New England has some of the highest energy rates in the country. Residential electricity rates in New England are about 80% higher per kilowatt-hour than in the southeastern states. In 2022, all six New England states were among the top ten for the highest electricity prices in the nation, with Massachusetts residents paying around 26.1 cents per kilowatt-hour, surpassed only by Hawaii and California.
These high energy rates have been caused by a perfect storm of energy policy – an ambitious shift towards renewable energy while simultaneously curtailing the expansion of natural gas pipelines into the region. This has created a challenging energy landscape that significantly impacts both energy supply and prices.
New England’s energy infrastructure is heavily dependent on natural gas, which accounts for over half of the region’s electricity generation. The existing pipeline capacity is insufficient to meet peak demand, particularly during the harsh winter months.
Efforts to expand pipeline capacity in New England have faced significant opposition. Environmental concerns, regulatory hurdles, and public resistance have stalled numerous pipeline projects over the years. Meanwhile, the region’s transition to renewable energy has been slower than desired; the current infrastructure is not yet capable of fully supporting this transition.
The need to meet New Englands increasing energy demands has led to a reliance on imported liquefied natural gas (LNG), increased use of diesel for power generation, and other negative impacts on the region’s energy stability and environmental goals.
Imported liquefied natural gas (LNG), often comes from distant sources, including Russia. The reliance on imported LNG subjects the region to global market fluctuations and geopolitical tensions. This reliance on imported LNG is expensive and contributes to higher energy prices for consumers. The cost of transporting LNG across the globe, coupled with the premium prices paid during peak demand periods, significantly inflates the overall cost of energy in the region.
Additionally, the limited pipeline capacity has forced New England to turn to alternative, less efficient, and more polluting sources of energy. During periods of high demand, such as during cold snaps, the region’s power plants often switch to burning diesel fuel. For instance, during a particularly cold spell in early 2023, New England power plants burned more oil and diesel for electricity than they had in years.
The environmental impact of burning diesel is significant. Diesel combustion releases higher levels of carbon dioxide and other pollutants compared to natural gas. This not only contributes to climate change but also affects local air quality, posing health risks to residents. The increased emissions from diesel combustion are at odds with New England’s ambitious clean energy targets and efforts to reduce greenhouse gas emissions.
The lack of new pipeline infrastructure also affects the reliability of the energy supply. During peak demand periods, the limited pipeline capacity can lead to supply constraints, resulting in potential energy shortages and increased risk of blackouts. This situation creates a precarious energy environment where consumers face both high prices and the threat of unreliable energy supply.
In conclusion, the lack of new natural gas pipelines into New England has far-reaching implications for the region’s energy supply and prices. The reliance on imported LNG (including from Russia) and the increased use of diesel for power generation have led to higher energy costs and greater environmental impact. Addressing these challenges requires a balanced approach that considers both the immediate need for reliable energy and the long-term goal of transitioning to cleaner energy sources.
Source(s)
1. New England Will Benefit from Robust, Low-Cost Natural Gas Supply if …
2. Just One More – How New England Would Benefit From a Gas Pipeline …
3. What They’re Saying: New England Faces a Pricey Winter due to Lack of …
4. New England natural gas and electricity prices increase on supply …
5. The Northeast Desperately Needs More Pipelines – IER
6. EU imports record volumes of liquefied natural gas from Russia
7. European natural gas imports – Bruegel
8. Imports of Russian LNG by region 2022 | Statista
9. EU ports help sell on over 20% of LNG imports from Russia – Financial Times
10. The EU can manage without Russian liquified natural gas
11. New England clean energy goals slam into oil reality
12. What to know about a planned natural gas ‘peaker’ plant in Mass.
13. Cold Snap Pushed New England to Burn More Diesel for Power
14. New England Is Burning the Most Oil for Electricity Since 2018
