May 31, 2024
CARSON CITY, NEVADA – The latest integrated resource plan (IRP) by NV Energy, recently previewed for stakeholders, calls for three new solar and battery storage projects – as well as new methane gas-fired resources at the North Valmy Generating Station – to meet substantial forecasted increases in customer energy demand.
The utility – Nevada’s primary energy provider – filed its full IRP today with the Nevada Public Utilities Commission. The IRP will be available for review next week; WRA will closely analyze its details and will intervene to provide testimony and recommendations to the Commission.
In its latest IRP, NV Energy is expected to announce it will join the Extended Day-Ahead Market (EDAM), a day-ahead electricity market operated by the California Independent System Operator (CAISO).
WRA generally supports NV Energy’s plan to expand renewable energy and transmission infrastructure, and welcomes the company’s decision to join EDAM, which will bring significant benefits to NV Energy customers. However, WRA remains concerned about the company’s continued reliance on volatile and polluting methane gas and its significantly reduced investment in transportation electrification – at just $19 million it’s only a sliver of the $348 million plan proposed in September 2022.
While we welcome the expanded investment in renewable energy and battery storage, the plan lacks ambition on the level of investment needed to meet customer demand for electric vehicle charging, and the expansion of methane gas resources will continue to expose Nevada families and businesses to the risk of significant spikes in power bills.
WRA is also concerned that NV Energy has foreshadowed interest in transitioning part of its gas fleet to hydrogen in the future, but the utility has not done a robust analysis of the fuel and infrastructure costs associated with such a transition.
The costs and environmental impacts of a hydrogen transition must be thoroughly evaluated by the Public Utilities Commission of Nevada, with sufficient safeguards put in place to protect consumers and communities. Hydrogen combustion for electricity generation is an emerging technology that is unproven on a utility scale. And, depending on the production method, hydrogen fuel production can have significant greenhouse gas emissions.
Key highlights of NV Energy’s 2024 IRP include:
- Significant increase in energy demand. Driven primarily by large industrial consumers, data centers, and the electrification of buildings and transportation, demand is expected to increase 1,300 megawatts (MW) by 2030 and potentially reach 5,000 MW by 2050.
- Solar and battery storage expansion. To address this demand, NV Energy proposes building three new solar and battery storage projects totaling 1,028 MW of solar capacity and 1,028 MW of battery storage. These facilities are anticipated to be operational by the end of 2027.
- New methane gas resources. The utility plans to add 411 MW of methane gas-fired resources at the Valmy generation station by summer 2028, primarily to meet demand during peak summer months. The utility claims these resources will be capable of burning up to 15% hydrogen initially, with the potential for 100% hydrogen usage in the future.
- Grid expansion and upgrades. NV Energy will pursue over 20 new transmission projects to strengthen the grid and accommodate the influx of renewable energy.
- Energy efficiency and demand response. The utility aims to shift energy consumption off peak hours through new energy efficiency initiatives and demand response programs.
Contact:
James Quirk, 908-902-3177, james.quirk@westernresources.org
