Aging infrastructure, a rapidly changing generation profile, and climate change concerns are driving efforts to facilitate a flexible power grid that can absorb higher levels of distributed resources and withstand damaging weather events.
Across the U.S., state and federal agencies are accelerating efforts to bolster electric vehicle (EV) charging infrastructure, expand consumer incentives, or electrify fleets, reflecting the growing importance of transportation electrification to achieve clean energy goals. States are also tasked with deploying billions in new federal funds for charging stations under the 2021 Infrastructure Investment and Jobs Act (IIJA).
Energy utilities across the U.S. are expanding opportunities for customers to participate in programs designed to reduce their carbon footprint. Green pricing options have been on the rise, encouraging consumers to meet a portion of their electricity needs from renewable energy resources. Carbon offset programs are becoming popular among natural gas utilities, allowing customers to compensate for their combustion-related emissions.
Discussion around the social cost of greenhouse gases has drawn increased interest following the Biden administration’s renewed focus on establishing the climate metric for federal agencies to incorporate in their policy decisions.
The Infrastructure Investment and Jobs Act (IIJA), which represents the largest investment in U.S. infrastructure, includes major provisions important to the energy industry, ranging from building out the first national network of electric vehicle (EV) charging stations to modernizing the electric transmission grid and expanding clean energy.
Russia’s attack on Ukraine has roiled global markets, causing oil prices to soar at a time when the world is recovering from the economic fallout of the COVID-19 pandemic. The conflict, entangled with the global energy crisis, has been met with heavy economic sanctions from the U.S. and most European countries. Companies across the oil and gas value chain have also announced plans to abandon investments in Russia.
Upgrading and expanding the U.S. electric transmission system is key to enhancing grid reliability and resilience while enabling greater integration of carbon-free resources to meet clean energy goals.
Nuclear power is increasingly viewed as a necessary resource to compensate for the decline in fossil fuel-based electricity in the transition towards a low-carbon future. Recent actions range from the U.S. Energy Department’s launch of a $6 billion program to sustain the existing nuclear fleet to West Virginia’s move to end a ban on nuclear plant construction and efforts to delay the closure of the Diablo Canyon nuclear power plant in California.
Long-term planning strategies of electric utilities across the U.S. reflect the growing trend towards phasing out coal-fired power generation while embracing renewables. Coal power plants account for 85 percent of electric generating capacity scheduled to retire in the U.S. during 2022, according to the U.S. Energy Information Administration (EIA).
Revisions to rules governing competitive retail electricity markets are focused on strengthening customer protections while exploring ways to expand access to these markets. Recent actions include efforts to open retail electric competition in Arizona, Connecticut’s investigation into supplier offers, and Maine’s update to marketing standards for retail electric services.
U.S. offshore wind is gaining traction with new milestones spurred by state commitments of almost 40 gigawatts (GW) by 2040 and a federal goal of 30 GW by 2030. Recent developments include state-level project selections that could add more than 3.2 GW of new capacity, New Jersey’s proposal for a novel offshore wind transmission solution, and New York’s move to advance transmission technologies for offshore wind integration.
Several states are reshaping their distributed generation policies and programs amid the proliferation of distributed solar and other solutions prompted by changing customer needs and clean energy goals. Recent actions range from California’s proposed net metering successor, which has triggered cost-shift debates in the nation’s largest solar market, to New York’s roadmap to achieve 10 gigawatts (GW) of distributed solar by 2030.