Like many energy providers around the state and country, we stand on the precipice of major changes in the energy industry. This changing landscape includes regulatory deadlines for reducing greenhouse gas emissions; advancements in renewables and energy storage; rate options; and how customers use energy inside their homes and businesses.
As we plan for these changes, we are equally committed to maintaining system reliability and managing customer rate impacts.
Forward-thinking energy planning is at the forefront of all that we do, beginning with our Sustainable Energy Plan. This plan was developed with extensive customer input and aligns with Colorado’s 2019 Clean Energy legislation to commit to a 80% reduction in greenhouse gas emissions by 2030.
Our efforts to meet regulations and improve local air quality made significant strides with the closure of our downtown, coal-fired Martin Drake Power Plant in 2022 and plans to close the Ray Nixon Power Plant by 2030. The shift from coal is a major step, but we recognize that the path forward is only attainable if we responsibly manage customer costs and maintain the reliability and resiliency of our electric grid.
Responsible natural gas generation will remain a key part of our energy mix over the next decade. Having natural gas resources at our disposal will enable us to carefully incorporate technologies such as battery storage and renewable resources like solar and wind.
Maintaining system reliability and managing customer costs are the key reasons we’ll soon commission six modular natural gas generating units outside the Drake Power Plant. These highly efficient, low emissions natural gas units will provide a stable bridge to a carbon free energy future.
It is imperative that we enhance our electric grid as we embark on this energy transition. Our plans include several major transmission and substation improvements to securely enable the changes we must make. Many of these projects are already underway.
We are excited about the evolution and attainability of large-scale battery storage. That’s why we plan to add up to 200 megawatts of battery storage by approximately 2025. It will be the first storage of its kind on our system and will help us maximize the efficiency of our entire energy portfolio – not just renewables – during times of peak demand.
Additionally, we plan to commission the Pike Solar array in 2024, which will feature 175 MW of solar energy. After adding Pike Solar to the existing solar, wind and hydro resources, renewable energy is estimated to represent about 27% of our energy portfolio.
Beyond moving away from coal-based electric generation, these are the types of additions to our energy portfolio that will help us achieve an 80% reduction in greenhouse gas emissions well before 2030.
While we’re here to lead our transition to a clean energy future, we cannot be successful without your input. Much has changed since our last update to the Sustainable Energy Plan in 2020, so now is the time to update it. With your help, we’re confident that our energy transition plan will continue to provide us the responsible path forward. Follow us on social media and check csu.org for updates.