New study shows benefits of added renewable energy capacity in New England
A new study revealed that additional renewable capacity in New England will lower energy market prices and provide significant cost savings for consumers.
The study — conducted by Daymark Energy Advisors and commissioned by the American Clean Power Association (ACP) — analyzed the market and environmental benefits of 1,200 megawatts (MW) of incremental land-based renewable capacity for the New England region.
Specifically, it focused on clean energy resources sited in northern Maine, which is the location of most proposed large-scale, land-based renewable projects in the region. But while the modeled projects are located in Maine, the ISO New England (ISO-NE) market is operated and dispatched as an integrated system, thus, wholesale price reductions would be seen across the region.
“This study quantifies the customer savings and environmental benefits of using more clean energy in the Northeast region,” Moira Cyphers, director of Eastern State Affairs for ACP, said. “This is a win-win. Clean energy provides significant cost savings for customers, reduces greenhouse gas emissions, and will bring good jobs to Northern Maine – promoting a healthier and more prosperous future for all.”
The analysis studied two cases: a wind only case with 1,200 MW of land-based wind and a wind and solar case with 900 MW of land-based wind and 300 MW of new solar. As a large source of low-cost, non-emitting energy, the report found that the addition of renewable projects will reduce the need for the ISO-NE to dispatch inefficient and expensive fuel-fired resources, lowering wholesale energy market prices and providing significant energy cost savings for consumers in New England states.
In addition, it said that long-term contracts for clean energy will protect Maine from the kind of price volatility that has led to recent price spikes in the cost of energy.
Overall, the analysis quantified the region’s total savings at $277 million per year in the wind only scenario and $210 million per year for the wind and solar scenario. Massachusetts would be the largest beneficiary of these developments, with a projected $129 million per year savings in the wind only scenario and $99 million in the wind and solar scenario.
In addition to lowering the costs of energy supply, the report found that the addition of clean energy capacity would reduce the total regional emissions from the power supply sector. Specifically, the report projected that adding the 1,200 MW of new renewable capacity will result in a reduction of 1.9 million metric tons of carbon emissions every year in the wind only scenario and 1.7 million metric tons of carbon emissions reduced in the wind and solar scenario.
