Why local power generation is important | Part 1 of 3

||| FROM KRISTA BOUCHEY for ORCAS POWER & LIGHT |||

OPALCO has been providing reliable power to the islands since 1937. Electricity is an essential and critical component to the modern-day lifestyles powering our hospitals, grocery stores, heating systems, and fire departments. Constant electricity does not come without some tradeoffs. As a cooperative, OPALCO looks to the members to support the grid infrastructure that serves our daily lives. As a community we will need to continue to build and maintain our power system and now more than ever we need to be looking at reliable, renewable carbon free solutions.

The energy industry is at a critical point as the region and the world are feeling the effects of climate change. Washington State is a leader in transitioning away from fossil fuels with strong carbon reduction legislation and funds towards renewable energy.

Electricity demands are spiking as many transition away from gas powered vehicles and fossil fuel heating sources. Additionally, there is an increase in AI technologies and data centers that are high energy users. The regional energy supply is at capacity, and there is a strong need to build more sources of renewable power.

The OPALCO team spends endless hours looking at the future electricity needs for our community. Bonneville Power Administration (BPA), which supplies 96% of OPALCO’s power, will not be building more power generation, and energy deficits are expected to occur within the next two years and continue well into the future. This means that OPALCO will need to start building local power generation or buy power from the market at dramatically higher prices. This demand versus supply shortfall could result in regional black outs during peak weather events.

The Northwest Power & Conservation Council estimates a minimum of 30 GW of new power will be needed by 2030. Providing this much new generation will be extremely challenging. With siting and permitting setbacks, the Northwest has only been able to build out 1 GW over the last 8-year period. The amount of new power solutions to keep our grid reliable is staggering.

Renewable energy projects take years to plan, permit, and construct. The longer we delay building these projects the longer it will take for supply to catch up with demand and the more likely the energy needs will be filled with carbon-based fuel sources.

Regional electric supply

To reverse the global climate catastrophe, the US must cut emissions by 50% by 2030. That is a lofty and challenging goal that is highlighting the need to bring on renewable energy projects in San Juan County and throughout the region.

Demand is increasing as the Northwest population grows and turns to electricity for transportation and heating. Data centers have proliferated throughout the Northwest due to our cheap and abundant hydropower and are contributing to the increased demand. Washington State legislators are also increasing demand for renewable electricity by encouraging us to electrify residential heating, EV transportation and requiring energy users to pay climate penalties for using carbon-based energy sources.

Supply throughout the Northwest is lessening as coal power plants are shut down but replacement energy projects are held up or cancelled due to public and local permitting pushback. The regional hydro system is now at capacity with no plans to bring on more hydro power.

With the current trajectories, rolling blackouts and market price shocks will increase until supply can meet demand. OPALCO can invest in off-island generation projects, however, this doesn’t benefit the local grid. Only local generation will benefit the islands with reliable power if/when the power goes off on the mainland.

How can we prepare as a community?

San Juan County gets most of its power from the mainland via submarine cables. During the January 2024 cold snap, OPALCO’s electric bill from our mainland power supply had a $310,000 demand charge. Due to price shocks like these and the heightened likelihood of mainland blackouts, it’s increasingly necessary for our community to start exploring local, renewable energy projects.

OPALCO has long been encouraging conservation efforts with rebates for energy efficiency projects. The Switch It Up program encourages the wise use of electricity by offering on-bill financing for conservation and renewable energy projects. Electric vehicles are 5 times more efficient than gas cars and heat pumps are 3 times more efficient than other heaters. Through this program, close to $20M has been invested in our community in energy savings projects.

A clean energy future, which is critical for protecting the health and resilience of the Salish Sea and our pristine maritime environment, is going to require a broad mix of renewable energy sources. Tidal energy technologies show great promise in adding to our portfolio of energy needs. OPALCO is currently in the process of studying the feasibility of a 2MW tidal generator in Rosario Strait with funding from the Department of Energy.

What about rooftop solar?

There is a misconception out there that if you put solar on all rooftops and parking lots, the problem is solved. Unfortunately, rooftop solar is not the “silver bullet”.

Rooftop solar has been growing throughout San Juan County. Installations have increased since 2022 when OPALCO made their on-bill financing program available for solar and battery projects. About $7.5M in local rooftop solar and battery storage projects have been financed through OPALCO’s program.

OPALCO strongly encourages those who have rooftops that are viable to install solar, but this alone isnot going to meet the projected load growth for San Juan County. Rooftop solar can only supply about 5% of our projected local energy needs (assuming we can max this out). We need to explore utility scale renewable energy projects to meet our future energy needs.

Utility Scale Microgrids

The proposed Bailer Hill microgrid could more than double the county’s rooftop solar generation. This project is an agri-solar system that will partner with local farmers to graze sheep in the shade of the solar array. Pairing solar with battery storage ensures that we can access the energy when the sun isn’t shining, making it more of a reliable source of power for the county.

This and future microgrids can only happen if there is support from the public. On the mainland, over 70% of utility renewable energy projects are canceled due to local permitting and public opposition. Each year we delay this Bailer Hill microgrid is equivalent to burning 230,000 gallons of gasoline or emitting 4.5 million pounds of CO2. We can’t afford to wait for these projects.

Our community and planet will greatly benefit by investing now in local, renewable generation projects. It is time for us to step up, invest in solutions, and begin to address these critical issues we face. OPALCO needs the support of co-op members to get these projects up and running.

OPALCO has sources for the data shared and more detailed information about this article on the OPALCO website. Email communications@opalco.com if you have questions or want to go deeper. Part two of this three-part series, will dive into why OPALCO chose Bailer Hill as the site for a future microgrid.

Orcas Power & Light Cooperative (OPALCO) is our member-owned cooperative electric utility, serving more than 11,400 members on 20 islands in San Juan County. OPALCO provides electricity that is 97% greenhouse-gas free and is generated predominantly by hydroelectric plants. OPALCO was founded in 1937.