As Nuclear Power Plants Close, States Need to Bet Big on Energy Storage
Pacific Gas and Electric (PG&E) recently started the process of shutting down the Diablo Canyon generation facility, the last active nuclear power plant in California. The power plant, located near Avila Beach on the central Californian coast, consists of two 1,100 megawatt (MW) reactors and produces 18,000 gigawatt-hours (GWh) of electricity a year, about 8.5 percent of California’s electricity consumption in 2015. It has been, up until this point, the single largest electrical generation facility in the state.
Looming over the imminent closure of Diablo Canyon is California State legislative bill SB 350, or the Clean Energy and Pollution Reduction Act of 2015. The act is a cornerstone of the state’s ongoing efforts to decarbonize its electricity grid by requiring utilities to include renewable sources for a portion of their electrical generation in future years. The mandate also requires utilities to run programs designed to double the efficiency of electricity and natural gas consumption.
But a number of significant unanswered questions remain about this ambitious energy policy, as the planned closing by 2025 of Diablo Canyon illustrates. Can utilities supply electricity around the clock using these alternative generation sources? And crucially, can energy storage technologies provide the power on demand that traditional generators have done?
Nuclear power plants saw their heyday in the early 1970s and were praised for their ability to produce large amounts of electricity at a constant rate without the use of fossil fuels.
However, due to negative opinion and costly renovations, we are now observing a trend whereby long-running nuclear power plants are shutting down and very few new plants are being scheduled for construction in the United States.
Utilities are moving toward renewable electricity generation, such as solar and wind, partially in response to market forces and partially in response to new regulations that require utilities to reduce greenhouse gas emissions. In California, in particular, the shift toward renewable energy for market and environmental reasons, along with the public’s negative perception of nuclear energy, has caused utilities to abandon nuclear power.
While opponents can view the shutdown of nuclear power plants as a health and environmental success, closing nuclear plants intensifies the challenges faced by utilities to meet electricity consumption demand while simultaneously reducing their carbon footprint. PG&E, for example, has pledged to increase renewable energy sources and energy efficiency efforts, but this alone will not help them supply their customers with electricity around the clock. What can be used to fill the sizable gap left by Diablo Canyon’s closing?
