In a new report, the Center for Climate and Energy Solutions emphasizes that states are taking the lead in developing policies to preserve existing nuclear power. Considering the urgency and nuclear plants’ role in helping us avoid carbon dioxide emissions, this is a welcome development. To meet mid-
century climate goals, power-sector emission reductions must include substantial growth in renewables and maintenance of zero-emission nuclear generation.
New Jersey is a case in point. Gov. Phil Murphy recently signed three environmental bills that passed the legislature with sizable majorities. Taken together they represent one of the most significant commitments to zero-carbon power in the country.
The first bill establishes a zero-emission certificate (ZEC) for electricity generated by New Jersey’s existing nuclear power plants, which supply 40 percent of the state’s power. The ZEC was explicitly created to compensate a nuclear power plant for each zero-emitting megawatt-hour it produces — something power markets fail to do. Public Service Enterprise Group, the plants’ owner, must open its books to the state Board of Public Utilities, which determines the amount of credits the plant can, or should, receive. In addition, there are cost-containment measures to ensure consumer affordability, and ZEC payments would be reduced or eliminated if sufficient regional or national solutions are implemented.
The second bill significantly expands New Jersey’s renewable portfolio standard by requiring utilities to procure 35 percent of their electricity from solar and wind by 2025 and 50 percent by 2030. The third bill creates a pilot offshore wind project, four six-megawatt turbines to be built off the south Jersey coast.
Combined, these new laws comprise a critical step toward the United States’ long-term climate goal of reducing emissions by 80 percent or more by 2050. With its existing nuclear plants and strong commitment to renewable energy, New Jersey has all the elements in place to achieve up to 90 percent zero-emission electricity by 2030.
Across the United States, nuclear plant owners’ revenue from wholesale power markets is declining due to low natural gas prices and other factors. Because of this, five nuclear power plants have closed since 2012, and nine more are scheduled to close by 2025. That is 16,000 megawatts of zero-emission generation, roughly equal to what will be provided by all of the solar photovoltaic systems currently installed in the United States. To make matters worse, reports indicate up to half the U.S. nuclear fleet is operating at a financial loss, which makes it likely additional plants will close prematurely barring state or federal action.
Actions to preserve existing nuclear plants in New Jersey, New York and Illinois for as long as practical are justified, considering the amount of carbon dioxide reduction necessary by mid-century. Other states should take a cue from New Jersey and pursue proactive policies to bring zero-emission nuclear and renewables together to help get ahead of this issue and avoid the worst effects of climate change.
Doug Vine is a senior energy fellow at the Center for Climate and Energy Solutions. This article is an updated and edited version of a blog post Vine wrote on the organization’s website, which can be read at this link: https://bit.ly/2It4Jti