Dominion expects to install up to 5,200 megawatts of solar generating capacity by 2042 — about thirteen times its current commitment and enough to power 1.3 million homes — according to forecasts contained in its 2017 Integrated Resource Plan (IRP). That represents a dramatic shift from forecasts in previous versions of the long-range planning document, which is filed annually with the State Corporation Commission.
Natural gas emits half the carbon dioxide per unit of electricity than oil and coal, and solar produces no carbon emissions at all. Increasing reliance upon those two energy sources will shrink a typical Dominion Virginia Power customer’s carbon footprint (carbon dioxide emitted per customer) by 25% over the next eight years, the company stated in a press release.
“The ‘installed cost’ of large-scale solar facilities … has dropped 50 percent over the past four years,” said Paul D. Koonce, CEO of the Dominion Generation Group. “Our customers want more renewable energy, and changing economics make the transition to renewable resources easier.”
Dominion has been slow, compared to many other utilities, to embrace solar power. In past years, the company stressed that solar produced electricity only when the sun was shining, which made necessary extensive backup capacity, and that solar peak production in the mid-day did not match up well with peak demand for electricity on late summer afternoons or early winter mornings. Until now, the company had committed to building only 400 megawatts by 2020.
Environmental groups have been highly critical of the utility’s approach to renewable energy for years, and Dominion’s latest announcement changes little. The Sierra Club Virginia Chapter today attacked the utility’s continued reliance upon “dirty” “fracked” natural gas and criticized the proposed Atlantic Coast Pipeline.
“Dominion’s actions don’t match its words when it comes to promoting renewable energy,” said Kate Addleson, director of the Virginia Sierra Club, said. “Despite the fanfare, this does not appear to be a sharp change from what we have seen in the past.”
“Rather than deliver a clear energy plan, this document only serves to raise more questions about what Dominion really wants to do over the long-term and who really stands to benefit,” said Will Cleveland, Southern Environmental Law Center (SELC) attorney. “While Dominion is taking a good step toward expanding solar, they are simultaneously taking two steps back by doubling down on dirty fossil fuels.”
In related news, Appalachian Power Company also filed its IRP, forecasting the addition of 500 megawatts of universal solar by 2031, 1,350 megawatts of wind energy by 2031, and 10 megawatts of battery storage resources by 2025. “Universal” solar is the term for generating capacity that feeds into the broader system, not reserved for the use of a single customer or set of customers.
Dominion executives attributed the company’s rhetorical about-face to continued improvement in the economics of solar energy and a conviction that, despite the Trump administration’s antipathy toward the Clean Power Plan, some form of CO2 regulation will remain in place.
“We believe this balance … of solar, natural gas, and nuclear hits the sweet spot in terms of cost, environmental performance, and reliability for our customers,” Koonce said.
Modernizing the grid. Aside from boosting the efficiency of solar panels, new technology enables utilities to better handle fluctuations of frequency and voltage on the electric grid caused by variable solar output.
“For the first time, our long-range plan discusses the need to modernize the energy grid in order to accommodate the changes in how power will be produced as well as to meet the needs and desires of our customers,” said Bob Blue, CEO of Dominion Virginia Power.
The existing transmission and distribution grids were built to facilitate a one-way flow of electricity from a handful of large power plants to millions of distributed customers. “The energy company produces a large amount of electricity at a relatively small number of locations,” Blue explained. “It then sends that power across big wires, then medium-sized wires, then small wires.”
Solar output will be more distributed. “When solar is connected, the distribution grid must become a two-way network so we can deliver energy seamlessly to everyone, including people with solar panels on their rooftops,” Blue said.