There is a growing focus on reducing the contributions of buildings to greenhouse gas emissions in order to accelerate progress toward a net-zero carbon future. Buildings account for about 40 percent of total energy use in the U.S. and 35 percent of the nation's carbon emissions, according to the U.S. Department of Energy (DOE).
Recent developments in U.S. carbon markets highlight a changing landscape marked by fluctuating auction prices, new initiatives, and regulatory reviews.
The U.S. is accelerating its transition to clean transportation through substantial investments to expand the electric vehicle (EV) charging network and support domestic production capabilities for EVs and their components.
Despite facing hurdles, the U.S. offshore wind industry continues to make progress. The Vineyard Wind project off Massachusetts is under investigation after a turbine blade failure, and a Gulf of Mexico lease auction has been canceled due to a lack of interest. Nevertheless, ambitious plans to expand the industry are moving forward, including the implementation of the first floating offshore wind research lease and California’s plan to procure 7.6 gigawatts (GW) of capacity.
Amid ongoing improvements to interconnection processes across the U.S., current queue backlogs and the rapid increase in new resources seeking to connect to the grid are driving innovative solutions.
The rapid surge in power demand from data centers has prompted calls for additional capacity to maintain grid reliability. Unlike “electrify everything” initiatives, such as transportation electrification, which are part of broader policy goals and planned through regulatory proceedings, large loads like data centers have emerged unexpectedly.
PJM Interconnection LLC’s capacity market auction for the 2025/2026 delivery year cleared at $269.92 per megawatt-day (MW-day), about nine times the clearing price in the last auction. The significantly higher prices resulted from a reduced electricity supply, mainly due to numerous generator retirements, coupled with rising demand and the implementation of market reforms, according to PJM, which operates across 13 states and the District of Columbia.
Hurricane Beryl, the first major hurricane of the 2024 Atlantic hurricane season, has brought new attention to the fragility of the Texas power grid and the pressing need to strengthen utility infrastructure to ensure reliability. The hurricane made landfall in the Texas Gulf Coast, a key hub for the U.S. energy industry, on July 8.
Recent policy and regulatory measures concerning competitive retail electricity markets are increasingly focused on enhancing oversight and transparency. New state actions strive to strengthen these markets with improved regulatory oversight and consumer protections to prevent unsavory practices by competitive suppliers.
A growing number of utility regulators across U.S. states are reviewing natural gas planning strategies to consider the effects of decarbonization and electrification policies on the gas system. Amid shifting policy and changing market conditions, regulators are exploring new tools to evaluate gas infrastructure investments.
The growing interest in carbon capture and storage (CCS) projects to address atmospheric emissions has drawn attention to the crucial role of pipelines in transporting carbon dioxide (CO2) to sequestration sites, highlighting concerns over safety issues. CCS involves the capture of CO2 from the emissions of industrial processes before they are released into the atmosphere for storage in subsurface geological formations.
The enactment of the Infrastructure Investment and Jobs Act (IIJA) in 2021, also known as the Bipartisan Infrastructure Law, and the Inflation Reduction Act (IRA) in 2022, has unleashed billions in federal funding for the
energy sector. These include infrastructure improvements, clean energy deployment, transportation electrification, grid reliability, energy efficiency, and cyber security. Regulators across U.S. states have opened dockets requesting reports on utility actions or initiated proceedings to gather comments on utility opportunities.