La. energy battles show challenge of reaching net zero

More than a year after it debuted, Entergy Corp.’s New Orleans Power Station still has climate advocates steaming over the decision to spend $210 million on a project that relies on natural gas.

But 2020 also saw Louisiana Gov. John Bel Edwards (D) outline a goal of net-zero greenhouse gas emissions in the state by 2050 — including for electricity. That was followed this year by the New Orleans City Council’s endorsement of its own clean energy benchmarks.

The contradiction between a new gas-fired power plant and new climate goals illustrates how complex the shift away from fossil fuels remains for cities, states and electric utilities in the United States. In fact, the New Orleans plant that began commercial operation on May 31, 2020, is one of several gas-fueled power stations Entergy has developed or acquired for its Gulf Coast region in recent years. Louisiana also reveals how multiple players — such as government officials, power companies and grid operators — influence a state’s electricity mix and complicate efforts to slash carbon emissions.

Advocates and public officials are trying to build on the momentum of the power plant fight to write a new chapter for Louisiana and its biggest city.

“It was, I think, the turning point in our battle to take strong climate action,” said Andrew Tuozzolo, chief of staff for New Orleans Councilmember Helena Moreno (D), the council’s current president.

Louisiana, a longtime home of refineries and petrochemical plants, remains linked to fossil fuels every bit as much as neighboring Texas. Promoting economic development while preaching a need to slash greenhouse gas emissions is no easy task, but it’s one Louisiana is pursuing under Edwards. An executive order describes the emissions reductions as goals, not mandates.

The Climate Initiatives Task Force created by the governor last August continues to meet, and it released a draft report earlier this year. Greenhouse gas goals across the economy, as outlined by Edwards, include a 26-28% reduction by 2025 versus 2005 for emissions that originate in the state, a 40-45% reduction by 2030 and net zero by 2050. There are a number of advisory groups associated with the task force, though all of state government isn’t on board.

The Louisiana Public Service Commission — where three of five members are Republicans — is not pursuing a renewable portfolio standard, for example. The PSC oversees electric utilities such as Entergy, Cleco Power and Southwestern Electric Power Co.

“I think we do have to have a priority,” said Craig Greene, the Republican chair of the PSC. “And our priority is reliability and affordability and sustainability — in that order.”

Cutting carbon emissions falls under that last category, according to Greene. But he said the process shouldn’t be politicized, arguing that people should take care of the Earth. Greene said he’s not interested in a “mandated timeline,” while noting that companies are pushing in a cleaner direction.

The PSC’s approach is a contrast to that of the New Orleans City Council, which is the chief regulator of Entergy’s electric utility in the city. The council voted to put in place a net-zero carbon emission resources mandate for the electric utility by 2040 and a zero carbon emission resources requirement no later than 2050. In the backdrop is President Biden’s call for a decarbonized U.S. power sector by 2035.

Climate advocates are concerned Louisiana will have trouble meeting emissions goals — especially given that industrial emissions are the top source of carbon in Louisiana. There is cautious optimism on the electric side of things, depending on what decisions are made.

In 2020, Entergy Louisiana’s power generation mix was about 58% natural gas and 26% nuclear. Power via the Midcontinent Independent System Operator and other purchases totaled about 13%. Renewables were less than 3%, and coal was less than 1%. The breakdown doesn’t include Entergy New Orleans, though its mix also was more than half gas last year.

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