The U.S. offshore wind industry is faced with a host of challenges including opposition over impacts to the environment and coastal economies, escalating costs, and delays despite several projects reaching major milestones.
U.S. carbon markets demonstrated robust participation in recent auctions including Washington’s two consecutive auctions that sold out of carbon permits and raised over $850 million under the state’s cap-and-invest program launched this year. However, carbon-trading programs continue to face opposition in some jurisdictions over concerns of higher ratepayer bills.
The completion of a new reactor at Georgia’s Plant Vogtle is viewed as a significant milestone for the U.S. nuclear industry despite massive cost overruns and years of delays. The lessons learned are expected to inform best practices for new projects even as a host of advanced technologies ranging from small modular reactors to microreactors are being developed. The development comes at a time when focus on decarbonization and energy security has elevated the importance of nuclear power as a critical technology to achieve national and state goals.
Low-carbon fuel programs are gaining prominence as an important avenue to help decarbonize the transportation sector, which accounts for a third of U.S. greenhouse gas emissions. Recent actions range from biofuel mandates under the federal Renewable Fuel Standard (RFS) program to legislative proposals across half a dozen states to establish clean fuel standards.
The deployment of carbon capture, utilization and storage (CCUS) technologies is expected to increase in the U.S., driven by federal and state initiatives to meet emissions reduction targets. Supportive policies, including $12 billion in funding from the Infrastructure Investment and Jobs Act (IIJA) of 2021 and enhanced tax credits under the Inflation Reduction Act (IRA) of 2022, are driving carbon capture projects across the U.S. Initiatives to expand carbon dioxide (CO2) pipelines to connect to sequestration sites have also gained momentum.
Utility commissions across U.S. states are exploring issues surrounding electric vehicle (EV) charging rates to ensure that rate structures foster effective and equitable use of the power grid for the benefit of all consumers.
Emphasis on energy efficiency and related measures, such as building electrification, have been gaining significance as lawmakers and regulators across the U.S. strive to set policies that spur climate-friendly activity to progress toward a low-carbon economy.
As competitive electric suppliers expand their product and service offerings, state lawmakers and utility commissions across the U.S. continue to explore actions to improve oversight.
Several states across the U.S. are revisiting utility resource planning processes to account for changing policy developments and demand projections while also considering long-term affordability and reliability to build a more resilient grid.
Community solar is poised for significant growth across the U.S. driven by state actions to encourage solar power and incentives in the 2022 Inflation Reduction Act (IRA). Also known as shared solar, community solar allows multiple energy customers to participate in projects that are remotely located and receive credits to lower their electricity bill.
Federal and state goals have boosted the offshore wind industry, leading to several projects under various stages of development. Although cost increases have challenged some projects along the East Coast, development activities are gaining momentum along the West Coast.
Heightened activity around energy storage reflects the growing importance of the technology to meet clean energy goals. Increasing levels of renewable energy, electrification of buildings and transportation, as well as retirement of fossil fuel generators are driving growth in battery storage installations.