Hartford Business Journal

6 HARTFORDBUSINESS.COM | JUNE 24, 2024 Politics & Policy New England Power Generators Association President Dan Dolan recently spoke at a CBIA energy conference. Amid decarbonization efforts, New England's energy demand expected to increase 23% over next decade New England, the total electricity production breakdown in 2040 will be: 56% renewables; 13% nuclear; 12% natural gas; 3% hydro; and 16% imports. No electricity is expected to come from coal or oil by then, she said. Dolan said ultimately, decarbon- ization needs to be a national effort, but states like Connecticut, and New England as a region, can help lead. "I remain hugely optimistic that we are going to find our way through this, but getting to those three legs of the stool — reliability, affordability and decarbonization — we can do two out of three of those pretty directly and easily. The real challenge is doing all three at once," Dolan said. By Skyler Frazer sfrazer@hartfordbusiness.com N ew England's energy demand is expected to increase 23% over the next decade, the head of the region's largest power generator association said at an annual energy conference earlier this month, and stakeholders in the region should focus on energy reliability and affordability as decarbonization efforts continue. New England Power Generators Association President Dan Dolan, during the Connecticut Business & Industry Association's 2024 Energy & Environment Conference, gave an over- view of the region's power generation outlook, and what Northeast states need to do in the coming years as the country continues to hone in on renew- able and clean energy alternatives. He said there's "incredible economic opportunity" in the energy sector, and investments must be made to meet the region's future needs. "Demand is coming — we see a really consistent rise over time," Dolan said of energy usage over the next 10 years, which will be driven by the accelerating electrification of heating systems and transportation. "Energy efficiency is great, but we're going to need to produce a whole lot more." Grid outlook New England is responsible for 2.8% of all carbon dioxide emissions in the U.S., Dolan said, and much of the region's energy policy is driven by decarbonization. Most of those emis- sions are from commercial and retail heating and transportation, he said, and "opportunistic electrification" in the transportation and heating indus- tries can help the region continue its focus on renewable energy. However, that will also drive up energy demand. To meet those needs, decarbonization must be a multifac- eted effort, he said. While alternative energy options like solar and wind have had a lot of time in the spotlight recently, Dolan emphasized the need to continue to support existing clean energy sources like hydro and nuclear as decarbonization efforts grow over the next several years. "We need every ounce of the clean energy that is on the planning board right now and that we expect to continue to be financed and developed, but we also need to preserve nearly all of the assets that serve as the back- bone of the system," Dolan said. In 2023, 49% of the region's energy supply came from natural gas, 20% nuclear, 8% hydro, 10% renewables (such as wind and solar), and 13% net imports, according to new data from ISO New England. Notably absent from that list are coal and oil, which combined for less than 0.5% of megawatt hours in the region in 2023. "That is a dramatic shift over the last 15 to 20 years that has created remarkable emissions benefits for the region," Dolan said. At the CBIA event, ISO New England's Lead State Policy Advisor for External Affairs Kerry Schlichting gave an overview of the region's future expected power grid breakdown. According to projections from ISO Sen. Needleman: 'Green Monster' tag helped sink climate change bill during legislative session By Skyler Frazer sfrazer@hartfordbusiness.com A group of legislators at an annual energy conference said keeping energy afford- able and reliable for Connecticut businesses should be paramount as the state shifts to renewable and clean alternatives. The Connecticut Business & Industry Association earlier this month hosted its annual Energy & Environment Conference with a full agenda of experts and state officials giving their takes on topics ranging from solar, wind and nuclear power to the state's electric grid. State Rep. Patrick Callahan (R-New Fairfield), Sen. Ryan Fazio (R-Green- wich), Rep. Joe Gresko (D-Stratford) and Sen. Norm Needleman (D-Essex) spoke on a panel to recap the last legislative session and how Connecti- cut's climate and energy goals have developed. Much of the conversation revolved around what Needleman deemed a "three-legged stool" when it comes to energy — affordability, reliability and climate change mitigation. "We have to keep that balance. We have to be thoughtful," said Needleman, co-chair of the legis- lature's Energy and Technology Committee and a business owner who founded a Connecticut-based contract manufacturer. Affordable energy is key to sustaining a healthy economic base in Connecticut, Fazio said. Connecticut is still trying to bolster its manufac- turing base, which has dwindled in recent decades, and energy prices are a significant cost in the state. "When you talk to those manufac- turers and businesses, the high cost of electricity is a major sticking point about investing in Connecticut," Fazio said. "And it might not be realistic to decrease electricity rates by 20% over the next decade, but at least we have to do everything possible to stop them from increasing 20 or 40 or 60% into the future." Fazio said there should be an "all-the-above" strategy when it comes to clean energy generation, including solar, wind and hydro power. Natural gas and nuclear energy are key to a reliable energy grid, he added, so those options shouldn't be ignored either. Gresko also said a diversified energy portfolio is the way to go. The state needs to incentivize growth in the energy sector to let the market know Connecticut is serious, he said. But Callahan said he has concerns about the reliability of both wind and solar power, and the affordability of wind. "I want reliable, not intermittent power," Callahan said. The 'Green Monster' House Bill 5004, a high-profile proposal that would have declared a climate crisis and implemented several climate change-related measures statewide, including a commitment to reduce greenhouse gasses over the next 25 years, died in the state Senate this session after being voted out of the House. While Gov. Ned Lamont said the proposal will most likely not be included in a special session scheduled for this week, legislators said they expect the bill to be back next year. Kerry Schlichting New England's changing electricity generation mix GENERATION % OF GENERATION % OF GENERATION SOURCE (2023) (PROJECTED 2040) Gas 49% 12% Nuclear 20% 13% Renewables* 11% 56% Hydro 8% 3% Coal 0.16% 0% Oil 0.28% 0% Net imports 13% 16% *The renewables electricity generation sources in 2023 included wind (3%), refuse (2%), wood (2%) and solar (3%). | Source: ISO New England HBJ PHOTO | SKYLER FRAZER

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