Source: Al Braden
In September, we announced that Austin Energy, Austin’s public electric utility, kicked off its process for updating the utility’s Resource, Generation, and Climate Protection Plan (Resource Plan), providing Austinites with an extremely important opportunity to improve and expand our renewable energy and energy efficiency goals and programs.
In a nutshell, every two to three years, Austin Energy updates what is essentially the utility’s master plan through a routine process: the city’s Electric Utility Commission (EUC) appoints a Resource Planning Working Group to write and vote on recommendations for changes; the recommendations passed out of the Working Group then go to the full EUC as well as the Resource Management Commission for a vote; and ultimately, the full City Council will debate, vote, and possibly amend the final recommendations. Here is a brief synopsis of the goals City Council passed in the last update in 2017:
- 65% renewable energy by 2027 and studies to model higher goals (see below)
- Retirement of Austin’s share of the Fayette coal plant by the end of 2022 and the Decker natural gas steam plant by end of 2021
- At least 40 MW of electric and thermal storage by 2027
- At least 900 MW of energy efficiency and demand response by the end of 2025, and an additional 100 MW of energy efficiency by 2027 if achievable and affordable
- At least 200 MW of local (within Travis County) solar by 2025, including 110 MW of customer-sited solar
So where are we in this process?
Since publishing our last blog, the working group started meeting, and the process is going forward at a moderate pace. The foundation of the new recommendations will come from the results of the studies that Austin Energy was directed to undertake out of the last update. Over the last four weeks, results came in from several studies: high renewable energy goals and battery storage, energy efficiency and demand side management, and local solar goals.
The first study tackled various renewable energy goals, including sourcing 65%, 75%, and 80% of our energy supply from renewable sources by 2030, going carbon-free by 2030 (about 77% renewable and 23% nuclear energy), and reaching 100% renewable energy by 2035. These models showed very modest cost increases for pursuing any level of additional renewable energy (beyond our current 65% goals) or going carbon-free.
The studies also show that it is feasible to dramatically increase energy efficiency goals to 1,350 MW by 2030, which can help customers save money on their bills -- though utility investments in energy efficiency programs would have to increase significantly to get there. They also show Austin Energy could meet larger goals by investing in our local solar (meaning rooftop solar on Austin houses and smaller solar farms here in Central Texas), reaching 350 MW by 2027.
However, Austin Energy staff interpreted the direction from a couple of the council resolutions differently than the community expected. They modeled the “100% renewable energy” scenario to simulate Austin meeting 100% of its demand with renewable energy but also assumed Austin Energy would sell natural gas and would continue to rely on the nuclear plant. The “carbon-free model,” on the other hand, doesn’t include selling electricity from fracked natural gas plants, but this scenario’s goal meets only 65% of Austin’s demand with energy that we own or have contracted with. It relies on our nuclear plant for 23%, and buys the remaining 12% of energy from the Texas market.
Among the input data in itself that went into modeling, Sierra Club staff and other environmental advocates believe that Austin Energy did not use the most accurate pricing modeling for the cost of solar, wind, and especially batteries (the latter of which were shown to not be price competitive until potentially 2030). Nevertheless, Austin Energy will be looking at updating their inputs when running additional scenarios.
Several working group members and affiliated organizations have also voiced concerns about the continuing lack of diversity and representation of communities of color on the Working Group.
Where are we going?
Despite the imperfect start, negotiating to improve Austin’s renewable energy and energy efficiency goals has hit the ground running. After reviewing the studies and submitting questions, the Working Group has shifted its focus onto not only discussing how to correct the mistakes in the initial studies, but also what additional scenarios we want to run to inform the Working Group’s ultimate recommendations. Fortunately, almost all of the additions range from benign to really good, including the following, most of which assume retirement of all Austin Energy-owned coal and gas resources:
- Carbon-free by 2030, 77% renewable energy and 23% nuclear energy;
- Carbon-free by 2030 with additional energy efficiency goals (to help save people money and reduce peak demand costs)
- Carbon-free by 2030, 85% renewable (generating more energy than demand allows the utility to earn extra revenue)
- Carbon-free by 2030 with higher local solar goals (as opposed to solar farms out in west Texas)
- 100% renewable energy by 2035, including phase out of nuclear power
- Carbon-free by 2030 with phasing out the Sand Hill combined cycle natural gas power plant by 2025
- Carbon-free by 2025
- Net Zero by 2030 (same as carbon-free by 2030 above except selling fracked natural gas when profitable and buying carbon offsets for this dirty power)
- Keeping our current 65% renewable energy (along with 23% nuclear) and buying carbon offsets for the remaining 12% of energy
How Austinites can help!
To keep the Working Group on track and make this process more accountable, community input is a crucial next step. Community members regularly attending and speaking at Working Group meetings are essential to pushing Austin to lead not only on energy issues but also on equity and justice in how the city prioritizes, plans, and carries out our clean energy transition. The Working Group will meet every two weeks from 4-6pm, at the Town Lake Center (Austin Energy office) 721 Barton Springs Rd, Austin, TX 78704 for the remaining dates:
- November 7, 21
- December 5, 19
Attend, give public input, and even contact your City Council members to let them know you want a just transition to a carbon-free Austin Energy!