More Energy Changes in Rhode Island in Last Year than Last 30

Friday, August 07, 2015

Kate Nagle, GoLocal Contributor

In the past few weeks two new massive new natural gas energy projects have been announced that would transform Rhode Island’s energy infrastructure and may raise concerns by residents and environmentalists. The two projects - the expansion of liquefied natural gas (LNG) to be located at the Port of Providence and a $700 million gas energy plant in Burrillville.

The two developments join alternative energy projects including Deepwater Wind, which recently broke ground on its pilot wind farm off of Block Island, and the addition of Solarcity and Dividend Solar to the burgeoning solar market in the state.

"The cost of energy is one of the important factors considered in making business location decisions and in expanding current businesses. Energy costs and alternative energy sources are particularly important to manufacturers and to most businesses, small and large, and in every business sector because each penny saved on energy costs and energy taxes adds to the company's profit," said URI Distinguished Professor of Business Edward Mazze. "State government has had no choice but to take action to bring down the cost of energy. Rhode Island is a good testing ground for different sources of energy because of its size and businesses."

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Phil Meachin with Dividend Solar, which recently was announced as part of the state's new solar program, spoke to expansion of the alternative energy option in Rhode Island.

"People choose to go solar for a variety of different reasons: to save money, to help the environment in their local community, to be independent from their utility company. The cost of going solar has come down dramatically in recent years, and now solar makes sense in many parts of the country from a financial perspective," said Meachin, Dividend's Vice President for Strategy and Communications. "In Rhode Island, the new program makes going solar an absolute “home run” from an economic perspective – homeowners who get solar installed will save money immediately while also making the switch to renewable energy."

Natural Gas in Focus

According to a press release sent by Governor's office in early August, the proposed natural gas fired power plant in Burrillville is expected to bring new jobs to the state and generate 900+ megawatts of new, clean energy for New England's regional grid.

Invenergy says it plans to invest more than $700 million in the new plant and hire more than 300 local workers to build and operate the facility. The Clear River Energy Center says it also will contribute millions of dollars in tax revenue each year to the Town of Burrillville.

"Rhode Island needs a diverse array of energy sources along the continuum to improve availability and reliability for business, particularly to serve advanced manufacturing. We were early supporters of off shore wind for precisely the same reasons: adding a diverse source of new power to the grid and displacing older, less efficient assets," said Laurie White with the Greater Providence Chamber of Commerce. "Energy costs in RI and throughout much of New England are a major expense driver for business."

White acknowledged the protestors who were present at the kick-off event at the Chamber on Tuesday.

"Energy policy draws protestors. Whether it is wind, solar, hydro, gas, oil, coal, nuclear etc, there are activists with competing messages," said White.

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Opponents of a proposed LNG project a the Port of Providence are planning to turn out to an upcoming neighborhood meeting at Juanita Sanchez on August 13, to speak out on the proposed development.

In July, National Grid made the case for a the new LNG facility off of Allens Avenue.

*To maintain supplies, National Grid currently relies on imported liquefied natural gas or supply from areas outside New England, which is trucked to local storage facilities. National Grid LNG, LLC, a National Grid subsidiary, is now proposing to create its own source of liquefied natural gas by building a facility at its existing Fields Pt. storage area on Terminal Road in Providence. The facility would take natural gas from the local distribution system, cool it to a liquid state and store it in the existing tank, which has operated safely and reliably in this industrial area for many years," said National Grid in a prepared statement.

The group of opponents organized including the Environmental Justice League of Rhode Island are set on stopping the project for a myriad of reasons, including environmental and safety concerns.

"There are too many risks: On July 22 there was an earthquake at this exact spot. The site is on the wrong side of the hurricane barrier and is highly at risk for climate change sea level rise or hurricanes. An explosion or leak anywhere in the Port would be devastating," wrote the opposition group on their Facebook page.

Alternative Energy Developments

After years of preparation -- and contention, Deepwater Wind touted breaking ground with the first "steel in the water" for the first offshore wind farm in the U.S. on July 27.

“We know the world is watching closely what we do here, and we’re incredibly proud to be at the forefront of a new American clean-tech industry launching right here in the Ocean State,” said CEO Jeffrey Grybowski. “This moment has been years in the making – and it’s just the start of something very big.”

According to Deepwater, "Throughout the last decade, offshore wind has experienced major technological breakthroughs. Those breakthroughs have greatly lowered the cost of building and servicing these clean energy plants. And, since offshore wind is strongest when energy is needed most—in the middle of the day and early evening—it will help to stabilize electric rate."

At least one RI taxpayer group, however, is contesting any cost-savings assessment.

"While everyone is pulling for inexpensive, reliable renewable energy sources, they simply aren't here yet. Not only are renewables extremely expensive and unreliable, the ability to store their power, a vital component of the transition to a wider use of renewable energy, is limited to non-existent," said Monique Chartier with RI Taxpayers. "Deepwater Wind has become Exhibit A of the enormous drawback - extremely high cost - of renewable energy. Far from being a noble achievement, as some view this boutique generating project, prior state officials simply heaped yet another burden onto Rhode Island residents and businesses by compelling us all to purchase Deepwater's very expensive electricity. Rate payers are counting on current state officials to see the folly and unaffordability of Deepwater Wind and veto the main phase of the project."

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While the debate over Deepwater doesn't appear to be abating anytime soon, the state is touting the growth of another alternative energy -- the solar industry.

"Electricity prices have escalated over the last 35 years between 4-5% annually," said Russell Maymon with Tecta Solar, who is involved with commercial solar projects in the state. "The bulk of our nation’s power is generated through the combustion of fossil fuel based resources that are unsustainable. Why not transition over to a sustainable source of power where once the investment is made in the equipment the cost will remain stabilized through the life of the panels."

"It's much bigger than where things were at even five years ago, when there was primarily just some residential solar projects in RI," said Maymon. "I'm currently working in Exeter on a project that's 1.25 megawatts and a 1 megawatt one in North Smithfield."

Maymon explained the two commercial solar incentive programs currently in Rhode Island.

"There's the REG -- renewable energy growth program -- that's an investment based program where you bid the rate that you’ll receive for the power you produce," said Maymon. "You sell the power to the grid. If you're under 250 kilowatts, that rate is 24.4 cents per kilowatt hour currently. If you're 250 kWto a megawatt, 20.95 cents is the max bid, anything over a megawatt is capped at no more than 16.7 cents per kWh."

Rhode Island's Commerce Corporation has a rebate program, which Maymon says in his opinion "an even better program."

"The REG program locks you in for a rate for twenty years," said Maymon. "If you're a manufacturer or other large user of power—say CVS -- and you use a lot of power -- you might be paying a lot more. So where you have an existing load, you can put the solar on site, you can get a one-time rebate of up to $ 350K for at least a year....and it's a tiered rebate program. And you can sell your renewable energy credits. With the state rebate, the energy savings and the tax credits it equates to about a 2 year payback on the investment."

More Energy Changes in Rhode Island in Last Year than Last 30

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More Energy Changes in Rhode Island in Last Year than Last 30

Related Slideshow: The Top Paid CEOs in Rhode Island

#9

Jason P. Macari

#8

Jeffrey M. Thompson

#7

Joseph J Marcaurele

#6

Martin A. Kits Van Heyningen

#5

Michael J. Clarke

#4

Steven L Spinner

#3

Scott C Donnelly

#2

Brian Goldner

#1

Larry J. Merlo

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