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Science
06 November 2024

Xcel Energy Signals Shift To Nuclear And Renewables

Utility explores small modular reactors as part of its long-term clean energy strategy

AURORA | Xcel Energy’s recent presentation to the Aurora City Council shone the spotlight on its strategies for renewable energy and fossil fuels but also hinted at something much more poignant: the potential introduction of small modular nuclear reactors (SMRs) as part of its long-term clean energy plans. This move could play a pivotal role as the company strives to achieve 100% carbon-free electricity by 2050.

Hollie Velasquez Horvath, the regional vice president from Xcel, stressed the importance of exploring nuclear power, particularly SMRs, as they look beyond 2030. "We agree nuclear power could be the advanced technology we need post 2030," she remarked, underlining the company’s commitment to clean energy technologies.

During the council’s work session on November 4, Xcel outlined its vision for the future, including the feasibility of testing the first SMR as early as 2028 or 2029. Mayor Mike Coffman expressed surprise at why nuclear power was sidelined during the discussions, especially with its potential to deliver consistent, carbon-free electricity. Horvath clarified they are currently concentrating on strategies for 2030 but assured the council nuclear energy remains on their radar.

With Xcel refining its approach to clean energy, the discussion surrounding nuclear power is bound to gain momentum. Other industry players echo similar sentiments as the urgency to pivot away from fossil fuels grows due to climate change.

Meanwhile, across the pond, the National Energy System Operator (NESO) of Great Britain is actively seeking pathways to achieve clean power by 2030. On November 5, NESO released insightful guidance highlighting the ambitious aim of establishing systems powered by at least 95% renewables, nuclear, or biomass. Their projections indicate peak reliance on fossil fuels dropping to below 5%.

This document presents two primary strategies, termed ‘Further Flex and Renewables’ and ‘New Dispatch’. The first seeks to greatly expand consumer participation and press for rapid renewable deployment without adding new dispatchable power, whereas the second combines renewables with low carbon dispatchable power sources like carbon capture and storage (CCS) alongside hydrogen.

Particularly noteworthy is the expectation for offshore wind to take center stage as the bedrock of Britain's energy generation, projected to provide more than half of the country's electricity supply. Onshore wind and solar are set to play significant roles too, collectively contributing to nearly 30% of the energy matrix. This ambitious plan requires record-breaking rates of deployment and local engagement to sustain momentum.

Battery storage has also garnered attention, with forecasts indicating increases from about 5 GW currently to between 23 and 27 GW by 2030. Despite some limitations around long-duration energy storage solutions, the path for battery development is promising. Almost two-thirds of the battery projects queued for connections are already overwhelmed compared to those needed for NESO's goals.

A significant emphasis is being placed on ensuring the UK electrifies across all sectors, thereby achieving greater flexibility and resilience within the energy system. Demand flexibility measures are projected to increase four to five times by 2030, primarily through technological advancements like smart charging for electric vehicles and time-shifting of household energy use.

Transitioning to clean energy not only involves innovation and infrastructure upgrades but must also address financial frameworks to support the shift without burdening consumers. Through cooperation among industry stakeholders, regulators, and technology innovators, there is hope for seamless integration of various energy sources toward net-zero ambitions.

Looking back at Xcel Energy’s potential advancements, the integration of hydrogen as a balancing force alongside renewables cannot be understated. With the increasing reliance on variable energy sources, clean hydrogen's versatility as both fuel and storage could stabilize electricity grids and carry surplus energy through fluctuant seasons. To bolster and protect energy flows, hydrogen serves as the bridge between demand spikes and intermittent generation, enabling renewable projects to capture and feed back otherwise curtailed power to the grid.

Xcel and NESO’s forward-thinking strategies exemplify the need for collaboration and timely action as countries wade through the transformation of their energy sectors, aspiring toward cleaner, more resilient, and sustainable power systems for future generations. Both entities are setting the stage for energy solutions where carbon neutrality is not just aspirational but entirely achievable.

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