Research Links Electricity Diversity With More Reliable Generation - Note the Elephant in the Discussion.

Uranium (Nuclear Minerals) / Nuclear Power - Economics, Design, & Industry

Date posted: 09/29/15

NEI recently spoke with Revis James, senior technical executive for generation research and development at the Electric Power Research Institute, about the Institute work related to diversity of electricity generation sources. Question - Given the considerable analysis that EPRI has devoted to electricity diversity in recent years, what are your top takeaways on the challenges associated with it? James - The principal takeaways are that electricity diversity is economically beneficial and increases the resiliency and reliability of the generation fleet. Economic benefits result from the fact that a diverse generation mix has helped insulate costs of electricity production from volatility in fuel prices and increases in generation costs driven by implementation of safety and environmental regulations. Resiliency and reliability are enhanced because economic, weather, or other externalities that may affect a particular type of generation are mitigated by diversity in the generation portfolio. Q - Has diversity in electricity supply mattered for the U.S. over the past several decades, and do you see it mattering more or less as we proceed farther into the 21st century? James - Diversity in generation has historically been valuable for the same reasons cited in the response to the question above. As the generation mix potentially evolves to being less diverse, e.g. mostly renewables and natural gas-fired generation, the power sector is exposed to potentially higher costs and reliability issues depending upon future fuel prices, future electricity demand growth, and the rate at which existing assets are retired (nuclear?). Q - What does ideal electricity diversity look like, either nationally or regionally? James - EPRI has not defined the ideal generation mix. This is a complex question, both from the analysis perspective and from the perspective of what is meant by ideal...? How about reliable, safe, and cheap electricity?