Tag Archives: PJM

Renewables versus the grid at PJM

 From CFACT

By David Wojick 

The grid was not built to run on “renewables” and this simple fact is becoming clear at PJM, which is America’s biggest Regional Transmission Operator. To mix metaphors, the renewables stampede is swamping PJM, so the stampede is bogging down. This is good news.

By way of background, PJM once stood for Pennsylvania, New Jersey and Maryland. It was a voluntary utility group formed after the huge blackout in the late 1960’s. Today it manages the grid as far south as Virginia and west to Illinois, serving about 65 million people in 13 states, including me. Central megalopolis if you like.

PJM’s key role in this story is called “interconnection”. Any utility or independent power producer can build a wind or solar generating facility, but PJM has to approve its connection to the grid, without which it is useless.

Before approving a new connection PJM rightly conducts a grid impact analysis. This means modeling the operation of the grid with the new generation active, to see what problems it might cause. They also determine what transmission upgrades will be needed and bill the owner of the generator accordingly. This is basic grid management.

The renewables stampede has swamped PJM to the point where they have stopped approving new connections. The numbers are indeed staggering.

As of March PJM reportedly had an overwhelming 2,649 active projects in its generation interconnection queue. Almost all of these are wind and solar, and many are small.

Even more ridiculous is the amount of generation involved. PJM’s total installed electric generation capacity is approximately 192,000 MW. A lot of this is seldom used minor stuff as they only peak around 150,000 MW, and that is just a few times a year.

In contrast the stampede queue totals around 259,000 MW or nearly double present peak need. Adding this monstrosity to their present capability gives an incredible 451,000 MW.

There is simply no way to assess the potential impact of this much intermittent nonsense. PJM is used to assessing the incremental addition of small numbers of reliable power plants. Most of these are relatively large, built to serve specific loads and located near suitable transmission.

In contrast this glut of renewables is mostly located where the developer can find the land to build on. Neither need nor transmission is considered. In fact since the land required is large they tend to be located very far from urban load centers.

The first thing PJM did was to throw up their hands. They declared a two year moratorium on approving new connections while they considered how to deal with this impossible stampede. Several steps are now being tried out over a four year go-slow trial period.

First they are restructuring the connection application queue from first come, first served, to taking those projects that look ready-to-build first. Second they are trying to bundle groups of these projects into clusters for purposes of assessment.

Whether these steps work remains to be seen but in the interim connection approvals are likely to be slow, as they should be. The grid does not need a stampede.

The transmission upgrade issue also looms large. According to one study, average interconnection costs for active projects rose from $29,000/MW to $240,000/MW between 2017 and 2022, an eightfold increase.

This huge jump is due to the remoteness of renewables. While the transmission upgrade costs for gas fired power plants run around $24,000/MW the cost for renewables ranged from $136,000 to a whopping $335,000, or fourteen times gas.

Not surprisingly these huge upgrade costs have rendered many wind and solar projects financially unworkable, which is how it should be. Those promoting the so-called energy transition have ignored the need to rebuild the grid along the way.

I am sure that PJM’s problems are universal. The renewables stampede is both costly and unmanageable since it requires rebuilding much of the power grid. The actual engineering is going to slow it way down and that is a good thing.

Author


David Wojick

David Wojick, Ph.D. is an independent analyst working at the intersection of science, technology and policy.

For origins see http://www.stemed.info/engineer_tackles_confusion.html For over 100 prior articles for CFACT see http://www.cfact.org/author/david-wojick-ph-d/ Available for confidential research and consulting.

Addressing Wind/Solar Instability: Hardwiring the Grid

From Master Resource

By Ed Ireland

The near failure of the Texas power grid, coming just 4 minutes and 37 seconds from a complete collapse on February 14, 2021, was the first alarm bell that something was dreadfully wrong with US power grids. Meredith Angwin, a physical chemist and power grid specialist, described the February 2021 failure of the Texas power grid failure as a seminal event that was not a surprise:

Those of us who were watching the grid had noticed for years that Texas ran with a very low reserve margin…and there were predictions that Texas was going to be in trouble, [1],”

Since then, more power-grid operators have been speaking out about the increasing instability of their grids due to an over-weighting of non-dispatchable wind and solar power. A report on February 24, 2023, from the largest power grid in the US, PJM, warned of “increasing reliability risks” affecting 13 states and the District of Columbia and 65 million people who get their power from PJM. This report is a wake-up call for all US power grids because most face the same grid instability problems highlighted in the report:

  • The growth rate of electricity is likely to continue to increase from electrification coupled with the proliferation of high-demand data centers in the region.
  • The projections in this study indicate that it is possible that the current pace of new entry (of electricity generation capacity) would be insufficient to keep up with expected retirements and demand growth by 2030.
  • Thermal generators are retiring rapidly due to government and private sector policies as well as economics.
  • PJM’s interconnection queue is composed primarily of intermittent and limited-duration resources.

More grids have been warning that the addition of new wind and solar needs to be restrained and that retirements of dispatchable thermal generation—such as coal, nuclear and natural gas—need to slow. 

This was emphasized by Manu Asthana, CEO of PJM, in a speech at the Electric Supply Association, on March 27, 2023, when he noted that new supply resources had not kept pace with retirements because of clogged interconnection queues, siting obstacles, and supply chain constraints:

I think the math is pretty straightforward. I think we need to add [supply resources] faster … but I also think we need to subtract slower and subtract generation only when the replacement generation is here at scale. I really think that’s critical.

Asthana also emphasized that these retirements are not the result of old facilities being voluntarily shuttered but instead are being forcibly closed by government intervention:

Most of the retirements are expected because of state and federal environmental and climate policies.

He added that PJM faces the additional problem of increasing loads from the EVs and the push to “electrify everything,” plus data center growth since their grid includes the greater Washington DC area.

The problem of rapidly retiring dispatchable power generation such as coal and natural gas is indeed entirely policy-driven. One of Joe Biden’s campaign promises was to eliminate fossil fuels, with policies focused on eliminating coal mines and coal-fired power plants. He said recently that all of the country’s coal plants should be closed because they’re “too costly to operate and can’t be relied upon as a dependable energy source for future generations” and replaced by wind and solar.

The significant impact of these energy policies was emphasized in a recent article in the Houston Chronicle:

Hundreds of power plants, representing more than 87,000 megawatts of coal-, nuclear- and natural gas-fired generation, have retired in the United States over the past five years as power grids age and adjust to investor pressure and tougher state regulations around climate change, according to data from the Energy Information Administration.

New solar and wind farms are coming online to replace them at a fast clip — of the 46,000 megawatts of new capacity added to the grid last year, more than 60 percent were solar and wind projects, according to the energy administration.

These warnings are not new. ERCOT, the operator of the Texas grid, warned two years ago after the near collapse of the Texas grid during Winter Storm Uri that they were launching a study of potential changes to improve the performance and long-term stability of the Texas grid.

The results of that study provided the basis for the Texas legislature to hold hearings that culminated in two bills approved by the Texas Senate last week on May 5. Senate Bill 6 passed by a vote of 22 to 9 to build up to 10 gigawatts of backup power generation that is weatherized and has on-site fuel equivalent to 10 nuclear reactors. It would create an energy insurance fund using taxpayer money, and builders of the facilities would be assured returns of up to 10%. Senate Bill 7, passed 31-0, creates a financial incentive to encourage the private development of energy generation resources that can come on within two hours and run for at least four hours, such as natural gas plants or batteries.

Opponents immediately created the false narrative that the Texas bills are proof that Texas politicians “no longer have faith that competitive markets can adequately and economically satisfy the electricity need of Texas citizens,” said Beth Garza, a consultant for the think tank “R Street Institute.

On the contrary, the Texas Senate plan is designed to address the anticompetitive policies embodied in the comically-misnamed Inflation Reduction Act and other policies coming out of the Biden Administration. As PJM CEO Asthana (cited above) noted, such measures are needed because “the U.S. no longer has competitive energy markets now that the heavy hand of government has superseded markets with massive taxes and subsidies for wind and solar.”

In a recent article in Forbes and Substack, David Blackmon summed up the pending legislation in Texas:

Advocates for renewables and the climate change lobby also oppose the program on the grounds that it could crowd out the building of more renewables and increase emissions. But the bill does nothing to impact the array of incentives and subsidies for renewables that already exist. ERCOT has clearly demonstrated it already has a hard time properly managing the high volume of wind capacity that has been loaded up on the grid in recent years, and a major weakness of renewables is their failure to perform during severe weather events, which is the whole point of having an adequate reserve of dispatchable thermal capacity.

We will know soon if these bills can be passed into law by both houses of the Texas legislature. With the federal government ramping up subsidies for more and more unreliable energy, states may need to follow some form of the Texas approach by subsidizing or otherwise facilitating the addition of dispatchable power, such as natural gas-fired generation, to preserve power grid stability.

[1] Robert Bryce’s Power Hungry Podcast, starting at the 2-minute mark).

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Ed Ireland is an Adjunct Professor at TCU’s Neeley School of Business. He received his B.S. from Midwestern State University and Ph.D. from Texas Tech University. This analysis was originally posted at Thoughts About Energy and Economics (free subscription).