South Carolina Urged to Implement Critical Energy Reforms, Experts Warn
In a bid to prevent rolling blackouts and severe economic disruptions, experts and policymakers across South Carolina are urging the lawmakers to pass critical energy reforms in the 2025-26 legislative session. However, the rapidly changing landscape of the energy industry presents a myriad of challenges that render the reform process complex.
Large-scale solar energy has seen a surge in applications, with a reported growth of over 400% since 2018 in South Carolina alone. Hamilton Davis, the VP for Regulatory Affairs at energyRE, a national developer of clean energy projects, explained the uncertainty in predicting future trends. He stressed the need for thorough planning to avoid undesirable outcomes from risky investments in volatile energy sources.
An ApplicationException Needed
The old model of the energy bill attempted to prescribe specific energy sources and therefore failed to pass the senate. The replacement needs to stimulate the emergence of novel energy sources, protect the Public Service Commission (PSC)’s oversight role and enhance the market function.
The Current State of Energy in South Carolina
In the late 19th and early 20th centuries, the state could not afford to build an energy infrastructure. As a solution, monopoly status was given to power companies in specific regions, and these companies were given a guaranteed return on investment. Although some aspects of this structure are still in place, the most agree that reforms are required to meet the growing energy needs and align the system with the 21st-century realities.
Proposed Steps for Effective Energy Reforms
Some of the key steps in the proposed reform include competitive procurement, the creation of a Regional Transmission Organization (RTO), improvements in energy efficiency, and exploring nuclear and natural gas energy sources.
Competitive Procurement:
The idea here is to allow for competition in the bidding of energy projects, which could help secure more energy sources at lower costs.
Creation of a Regional Transmission Organization (RTO):
RTOs connect energy providers together, paving the way for reducing costs, boosting reliability and streamlining resource planning.
Improving Energy Efficiency:
Energy conservation is key to sustaining supplies. The federal grants from the Biden administration present an opportunity for enhancing energy efficiency in South Carolina, particularly in homes.
Nuclear and Natural gas:
Natural gas acts as a bridge to green technology in the future while nuclear power could be a significant addition to meet energy requirements.
The reform’s urgency cannot be overstated as approaching retirements of numerous coal plants demand the securement of energy supply in the short and medium term. While the power to make final decisions rests with the Public Service Commission, the summer and fall of 2024 are poised to be critical timelines for developing the new energy bills.
