The economical electricity that powers our homes and businesses has transformed society in the last century, creating a world that our forefathers could barely imagine.
The economic future of this country – indeed, the world – is reliant upon the continued availability of such power. That’s why the recent release of two reports that say power generation and delivery will fall well short of demand are so concerning.
In the coming decades, there will not be enough power-plant capacity and transmission lines built to meet demand in Colorado or across the nation, according to two studies.
Colorado will need 4,900 megawatts of new power by 2025 to satisfy both increasing household consumption and a population that is expected to grow 64 percent, according to a study by Colorado Energy Forum. Planned capacity increases will meet only a fraction of the need, according to the study.
The situation is similarly disconcerting at the national level. The North American Electric Reliability Council, in a report released earlier this month, says demand nationwide will increase by 19 percent over the next decade while capacity will only go up 13 percent.
The situation demands close attention from policymakers who should be concerned not just with the cost of transmission and capacity creation, but with the environmental implications of creating new power sources.
In Colorado, plant construction to cover the expected growth will cost “billions of dollars and thousands of hours to plan, construct and maintain the necessary generation infrastructure,” according to the Energy Forum report.
But we cannot look to dirty coal plants to satisfy energy needs. They spew huge amounts of carbon dioxide, the primary greenhouse gas linked to global warming. Despite the economy of such plants, we cannot afford the environmental penalty of continued reliance on them.
Coloradans have expressed strong interest in developing environmentally friendly energy solutions. In 2004, voters passed Amendment 37, which requires large utilities to generate 10 percent of their power from renewable sources by 2015.
Since the amendment passed, progress has been made. Xcel Energy has signed agreements to buy power from two major wind farms in Logan County, near the Nebraska border. The utility also is reviewing bids to purchase solar power, according to recently filed regulatory documents.
The appetite for such clean power development in Colorado appears to be growing. According to a recent poll commissioned by Environment Colorado, 79 percent of state residents support increasing the renewable energy standard to 20 percent by 2015.
Decreasing demand is an important part of the equation as well. The North American Electric Reliability Council report says that as a matter of policy, utilities should be encouraged to reward customers who reduce their energy use during peak hours. Such a shift would reduce the need for construction of new power plants and transmission lines.
The Energy Future Coalition, a non- partisan, not-for-profit group based in Washington, D.C., contends that the electrical power grid, the transmission and delivery system, could be rewired with advanced computer controls to allow more efficient distribution. The so-called “smart power grid” not only would lower generation costs to consumers, but it also would more easily accommodate and disperse power generated by alternative sources.
All of these ideas will require aggressive research, development and financing. Change comes slowly to an entrenched system, but it is imperative.
The recent reports illuminate long- standing concerns about the growing disparity between demand and capacity.
It is incumbent upon policymakers to take on this difficult issue and continue to nudge the country toward change that will neither bankrupt us nor destroy our environment.
