Worcester Business Journal

Worcester Business Journal www.wbjournal.com 2016 Economic Forecast 17 E N E R G Y While seemingly everyone in the state is push- ing for more solar energy, how they go about it is hotly debated. Those in the industry are calling to increase the cap on the amount of solar electricity produced by the private sector and public entities that can receive the retail rate for the power pro- duced. Since the cap has been hit in National Grid territory, large projects have screeched to a halt, according to those in the industry. However, there are calls starting to come up for the industry to stand on its own without government interven- tion. With legislators unable to come to a decision in 2015, this debate will rage on into 2016. Energy debates to rage into 2016 BY SAM BONACCI Worcester Business Journal Digital Editor E nergy in Massachusetts has been a topic of hot debate throughout 2015, and there's no indication that things will cool off in 2016. Discussions of whether and how to integrate more clean energy into the power grid, where gas pipelines should be run or whether to raise the cap on solar energy credits have been the highlights in 2015 and will continue into the coming year. Solar energy push and pull State Sen. Dan Wolf (D-Hyannis) speaks to crowd calling for the immediate closure of Pilgrim Power Plant on Oct. 22. Its planned closure has left the state looking for other power sources. While the debate about the location of natural gas pipelines into the state is mostly resolved, the state's near-term dependence on this fuel is set to continue rising. During high load times, natural gas can account for nearly 40 percent of the state's electricity generation. While much has been made about the switch to renewable energy sources -- with Attorney General Maura Healy notably say- ing natural gas pipelines are not only not needed to meet energy demands but could result in higher electricity prices -- for now natural gas is the king. New England banking on natural gas Despite natural gas being the current king of the energy market, increased movements will be made in 2016 to dethrone it in the interest of more renewable sources of energy. While state-grown solar continues to be popu- lar, other measures will only enrich the renewable argument, including plans to build a transmission line to pull from hydropower resources in Canadian provinces. With the closing of the Pilgrim Nuclear Power Station set for 2019, the push to increase the base- line of low-emissions power generation will be even more important to get lined up in 2016. n Renewable switch-over T O P E N E R GY S T O R I ES O F 2 0 1 5 A ttorney General Maura Healey released a study in November that calls into doubt the need for a natural gas pipeline into the area, saying that cleaner alternatives can tackle the region's energy needs through 2030. The study was designed to identify the most cost-effective and clean solu- tions for addressing any of those chal- lenges. The study shows that Massachusetts does not need to increase gas capacity to meet reliability needs, and that elec- tric ratepayers shouldn't foot the bill for additional pipelines, Healey said in a statement. The study found that not only is the natural gas pipeline not needed to meet reliability standards but could result in less customer savings and drive up emissions compared to an alternative approach that emphasizes investments in energy efficiency. P ilgrim Nuclear Power Station in Plymouth will shut down by June 1, 2019, its owners announced in October, citing poor market conditions. Pilgrim owner Entergy Corporation said its decision to close the plant was driven by low energy prices, reduced revenues and increased operational costs. Pilgrim opened in 1972 and gen- erates 680 megawatts of electricity, enough to power more than 600,000 homes. This has raised questions about how the state will ensure a reasonably afford- able, consistent supply of power. Because nuclear power doesn't produce green- house gas emissions, it also raised the question of how Massachusetts can meet its goals for fighting climate change. In 2014, nuclear power generated 34 percent of New England's energy, according to ISO New England, the regional agency responsible for the power grid. Another Entergy nuclear plant, the 620-megawatt Vermont Yankee Nuclear plant, shut down at the end of that year. Once both plants are offline, the region will be down to three plants supplying a total of 3,406 mega- watts. Right now, there's 11,000 megawatts of proposed new generation in the region's pipeline, according to ISO New England. Two-thirds of that potential capacity would come from burning nat- ural gas, while most of the rest would come from wind. Pilgrim Nuclear Station to close AG comes out against gas pipeline P H O T O / C O U R T E S Y Maura Healey, Massachusetts attorney general

• Cover