A BRIEF HISTORY OF ENERGY ON NANTUCKET
The Whaling Era
As a remote spit of sand resting dozens of miles out to sea, isolation has long shaped the history of Nantucket. For centuries, Native Americans resided on the island in peace, out of reach of English settlers who swarmed to Cape Cod. However, in 1659, the first settlers made their way to the island, and initially attempted to raise sheep, which met with little success due to the lack of resources to sustain livestock populations.
Shortly thereafter, a Right whale wandered into the harbor of Nantucket and was captured by settlers, who reveled in the newfound resource of whale oil, which fueled early lamps and could be exported for profit. The Nantucket whaling industry rapidly developed, establishing the island as a global energy supplier of energy and resources.
The Nantucket whaling industry prospered until the year of 1840, when the isolation of the island, and the additional costs associated with exporting commodities to the mainland, drove the whaling trade to the town of New Bedford, Massachusetts, from which shipments could be made throughout the United States with relative ease in part through to the development of railroads. Despite its prominence as an energy producer, the logistical challenges presented by the isolation of Nantucket once again brought about the end of an industry by which the island had survived. Although difficult for transportation of goods and energy, the isolation of Nantucket has long presented a stunning allure for year-round residents and vacationers alike. Tourism has stood as the primary source of income for the island following the demise of the whaling industry, with roughly 400,000 visitors annually.
Energy Independence and then Reliance
In addition to the approximately 13,000 year-round residents, the influx of energy consumers to the isolated market presents a large demand for energy in the forms of electricity and liquid fuels. From the late 1800s through 1996, all of the Island’s electricity was produced on Island, by steam engines and then by diesel generators. Demand rapidly surpassed this facility’s ability to supply electricity, resulting in frequent outages, particularly during peak tourism months. In 1996, National Grid laid a single 36MW transmission cable for 30million dollars, thus tying Nantucket into the Cape Cod power grid. Yet within the following decade, demand once again surpassed the capabilities of the established infrastructure, and a second 38MW cable was laid in 2006, at a cost of $41 million, which was paid for by the addition of a "cable surcharge" on the electric bills of all Nantucket rate payers. In the event of peak loading that surpasses the 74MW supply capability of the submarine transmission cables, or a service interruption, 6MW of electrical generation capability exist on Nantucket to meet demand.
The Price of Imported Energy
Regardless of what form imported energy takes on Nantucket, surcharges are added to subsidize the companies that must overcome logistical hurdles to provide modern conveniences to such a remote destination. Residents of Nantucket consistently pay some of the highest prices in the United States for gas ($4.50 / gallon), propane ($3.40 / gallon), and electricity ($0.18 / kWh). Liquid fuels, namely propane and petroleum products, present a logistical challenge to Nantucket because no pipelines exist from the mainland for fear of leaks that could spill toxic fuels into the sound. Diesel and gasoline are supplied to Nantucket via barges, which offload to a tank farm in the downtown area for storage and distribution to facilities around the island roughly 11 times every year to meet demand, whereas propane and aviation fuel must reach the island via tanker trucks transported over on freighter lines operated by the Steamship Authority, which is the only company providing transportation for vehicles to Nantucket. Yet due to the hazardous nature of the cargo, voyages made with a propane truck aboard cannot transport any other vehicles or passengers. This results in an exceptionally high rate for propane, which is used in lieu of residential natural gas on Nantucket.
Municipal Energy Consumption, Needs & Challenges
The Town of Nantucket, which is the largest single consumer of energy on-island spends nearly $3.0 million spent on liquid fuels and electricity. There are 86 municipal electricity accounts, spread between nearly 30 sites across the island, in addition to roughly 80 motor vehicles owned and operated by the Town—most of which are trucks or SUV-type vehicles necessary to navigate Nantucket’s “off-road” driving conditions.
Nantucket is also unique in that the entire island is considered a National Historic District, subject to strict aesthetic guidelines and standards by the Nantucket Historic District Commission (HDC), which has been the governing authority charged with overseeing the island's preservation since 1955. HDC guidelines dictate, among other things, requirements to install single-glazed true-divided light windows in all publically visible buildings; opposition to installing solar panels in many areas, even when visibility from public ways would be extremely limited; and prohibitions on use of alternative materials, even when such materials resemble traditional materials and are not visually distracting. Nantucket’s exorbitant land values, as well as a lack of developable land due to the widespread presence of protected and endangered species, as well as restrictive heritage and zoning laws also pose unique challenges to the development of renewable energy projects.
In addition, several initiatives to meet the eligibility criteria to become a Green Community have been defeated at Town Meeting, including articles for by-right siting of wind turbines in a limited overlay district; and adoption of the Stretch Code, which poses particular difficulties for implementation in the context of an island-wide historic district and expensive building costs (materials and contractor rates are escalated to account for island logistics).
The Town of Nantucket Energy Office
With these issues in mind, and faced with a strict hiring freeze since 2008, the Town of Nantucket sought a private grant in 2011 to found an Energy Office to assist the Town in identifying and implementing energy efficiency, conservation and renewable energy programs that are economically viable, environmentally responsible and socially beneficial for Nantucket. For fiscal years 2011-2014, the Energy Office was funded through an annual grant from reMain Nantucket, a local philanthropic organization to hire two part-time consultants: Senior Technical Advisor George Aronson and Energy Project and Outreach Coordinator, Lauren Sinatra.
In April of 2014, the Town of Nantucket secured a grant from the Massachusetts Department of Energy Resources (DOER) Green Communities Division to fully staff a full-time Energy Coordinator for fiscal year 2015 and 2016, to perpetuate the efforts of the Energy Office on a more permanent basis.
Island Energy Use keeps Rising...
In recent years, Nantucket’s demand for electricity has increased significantly. On July 23 2013, Nantucket’s energy usage hit an all-time high: 45 MW, a 12.5% increase from the previous record high of 40MW in 2012. National Grid, the island’s sole electric utility, has determined that Nantucket’s demand for electricity is growing more than five times the Massachusetts state average. As a result, there is a growing concern about the need for additional, costly and disruptive infrastructure--namely a 3rd undersea transmission cable, which may come at a tremendous expense to Nantucket ratepayers.
While the reality of the need for a 3rd cable on Nantucket is still uncertain, there is much that can be done to reduce electricity costs and improve the overall energy efficiency of the island’s residences and businesses. Not only is the Town investigating Municipal Aggregation to potentially reduce electric rates, but has teamed up with National Grid on a special 7-year “Non-Wires Alternative” (NWA) pilot project to investigate whether customer-side technologies can be implemented in a targeted way to achieve sustainable load reductions, possibly reducing the amount of backup diesel generation needed and potentially deferring any future plans to construct a 3rd cable. The Project was launched in 2015, with the initial phase focusing on a set of “exclusive” energy efficiency incentives for Nantucket customers. Learn more HERE!
As a remote spit of sand resting dozens of miles out to sea, isolation has long shaped the history of Nantucket. For centuries, Native Americans resided on the island in peace, out of reach of English settlers who swarmed to Cape Cod. However, in 1659, the first settlers made their way to the island, and initially attempted to raise sheep, which met with little success due to the lack of resources to sustain livestock populations.
Shortly thereafter, a Right whale wandered into the harbor of Nantucket and was captured by settlers, who reveled in the newfound resource of whale oil, which fueled early lamps and could be exported for profit. The Nantucket whaling industry rapidly developed, establishing the island as a global energy supplier of energy and resources.
The Nantucket whaling industry prospered until the year of 1840, when the isolation of the island, and the additional costs associated with exporting commodities to the mainland, drove the whaling trade to the town of New Bedford, Massachusetts, from which shipments could be made throughout the United States with relative ease in part through to the development of railroads. Despite its prominence as an energy producer, the logistical challenges presented by the isolation of Nantucket once again brought about the end of an industry by which the island had survived. Although difficult for transportation of goods and energy, the isolation of Nantucket has long presented a stunning allure for year-round residents and vacationers alike. Tourism has stood as the primary source of income for the island following the demise of the whaling industry, with roughly 400,000 visitors annually.
Energy Independence and then Reliance
In addition to the approximately 13,000 year-round residents, the influx of energy consumers to the isolated market presents a large demand for energy in the forms of electricity and liquid fuels. From the late 1800s through 1996, all of the Island’s electricity was produced on Island, by steam engines and then by diesel generators. Demand rapidly surpassed this facility’s ability to supply electricity, resulting in frequent outages, particularly during peak tourism months. In 1996, National Grid laid a single 36MW transmission cable for 30million dollars, thus tying Nantucket into the Cape Cod power grid. Yet within the following decade, demand once again surpassed the capabilities of the established infrastructure, and a second 38MW cable was laid in 2006, at a cost of $41 million, which was paid for by the addition of a "cable surcharge" on the electric bills of all Nantucket rate payers. In the event of peak loading that surpasses the 74MW supply capability of the submarine transmission cables, or a service interruption, 6MW of electrical generation capability exist on Nantucket to meet demand.
The Price of Imported Energy
Regardless of what form imported energy takes on Nantucket, surcharges are added to subsidize the companies that must overcome logistical hurdles to provide modern conveniences to such a remote destination. Residents of Nantucket consistently pay some of the highest prices in the United States for gas ($4.50 / gallon), propane ($3.40 / gallon), and electricity ($0.18 / kWh). Liquid fuels, namely propane and petroleum products, present a logistical challenge to Nantucket because no pipelines exist from the mainland for fear of leaks that could spill toxic fuels into the sound. Diesel and gasoline are supplied to Nantucket via barges, which offload to a tank farm in the downtown area for storage and distribution to facilities around the island roughly 11 times every year to meet demand, whereas propane and aviation fuel must reach the island via tanker trucks transported over on freighter lines operated by the Steamship Authority, which is the only company providing transportation for vehicles to Nantucket. Yet due to the hazardous nature of the cargo, voyages made with a propane truck aboard cannot transport any other vehicles or passengers. This results in an exceptionally high rate for propane, which is used in lieu of residential natural gas on Nantucket.
Municipal Energy Consumption, Needs & Challenges
The Town of Nantucket, which is the largest single consumer of energy on-island spends nearly $3.0 million spent on liquid fuels and electricity. There are 86 municipal electricity accounts, spread between nearly 30 sites across the island, in addition to roughly 80 motor vehicles owned and operated by the Town—most of which are trucks or SUV-type vehicles necessary to navigate Nantucket’s “off-road” driving conditions.
Nantucket is also unique in that the entire island is considered a National Historic District, subject to strict aesthetic guidelines and standards by the Nantucket Historic District Commission (HDC), which has been the governing authority charged with overseeing the island's preservation since 1955. HDC guidelines dictate, among other things, requirements to install single-glazed true-divided light windows in all publically visible buildings; opposition to installing solar panels in many areas, even when visibility from public ways would be extremely limited; and prohibitions on use of alternative materials, even when such materials resemble traditional materials and are not visually distracting. Nantucket’s exorbitant land values, as well as a lack of developable land due to the widespread presence of protected and endangered species, as well as restrictive heritage and zoning laws also pose unique challenges to the development of renewable energy projects.
In addition, several initiatives to meet the eligibility criteria to become a Green Community have been defeated at Town Meeting, including articles for by-right siting of wind turbines in a limited overlay district; and adoption of the Stretch Code, which poses particular difficulties for implementation in the context of an island-wide historic district and expensive building costs (materials and contractor rates are escalated to account for island logistics).
The Town of Nantucket Energy Office
With these issues in mind, and faced with a strict hiring freeze since 2008, the Town of Nantucket sought a private grant in 2011 to found an Energy Office to assist the Town in identifying and implementing energy efficiency, conservation and renewable energy programs that are economically viable, environmentally responsible and socially beneficial for Nantucket. For fiscal years 2011-2014, the Energy Office was funded through an annual grant from reMain Nantucket, a local philanthropic organization to hire two part-time consultants: Senior Technical Advisor George Aronson and Energy Project and Outreach Coordinator, Lauren Sinatra.
In April of 2014, the Town of Nantucket secured a grant from the Massachusetts Department of Energy Resources (DOER) Green Communities Division to fully staff a full-time Energy Coordinator for fiscal year 2015 and 2016, to perpetuate the efforts of the Energy Office on a more permanent basis.
Island Energy Use keeps Rising...
In recent years, Nantucket’s demand for electricity has increased significantly. On July 23 2013, Nantucket’s energy usage hit an all-time high: 45 MW, a 12.5% increase from the previous record high of 40MW in 2012. National Grid, the island’s sole electric utility, has determined that Nantucket’s demand for electricity is growing more than five times the Massachusetts state average. As a result, there is a growing concern about the need for additional, costly and disruptive infrastructure--namely a 3rd undersea transmission cable, which may come at a tremendous expense to Nantucket ratepayers.
While the reality of the need for a 3rd cable on Nantucket is still uncertain, there is much that can be done to reduce electricity costs and improve the overall energy efficiency of the island’s residences and businesses. Not only is the Town investigating Municipal Aggregation to potentially reduce electric rates, but has teamed up with National Grid on a special 7-year “Non-Wires Alternative” (NWA) pilot project to investigate whether customer-side technologies can be implemented in a targeted way to achieve sustainable load reductions, possibly reducing the amount of backup diesel generation needed and potentially deferring any future plans to construct a 3rd cable. The Project was launched in 2015, with the initial phase focusing on a set of “exclusive” energy efficiency incentives for Nantucket customers. Learn more HERE!
