

Welcome to Uptime News. Flash Industry News Lightning fast. Your host, Allen Hall, shares the renewable industry news you may have missed.

Allen Hall 2025: There’s good news today from the wind energy sector, and it starts of all places with toilets. OEG and Aberdeen Headquartered company just reached a milestone. They’ve installed their 500th in turbine welfare unit across the UK’s offshore wind sector. If you’ve ever worked on an offshore wind turbine, you know why this matters.

These aren’t just convenience facilities. Their dignity and their safety. The other difference between a dangerous transfer to a standby vessel and staying on the job. The units operate in the harshest offshore conditions with no external power or water. Nine offshore wind farms now have these facilities and they’re making offshore work accessible for [00:01:00] women helping retain a more diverse workforce.

And while OEG celebrates 500 installations, something much larger is happening in the American Midwest. Gulf Pacific Power. Just completed a major transaction with NL Green Power North America. Gulf Pacific acquired all of E L’s interest in five operating wind facilities, totaling over 800 megawatts of capacity.

The portfolio includes Prairie Rose in Minnesota, Goodwill and Origin, and Rocky Ridge in Oklahoma, and a facility in North Dakota. Projects with long-term power purchase agreements and high credit counterparties. And then there’s BlackRock. The world’s largest asset manager is placing a $38 billion bet on American clean energy.

They’re close to acquiring power Giant a ES, which have give BlackRock ownership of nearly eight gigawatts of wind power capacity. A [00:02:00] ES leads in sign deals with data center customers with artificial intelligence driving unprecedented electricity demand. That positioning matters.

The weather numbers tell their own story about wind’s challenging year. Most of Europe recorded wind speeds four to 8% below normal in the first half of this year. The wind drought curtailed generation in Germany, Spain, France, and the United Kingdom. But the Northeastern United States saw winds seven to 10% above average in parts of Norway, Sweden, and Northern China also benefited.

And in storm, Amy, which is passing through the uk, it drove wholesale electricity prices negative for 17 hours. 20 gigawatts of wind power flooded the grid and the grid paid users to consume electricity. Too much wind, not enough demand. The offshore wind industry faces real headwinds. Global awards fell more than 70% in the first nine months of this year.

Of about 20 gigawatts of expected auctions, [00:03:00] only 2.2 gigawatts have been awarded. Germany, the Netherlands and Denmark are preparing new frameworks to restore investor confidence and Japan designated two promising offshore zones, but confidence there is still shaken when Mitsubishi pulled out of its first auction due to some sorry costs.

So here’s what we have. An Aberdeen company celebrating 500 toilet installations that transform working conditions. A Midwestern power company expanding its wind portfolio by 800 megawatts and the world’s largest asset manager, betting $38 billion on American energy infrastructure.

All while offshore auctions stall globally, all while Europe experiences a wind drought and the UK experiences at times too much wind. The sector faces challenges US federal opposition, variable weather, and market slowdowns, but the fundamentals haven’t changed. Data centers. Need power and [00:04:00]someone has to generate those megawatts and companies are still buying wind farms.

Asset managers, are still making billion dollar bets, and engineers are still improving infrastructure. One toilet at a time. When a company celebrates its 500th toilet installation, it’s about commitment to an industry they believe has a future. When investors acquire 800 megawatts of operating capacity, they’re betting on tomorrow.

And when the world’s largest asset manager places a $38 billion bet. They’re looking past the turbulence to see the demand. 500 reasons to believe each one installed in a turbine tower. Each one making life better for workers in harsh conditions.

Each. One. A sign that this industry isn’t going anywhere.

https://weatherguardwind.com/offshore-toilets-blackrock/

Continue Reading

Renewable Energy

New Jersey’s Electricity Rate Crisis Is A Perfect Storm for Wind Energy

Published

on

Weather Guard Lightning Tech

New Jersey’s Electricity Rate Crisis Is A Perfect Storm for Wind Energy

New Jersey ratepayers received an unwelcome surprise in June 2024 when electricity rates jumped between 17 and 20 percent virtually overnight. But behind the dramatic increase is a much larger story about the challenges facing renewable energy deployment, grid modernization, and the future of power generation across the PJM Interconnection region—one that has significant implications for the wind energy industry.

According to Kyle Mason, Associate Planner at the Regional Plan Association, the rate spike stems from record high prices in PJM’s annual capacity auction, which secures power for peak grid loads. PJM operates the grid for New Jersey and 12 other states, covering over 60 million people. The capacity market’s unprecedented pricing “trickled down to increased electricity rates for New Jersey rate payers,” Mason explained.

Listen to the interview here

Old Grid, New Demands

“We have a very old grid, and we’re trying to update it in real time,” said RPA’s Robert Freudenberg – while bringing more energy onto the system. “It’s like trying to build the plane while you’re flying it.”

Freudenberg, Vice President of the Energy & Environment Program at RPA, described the crisis as a convergence of multiple factors: the grid’s age presents challenges, the interconnection process has slowed dramatically, and demand is skyrocketing.

The interconnection queue process, which once took a few years, now stretches across many years. According to Mason, as of April of last year, over 200 gigawatts of projects sat waiting for study in the interconnection queue, with approximately 98 percent comprising solar, wind (both onshore and offshore), and storage. Even if only half of those projects eventually come online, Mason noted, “it would markedly improve the rate situation.”

Unprecedented Demand Growth

The energy demand situation is compounded by explosive load growth, driven largely by artificial intelligence and data centers. Mason noted that current projections show load growth reaching five percent annually—levels, he said, “we have not seen…since air conditionings were invented.”

These aren’t small facilities. “The industry is seeing massive, massive expansion of data centers,” Mason said. “Not just small data centers that we saw expand during the years leading up to the dot-com bubble, but rather these massive hundred-plus megawatt data centers,” primarily concentrated in Northern Virginia, New Jersey, Pennsylvania, and Ohio.

By 2030, data centers alone could account for 10 to 12 percent of electricity demand on the PJM grid—a staggering figure that underscores the urgency of bringing new generation capacity online quickly.

Offshore Wind “Ideal Solution” for Energy Island

New Jersey, the most densely populated state in the country, uses more energy than it produces. Thanks to that distinction and its geographic constraints, it’s referred to as an “energy island”- where wind represents an ideal solution for large scale generation.

The state had plans for approximately five gigawatts of offshore wind capacity, including the 1,100-megawatt Ocean Wind project, which has since been abandoned. Federal policy shifts have further complicated the landscape, effectively putting offshore wind development on ice across the region.

Freudenberg pointed to the South Fork Wind farm off Long Island as proof of concept.

“If you look at the data from that, [South Fork] is performing very well. It’s reliable,” he said, noting it put a thousand people to work and stabilized rates for customers.

Grid Reliability Challenges

Adding another layer of complexity, PJM recently implemented stricter reliability rules that dramatically reduced the amount of generation qualifying as reliable.

“The buffer dropped from about 16 gigawatts of supposedly reliable energy sources to about 500 megawatts when the reliability requirements were issued,” Weather Guard Lightning Tech CEO and Uptime Podcast host Allen Hall notes in the interview.

“Many fossil fuel plants face reliability concerns during extreme weather events, extreme cold events,” Mason explained. That made the older plants ineligible to enter PJM’s capacity market under the new rules. That caveat simultaneously removes baseload capacity while renewable projects remain stuck in the interconnection queue.

New Jersey's Electricity Rate Crisis Is A Perfect Storm for Wind Energy

Is PJM’s Progress Too Little, Too Late?

PJM has made some progress addressing interconnection challenges. Working with the Federal Energy Regulatory Commission, the grid operator implemented a new cluster study process that prioritizes projects on a “first ready to serve basis” rather than first-come, first-serve. Mason reported they’ve already studied over 40 gigawatts of energy, “and that’s starting to get built,” Mason said.

“But there’s the question of whether that can outpace the rising demand,” he said.

On transmission infrastructure—a critical bottleneck for wind energy—the average timeline to build high voltage transmission lines stretches to 10 years. Mason noted projects face “years and years just to get the materials to build power plants, and then 10 years with permitting costs and supply chain issues and permitting timelines to build the transmission wires.”

Policy Recommendations: States to Lead the Way

Despite federal headwinds, Freudenberg urged states to maintain momentum on offshore wind.

“States need to keep the charge on for offshore wind. They need to keep the fire burning for it,” he said, recommending that states prepare transmission infrastructure and work with developers so projects can move forward quickly when federal policy shifts.

New Jersey has taken some positive steps, recently announcing its Garden State Energy Storage Program that targets over two gigawatts of storage capacity and releasing grid modernization standards for utilities.

Of course, when utilities are required to modernize, rate payers usually foot (most of) the bill. Still, having an available, reliable energy supply is the first order of business.

For wind energy operators and stakeholders, the New Jersey situation illustrates both the critical need for renewable generation and the complex policy, infrastructure, and market challenges that must be navigated to deliver it.

As Freudenberg summarized: “The ingredients here are so good for offshore wind. Everything… the proximity, the wind speeds. All we have to do is build those things and connect them into our grid and we’ve got a lot of power.”

The question is whether policy will allow that to happen before the grid crisis deepens further. We’ll be watching closely!

Listen to the full interview with Allen Hall, Joel Saxum, Kyle Mason and Robert Freudenberg here and subscribe to Uptime Tech News, our free weekly newsletter, today!

Image: PJM https://www.pjm.com/-/media/DotCom/about-pjm/pjm-zones.pdf

https://weatherguardwind.com/could-wind-energy-reduce-new-jersey-electricity-rates/

Continue Reading

Trending

Copyright © 2022 BreakingClimateChange.com