Category Archives: Energy

A Cautionary Tale

Posted on July 10, 2021 by | 22 comments

Dominion’s experimental wind turbines off the Virginia coast.

by Bill O’Keefe

The General Assembly, Governor Ralph Northam, and Dominion Energy are proud of their commitment to achieve zero carbon emissions by 2050.  Dominion routinely showcases its planned wind farm 27 miles off of the Virginia coast. Before Dominion and the Commonwealth get beyond the point of no return — governments don’t acknowledge sunk costs, opportunity costs or terminate failed programs — they would do well to closely examine the experience with wind power in Germany.

Germany is a leader in the green energy movement and has installed over 30,000 windmills. The German renewable energy program started in 2000. After 20 years, there is a problem. The German wind power industry is suffering setbacks. Hardly any new turbines are being built, and more and more old wind turbines are being phased out. Some of the problems don’t apply to Virginia since they concern on-shore wind mills but there are lessons to be learned.

Many German wind farms are threatened with shutdown. The German Renewable Energy Act, which has been in force since 2000, guarantees wind turbine operators secure subsidies for twenty years. Without subsidies they are no longer profitable. By 2025, there is a risk of 15,000 MW of wind projects will be lost corresponding to over a quarter of Germany’s onshore wind power. Continue reading →

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Wind Power Is Beautiful But Expensive

Posted on June 18, 2021 by | 41 comments

by James A. Bacon

Offshore wind turbines are works of engineering beauty. Soaring as high as the Washington Monument, they are a magnificent sight to behold, as I saw for myself on an excursion Wednesday to view Dominion Energy’s two experimental wind turbines up close. The towers are also very expensive — not just the two pilot turbines, which no one pretended at $300 million for the pair would produce economical electricity, but the fully built-out wind farm with 180 turbines at a cost currently estimated at $7.8 billion.

If the only cost you consider is the expense of erecting a turbine itself, offshore wind can look competitive with solar and combined-cycle natural gas. Dominion officials estimate their wind turbines will generate electricity at a cost of 8 cents to 9 cents per kilowatt hour. That’s less than the average rate of $10.83 cents per kilowatt hour Dominion charges its customers.

But the turbines don’t generate electricity in a vacuum. They are part of an electrical-generating system. And you can’t build a system around turbines that generate electricity only when the wind blows. Dominion must build a major transmission line to plug into the grid and maintain backup power sources to kick in when the winds fall still. Continue reading →

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Still an Open Question: Will Virginia Become Supply Chain Hub for East-Coast Wind Farms?

Posted on June 17, 2021 by | 24 comments

The Luxembourg-flagged Vole Au Vent is seen here installing one of Dominion Energy’s two experimental wind turbines 27 miles off the Virginia coast last year. Photo credit: Dominion. An American-made vessel will install the next 180 or so turbines.

by James A. Bacon

The primary justification for spending $7.8 billion to build a wind farm off the Virginia coast at a significantly higher cost per kilowatt than other energy sources is to advance Virginia’s goal of achieving a zero-carbon electric grid by 2050. But an important secondary consideration is the hope that the project will jump-start the creation of a new industry in Hampton Roads serving the emerging East Coast offshore wind industry.

Virginia has deep channels, no bridge obstructions, an active  maritime community, and perhaps the nation’s largest shipbuilding industry. Dominion Energy’s Coastal Virginia Offshore Wind Project, it is hoped, will catalyze development of a multibillion-dollar offshore wind-energy industry in Virginia.

That case is a little harder to make these days. When Dominion decided to invest $500 million in building an offshore wind-turbine installation vessel, none of Virginia’s shipbuilding companies was interested. All were booked up with Navy contracts. The vessel, named after the mythical Greek sea monster Charybdis, is being constructed in Brownsville, Texas. Continue reading →

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Posted in Economic development, Energy

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What Dominion Has Learned From Its Experimental Wind Turbines

Posted on June 17, 2021 by | 65 comments


by James A. Bacon

Dominion Energy spent $300 million to erect the two wind turbines now standing about 27 miles off the Virginia coast, a sum that could never be justified by the 12 megawatts of generating capacity they add to the grid— enough to power only 3,000 homes. The real benefit will come later, when Dominion builds a proposed 180-turbine wind farm expected to generate 2,640 megawatts of capacity, enough to power up to 600,000 homes, at a projected cost of $7.8 billion.

Thanks to the data gathered from the two experimental turbines, Dominion officials say it will need 40 fewer of the multimillion-dollar turbines than it had originally anticipated, a savings of hundreds of millions of dollars. Also, from the experience of leasing an expensive, hard-to-book installation vessel, Dominion is investing $500 million, risking shareholders’ money not ratepayers’ money, which will serve other East Coast windfarm projects as well as Dominion’s at a lower cost than chartering a European vessel.

Company officials say they have learned other odds and ends from the experimental turbines that will inform their safety and environmental efforts going forward. Continue reading →

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Posted in Energy, Uncategorized

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From Farming Corn to Electrons

Posted on June 16, 2021 by | 66 comments

Dominion solar farm. Photo credit: Dominion.

By Dick Hall-Sizemore

In light of recent denials by local governing bodies, there has been some skepticism expressed on this blog as to whether the Commonwealth could meet its goals on solar energy. Going against recent trends, however, has been the city of Chesapeake.

According to the Virginian-Pilot, the city council recently approved an application to build a 900-acre solar farm. This most recent approval about doubles the size of three previously-approved projects. It is estimated the project will cost $100 million. The company anticipates generating 118 megawatts, enough to power about 20,000 homes.

The land involved is now prime farmland. An interesting aspect of this project is that is an amalgamation of acreage from multiple owners. Continue reading →

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Posted in Agriculture & forestry, Energy, Land use & development, Uncategorized

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With Defeat in Connecticut, Will Virginia Drop TCI?

Posted on June 15, 2021 by | 99 comments

By Steve Haner

First published this morning by the Thomas Jefferson Institute for Public Policy.

Why do Virginia’s leaders run away from the Transportation and Climate Initiative? Could it be because the first state legislature to consider it, in reliably Democratic Connecticut, just adjourned without even taking a vote on the proposed carbon tax compact, despite strong support from Democratic Governor Ned Lamont?

The Virginia Department of Environmental Quality has called a June 24 public meeting to discuss efforts to ramp down carbon dioxide emissions from transportation sources, but it made no mention of the pending TCI interstate compact. Instead it focused on the General Assembly’s approved 2045 goal of “net zero” emissions in all sectors of the economy, including transportation. Continue reading →

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Posted in Business and Economy, Energy, Environment, General Assembly, Regulation, Taxes

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Getting Electricity from Government

Posted on June 1, 2021 by | 22 comments

By Dick Hall-Sizemore

More than 300,000 Virginia residents and numerous commercial enterprises are not subject to the monopolistic electric rates of Dominion, APCO, or the electric cooperatives. They get their electric service from their local governments.

There are 16 municipalities in which electric service is provided by a governmental entity. Primarily, they are small towns (some surprisingly so) and small cities. They include the towns of Bedford, Blackstone, Culpeper, Elkton, Front Royal, Richlands, and Wakefield and the cities of Bristol, Danville, Franklin, Harrisonburg, Manassas, Martinsville, Radford, and Salem. Most intriguing of all is the Virginia Tech Electric Service, established by the university to provide electric service to the campus and the residents and businesses of Blacksburg.

These municipalities purchase most of their electricity from private companies such as American Electric Power Company. Several, such as Martinsville and Bedford, also use hydroelectric power for a portion of their needs. Continue reading →

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Posted in Energy, Governance, Regulation, Uncategorized

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Democrats Fight Back as Boss Bills Cracks Whip

Posted on May 27, 2021 by | 12 comments

Michael Bills

by Steve Haner

Two Virginia Democrats who have been loyal soldiers in the army to turn Virginia green as well as blue are under attack in the June 8 primary for the sin of accepting campaign donations from Dominion Energy. It doesn’t matter to the attacker – our old friend Clean Virginia — that Dominion is moving in lockstep with the Democrats to undermine Virginia’s reliable generation mix and replace it with expensive and unreliable renewable power.

The House Democratic Caucus is responding by attacking the “dark money billionaires” who are going after their colleagues. Who? By that they would have to mean that same Clean Virginia, funded mainly by the personal fortune of hedge fund mogul Michael Bills and his wife. The same two people who did more than anybody to give Democrats that majority in the first place.

More proof, in case you needed it, that it is not your enemies you need to watch in politics but your friends. The Democrats started to lose their grip on this state 20-30 years ago because in their lust for power they fell out among themselves, and here we go again. Bring popcorn.

The basics: Delegates Steve Heretick, D-Portsmouth and Candi Mundon King, D-Prince William, face primary challengers. The primary challengers have received major funding from something new called Commonwealth Forward PAC. But as The Virginia Star reported this morning, its money actually comes from Bills and Clean Virginia.  Continue reading →

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Posted in Elections, Electoral process, Energy, General Assembly, Politics

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The Electrification of Everything

Posted on May 17, 2021 by | 45 comments

by James A. Bacon

The world economy is rapidly electrifying. Driven by new technologies and the environmentalist push to decarbonize the economy, an increasing share of the energy Americans consume will come out of the electric socket, reports the Wall Street Journal in a special report. “Instead of having fuels like natural gas or oil or gasoline flow directly into our homes, offices, manufacturing facilities and cars, those fuels — and other sources of energy — will increasingly be converted to electricity first.”

A Princeton University study finds that electrifying buildings and transportation could double the amount of electricity used in the United States by 2050, lifting electricity’s share of total energy from about 20% today to close to 50%.

Electrification offers the ability to harness renewable power sources, primarily wind and solar, to displace carbon fuels that contribute to global warming. But it does present the challenge of maintaining the integrity of the electric grid in the face of natural disasters, cyber attacks, and other challenges. While many environmentalists consider global warming to be an existential threat to humanity, a collapse of the electric grid accounting for 50% of all energy consumption would pose an equally existential threat to human well being — within the next two or three decades, not by the end of the century. Continue reading →

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Another One Bites the Dust

Posted on May 15, 2021 by | 33 comments

Utility-scale solar projects are getting shot down like Hamas rockets.

by James A. Bacon

From today’s news dump courtesy of VA News:

The Fauquier County Board of Supervisors unanimously rejected an application by Dynamic Energy LLC to build a five-megawatt solar facility on 40 acres of farmland near Bealeton, reports Fauquier Now. “When I looked at this,” said Supervisor Rick Gerhardt, “I didn’t want to take solid farmland out of production. Those are good soils on that property. For me, I do not want to see that removed from farming.” The county planning commission had rejected it previously by a 3 to 2 vote.

Meanwhile, Round Hill Solar LLC has withdrawn a plan to develop 560 acres of solar panels from the Augusta County Board of Supervisor. The planning commission had already determined that the plan conflicted with the county’s comprehensive plan that took location, character, and extent of the project into consideration, reports the News Leader. Continue reading →

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Gas Shortages: Deja Vu All Over Again

Posted on May 12, 2021 by | 17 comments

Photo credit: New York Post

by Kerry Dougherty

It’s like old times. 1979 to be exact.

Just 3 1/2 months into the Biden administration and we’ve gone from energy independence to gas lines.

What’s next, 18% percent mortgages? Or will Joe borrow Jimmy Carter’s old cardigan and urge us all to turn down the thermostats?

Yep, everywhere I went yesterday it looked a lot like it did 32 years ago. Long lines of cars snaking around gas stations. Exasperated drivers pounding their steering wheels.

I remember 1979 well because I was living in Northern Virginia and the odd/even gas rationing was chaotic. I became so desperate for fuel for my diesel VW Rabbit that I actually siphoned gallons out of the heating oil tank at my house one day.

I can still taste it.

Yes, I know that’s illegal. I believe the statute has run on that crime. Continue reading →

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Posted in Business and Economy, Energy

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Bacon Bits Does Electric Grid

Posted on May 6, 2021 by | 32 comments

Source: “Electricity Sales Forecast for Virginia: 2020-2050”

Boom times ahead for electricity. Electricity demand in Virginia will grow 30%, give or take, over the next 15 years as more energy-consuming data centers are built and more Virginians drive electric vehicles, writes Bill Shobe, a University of Virginia professor who supports the transition to a net-zero-carbon electric grid, in a new report. Electricity use could grow by more than 78% by 2050, the state’s deadline for achieving net zero. The increase will occur despite gains in energy efficiency that have flattened electricity demand growth in recent years.

Where will all that power come from?

Relicensing the nukes. Dominion Energy’s four nuclear units at the Surry and North Anna power stations produce about one-third of the utility’s electricity. The units, originally designed to last 40 years, are licensed to operate another 20 years. Dominion is seeking regulatory approval to extend the licenses yet another 20 years. The Nuclear Regulatory Commission staff has recommended granting that approval for the two Surry units. But some environmentalists are opposed. Continue reading →

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TCI Model Rule Ready for Study, Comment

Posted on April 13, 2021 by | 8 comments

by Steve Haner

First published this morning by the Thomas Jefferson Institute for Public Policy.  (Happy birthday, Mr. President.)

Read the governing document for the Transportation and Climate Initiative and it becomes clear there is more going on than just an effort to reduce motor fuel use with a combination of taxes and shrinking caps. That may really be a secondary goal. Continue reading →

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Posted in Business and Economy, Energy, Environment, General Assembly, Regulation, Taxes, Transportation

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Virginia Electric Rates: Low/Moderate Now But Heading Higher

Posted on April 7, 2021 by | 24 comments

Average electricity rates in rates in Virginia were 20th lowest in the nation in 2019, according to a survey based on U.S. Energy Information Administration data by the American Legislative Exchange Council. The average price per kilowatt hour was 9.52 cents.

But Virginians could lose their moderate electricity rates in the future as it joins the Regional Greenhouse Gas Initiative  (RGGI) and moves towards the goal of a 100% renewable electric grid by 2050, emulating policies of the Northeastern states with among the highest electric rates in the country. Continue reading →

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The Transmission Bottleneck for Renewable Energy

Posted on March 26, 2021 by | 17 comments

by James A. Bacon

You want more renewable energy? You’re going to need more high-voltage transmission lines to move intermittent wind and solar power around the country to balance fluctuating supply and demand. And you’d better get started. Transmission planning and construction involves long lead times, typically between seven and ten years.

“The window may be closing to develop the needed transmission expansion to enable the optimization of clean energy, meet state clean energy objectives, and other ‘voluntary’ demand for low-cost renewable energy,” summarizes a new study, “How Transmission Planning & Cost Allocation Processes Are Inhibiting Wind & Solar Development in SPP, MISO, & PJM.” Continue reading →

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Posted in Energy, Infrastructure

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