Governor-elect Jared Polis says moving Colorado toward more renewable energy will be a top priority11/8/2018
New report shows that renewable energy prices continue to decline, undercutting the costs of existing coal plants
By Joe Smyth | joe@cleancooperative.com | @joesmyth
Colorado voters elected Jared Polis to be the state’s next governor on Tuesday, joining several other states that also elected governors who campaigned on clean energy. Polis campaigned on a platform that included bringing Colorado to 100% renewable energy by 2040, and in an interview with the Denver Post yesterday, said that renewable energy would be among his top priorities:
Is there anything in particular you plan on prioritizing? Certainly, saving families money on health care, expanding access to preschool and kindergarten, and taking the steps to move toward more renewable energy will be among our top priorities both through executive actions as well as working with the state legislature. In a debate last month, Polis emphasized that moving toward renewable energy could benefit ratepayers, because of the declining prices for new renewable energy: Colorado Energy Plan approval will mean new renewable energy investments in rural Colorado8/28/2018
By Joe Smyth | joe@cleancooperative.com | @joesmyth
The Colorado Public Utilities Commission approved Xcel Energy’s Colorado Energy Plan yesterday, greenlighting the plan to close two units at the Comanche coal plant in Pueblo Colorado, and replace that power with a mix of new renewable energy and battery storage projects along with existing natural gas plants.
Xcel Energy’s plan attracted national attention this year due to the proposals for large scale battery storage projects and unprecedented bids for cheap new wind and solar energy. In Colorado, the plan attracted support from labor, business, environmental, and community organizations, thanks to its expected economic and health benefits. A report this week from the Colorado Fiscal Institute found that closing the two coal units would reduce air pollutants in Pueblo and Colorado, leading to fewer asthma attacks, emergency rooms visits, and other health problems. A June report from the Leeds School of Business at the University of Colorado Boulder found that the plan would create hundreds of new jobs, boost local tax revenue, and provide a net positive economic impact to the state - mostly by avoiding nearly $1 billion in coal purchases from Wyoming. 
By Joe Smyth | joe@cleancooperative.com | @joesmyth
Wind energy projects are increasing jobs, tax revenue, and lease payments to landowners in the Eastern Plains of Colorado - and in the process, attracting support from leaders of both major parties in the state.
State legislators and other officials joined Xcel Energy and wind turbine manufacturer Vestas this week to highlight the economic benefits of wind energy in eastern Colorado, with a tour of the 600 megawatt Rush Creek wind energy project. The wind energy project in Cheyenne, Elbert, Kit Carson and Lincoln counties is currently under construction, and is expected to come online in October 2018. “Wind is a huge win-win for rural Colorado,” said Shawn Martini, Vice President of Advocacy for the Colorado Farm Bureau. “Rush Creek is just one project and we’re poised to see even bigger investments should Xcel Energy’s Colorado Energy Plan be approved by the Colorado Public Utilities Commission, which, for the growth and health of our communities, we hope they do.” Xcel Energy’s Colorado Energy Plan would mean a major expansion of renewable energy in the state, including additional major wind energy projects in eastern Colorado. According to an analysis from the Leeds School of Business at the University of Colorado Boulder that was filed last week last with the Colorado Public Utilities Commission (PUC), the Colorado Energy Plan would result in net economic benefits in Colorado, including a net increase of 549 jobs.
By Joe Smyth | joe@cleancooperative.com | @joesmyth
Two reports this month provide new details about Xcel Energy’s Colorado Energy Plan, including a glimpse at even lower bid prices for new renewable energy projects in the state, and an analysis of the impacts of the plan to jobs and tax revenue in Colorado and Pueblo County.
Xcel Energy's proposal would close two of the three units at the Comanche coal plant in Pueblo, Colorado, and replace that power with a mix of new resources including 1100 megawatts of wind energy, 700 megawatts of solar energy, 275 megawatts of energy storage projects, and the purchase of 380 megawatts of existing natural gas capacity. The Colorado Public Utilities Commission (PUC) is considering the proposal, and several labor, environmental, business, and community groups in Colorado are engaged in that process. In January, we saw the bid prices for new renewable energy projects that Xcel Energy received, which showed that new wind and solar power in Colorado is now cheaper than existing coal plants. Those renewable energy project bid prices were so low, they attracted interest from a wide array of energy industry analysts and publications. But that earlier report only showed median prices of the bids that Xcel had received: $18/MWh for new wind energy, $30/MWh for new solar projects, and $36/MWh for solar with battery storage projects. This month, Xcel Energy filed a more in-depth report with the Colorado PUC, which provides additional details about the renewable energy project bids it received. And while the new report doesn't include pricing details for specific projects, it does show the price range of bids that came in below those median prices: The Preferred CEPP includes unprecedented low pricing across a range of generation technologies including wind at levelized pricing between $11-18/MWh, solar between $23-$27/MWh, solar with storage between $30-$32/MWh and gas between $1.50 - $2.50/kW-mo. The lower end of those ranges rival some of the record-breaking low solar energy prices we've seen in recent months around the sunny Southwest.
A glimpse of the "infinite scalability" of energy storage, and some other key takeaways from this very exciting utility bid solicitation
By Joe Smyth | joe@cleancooperative.com | @joesmyth
After I posted Xcel Energy’s report showing unprecedented low prices for renewable energy and storage bids, several energy industry experts added some helpful context and analysis of the implications of these bids.
Much of that discussion focused on the low bid prices for projects that would combine renewable energy with energy storage. The Xcel Energy report showed that the median bid price for solar and storage projects was $36/MWh, while the median bid price for wind and storage projects was just $21/MWh. There were also seven bids for combined wind and solar and storage bids, with a median price of $30.60/MWh. "The numbers in these bids are the lowest prices we have seen for any combination of renewable plus battery storage," said Ravi Manghani, director of energy storage at Green Tech Media. Matt Gray, Utilities & Power Senior Analyst at Carbon Tracker, added: “Based on our modelling, the median bid for wind plus storage is lower than the operating cost of all coal plants currently in Colorado, while the median solar plus storage bid is lower than 74% of operating coal capacity.”
By Joe Smyth | joe@cleancooperative.com | @joesmyth
Utilities in Colorado are planning to add a lot more renewable energy over the next few years, for a variety of reasons. I’ve looked at a couple of the trends driving this energy transition such as 100% renewable energy commitments from the utilities’ major customers, including towns and cities like Pueblo and Boulder, and major companies like Aspen Skiing Company, Google, Vail Resorts, IBM, Anheuser-Busch, and New Belgium.
But perhaps the biggest reason that utilities in the region are pursuing more renewable energy is that the low costs of wind and solar energy have continued to fall, opening up a huge market: replacement power for existing coal plants. Cheap renewable energy has already meant that when utilities needed new power generation in recent years, they have mostly chosen renewable energy. Nationwide, wind and solar power represented about two-thirds of all the new electricity generation capacity that was brought online in both 2015 and 2016, according to the US Energy Information Agency. But as the costs of building new wind and solar projects have kept dropping, renewable energy is now becoming cheaper even than continuing to run existing coal-fired power plants - as Colorado Governor John Hickenlooper recently noted, “Coal is no longer the low-cost fuel." |
Recent ArticlesUnited Power and La Plata Electric ask Colorado Public Utilities Commission to determine Tri-State exit fee
Colorado Rural Electric Association spent electric cooperatives’ money supporting Republican politicians Colorado Public Utilities Commissioner questions "whether or not Tri-State has been candid with us" Rural America could power a renewable economy - but first we need to solve coal debt Tri-State explores FERC rate regulation to limit state oversight Poudre Valley Electric sets "80 by 2030" carbon free goal Guzman Energy proposal would finance retirement of Tri-State coal plants, add 1.2 gigawatts of new wind and solar power Colorado Public Utilities Commission will oversee Tri-State resource planning Colorado communities and state Energy Office urge Public Utilities Commission oversight of Tri-State Reports examine the impacts of Tri-State's high wholesale power costs Tri-State executive involved with anti-Clean Air Act group since 2005 US Congressional Committee requests details of Tri-State funding to anti-Clean Air Act group Renewable energy projects stalled in 2018 among Tri-State member co-ops Second co-op asks Tri-State to pull “Better Together” ads Tri-State won’t allow co-op members to attend annual meeting Tri-State expects member co-ops to support bylaw changes at annual meeting Rocky Mountain Farmers Union calls on Tri-State to adopt flexible contracts and more clean energy Co-ops in Colorado push for change at Tri-State Will Municipal Energy Agency of Nebraska remain reliant on coal? Tri-State ad campaign tells co-ops they’re “better together” La Plata Electric concerned Tri-State debt will lead to higher rates Colorado Public Utilities Commission asserts jurisdiction over Tri-State More Colorado co-ops announce clean energy goals Ski industry climate change efforts shift to electric utilities and their regulators Public Utilities Commission rejects Tri-State motion to exclude Colorado Energy Office from exit charge case Tri-State claims that co-ops "have intervened on Tri-State's behalf at the PUC” don’t add up Colorado state legislators urge Public Utilities Commission to determine Tri-State exit charge United Power says Tri-State policies are turning away large customers Next PUC Commissioner John Gavan "consensus choice" of Governors Hickenlooper and Polis Tri-State policy change discourages battery projects in rural Colorado and New Mexico Colorado Public Utilities Commission orders Tri-State to "satisfy or answer" exit charge complaint from Delta Montrose Electric United Power seeks solutions to "increasingly outmoded G&T business models" Clean Energy Means Business Summit highlights renewable energy opportunities and challenges in rural Colorado Governor-elect Jared Polis says moving Colorado toward more renewable energy will be a top priority Electric cooperative officials discuss cheap renewable energy and an “eroding monopoly” Delta Montrose Electric members vote for new financing options, supporting a potential buyout of Tri-State contract Poudre Valley Electric requests Tri-State policy changes and fuel mix study Holy Cross Energy plans to shift away from coal, aiming for 70% renewable energy What do corporate renewable energy commitments mean for electric utilities? Colorado Energy Plan approval will mean new renewable energy investments in rural Colorado Report: Tri-State could save $600 million by shifting from coal to renewable energy Delta Montrose Electric seeks new financing options to end contract with Tri-State Wind energy jobs in rural Colorado attract bipartisan support Colorado Energy Plan analysis shows switching from coal to renewable energy will boost jobs and local tax revenue Poudre Valley Electric and Xcel Energy Colorado President win national awards from Smart Electric Power Alliance Latest coal plant subsidy proposal could hit electricity bills in the West Moody’s report: “High quality renewable resources” could help Tri-State and Basin Electric navigate rising carbon transition risks Senator Heinrich highlights “frustrations in New Mexico” with Tri-State’s limits on local solar Moody’s report shows Tri-State’s coal plants are more expensive than new renewable energy Tri-State’s limits on local energy development are a growing problem for co-op members Governor Hickenlooper discusses Tri-State at the Climate Leadership Conference Bids for Xcel’s Colorado Energy Plan include a proposal for the world’s largest battery New wind and solar power in Colorado is now cheaper than existing coal plants Companies' 100% renewable energy goals are getting results in Colorado What does cheap solar mean for electric cooperatives? Colorado towns and cities are helping push utilities to embrace renewable energy How are electric cooperatives navigating the transition from coal to cheap clean energy? Blocked from building more solar projects, United Power shifts to community batteries Economic reality sets in for Tri-State efforts to expand the Holcomb coal plant Solar projects in the works in Grand and Jackson counties Mountain Parks Electric grapples with solar Categories
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