Dive Brief:
- Recent and imminent power plant retirements in New England may mean the region's independent system operator will continue importing increased hydroelectric power from Quebec, according to the Energy Information Administration (EIA).
- The 605-MW Vermont Yankee nuclear facility is expected to close at the end of this year while the 1,520-MW Brayton Point coal- and gas/oil-fired plant will be shut down in 2017, creating a capacity gap that needs to be filled.
- In response, ISO-NE has proposed the 1,200-MW Northern Pass transmission line to bring power from Canada.
Dive Insight:
While coal and oil are being scaled back for environmental reasons, there are many reasons New England is looking to alternative fuels, according to the EIA. "Constraints on some of the pipelines delivering natural gas into New England have contributed to higher natural gas prices and made electricity relatively more expensive," the agency said.
In addition, all New England states have renewable portfolio standards or goals, which is helping to raise demand for renewable sources. Rhode Island's goal is 16% renewable electricity by 2020 and New Hampshire's is 24.8% by 2025, EIA said, adding that "both states have limits on the size of hydroelectric facilities whose generation qualifies."
Several New England states also have energy efficiency resource standards. "Energy efficiency is among the reasons for relatively little change in total system demand over the past decade in New England, despite 3% growth in total population from 2004 to 2012," EIA said.