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Worcester Business Journal www.wbjournal.com 2015 Economic Forecast 17 e n e r g y 5 Things To WaTch is the energy mix shifting? HERE ARE FIVE THINGS TO WATCH IN 2015: More natural gas? Environmental advocates and concerned residents received good news in December when Tennessee Gas Pipeline Co., a subsidiary of Kinder Morgan, announced it would abandon a plan to run its Northeast Energy Direct natural gas pipeline through undisturbed land across the northern part of the state, choosing instead to shift it a few miles north into southern New Hampshire. While the project met with resistance from some residents, it's expected to expand natural gas delivery to Central Massachusetts by connecting a distribution center in Dracut with shale fields in Pennsylvania. Despite the route change, delivery capacity for Central Massachusetts will still get a boost from the new pipe- line, and Kinder Morgan officials are also looking into building a smaller pipeline in the region. Plans are subject to a lengthy federal review process and a final proposal is expected to be submitted in the fall of 2015. The bottom line for Kinder Morgan is being able to deliver more natural gas, New England's dominant heating source. Rising electricity costs, more affordable renewable energy Solar power has led the way for renewables in Massachusetts, and as the market has matured, it's become a much more feasible option for consumers and businesses. While the cost of electricity will spike this winter due to limited natural gas capacity, the federal govern- ment reported last fall that the cost to install a solar energy sys- tem dropped 70 percent in three years. Meanwhile, the Natural Resources Defense Council has cited industry analysts who pre- dict solar energy rates will fall below retail electricity rates in much of the country by 2018. That's because capital costs for solar energy system manufacturers have decreased as the industry has grown. And there's reason to expect other renewable energy sources will gain ground. Onshore wind power, for instance, is expected to become competitive with fossil fuel-based sources by next year in Europe, the U.S. and Asia, according to Danish research firm MAKE con- sulting. That's because technology has advanced to make wind-power machines more efficient. A cap on carbon emissions Meanwhile, the U.S. Environmental T he energy sector has a lot of moving parts, and like the grid, they're all interconnected. With new government policies driving a push to clean energy adoption, suppliers of fossil fuel-based energy face their share of challenges in the year ahead. Meanwhile, transitioning to a system based on renewable energy remains an arduous process in a world still powered largely by fossil fuels. This translates into higher energy costs for consumers and busi- nesses, but is there light at the end of the tunnel? By EMILy MICUCCI Worcester Business Journal Staff Writer >> Continued on Page 18 Peter Rothstein, president of the New England Energy Council, says Gov.-elect Charlie Baker will keep Massachusetts pushing for more clean energy. 1 3 2