Advanced Energy United Reports

The AEE Institute contracted with ICF International to perform an assessment of the potential impacts of the EPA Clean Power Plan (CPP) on required gas pipeline capacity. This report responds to concerns raised by some stakeholders, including the North American Electric Reliability Corp. (NERC), that states might rely heavily on natural gas generation for compliance with the CPP, creating stress on gas pipeline capacity and ultimately impacting electric system reliability. These parties have suggested that addressing the concerns might require expensive expansion of natural gas infrastructure over a challenging timeframe.

Questions have been raised about whether renewable energy (RE) and energy efficiency (EE) resources can provide substantial emission reductions at reasonable cost under EPA’s proposed Clean Power Plan (CPP).

These concerns reflect fundamental misperceptions about the performance and cost of today’s renewable energy and energy efficiency technologies, rooted in outdated information and perpetuated by inaccurate official market projections. 

Earlier this year, the North American Electric Reliability Corp. (NERC) issued an “initial reliability review” in which it identified elements of EPA’s proposed Clean Power Plan that could lead to reliability concerns. One of the issues identified by NERC was the challenge of integrating variable renewable resources, such as wind and solar, into the power system at the levels contemplated by the CPP.

This summer, the Environmental Protection Agency will release a draft Federal Plan to implement the Clean Power Plan in states that do not submit a satisfactory state plan. Some groups have argued that inclusion of advanced energy—even renewable energy and energy efficiency, which are both part of EPA’s calculation of state goals—is beyond EPA’s authority in a Federal Plan.

On April 21, the North American Electric Reliability Corp. (NERC) released its “Phase I” assessment of the reliability impacts of EPA’s Clean Power Plan (CPP). The Phase I report is a follow-up to NERC’s Initial Reliability Review, and NERC indicates there will be more to come. This is in keeping with NERC’s vital role in informing policymakers and grid operators about issues in maintaining reliable electric service across the country.

This white paper provides a critique of the Phase I reliability assessment and suggests ways future assessments can be improved.