Last Updated on December 13, 2024 by Anne Brock
Statement to TVA by Solar Alliance Southeast:
Input for 2025 Integrated Resource Plan
The unprecedented rate of technological advancement afoot right now will continue to impact economic development, infrastructure and quality of life in our region. We believe the Tennessee Valley Authority has an outsized role in realizing these benefits in the valley. This is especially true since electrification is a key component of emerging technological advancement and economic development; and, a range of opportunities from data centers, electric vehicle infrastructure and advanced manufacturing will increase energy capacity requirements.
In Wood Mackenzie’s recent report titled “Gridlock: the demand dilemma facing the US power industry,” the case is made that the nation hasn’t seen such steep growth in demand since World War II. This analysis estimates between 4 and 15 percent growth in demand over the next five years, a marked shift from recent years. This challenge presents an opportunity for TVA to realize the benefits of distributed, clean energy power production and energy storage in this region.
Private Investment in Distributed Generation
While low-cost power production has been the hallmark of TVA and essential to bringing economic development to this area for decades, private investment in renewable distributed generation and more support for local power companies should be components of our future energy landscape.
Distributed power generation and energy storage allows businesses to leverage available incentives, reduce operating expenses and create predictable energy costs. Predictability increases in value as demand growth will likely factor in electricity price increases. Additional distributed generation resources with energy storage may also relieve some of the demand pressure on the grid through private, instead of public, investments.
Support for Local Power Companies
LPCs will bear much of the burden in understanding how to best integrate new technologies with grid modernization and reliability efforts, while also managing cost implications. Aside from our larger metropolitan areas, LPCs in rural communities especially need support and guidance from TVA to best build resilience through distributed generation, including community solar, energy storage and microgrid projects. Rural, disadvantaged and energy communities especially stand to gain the most from these advancements and from federal grants and incentives; but they need technical support and a framework so projects get done safely, efficiently and within a reasonable timeframe.
TVA Can Help Leverage Opportunities
As a member of the Tennessee Solar Energy Industries Association (TenneSEIA), Solar Alliance Southeast is proud to provide skilled local jobs and to participate in the development of a growing solar industry here in Tennessee. Having designed and constructed utility-owned community solar projects in East Tennessee and in Kentucky, we respect the challenges that our utility partners experience in developing programs that meet community interest and technical needs. More of these types of projects are possible through new federal opportunities, such as Solar for All that seeks to benefit people with the most need. TVA’s cooperation is essential to fully leverage these opportunities.
Distributed Generation Benefits Communities
Adoption of reliable, distributed, renewable energy systems that include solar PV and energy storage can contribute to solving challenges associated with modernization, growing demand pressure and electrification. TVA can be a partner in building a more resilient and reliable grid, leveraging the advantages of decentralized, low-cost power production, by encouraging and supporting the development of both LPC-owned microgrid sites and customer-owned solar and energy storage systems. We urge everyone to coordinate with much more distributed generation in mind, for the benefit of all Tennessee Valley communities.
Jon Hamilton – General Manager US
Solar Alliance