By: Joshua M. Pearce, Michigan Technological University

Within the next month, energy watchers expect the Federal Energy Regulatory Commission to act on an order from Energy Secretary Rick Perry that would create new pricing rules for certain power plants that can store fuel on site to support grid resilience. This initiative seeks to protect coal-fired and nuclear power plants that are struggling to compete with cheaper energy sources.

Perry’s proposed rule applies to plants that operate in regions with deregulated power markets, where utilities normally compete to deliver electricity at the lowest price. To qualify, plants would have to keep a 90-day fuel supply on site. Each qualified plant would be allowed to “recover its fully allocated costs.”

In other words, plant owners would be able to charge enough to cover a range of costs, including operating costs, costs of capital and debt, and investor returns. Federal Energy Regulatory Commission Chair Neil Chatterjee has stated that the extra money to keep coal and nuclear plants running “would come from customers in that region, who need the reliability.”

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By: Joshua D. Rhodes, University of Texas at Austin

The electric grid is an amazing integrated system of machines spanning an entire continent. The National Academy of Engineering has called it one of the greatest engineering achievements of the 20th century.

But it is also expensive. By my analysis, the current (depreciated) value of the U.S. electric grid, comprising power plants, wires, transformers and poles, is roughly US$1.5 to $2 trillion. To replace it would cost almost $5 trillion.

That means the U.S. electric infrastructure, which already contains trillions of dollars of sunk capital, will soon need significant ongoing investment just to keep things the way they are. A power plant built during the rapid expansion of the power sector in the decades after World War II is now 40 years old or older, long paid off, and likely needs to be replaced. In fact, the American Society of Civil Engineers just gave the entire energy infrastructure a barely passing grade of D+.

The current administration has vowed to invest heavily in infrastructure, which raises a number of questions with regard to the electric system: What should the energy grid of the future look like? How do we achieve a low-carbon energy supply? What will it cost?

Infrastructure seems to be an issue that can gather support from both sides of the aisle. But to make good decisions on spending, we need first to understand the value of the existing grid.

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Sadoway’s research seeks to establish the scientific underpinnings for technologies that make efficient use of energy and natural resources in an environmentally sound matter.
Credit: MIT

Donald R. Sadoway – a prominent member of The Electrochemical Society and electrochemist at the Massachusetts Institute of Technology in Cambridge – has led a team of researchers at MIT to improve a proposed liquid battery system that could help make sources of renewable energy more viable and prove to be a competitor for conventional power plants.

This from MIT News:

Sadoway, the John F. Elliott Professor of Materials Chemistry, says the new formula allows the battery to work at a temperature more than 200 degrees Celsius lower than the previous formulation. In addition to the lower operating temperature, which should simplify the battery’s design and extend its working life, the new formulation will be less expensive to make, he says.

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