Advanced Energy Perspectives

Cybersecurity is a growing issue for the U.S. economy, especially for the critical infrastructure that keeps the nation’s energy system operating — the interconnected and interdependent systems of natural gas, water, communications, and fuel distribution, and especially the highly dynamic electric power sector, which is seeing the widespread introduction of advanced and intelligent energy technologies. But that doesn’t mean the intelligent and distributed grid of the future need be more vulnerable to cyberattack than the closed and centralized electric power system it is in the process of replacing.

On Monday, FERC issued its long-awaited final order on the grid resilience docket. In a clear repudiation of Secretary Perry, who issued the original Notice of Proposed Rulemaking, FERC closed the docket on the DOE NOPR, opting to not take any action. The Secretary, along with major coal companies, stated the belief that there was an urgent need to take out-of-market action in order to preserve baseload generation resources such as coal and nuclear plants capable of maintaining 90 days of fuel onsite. However, FERC determined there was no emergency, and terminated consideration of the cost-of-service proposal in a unanimous vote. Three of the five commissioners (LaFleur, Glick, and Chatterjee) wrote individual but concurring opinions supporting this action, although Commissioner Chatterjee continued to express “concerns regarding bulk power system resilience in the interim period.” FERC also initiated a new proceeding to examine (and indeed, for the first time, define) resilience from the ground up, calling for information from the regional grid operators. But even in launching that examination, FERC commissioners made no promises about taking action to change market operations, pledging only to “evaluate whether additional Commission action regarding resilience is appropriate at this time.”

Photo by vgm8383, used under a Creative Commons license.  

With snow seen up and down the East Coast (even in balmy Tallahassee for the first time in 30 years), not to mention the new phenomenon nicknamed “bomb cyclone,” which was both preceded and followed by record cold temperatures, there’s been ample opportunity for energy nerds to see how the grid is reacting to extreme winter weather – and policy wonks to consider the implications for the impending FERC decision on DOE’s proposal for subsidies to existing coal and nuclear power plants on the grounds of “resiliency” in the face of extreme weather events. But for those looking for proof of the need to prop up generating resources that are failing in the marketplace, the winter weather of the past week offered cold comfort.

Image by Disney/ABC Television Group, used under Creative Commons license

What does 2018 hold for advanced energy? Plenty, when it comes to federal and state policy issues that could make or break business prospects for advanced energy companies. I hope all you advanced energy advocates are well rested, as the new year is going to be a busy one! Here is what we at AEE see on the policy horizon, with some opportunities – and battles – coming sooner than you’d think.

Image by junaidrao, used under a Creative Commons license

This year was a busy one for federal energy policy. That’s not surprising, given a new President with same-party control of the White House and Congress. But the flurry of activity has not been exactly as one might have predicted on January 1. Here are some of the biggest moves in energy made by Congress and the Trump Administration in 2017, as they might have been seen from a galaxy far, far away. (With apologies to George Lucas.)