Problems with New ERCOT Report on EPA Clean Power Plan

The Electric Reliability Council of Texas (ERCOT) released a report yesterday titled “ERCOT Analysis of the Impacts of the Clean Power Plan” regarding the costs, benefits, and concerns of Texas’ compliance with Environmental Protection Agency’s (EPA) proposed Clean Power Plan. The Clean Power Plan, put forth by the EPA on June 2, 2014, would set new national carbon pollution standards, in an effort to combat the effects of climate change and air pollution. ERCOT, which operates the electric grid of Texas and manages the deregulated market for 75 percent of the state, concluded that there are reliability concerns and high costs associated with the changes necessary for the electric grid infrastructure and the shift to alternative low-carbon energy sources.

Environmental advocacy organizations such as the Environmental Defense Fund, the Sierra Club, and Public Citizen have begun commenting on this report, which they claim overstates the costs of compliance while understating the benefits of solar and energy efficiency. Not only does ERCOT’s report fail to take into account the affordability of solar energy and energy efficiency, it also neglects the steps that electric utility companies have already taken towards clean energy. Various electric utilities in Texas have been retiring inefficient coal plants and gas units in favor of adopting solar and wind energy projects. ERCOT’s own monthly interconnection report shows that more than 30,000 MW of solar and wind projects are in development stages. Texas’ energy storage and demand response capacities are also missing in the report. These two resources provide real-time reactive power when there is turbulence in wind and solar inputs, which would maintain a reliable power grid as Texas transitions to renewable energies.

The Clean Power Plan is a crucial step in reducing climate pollution and our dependency on dirty coal and other fossil fuels. The benefits of clean and affordable energy in Texas cannot be overstated. ERCOT should take the time to reevaluate the role of renewable energies in Texas’ future.

Download our presentation on our view of the plan here update New ERCOT Cost Estimates