GREAT FALLS – The cost of renewable energy like wind and solar has steadily lowered since the early 2000s, and they could be the next top dog in the energy market in a little over a decade.
Move over natural gas – renewable energy options could be the cheapest option for Montanans by 2035, according to a new study from the Rocky Mountain Institute (RMI). The reason?
“The idea is that competition from green energy is going to make it difficult for gas infrastructure to recover their cost,” said Grant Glazer, an associate in RMI’s Electricity Program, “even if that gas infrastructure is serving homes and businesses as well as power plants.”
Under the study, new commitments from companies to natural gas projects today could financially impact individual energy customers and entire communities down the road, especially since those types of power plants have an average lifespan of 20 years, according to RMI.
“There’s a risk that utilities lock themselves and their customers into paying for expensive gas assets now, which may become more expensive than the alternative in the future,” said Glazer.
That risk potentially amounts to tens of billions of dollars in stranded costs by the mid 2030s, according to the study.
However, an manager from NorthWestern Energy (NWE) said the study may not necessarily apply to Montana, especially since it doesn’t specifically focus on its differences as a state.
“Montana has much smaller loads, mostly residential customers and few large industrial customers and large-commercial buildings…. It wouldn’t be correct to have apples-to-apples comparison and draw conclusions from this study,” said Ben Fitch-Fleischmann, who manages NWE’s energy supply planning.
At the end of the day, your electric bills can only change under a rate review request with state and federal officials, like the Montana Public Service Commission, said Fitch-Fleischmann.
One such request is currently under consideration, NWE isn’t making any hard decisions yet in the meantime when it comes to potential energy sources. In the coming months, the company plans to open a public comment period for people to bid on possible energy solutions.