![]() So, whether we build the new generation locally, or import it from upstate, the cost per kWh is going to be higher.Ĭosts of electricity from different generation sources are compared based on the levelized cost of energy (LCOE), which accounts for capital costs, fuel costs, fixed and variable operations and maintenance (O&M) costs, financing costs, and an assumed utilization rate for each plant type.īased on the just released Annual Energy Outlook 2017 from the EIA, the LCO for generation entering service in 2022 is: Costs vary based on the size of the transmission line (138, 230, 345, 765 kV), but a quick and dirty rule of thumb is about $1 million per mile, which would be passed through to users (just as in the recent TOTS charges). But, in order to import sufficient power, we’ll need new transmission lines to bring the power to Westchester and New York City. Of course, we can import wind and hydro from upstate NY where there’s abundant land for renewable development. New York will need 45-75 square miles to replace Indian Point with solar PV (120-200x more land then Indian Point), or 260-360 square miles to replace with wind (693-960x more land than Indian Point). Plus, replacing Indian Point’s nuclear footprint with the land needed for renewable energy will prove costly. In order to replace the output from Indian Point nuclear, we would need 6,200 MW of wind or 7,750 MW of solar (or some combination thereof). Based on 2015 EIA data, wind operates at an average capacity factor of 32.2% and solar PV at 25.8%. So while wind and sun are free, 2,000 MW of wind and/or solar does not equal 2,000 MW of nuclear. The wind isn’t always blowing, nor is the sun always shining. Renewable energy sources, such as wind and solar PV, are non-dispatchable, intermittent resources. The Indian Point plant even surpasses industry average by producing 93% of its potential output. Nuclear is baseload generation, operating 24/7 to serve the non-peak load. Indian Point nuclear generates 2,000 MW of power on just 240 acres of land (1/3 square mile). Rates Will Increase Due to Increased Power and Capacity Costs Localized impacts such as the loss of about 1,000 direct jobs (plus hundreds of indirect employment) and PILOT/tax revenue (about $31 million in 2015), will likely be considerable. The closure, though, will have several reverberations. What’s The Impact on New York Electricity Rates? With a 2021 deadline, Indian Point is not closing abruptly necessarily and its likely that if the 2,000 MW cannot be replaced (either through new generation, efficiency, or imports), the closure deadline will be pushed to 2025. all nuclear in NY except Indian Point) was touted as a “critical element to achieving New York’s ambitious climate goals.” A press release at the time further noted:Ī growing number of climate scientists have warned that if these nuclear plants were to abruptly close, carbon emissions in New York will increase by more than 31 million metric tons during the next two years, resulting in public health and other societal costs of at least $1.4 billion. This multi-billion dollar bailout subsidizing upstate nuclear energy generation (i.e. Plus, the closure seems antithetical to the State’s and New York City’s aggressive emissions reductions goals announced as the Clean Energy Standard this past August. Nevertheless, closure of Indian Point did not seem likely, especially considering the amount of reliable power and capacity Indian Point provides. Cuomo and other proponents of shutting down Indian Point have also cited the age of the reactors and past problems at the plants (despite its operating at 93% capacity over the past 10 years vs. Their concern? The plant’s proximity to New York City (just 35 miles north of midtown Manhattan) and the potential consequences of a disaster at the site (terror attack, earthquake, leak, etc.). Yet Governor Cuomo has been trying to close Indian Point nuclear since he was elected in 2010, just like his father before him. Indian Point’s two nuclear reactors generate over 2,000 MW (~20 billion kWh per year) of zero-emission, inexpensive, around-the-clock baseload electricity and provide about 25% of the electricity consumed in New York City and Westchester. The news, announced late Friday afternoon, prompts several questions: why is Indian Point closing, how will we replace the 2,000 MW of generation, and what impact will this have on electricity rates in New York? Why Is Indian Point Nuclear Closing? New York State has reached an agreement with Entergy to shut down Indian Point nuclear plant by April 2021.
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