trending Market Intelligence /marketintelligence/en/news-insights/trending/7BggJQW8gxL75mA56-7wfw2 content esgSubNav
In This List

TVA sustainability report shows uptick in gas use, shift away from coal

Podcast

Next in Tech | Episode 49: Carbon reduction in cloud

Blog

Using ESG Analysis to Support a Sustainable Future

Research

US utility commissioners: Who they are and how they impact regulation

Blog

Q&A: Datacenters: Energy Hogs or Sustainability Helpers?


TVA sustainability report shows uptick in gas use, shift away from coal

The Tennessee Valley Authority has more than doubled its owned natural gas capacity and more than halved its coal resources since 2005, the federal power authority touted in a recent environmental, social and governance report.

The company, known as the TVA, said in an Aug. 14 ESG report that its natural gas capacity has increased from 4,662 MW in 2005 to more than 12,500 MW in 2018. The TVA also reduced its coal capacity from over 15,000 MW in 2005 to 7,886 MW over the same period.

Meanwhile, the TVA has boosted nuclear capacity from 5,790 MW in 2005 to 7,723 MW in 2018. The utility's hydroelectric capacity also saw a modest increase during the time span to 5,398 MW by the end of 2018.

"TVA recognizes that the energy industry is evolving based on customer preferences, regulatory drivers, and international pressures and expectations," the company wrote. "TVA's energy mix has shifted from a largely fossil fuel-based portfolio to a more diversified mix, which utilizes a balance of coal, gas, nuclear, hydroelectric and renewables."

The report is based on a sustainability template for various ESG issues developed by the Edison Electric Institute, or EEI. The investor-owned utility trade association spearheaded the initiative to standardize companies' information in a comprehensible format.

"TVA's mission is rooted in sustainability and stewardship, and TVA supports initiatives that demonstrate our progress in these areas," Brenda Brickhouse, the company's vice president of environment and energy policy and chief sustainability officer, said in an Aug. 16 news release. "TVA's ESG report will supplement other sustainability information that TVA provides, and highlights the advances we are making in providing cleaner energy and ensuring sustainability."

The TVA's decarbonization efforts have been under scrutiny as it ramps up initiatives to move away from dependency on fossil fuels. The utility said in June that it is on track to reduce power plant carbon emissions by 70% from 2005 levels by 2030. But while the company's strategy entails using a combination of nuclear, gas and renewables to clean up its energy portfolio, the TVA has been slower to add wind and solar. Some stakeholders have said that new TVA CEO Jeff Lyash and his executive team will need to incorporate more renewables in addition to gas and nuclear to entice major corporations with aggressive ESG goals into the company's service territory.

However, its final 2019 integrated resource plan recommends expanding solar capacity by between 1,500 MW and 8,000 MW by 2028 and adding up to 14,000 MW by 2038. The TVA is also soliciting for 200 MW of renewable energy projects and is working with Google LLC and Facebook Inc. to build the largest solar facilities in Tennessee and Alabama for data centers, adding about 675 MW to its renewable portfolio.