OPPORTUNITIES
Desired Future The goals of communities and electric utility companies are similar in terms of stability, safety, and growth; however, the sources of investment and preferred methods to achieve the growth could be better aligned. The federal and State government are seeking to expand renewable energy sources. Many other states are striving to be carbon-free and have set desired timelines. South Dakota has not issued a plan to be carbon-free by a certain date but does have plans in place to reduce emissions, such as via the EV fast charging network plan. Per a June 2022 U.S. Supreme Court decision, the EPA cannot put state-level caps on carbon emissions under the 1970 Clean Air Act. With an ever-changing political environment, it is important to note that the EPA may be able to place restrictions on states if the 2022 decision is ever reversed. South Dakota could also decide to put a plan into effect. Utility companies are concerned government policies may be introduced without in-depth knowledge of the industry and constraints. In short, the State of South Dakota has the ability to dictate how energy generation moves forward. Utility companies mentioned in this report, excluding Xcel Energy, have concerns about the reliability of renewable energy sources. From a broad perspective, these energy companies are willing to grow in the realm of generation, transmission, and/or distribution of electricity. However, some energy companies have stated that the feasibility of reaching zero-carbon emissions is difficult if not impossible due to lack of technology. These companies are reactive to the market and if the demand for electric vehicles exists, they will market and install chargers, as well as improve the infrastructure to support electric vehicles. Opportunities include available land and sites for expansion, as long as communities are willing to fund growth. This will be dependent on whether energy companies are willing to participate in upfront investments to expand utilities. If load and demand are needed, they will work on expansion. A partnership is needed between communities and energy companies to stimulate future development.
Responsible growth is a core value for utility companies as improvements are risky and costly. If they are unable to sell power to cover costs, the utility companies will pass costs to members or consumers as rate increases. From the perspective of the energy companies, slowly expanding into renewable energy would be achievable or desirable. Existing coal sources may have to bridge the gap until they become too costly, or new technologies add stability to the generation baseload. However, from the utility company perspective, setting an end date before reliable technology exists makes this a difficult if not impossible task for them to implement. State policy makers should continue to support renewable generation to increase electric capacity, but also needs to support base load generation that is not impacted by sun, wind, or drought conditions. Known as firm power, generation sources such as gas, coal, petroleum, and nuclear provide reliable, continuous output and make up the base generation. Reliability prevents electrical brown out or black out conditions. South Dakota needs to support existing and new firm power generation types until technology advancements can stabilize the base load generation. Support private and public sector opportunities to generate power and steam on-site to become self sustaining for air conditioning, heat, and/or power needs. Micro-grid, central plant generation, and co-generation opportunities are typically natural gas fueled boilers or combustion turbines that generate power and steam for heating and cooling. This will lessen the loads on the electrical grid but will require infrastructure improvements for the fuel source.
Infrastructure First Project
Electric | 41
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