Recent reports indicate that some clean energy initiatives in New England will be delayed by up to five years. This comes as a major setback for the region, which has been working hard to reduce its reliance on fossil fuels.

One of the most important aspects of the transition to clean energy is the development of new infrastructure. This process is often slow and expensive, and it requires significant coordination between different stakeholders. In New England, much of the necessary infrastructure is already in place. However, there are still some major projects that need to be completed before the region can fully transition to renewable energy sources.

One of the biggest obstacles to the completion of these projects is the ISO New England minimum offer price rule. This rule requires that all power plants in the region offer their electricity at a minimum price of $0.02 per kilowatt-hour. This price is significantly higher than the cost of producing electricity from renewable sources, and it makes it very difficult for new clean energy projects to compete against existing fossil fuel plants.

According to Boston Globe, “the minimum offer price rule was created to help insulate fossil fuel power plants from having to compete against renewables that cost less due to state programs and subsidies that exist to help foster clean energy development. It created a floor below which a developer cannot bid, meaning that those less expensive energy supplies, like large-scale offshore wind or solar, aren’t able to compete.”

The result has been more fossil fuel companies winning bids with the fear of a lapse between renewable and old fuel sources as the switch is made. Adding to the problem may be a brand new decision to delay implementation. Independent System Operator New England, also known as ISO or ISO-New England, has embraced a proposal for a phased approach of project implementation for renewables, setting back efforts by years.

Many have criticized the move as failing to recognize the severity of climate change and how soon change needs to happen. Massachusetts has pledged to reduce greenhouse emissions by at least 50% by 2030, and with only eight years to go, the current landscape for renewable projects will need some significant help to reach these goals.

“This is a really terrible idea,” said Mary Anne Hitt, director of the Sierra Club’s Beyond Coal Campaign. “It would be like if the FDA decided to phase out cigarettes by allowing tobacco companies to keep selling them for another five years.”

Unfortunately, the ISO New England minimum offer price rule has now created one of the singular obstacles to the development of clean energy in Massachusetts and the region. However, there are efforts underway to reform the rule, and it is possible that these efforts will be successful. These reforms could help speed up the transition to clean energy in New England and provide a much-needed boost to the region's economy. In the meantime progress on this issue will likely be slow.

Many individuals, enterprises, and communities in Massachusetts remain committed to supporting renewable energy sources. With continued support from residents and businesses, we may eventually be able to reach our collective renewable energy goals. Only time will tell if these delays are a minor setback or a major roadblock for New England's clean energy future.

References:

- Boston Globe, "New England clean energy initiatives delayed by years," March 15, 2018.

- Sierra Club, "Sierra Club: New England's Clean Energy Future Delayed By Years," March 16, 2018.

- ISO New England, "Independent System Operator New England Adopts a Phased Approach to Implementing the Capacity Performance Resource”