Advanced Energy Perspectives

Prepared by Meister Consultants Group for the Advanced Energy Economy Institute and the Virginia Advanced Energy Industries Coalition, Assessing Virginia’s Energy Future: Employment Impacts of Clean Power Plan Compliance Scenarios analyzes two possible scenarios for Virginia’s compliance with the U.S. EPA’s Clean Power Plan to reduce carbon emissions from the electric power sector. 

The topline finding is quite simple: Virginia could create thousands of permanent and temporary construction jobs by implementing the CPP, and double the number of jobs if the Commonwealth chooses to pursue a goal it has considered for a long time – producing within the state all the electricity needed to power the Virginia economy, instead of importing nearly 40 percent from out of state. Achieving self-sufficiency in electricity generation while meeting EPA emissions standards would create 122,000 job-years of additional employment over the next 15 years, with net new jobs peaking at nearly 12,600 in 2029.

“Fossil Fuels Just Lost the Race Against Renewables,” reads the hyperbolic headline from Tom Randall, writing for Bloomberg Business. “This is the beginning of the end,” the subhead piles on. This report of the death of fossil fuel-powered electricity generation may be exaggerated. But looking closely at Randall’s article, the triumph of advanced energy seems even more of a sure thing.

Last week, Advanced Energy Economy Institute (AEEI) and the Virginia Advanced Energy Industries Coalition (VAEIC) released a new report, “Assessing Virginia’s Energy Future,” which measures the employment outcomes of two potential Clean Power Plan (CPP) compliance strategies that the Commonwealth might consider. The topline finding is quite simple: Virginia could create thousands of permanent and temporary construction jobs by implementing the CPP, and double the number of jobs if the Commonwealth chooses to pursue a goal it has considered for a long time – producing within the state all the electricity needed to power the Virginia economy, instead of importing nearly 40 percent from out of state. It will be up to Gov. Terry McAuliffe and the General Assembly to choose which course to take.

VIRGINIA EMPLOYMENT IMPACTS BY YEAR; ENERGY IMPORT REDUCTION SCENARIO

Green area: New advanced energy job years; Red area: Job years lost

The two scenarios examined in the report are “Diversified Portfolio” and “Import Reduction” pathways. Both options are built on a baseline established by the state’s investor-owned utilities via the Integrated Resource Planning process. Even the plans submitted by the utilities have old, inefficient coal-fired power plants retiring, based on economic factors. These retirements will get Virginia much of the way to the emissions target set by the EPA in its proposed plan.

The U.S. Environmental Protection Agency’s (EPA’s) plan to regulate carbon emissions is just the latest challenge facing the U.S. electric power system. Technological innovation is disrupting old ways of doing business and accelerating grid modernization. Last year, AEE released Advanced Energy Technologies for Greenhouse Gas Reduction, a report detailing the use, application, and benefits of 40 specific advanced energy technologies and services. This post is one in a series drawn from the technology profiles within that report.

Superconductivity is a property of some materials whereby electrical resistance, which normally decreases gradually with decreasing temperature, suddenly drops to zero below a critical temperature. Advances in materials have created high-temperature superconductors (HTS), whose relatively “warm” critical temperatures of -315° to -230°F allow for the use of less expensive and easier to handle refrigerants such as liquid nitrogen. HTS transmission passes electricity through a cable that is insulated with high-pressure liquid nitrogen pumped by refrigeration equipment. The insulation allows HTS transmission to carry 10 times the power of a standard cable of similar thickness with almost no power losses. These lines can connect directly to the existing AC transmission network to add highly efficient transmission capacity that can relieve congestion without the need for high voltages.

With EPA’s Clean Power Plan scheduled for its first day in court on April 16, opposition to the rule has heated up on the Hill—or, more accurately, off the Hill. Sen. Majority Leader Mitch McConnell (R-Ky.) issued a call for states to “just say no” to EPA’s Clean Power Plan (CPP) with an op-ed in the Lexington Herald-Ledger, then sent a letter to the governors of all 50 states advising them not to comply with the rule.