Balancing Energy Needs & the Environment

Chamber Advocates Comprehensive Energy Supply Policies

The North Carolina Chamber is proud to have supported legislation to make North Carolina the first state in the Southeast to implement renewable energy efficiency standards. While our Chamber stands behind renewable energy and new energy efficiency programs, we also realize that the story does not end there. Energy efficiency is merely one piece of the energy supply puzzle. Our state’s utility companies have the legal obligation to meet the state’s entire energy demand and that demand continues to rise. Even with conservation and the use of alternative energy, new power from conventional sources (gas, coal, nuclear) will still be required in our state to keep up with the phenomenal growth projected for North Carolina over the next several decades and ensure a strong economic future.

Not only can alternative energy not meet our total need for new electricity, but reports also indicate that there may not even be enough renewable energy to meet government-mandated requirements.  “Demand is growing faster than people expected”, says National Renewable Energy Lab (NREL) senior analyst Lori Bird. “By 2010, clean-energy demand will outpace generation by at least 37% unless a rush of projects is built. Shortages could keep utilities from meeting state mandates, leading to hefty penalties. Renewable certificates for customers in some areas may be unavailable or too costly.”

Utilities are committed to meeting energy demand in a way that keeps energy supply stable while also protecting the environment. Our Chamber and the state’s utilities advance energy policies for North Carolina that balance growth with protecting the environment and our quality of life. As we continually analyze economic development strategies, we are committed to fighting for the foundation of that development, adequate energy supply for the state of North Carolina.

Energy Supply: One Size Does Not Fit All

There is not a “one size fits all” to meet the power demand in our state; each type of energy source meets a specific requirement. Therefore, we have to try hard to find the most efficient, economical blend for our state and try to make the best use of all the options available to us. New businesses and new jobs are drawn to the region by the availability of safe, reasonably priced, reliable electricity. Demand can be reduced by conservation, energy efficiency, and renewable energy, but other sources have to be used to meet the remaining need.  

Because renewables are unreliable, counting solely on renewable energy sources is irresponsible. An economy can’t shut down because the wind stops blowing the wind power generators, causing demand/supply fluctuations in energy prices.

Our state’s policy makers have to consider how we choose to generate electricity in the best interest of both the economy and the environment. The energy decisions that are made now will play a crucial part in determining North Carolina’s economic success and quality of life for decades to come. Reliable, affordable energy is critical infrastructure in today’s economy. For utilities to make wise investments in this critical infrastructure at the lowest cost to the customer, some new plant development is inevitable.  

Power Plants Meet the Environmental Challenge

Although it is important to press ahead with the development and deployment of renewable sources, they still account for only a very small proportion of the world’s energy and it is uncertain how large a part they can realistically play. There are also major long-term uncertainties over other energy sources. Any realistic planning for a long-term energy supply must seek to keep open all realistic options. One of those realistic options is coal.

Coal is not a sunset industry and has not been rendered obsolete by environmental concerns. It is a major component in securing an improved quality of life for billions of people worldwide who gain access through it to the energy services they need for daily life, industrial development and social advancement. Demand for coal continues to grow and coal reserves are adequate to ensure that demand can be met far into the future. The challenge will be to use coal efficiently and cleanly, enabling us to meet our state’s environmental goals.

Coal technologies continue to improve and effective options are now available for emissions reduction. New, innovative plants with even higher levels of efficiency will, when deployed widely, maintain cleaner emissions. Duke Energy for example, is currently applying for an air permit for a new coal-fired unit at its Cliffside station in Cleveland County. The State Utilities Commission has already agreed there is a need for the new unit. Once the unit begins operating, the older, less efficient units will be retired and the site will generate more electricity with cleaner emissions. In recognition of the advanced, clean-coal technology being utilized, the U.S. Department of Energy will award the company tax credits. 

Voice Your Opinion: Secure NC’s Reliable Energy Supply

As economic development is a top priority of the North Carolina Chamber we are supporting Duke Energy’s air permit for its development of a new clean coal plant. Duke Energy must build this new plant, to meet growing electricity demands in North Carolina. While the permit will have an immediate effect for Duke Energy, this decision will lay precedent for all North Carolina businesses.

North Carolina’s Department of Environment and Natural Resources (DENR) is currently seeking public comments regarding the draft air permit for Duke Energy’s new advanced clean coal plant. The North Carolina Utilities Commission approved construction of Cliffside Unit 6 last February. Now the issuance of the final air permit is the last milestone to be completed prior to beginning construction of the plant.

Given some outspoken opposition from anti-growth groups, our Chamber is asking its members to join a united front and contact DENR, supporting reliable energy supply for North Carolina. Our business community must ensure that DENR facilitates the implementation of balanced policy decisions to ensure that affordable reliable energy supply will be delivered for North Carolinians.

Click here to contact DENR and provide public comments to secure the issuance of the air permit for Cliffside Unit 6, the first step in securing proper energy supply for our state.

Economic Development & Sound Environmental Policies:
Not Mutually Exclusive

Our General Assembly has already established a goal to promote a cleaner, healthier environment while securing our energy supply at the same time with the passage last session of Senate Bill 3: Promote Renewable Energy/Baseload Generation. The law includes both provisions to help the utilities provide supply from conventional sources as well as a progressive plan to integrate renewable energy into our state.

As energy supply is a foundation block for a strong economy our Chamber is committed to advancing policies that will provide adequate, reliable energy. To meet growing demand for electricity, industry and government must work together to increase energy efficiency and supply simultaneously. Our Chamber and its energy members are committed to a clean environment and strong economy and will work to meet the challenge in partnership with customers, government and other stakeholders.

As our Chamber continually studies energy efficiency policies we would like to recognize those companies that are undertaking energy conservation efforts. Click here to email us to share your company's energy efficiency efforts.