Even as transportation electrification expands to medium- and heavy-duty vehicles, states across the U.S. are examining policies to harness the benefits of vehicle-to-grid functionality. The ability of electric vehicles (EVs) to inject power from their batteries into the grid has the potential to optimize charging and mitigate grid impacts.
Regulators and lawmakers across the U.S. are increasingly exploring the possibilities of deploying virtual power plants (VPPs) as a cost-effective means to provide grid services. VPPs have garnered attention as fossil fuel-fired power plants retire and renewable energy resources continue to grow amid increasing electricity demand.
Hydrogen technology continues to garner interest as an effective tool to support the progress towards net-zero emissions and decarbonize hard-to-electrify sectors. Recent developments include establishing a multi-year program plan to guide hydrogen innovation and selecting a consortium to help accelerate commercial liftoff of the clean hydrogen economy.
The notion that natural gas serves as a transition fuel to a low-carbon future has been challenged by a number of studies indicating that emissions of methane, the primary component of natural gas, significantly contributes to global warming. Methane is 80 times more potent than carbon dioxide in trapping heat in the atmosphere over a 20-year period.
The Biden administration continues to advance policies and programs to catalyze offshore wind deployment to achieve the goal of deploying 30 gigawatts (GW) of offshore wind energy capacity by 2030 and 15 GW of floating offshore wind energy capacity by 2035. States are also expediting offshore wind procurement efforts to align with ambitious deployment goals.
The U.S. electric grid is undergoing a significant transformation, with renewable energy sources accounting for an increasing share of the nation's electricity supply. To support this transition, the U.S. Department of Energy (DOE) and various state regulatory commissions have recently announced a series of initiatives aimed at streamlining the deployment of clean energy technologies and improving grid reliability and resilience. Renewable generation accounted for as much as 21 percent of the U.S. electricity supply in 2023, according to the U.S. Energy Information Administration.
The Biden administration has been resolute in its efforts to integrate environmental justice and equity into agency operations. From launching the Environmental Justice Scorecard to allocating billions of dollars in funding for clean energy and climate projects, the administration has made notable progress.
States across the U.S. are increasingly embracing energy storage solutions to complement their clean energy initiatives. The growing share of renewables continues to drive the expansion of battery storage technologies, which can help integrate intermittent resources into the grid. U.S. battery storage capacity is projected to double this year, with planned additions of 14.3 gigawatts (GW), according to the U.S. Energy Information Administration.
Recognizing the crucial role of energy efficiency in enabling an affordable energy transition, the U.S. Department of Energy (DOE) has unveiled the first federal blueprint for decarbonizing the buildings sector including goals to reduce on-site energy use intensity in buildings. Additionally, multiple states have pledged to accelerate the shift to zero-emission residential buildings, highlighting the growing importance of energy-efficient solutions in achieving broader energy and climate objectives.
There is a growing focus on enhancing oversight, transparency, and stakeholder engagement in the integrated resource planning process for electric utilities across various states. The pursuit for a low-carbon future is driving the need for innovative policy initiatives to maximize renewable energy utilization and maintain grid reliability. Integrated resource plans (IRPs) that utilities file with state commissions identify the optimal mix of resources required to serve customers over a long-term planning horizon.
Recent policy developments in the U.S. nuclear power industry indicate a growing recognition of the carbon-free nature of nuclear energy to support the energy transition. With Congress considering nuclear energy reforms, the Nuclear Regulatory Commission (NRC) proposing rules for advanced reactor licensing, and state legislatures exploring the benefits of small modular technologies, the landscape of nuclear energy technologies is poised for change.
As carbon pricing gains traction as a policy tool to combat climate change and achieve net-zero emissions, regulatory attention on U.S. carbon markets has been on the rise. Recent developments in state-level emissions trading programs have yielded mixed results, with Washington's latest allowance auction seeing a significant price drop, while California, Quebec, and the Regional Greenhouse Gas Initiative (RGGI) cleared at record high prices.