A recent study shows Maryland's electric grid is well positioned to manage the transition to electrification as outlined in the state's climate goals.
In the 2022 Climate Solutions Now Act, the state pledged to achieve net zero greenhouse gas emissions by 2045.
The act also directed the Public Service Commission to study energy production and distribution capacity to determine if the transition away from fossil fuels for space and water heating would strain the grid.
The report assessed the impact by looking at three different electrification scenarios, and estimated demand growth would be at most just over 2% per year between now and 2031.
Lead study author Sanem Sergici, Ph.D. - the principal at the The Brattle Group - said these peak demand scenarios appear modest next to growth rates seen in the past.
"We think that this will be quite manageable, especially if you compare it to the growth that Maryland's system has experienced in the past," said Sergici. "We looked back 40 years, and we have seen periods in which Maryland peak demand has grown at 4%, 5%."
She said utilities were able to increase capacity in the 1980s without large price hikes to ratepayers.
Electricity demand currently peaks in the summer, but the report anticipates the electrification of heating will cause a switch to winter peaking by the end of 2027.
The study focused on electrification in residential single and multifamily housing and large office buildings.
Assuming the widespread adoption of heat pumps in coming years, the study looked at three scenarios in which backups for the coldest hours of the year are maintained.
Scenario 1 assumes the continued use of heating oil or propane as backup, and would result in the smallest increase in load demand per year at just over 0.5%.
Scenario 2 posits the use of cold-climate heat pumps, which do not require backup - their impact on demand is just over 1% per year.
Continued use of baseboard heating is assumed in scenario 3 and would increase demand just over 2%. The report looked at the system as a whole and does not say when and where upgrades will be needed.
Sergici said the study conclusions do not mean no investment will be necessary.
"Even though this is manageable at the system level," said Sergici, "utilities should be doing their own detailed and very granular distribution planning studies to figure out where they will need to expand the capacity of the grid early on, so that they can get ahead of some of those challenging problems. "
The report also says that with more energy-efficiency and load-flexibility incentives, the state could see reductions in demand of as much as 1% per year, offsetting at least part of the load growth from electrification.
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Despite last-minute concessions in the Trump administration's budget, which removes alternative energy tax incentives, rural Alaska power providers now face huge obstacles to distributing power to the most rural and isolated parts of the state.
Investments in wind and solar power now face an uphill battle. Alaska's extreme weather and challenging geography already make power generation difficult and expensive. Now, with fewer incentives to diversify, the state's most isolated places will be forced to continue relying on fossil fuels for their electricity.
Pierre Lonewolf, board member of the Kotzebue Electric Association, said the loss of tax incentives means critical alternative energy programs are dead in the water.
"That has put the kibosh on our wind projects, which we are partnering with the local tribe to install two more megawatt wind turbines, another megawatt or so of solar," Lonewolf explained.
Sen. Lisa Murkowski, R-Alaska, voted for the budget bill but only after she worked to secure some alternative energy tax incentives and funding for Native whale hunters back into the measure in the debate's eleventh hour.
Lonewolf added village and tribal members have worked to move away from diesel fuel for power generation and said a lack of incentives to diversify to wind and solar will fall directly on rural Alaska's consumers who need affordable power to heat their homes.
"We don't want to have to raise our prices on electricity but we have to cover our costs to pay our people," Lonewolf acknowledged.
Kotzebue is a gateway for the diesel fuel powering 10 villages in rural Alaska. What Lonewolf called a war on renewable energy will only cause prices to keep rising in parts of the state that can least afford it.
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Renewable energy got short shrift in the budget bill passed by Congress last week and a New Mexico trade association said companies and their employees will suffer.
The bill quickly phases out tax incentives and investments for wind and solar power passed under the Biden-era Inflation Reduction Act.
Jim DesJardins, executive director of the Renewable Energy Industries Association of New Mexico, said both consumers and businesses in the solar industry have made huge investments due to the incentives.
"There's people who've got loans on their homes, and overnight this bill is going to pull the rug out from underneath them," DesJardins asserted. "This will destroy thousands of businesses, will put tens of thousands of people out of work, for what? Why are we doing this?"
Since passage of the Inflation Reduction Act in 2022, a boom in renewable energy has led to more than $300 billion in spending. Another $500 billion dollars was allocated for clean energy projects but those could now be abandoned.
New Mexico is the second-largest crude oil producer in the U.S. and with more than 300 days of sunshine, it is considered among the top 10 states for potential solar development. Most experts are not predicting a collapse in the renewable energy industry but without federal subsidies and tax credits, solar and wind farms could become more expensive.
After signing a contract, DesJardins pointed out it can take years to get a solar project off the ground and Trump's new bill would let incentives expire before the end of 2027.
"There's just so much uncertainty for a large solar project you can't say, 'Oh, we're going to put it into operation on this day.' It just doesn't work like that," DesJardins stressed. "We need to stop this herky-jerky way of doing policy whether it's for farmers, whether it's for renewable energy, it's just very counterproductive."
Despite the setback to wind and solar, DesJardins believes renewable industries will persevere, one way or another.
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After being debated for days, Sen. Mike Lee, R-Utah, and Sen. John Curtis, R-Utah, are among those who voted to advance the "One Big Beautiful Bill Act" to push President Donald Trump's agenda forward.
Curtis was one of a handful of Republicans who wanted to preserve clean energy tax credits but the Senate made major cuts to tax incentives for wind and solar projects. Now, the bill does not allow for a project to get the tax credit if it does not begin producing electricity by 2028.
Sean Gallagher, senior vice president of policy for the Solar Energy Industries Association, said the change could reverse years of progress and innovation.
"It has really devastating impacts," Gallagher emphasized. "Not just to the solar industry, but to American energy security and national security. Solar energy is putting more new power on the grid than every other fuel source combined in the last several years."
Curtis was able to remove a provision that would've enacted a new tax on solar and wind projects and ended a ban on solar leasing. While Curtis expressed gratitude to Senate leaders for including his changes, Gallagher hopes the concessions do not hinder the industry's ability to meet demand. The budget bill now goes back to the U.S. House for what could be the final vote.
Projects started before the bill is enacted would be protected from penalties and setbacks. Current projects would also retain all of their tax-credit value through December 2027. Gallagher argued the tax credits, passed under the Inflation Reduction Act, are working.
"Every dollar spent on clean energy tax credits has a $2.67 return in the form of lower energy costs for consumers, and taxes paid by clean energy infrastructure projects, mostly property taxes," Gallagher pointed out.
The Trump administration has called for energy dominance and so far has focused on supporting more development of fossil fuels over renewable energy. And while wind and solar energy are still popular across the board, recent polling indicates some people, especially Republicans, are less supportive of renewable energy than in Trump's first term.
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