Energy Advisory Committee

ENERGY ADVISORY COMMITTEE MEETING REPORT

DOCUMENTS/EXHIBITS USED AT MEETING:

Movie Summary

Renewable Energy Solutions Discussion

The group watched a movie, How to Power a City, about renewable energy and climate change, discussing its relevance to their work. They explored how solar and wind power could address energy needs in various communities, including Puerto Rico and New Jersey. The discussion highlighted the importance of clean energy solutions, particularly for environmental justice communities, and the challenges of implementing renewable energy projects.

Questions for Movie

1. One of the communities replaced grid based streetlights with stand alone streetlights, each of which has its own solar panel and battery for storage.  Is this more cost effective than just adding more solar power to cover the electricity cost of standard streetlights?  Would these be a solution for areas that do not have easy access to a power line, but otherwise more expensive?
2. Our local experience with wind is that maintenance is too expensive for a single wind tower, one needs a farm to amortize the costs and gain expertise.  Seems our hope is offshore wind.
3. What about other renewables like geothermal and tidal power?  We are at a corner of a river and the ocean.  Yet every time we have asked about geothermal it turns out to be the most expensive option.
4. Do you have any projections of the installed cost of renewables as the IRA incentives go away?
5. Do you have any cost comparisons for solar, wind, and geothermal along with any rules of thumb for deciding if they might be viable or not?
6. Many of the projects in the movie were instituted because of an acute problem: pollution, storm damage, economic justice.  Do you have any suggestions for gaining wide public support when there isn’t a visible acute problem in communities that are more sensitive to cost benefit analysis?
   
   
   Municipal Energy Procurement Market Update

Quick recap

The meeting focused on energy market updates and strategies, with Brandon from Constellation presenting on wholesale power prices, natural gas dynamics, and renewable energy portfolio standards in New England. The discussion covered how hydroelectric power from Canada and new offshore wind projects would impact pricing, with Brandon explaining that while these developments would benefit the region by lowering costs, the risks would be borne by Massachusetts ratepayers through fixed-price contracts. The group explored options for managing various cost components, including passing through renewable energy credits and ancillary costs, while considering the implications of these strategies on billing and risk exposure.

The meeting focused on energy procurement and market updates for municipal buildings in Newburyport. Brandon Fong, a principal from Constellation, explained the structure of electricity bills, highlighting that 50% is for generation/supply and 50% for transmission and distribution. He outlined the various cost components of electricity, including energy costs (dependent on natural gas prices), capacity charges (for grid reliability), and renewable energy requirements. The group discussed the upcoming market watch for purchasing starting in November and the need to decide whether to renew the contract with Constellation for municipal buildings.

Massachusetts Energy Supply Dynamics

Brandon explained the components of energy supply costs in Massachusetts, highlighting the significant impact of aggressive clean energy standards compared to other states. He detailed how natural gas prices in New England are influenced by factors like LNG imports and European demand, noting a backward dated curve due to regional dynamics. Mike inquired about managing renewable energy credits and natural gas correlations, to which Brandon clarified the current market constraints and trading strategies. They also discussed how recent policy decisions, like allowing oil generators to run during cold snaps, contributed to regional reliability and price stability.

New England Energy Price Dynamics

Brandon explained the impact of wholesale power and natural gas prices in New England, highlighting how cold weather increased costs significantly. He discussed the New England Clean Energy Connect hydro line, which came online in January but initially didn't send power to Massachusetts due to high demand in Quebec. Brandon clarified that while the hydro line could provide up to 1,200 megawatts, only 1,090 megawatts were contracted at $59 per megawatt hour, with a contract for differences arrangement to manage price risks for ratepayers. He also explained the role of oil generators in maintaining grid stability during the cold winter.

Energy Initiatives and Sustainability Updates

The meeting covered several key topics related to energy and sustainability initiatives. Brandon explained how the hydro line project produces clean energy certificates that fulfill Massachusetts' Clean Energy Standard. Molly and Charlotte discussed strategies for managing energy costs, including passing through certain components like RPS and clean peak standards while locking in others like ancillaries.

The group reviewed updates on various solar projects, including interconnection processes and PPA agreements. They also discussed changes to Mass Save programs and their potential impact on residential and commercial customers. Greg announced an upcoming NESSE conference in Boston that focuses on energy and buildings. The conversation ended with a discussion about a recent film on storm surge and its relevance to energy infrastructure.

Next steps

Mike: Refine the questions for the movie director/producer, send them out to the group for review/correction, and coordinate with the Resiliency Committee for the upcoming screening and discussion.

Charlotte: Bring the question about studies comparing geothermal, solar, and wind (pros/cons/costs) to the Constellation/Exelon renewables team and report back to Molly.

Charlotte: Work on breaking out the city’s accounts for energy procurement (e.g., separate buckets for accounts needing renewable energy certificates, large interval accounts, etc.), obtain an account list, and coordinate with Molly to highlight which accounts should be handled differently.

Molly/Don: Schedule a call with the architect (Scott) and relevant team members next week to confirm structural requirements (e.g., supplemental steel) for the planned solar installation on the roof, and ensure all electrical requirements are understood and communicated to avoid cost surprises.

Molly/Don: Confirm with Rick (legal/PPA advisor) the city’s liability for potential 10% price increase if ITC (Investment Tax Credit) is not received, and clarify risk allocation in the PPA.

Molly/Don: Coordinate a 15-minute call between the city’s lawyer and the solar developer’s lawyer to resolve the liability issue regarding low-income community solar aggregation and potential penalties.

Molly/Don: Follow up with Andy Port and the planning office to review and implement new state siting policies for clean energy in Newburyport.

Mike: Send Greg’s NESSE conference link to the listserv for broader distribution.

Mike: Send Greg an invite to the listserv for meeting notices.

Molly /Team: Review and update Mass Energize website content, particularly incentives and program details, and consider obtaining a unique domain name for Energize Newburyport.

Molly/Don: Await and review pricing from Select (solar PPA provider) for the new solar project, and confirm details with Rick when available.

Molly/ Team: Continue to monitor and pursue Green Communities grant (due April) for potential projects at the high school, water treatment, Senior Center, and EV charging.

Molly/Mike: Coordinate with new chief of staff to advance the EV First Policy and decarbonization plan to qualify for climate leader status and new funding opportunities.

Brandon: Send the presentation deck to Molly for distribution to the group.

Charlotte: Work with Molly to determine which accounts should have different cost component handling (e.g., pass-through vs. fixed) for the upcoming energy supply contract