CEOs emphasize ensuring reliable, affordable power throughout clean energy transition
PHILADELPHIA — The CEOs of some of the nation’s largest electric power companies discussed navigating the clean energy transition while maintaining reliability and affordability at the Edison Electric Institute (EEI) conference in Philadelphia this week.
Outgoing EEI Chairman Lynn Good, Duke Energy’s chairman, president and CEO, noted during a panel discussion that the industry has achieved emissions reductions of approximately 30 percent and that many companies have set goals of 50 percent reduction by 2030 and 80 percent to near zero emissions by 2050.
“[Customers and stakeholders] do want to see a cleaner product,” Xcel Energy Chairman, President and CEO Ben Fowke said. “They do want to see us reduce carbon emissions, but they don’t want to see us do it at the price of affordability or sacrificing reliability. So, I think this transition will happen because customers want it, but it has to happen at the speed of value that technology brings.”
Fowke, who was recently elected EEI vice chairman, also noted that reducing emissions from electricity generation enables emissions reductions in other sectors, such as transportation through the use of electric vehicles.
Chris Crane, president and CEO of Exelon Corp. and new EEI chairman, along with Good, echoed Fowke’s emphasis on clean energy, reliability and affordability.
“I think that communication about, ‘we want to be a part of the solution, we are making progress, we are deploying the technology, we’re maintaining an eye on affordability and reliability,’ is something we have to talk early and often about so that we end with a solution that really makes sense not only for our companies but for the country,” Good said.
The panel also said the industry will need new technologies to reach its emissions reduction goals past 2030.
“… Beyond 2030, there has to be development of technology,” Good said. “There has to be research and development. We’re looking for tools that don’t exist today — batteries, small modular nuclear, carbon capture and perhaps things we haven’t even thought of.”
Crane noted that hydrogen and new energy storage technologies may play a role in the future.
“… We need to continue to do the research and development on those technologies, those dispatchable technologies that are carbon-free, that will allow us to have grid health and achieve the kind of goals that we’re talking about,” Fowke said.
The panelists also noted other areas in which innovation is needed including distribution system controls, regulatory models and permitting processes.
“We need to continue to advance the regulatory model,” Crane said. “Formulaic recovery doesn’t work when you’re pushing your customers to use less of your product.”
The CEOs also discussed the role of nuclear and natural gas in the energy transition, noting their potential value as bridge resources on the path to a 100 percent renewable or clean energy grid.
Crane discussed how shutting down nuclear plants can lead to increased emissions and noted that more environmental organizations have begun to support preserving existing nuclear plants.
Fowke said that dispatchable resources like nuclear are important for complimenting renewable energy resources, while Good discussed how natural gas has helped the industry to reduce coal use and enable increased use of variable renewable energy resources.
“… We are advocates of taking advantage of the technology that’s affordable and reliable today … but also making the investments that we see that will be necessary in order to continue the progress,” Good said.
