Leadership Skagit brings energy industry insiders to speak at Economic Vitality Day

Energy is a huge issue in economic development, EDASC CEO John Sternlicht said while moderating a recent panel discussion on energy in Skagit County. As electrification of vehicles, heating/cooling systems and other demands both industrial and residential increase, the need for energy keeps growing.

Here in Skagit County that reality is no different – with 130,000 residents, industrial employers, and businesses that want to move here, utilities must find a way to meet the increasing demand. 

“We have industrial users who are already here in Skagit County that have difficulty powering their expansions,” Sternlicht said. “We have prospective companies that are thinking about coming to Skagit that want to be assured they can have a source of power.”

The panel discussion was convened as part of the economic vitality challenge day that makes up one day of the curriculum in EDASC’s Leadership Skagit program, which EDASC runs in partnership with Skagit Valley College.

Experts from the energy sector and industry partners participated in the panel, including PSE Senior Vice President of External Affairs Matt Steuerwalt; PACCAR Director of Development Support Jason Johnson; NextEra Energy Resources Senior Project Manager Jim Riehl; and Port of Skagit Executive Director Sara Young. Each panel member shared how energy needs fuel their planning and operations and some of the challenges they currently face. 

EVs may drive up cost of electricity

The growth of electric vehicles (EVs) is one factor driving the demand for electricity, said PSE’s Steuerwalt. Demand for power to charge EVs is predicted to increase by 25 percent in the next 10 years.

Most of that demand will take place in the evening hours when people are at home from work, he said. This will place a new demand for the powder grid. 

“We need distribution to be strong,” he said, getting the power from where it's generated in Eastern Washington or Canada to the homes and businesses in Western Washington.

Not only will there be increasing need for personal EV charging, but a wave of demand will also come from fleets of EVs used for moving products along the supply chain. 

PACCAR is among the companies developing battery-powered trucks. PACCAR’s Johnson foresees a new challenge at shipping ports and distribution warehouses where trucks line up to move out merchandise. These facilities will need the ability to charge EVs quickly for long-range trips. Currently, this kind of charging infrastructure doesn’t exist, nor is there available space in many instances to add it, he said.

“Some of the challenges that we're faced with are how do we get [charging] faster and where we get that energy from?”

Battery storage sites hope to meet the need

One industry that hopes to step into the role of helping to supply power creates battery energy storage facilities, such as NextEra. 

The facilities not only store energy generated during peak periods but also send that energy back to the grid quickly when demand rises, NextEra’s Riehl said, such as in those evening hours when everyone’s EV is at home and charging.

“You can keep the energy demand in balance with the generation, so it can be used to help keep reliability for the grid,” he said.

As a new industry, battery energy storage facilities have education to do in the communities where these facilities will be located, helping municipalities and residents understand the technology behind the operations to the safety measures built in to mitigate risk. Riehl is naturally bullish on this new industry and its ability to provide a new, green option to meet emerging power supply needs, but he acknowledges his industry must do the work to show communities how these projects can be a good fit. 

Port preparing for future need

For the Port of Skagit, having adequate, reliable power isn’t just essential to Port operations such as the Skagit Regional Airport, but it’s also an essential part of attracting new tenants to Port properties, Executive Director Young said.

The Port relies on “prepared land,” parcels that are ready to build, as part of its toolbox to entice businesses to locate on port property, she said. Having developable land with utilities ready to go is one way to help clear any roadblocks for businesses that “want to come and invest in our community,” Young said.

This includes adequate power infrastructure, however, with new electrification demands the infrastructure hasn't kept up. The Port and PSE are working on a solution study to better define future power needs.

“Having power ready to go is going to be pretty essential,” Young said.