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In the Know: A Shift in the Energy Landscape
Co-ops rely on a diverse energy mix to ensure a reliable, affordable and responsible electricity supply that meets the needs of members; however, the electric industry is facing challenging times regarding changes in policy, energy markets and consumer expectations.
There is a global energy transition away from coal and gas, and towards renewables—wind, hydro, biomass and solar. Southern Rivers Energy began adding renewables to our portfolio over a decade ago; however, in the last few years, social and political pressure is forcing co-ops to expedite that transition. While renewable energy sources like solar and wind are becoming more prevalent, reliable and affordable electricity depends on an “all of the above” strategy. The aggressive targets and timelines for phasing out fossil fuels are leading to higher energy costs.
Policy changes affecting U.S. oil and natural gas production and pipelines, environmental regulations, and new climate change legislation have, and will continue to increase generation costs.
Our industry has a rich history in providing services when they were otherwise not available. As we begin to change the energy landscape, we must be careful. We must remain reliable. Consumers need to know that power is going to be there. The steps must be reasonable, and lawmakers need to understand the impact their decisions have on the grid and our members. If we are forced to only use certain types of generation sources in addition to building new power plants, our members are paying for it – not some wealthy investors in a boardroom.
Electric cooperatives are working towards meaningful solutions to address the reliability challenges spreading across the nation. We must have backups for our backups. It doesn’t happen very often, but when it does, it could be a tragedy if you don’t have a plan in place.
This is a message that has been echoed by NRECA and rural co-ops across the country. Adding to the reliability challenge are more frequent severe weather events, threats to cyber security and a rise in physical threats to power stations.
We are more dependent on electricity than we’ve ever been and it is only going to increase in the coming years. Electric cooperatives remain focused on working toward meaningful solutions to address reliability challenges spreading across the nation, including new electric generation and transmission infrastructure. We must get the science and engineering right. It has to be at a pace that makes sense.
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