TL/DR –

Hyundai promised a mean, green, electric vehicle machine, but their Georgia Metaplant is running less on solar power and more on shady accounting. They’re buying Texas solar power they’ll never use for “renewable energy credits” while Georgia keeps burning fossils like it’s a Jurassic Park bonfire. With Georgia Power’s monopoly and a lack of market reform in the Southeast, the real climate change is happening in our pockets, not our policies.

Hyundai’s Green Commitment Meets Reality

Two years ago, Hyundai committed to operating a massive Georgia-based electric vehicle “Metaplant” with 100% renewable energy from start. This year, they announced a power purchasing agreement, buying enough solar power for “sustainable manufacturing” at the Metaplant.

However, apart from a few Bryan County solar panels, none of the renewable energy is being produced, or used, in Georgia.

Hyundai has a “virtual” power purchase agreement to buy 70% of the output from a Texas-based solar array, reselling it for “renewable energy credits.” These credits are used to lower its emissions, while the Bryan County Metaplant continues buying electricity from Georgia Power, which only counts renewables as about 7% of its energy mix.

Advocates argue that such virtual power purchase agreements result from a lack of competition in the Southeast energy market, dominated by regulated monopolies like Georgia Power. Explore Hyundai’s hybrid car production plans to learn more.

The Bigger Picture

Katie Southworth from the Clean Energy Buyers Association believes that companies going elsewhere for energy supplies show the utility’s failure to meet customers’ needs with cost-effective, clean energy. She highlights the Southeast’s lagging behind in this aspect.

The pending changes to the regulation affecting how energy is produced, bought, and sold in the South could dramatically alter the incentives for such virtual power purchase agreements.

Nick Guidi, former advisor at FERC, highlights that the Southeast exchange is less competitive than other regional markets. He emphasizes the impact of the lack of an organized wholesale market on companies like Hyundai. Discover more about Hyundai’s EV plant construction plans.

Looking Ahead

Georgia Power recently approved the addition of more fossil-fuel generation to meet increased energy demand. Experts criticize this move due to the health risks and contribution to greenhouse gas emissions associated with burning fossil fuels.

Southworth highlights the need for market reform in the Southeast and the importance of establishing an electricity system that’s more reliable, opens up competition, and includes all customers in the solution.

The parent company of Georgia Power, the Southern Company, defended the Southeast market design, stating that it facilitates renewable energy transactions without the burdens and cost implications of other wholesale market designs.

Original Story at www.ajc.com