PrintPrintThe president of Duke Energy Carolinas said that South Carolina needs to set expectations for its utility companies and that passing a portfolio standard law would help clear up uncertainties about its plans for nuclear plants in Gaffney.
By James T. Hammond
jhammond@scbiznews.com
Published October 29, 2009
S.C. lawmakers need to legislate renewable portfolio standards to catch up with neighboring North Carolina and to erase uncertainties for utilities that operate across the Carolinas, utility executives said Tuesday at the Energy Summit hosted by the Columbia Regional Business Report.
Brett Carter, president of Duke Energy Carolinas, said that South Carolina needs to set expectations for its utility companies and that such a law could help clear up lingering questions about the utility’s plans to build two new nuclear plants near Gaffney.
North Carolina also has some catching up to do, Carter said. Charlotte-based Duke would like to see North Carolina adopt a pay-as-you-go law for financing of nuclear facility construction, similar to provisions adopted in South Carolina.
Some states have approved renewable portfolio standards that require electricity providers to generate or purchase a minimum percentage of their power from renewable energy resources by a certain date, according to the U.S. Department of Energy.
North Carolina’s standard, for example, requires that utilities generate 12.5% of electricity from renewable sources by 2021.
Currently, 24 states and the District of Columbia have renewable standard policies. These states account for more than half of the electricity sales in the United States, according to the Energy Department. North Dakota, South Dakota, Utah, Virginia, and Vermont have nonbinding goals for adoption of renewable energy instead of a set standard.
Requirements differ across states, but there are generally three ways electricity suppliers can comply with the portfolio standards:
Although they are important to the major electric utilities, the U.S. Environmental Protection Agency says renewable portfolio standards also impact startup companies developing alternative energy sources, because the standards create a market for their products.
Alternative energy presents opportunities in an economy often lacking in development projects, but site consultants warn that, without a renewable standard, South Carolina is unprepared to compete for such projects.
Darin Buelow, a site selection expert with Deloitte Consulting, was asked that question during a recent economic recovery panel discussion in Spartanburg.
“How could an executive of an alternative energy company stand in front of investors and explain that they are deploying their resources in a state that doesn’t really value alternative energy?” Buelow asked, referring to South Carolina’s lack of a standard.
North Carolina’s law took into consideration the state’s hydroelectric resources and gave priority to solar, swine waste and poultry waste as sources of renewable energy.
Duke Energy has responded to North Carolina’s law with plans to build 16 megawatts of solar-generated electricity in the near term, as well as 2 to 4 MW of methane-fueled electricity.
But the utility executives cautioned that renewable sources do not currently show the potential to satisfy the region’s appetite for power. For comparison, Duke Energy’s Carter noted that the two nuclear plants being planned near Gaffney will produce 2,200 MW of electricity.
“Nuclear will be one of the cheapest alternatives,” Carter said. “You cannot fill the void with these (renewable) pockets.”
Jeffrey Archie, senior vice president of S.C. Electric & Gas’ nuclear operations, added, “I don’t want people to think we are turning our back on renewables, but nuclear must be in the baseload.”
Santee Cooper President and CEO Lonnie Carter said integration of all energy sources will be the key to future electrical supplies.
“People talk about looking for a silver bullet for renewable energy,” Carter said. “I don’t think there’s even silver buckshot” to solve this problem.
Scott Miller contributed to this report.
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