By Eric Mathis
West Virginia has a long and proud tradition as a primary producer of the coal that powers our nation’s economy. According to the Energy Information Administration (EIA), West Virginia accounts for more than one-tenth of total U.S. coal production and coal-fired plants produce nearly all of the electricity generated in the state. In 2009, West Virginia produced 96.3 percent of its energy from fossil fuels, which include coal, natural gas and petroleum, and the remaining 3.7 percent from renewable energy (RE) resources.
Given our energy portfolio’s existing concentration of fossil fuels, it may be wise to diversify West Virginia’s energy portfolio. By encouraging further development of RE resources we can ensure sustainable fiscal policies and state programs that account for recent market trends and adapt to rapidly evolving energy production technologies, economics and policy changes. In their “Annual Energy Outlook 2011,” the United States Department of Energy projected that the RE sector will nearly double its output from 2009 to 2035. Simultaneously, the EIA predicts that Appalachian coal will undergo a notable decrease in production over the same period. Significant declines in the productivity of the mining sector have led to increased prices over the last decade. This trend is expected to continue to reduce the competitiveness of Appalachian coal compared to other coal producing regions. Furthermore, a 2009 United States geological assessment predicts that coal reserves in the region will continue to dwindle, increasing both extraction costs and environmental impact.
What Can We Do About It?
The answer is simple: bridge the gap between fossil fuels and RE resources in a way that mutually benefits both industries. West Virginia exports 81 percent of its energy, according to “Charging the Nation,” an article that ran in the Summer 2011 issue of West Virginia Executive magazine. This is a very unique and important position to be in because West Virginia can simultaneously reap the benefits from expenditures in fossil fuels as well as a variety of RE resources. Reduced local energy demand through distributed RE development will allow West Virginia to expand economic growth through energy exports by utilizing existing electricity generation plants rather than having to construct new plants to meet increasing demand. Furthermore, reduced local peak demand consumption of electricity increases the value of West Virginia’s coal resources by allowing the state’s utilities to sell excess electricity to neighboring states during times of peak demand.
Where Do We Start?
Thanks to the tremendous foresight and leadership of our state’s agencies and elected officials, the bridge is already being built to include hydro, wind, biofuels and a rapidly expanding solar sector that should see tremendous growth in 2012 after the West Virginia Public Service Commission’s recent adoption of interconnection standards based on the Interstate Renewable Energy Council model interconnection rules.
Who Will Participate?
Building a West Virginia-based, highly collaborative energy resource consortium with the primary goal of bridging the gap is imperative in order to capture the benefits of these emerging markets. For example, the City of Williamson is presently supporting the development of the Central Appalachian Sustainable Economies initiative, also known as CASE, which is working with state agencies, local residents, elected officials and national and regional experts to develop the next steps for creating a mutually beneficial environment for both the fossil fuels and RE sectors. Some partners of this consortium include the Mid-Atlantic Technology, Research and Innovation Center (MATRIC), the Interstate Renewable Energy Council, the Policy Consensus Initiative, the Coalfield Development Corporation, Bridgemont Sustainability Institute and the Mingo County Redevelopment Authority.
Tapping Renewable Energy Resources
According to the West Virginia Development Office, in June 2010 Brookfield Renewable Power started the rehabilitation of a hydropower project located in Glen Ferris on the Kanawha River. When completed in 2012, the Glen Ferris hydropower project will generate more than 38,000 megawatt (MW) hours a year of renewable power for the West Virginia electricity market. That’s enough electricity for 4,500 households. Brookfield also manages the 102 MW hydropower plant at Hawks Nest on the New River.
West Virginia is home to Mt. Storm, one of the largest wind farms on the East Coast, and has opened its arms to wind. Most recently, landowners from Monroe County have begun to explore locally owned wind at two different locations with Angel Winds Renewable Energy, LLC completing its meteorological data tower installation in August 2011. Locally owned wind provides local control over the development of a project as well as increased revenues for both local landowners and municipal governments.
According to PHOTON International magazine’s February 2011 issue, West Virginia is well on its way to becoming a dominant player in the solar sector and Gilliam Solar will be leading the way. Based in Williamson, which is known as “the heart of the billion dollar coalfield,” Gilliam Solar is a company specifically designed to bridge the gap between coal and solar. Trained by West Virginia’s largest and most respected solar integrator, Mountain View Solar, Gilliam Solar is presently developing several novel approaches to residential- and commercial-scale solar.
With more than 2.41 million dry tons of available feedstock every year, West Virginia is well positioned to utilize biofuels as a viable means for diversifying our energy portfolio. Using a technology designed by MATRIC, a team comprised of members of The JOBS Project, the Appalachian Regional Reforestation Initiative’s science team and one of the nation’s leading coal companies will develop a sustainable energy pilot project on an active mine site that will tentatively benefit both coal companies and local communities. This team of world-class scientists will be initiating several field studies through 2012 as more advances in the distributed energy generation sector are made, especially with regards to energy optimization and customer-based demand control applications.
West Virginia stands on the brink of a new energy path as fossil fuels and renewable energies make bridging the gap to continued energy success possible.
