The Energy Master Plan
The Energy Master Plan
By: Assemblyman Upendra Chivukula
OVERVIEW
Governor Jon Corzine released the Energy Master Plan (EMP) to project the State’s energy outlook. The EMP evaluates a high-level view of energy issues - supply, demand, challenges associated with both supply, demand through the year 2020. Governor’s plan describes two alternatives that the State has on the road to energy issues - the “Business As Usual” scenario and the “Alternative Scenario” scenario.
TWO SCENARIOS
Within the “Business As Usual” scenario, the EMP has listed four substantive challenges:
1. Electricity supply is not keeping up with demand.
2. Energy prices have risen substantially in recent years and this trend is expected to continue.
3. Global Warming and the emission of greenhouse gases are expected to increase.
4. Today, New Jersey has much less authority over the supply and price of electricity than it did before the Electric Discount and Energy Competition Act (EDECA) of 1999.
New Jersey will have to be overcome the challenges identified above between 2008 and the year 2020. The “Business As Usual” scenario includes no State action in those intervening years.
The consequence of inaction is an estimated 60% increase in the total cost of energy consumed in 2020, as compared to 2005, totaling in excess of $26 billion. Greenhouse gas emissions in 2020 are predicted to be 14.5% higher than they were in 2006, thus negating many of the benchmarks established by the recently enacted “Regional Greenhouse Gas Initiative Act”.
The “Alternative Scenario” however, outlines goals to change the way the State conducts its energy affairs. The “Alternative Scenario” lists five objectives, all involving State action:
1. Maximize energy conservation and efficiency.
2. Reduce New Jersey’s overall peak electricity demand.
3. Stimulate growth in renewable and alternative energy technologies.
4. Develop low-carbon emitting and more efficient power plants in order to close the gap between electricity supply and demand.
5. Invest in clean energy technologies and businesses to stimulate the industry’s growth within the State.
According to the Corzine Administration, implementation of these goals would result in a more secure, efficient, cleaner and safer New Jersey by the year 2020.
While the EMP document does present an alternative to the current state of energy management, decision-makers and key stakeholders need to consider additional avenues:
Financial – The cost of acquiring new technologies, funding rebates and incentives, and providing financing to industry and other economic outlays will be considerable. Further assessing the state of the national economy may also be valuable when formulating future energy policies.
Alternative and Renewable Energy Mix – The EMP document details the Governor’s version of an optimal energy matrix. Is this the right balance of energy options to bring New Jersey safely and efficiently into the second decade of the 21st century?
Green Collar Jobs – As a form of economic stimulation, creating and growing an entire new class of “green” New Jersey-based jobs would universally be considered a positive move. However, ensuring that such an initiative has staying power (either through policy or financial backing) would be of paramount importance.
Less Coal – Moving away from coal-based energy production and instead toward alternative and sustainable sources would help the State meet its commitment to reducing greenhouse gases and alleviate increasing global warming pressures. Currently, this strategy would conflict with PJM Interconnection and the Federal Energy Regulatory Commission (FERC) – the regulatory bodies that most impact the current energy composition of the State. PJM is a regional transmission organization that coordinates the movement of electricity in 13 mid-West and Mid-Atlantic States and the District of Columbia. Approximately 51 million Americans receive their power through PJM, including New Jersey residents. FERC is an independent federal agency that regulates the interstate transmission of natural gas, oil, and electricity and associated projects. These two organizations have their own thoughts and methods on energy procurement and distribution which at times, have placed them at odds with New Jersey’s best interests.
The Energy Master Plan has the potential to be one of the most influential roadmap for policy making in the State over the next several years.
Upendra Chivukula represents District 17 and serves as Deputy Speaker of the New Jersey General Assembly.