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Colorado Debates Future Grid Reliability: Natural Gas vs. Enhanced Battery Storage Post-Coal

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Colorado Debates Future Grid Reliability: Natural Gas vs. Enhanced Battery Storage Post-Coal

Key Insights

  • Tri-State Generation and Transmission Association proposes a 307 MW natural gas plant in Craig, Colorado, to ensure grid reliability after coal plant closures.

  • Conservation groups advocate for 550 MW of additional battery storage, citing $288 million in cost savings and reduced greenhouse gas emissions.

  • The Colorado Public Utilities Commission is scheduled to decide by July 10 whether to approve Tri-State's plan or mandate further modeling.

  • The debate highlights the industry's challenge of balancing immediate reliability needs with long-term decarbonization goals and evolving technology.

The Colorado Public Utilities Commission (PUC) is poised to decide by July 10 on a contentious proposal by Tri-State Generation and Transmission Association for a new 307-megawatt natural gas plant in Craig, Colorado. This decision comes as the state rapidly phases out coal-fired electricity, with the Craig Station coal plant slated for full retirement by the end of 2027. Tri-State asserts the gas plant is crucial for ensuring electricity availability and reliability across its four-state service territory, particularly western Colorado, as it transitions away from coal.

However, three prominent conservation groups vehemently oppose the gas plant, arguing that Tri-State can maintain grid stability through increased battery storage, specifically an additional 550 megawatts beyond Tri-State's current proposal. They project this alternative would save ratepayers $288 million and significantly reduce greenhouse gas emissions. The PUC's immediate challenge is whether to mandate additional modeling, as requested by the conservation groups, a step Tri-State warns would cause procurement delays and cost escalations due to supply chain issues and potential changes in tax credits.

The broader energy landscape underscores the complexity of this decision. While new gas plants face lengthening wait times and rising costs for giant metal turbines—now up to three to four years, double that of a year ago, as reported by the New York Times—renewable projects also contend with supply chain disruptions and tariff impacts. RMI, a Boulder- and Basalt-based clean energy think tank, noted in a June 18 report that