US energy groups try to correct "faulty premise" in DOE study

Four business groups in the US, including wind and solar organisations AWEA and SEIA, are worried that the energy market study initiated by the US Energy Secretary could be based on “a faulty premise” that renewables have a negative impact on grid reliability.

Separate studies of the changing electric generation mix and the effect of greater renewables penetration have been sent to Energy Secretary Rick Perry by the American Council on Renewable Energy (ACORE), Advanced Energy Economy (AEE), American Wind Energy Association (AWEA), and Solar Energy Industries Association (SEIA) to inform the energy market study he called for in April.

The organisations developed analyses that show that the increased use of natural gas, renewable energy and energy management sources can increase electric system reliability while bringing savings for consumers.

Perry last month called a study into critical issues for the long-term reliability of the electric grid, including an analysis of "market-distorting effects of federal subsidies that boost one form of energy at the expense of others". On April 28 the business trade groups sent a joint letter urging the Department of Energy (DOE) to initiate an open, transparent process with stakeholder input as part of the 60-day stury, but they got no reply.

SEIA’s “Solar & Renewables Benefit Grid & The U.S. Economy” review highlights multiple studies according to which the grid can handle high volumes of renewable energy with a positive impact on ratepayers, grid operators and system performance. AWEA’s “Renewable Energy Builds a More Reliable and Resilient Electricity Mix” shows that cheap natural gas and not renewables is the primary factor undermining baseload sources.

ACORE’s “Energy Fact Check – The Impact of Renewables on Electricity Markets and Reliability” report covers questions around baseload power and economic impact raised by the DOE review. AEE’s “Changing the Power Grid for the Better” includes a study of ERCOT and PJM experience where reliable grid management has been possible, even in extreme conditions, with high degree of variable renewables and.

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