TECHNOLOGY
sources . This typically translates to avoiding high capacity baseline plants , in favour of more flexible generation , such as natural gas .
Unfortunately for nuclear enthusiasts , nuclear plants are nearly all fixed costs . If their steady supply of energy cannot be continuously put onto the grid due to a minimum renewable threshold , then the cost per kilowatt hours ( kWh ) skyrockets .
At the same time , natural gas pricing has further contributed to making nuclear energy uneconomical – at least in the short-term .
18,000 GWh of energy demand met by efficiency , storage and renewables Diablo Canyon generates 18,000 GWh of annual energy output , representing 20 % percent of PG & E ’ s energy and nearly 9 percent of California ’ s energy consumption . In its formal proposal to the California Public Utilities Commission ( CPUC ), PG & E proposed that the plant should cease operations by 2024 and 2025 , when its current nuclear licenses expire .
Energy needs will then be met by three tranches , all of which are to be carbon-free . The first tranche is
2,000 GWh of efficiency program implementation prior to 2025 . The second tranche is deploying 2,000 GWh per year of new renewable energy projects , beginning in 2025 . The third tranche is essentially a voluntary promise to supply at least 55 percent renewable energy by 2031 , a commitment that surpasses the 2030 renewable portfolio standard ( RPS ) requirement of 50 percent .
This third tranche is designed to allow flexibility , given the high degree of uncertainty in predicting energy needs 15 years from now , though it contributes to scepticism from many concerned with climate change . The fear is that PG & E will ultimately have to rely on gas plants more than what would have otherwise been required if Diablo was not closed .
What this means for utilities , their customers , and investors The fact that PG & E feels comfortable with making up for the loss of this massive baseload plant , while continuing to meet its customers ’ energy needs solely through energy efficiency and renewable energy is making heads turn throughout the industry – and rightly so . Why ?
14 November 2016