A growing number of states across the U.S. are considering clean fuel programs to limit the carbon intensity of transportation fuels and to incentivize the production of low-carbon and renewable alternatives.
Multiple states in the U.S. have initiated long-term proceedings to examine the operations of natural gas utilities, aiming to incorporate the implications of electrification goals and emissions reduction requirements into the planning processes of distribution utilities.
The net metering policy landscape continues to change as customer-sited generation expands. More states are shifting from traditional net metering to implement new rate structures. Over the last year, California, Arkansas, and North Carolina have adopted revisions to the policy. Net energy metering (NEM), which credits customer generators for grid-exported power, has been a key component of the policy framework to spur investment in customer-sited renewable energy facilities, including solar and energy storage systems.
The Biden administration has made significant strides in climate change action, particularly through the enactment of the Inflation Reduction Act of 2022 (IRA), which represents the single largest investment in climate and energy in the U.S. Actions to further the administration’s climate agenda include proposals to limit emissions from power plants and vehicles, finalizing methane emission rules, and advancing environmental justice.
Federal actions are paving the way to build out new transmission capacity at the pace required to accommodate shifts in power generation and achieve decarbonization goals while enhancing grid reliability.
For years now, lawmakers and regulators across the U.S. have intensified their scrutiny of the competitive electricity market for residential consumers in order to address deceptive sales tactics and complex contract terms that burden consumers with high costs.
States with big offshore wind ambitions are planning new strategies to recover the industry from economic challenges that have resulted in some major developers seeking to exit or revise their power purchase contracts.
The growing interest in carbon capture and sequestration (CCS) projects driven by supportive policies and tax incentives has prompted state efforts to streamline permitting requirements, including securing primacy to regulate Class VI injection wells to sequester carbon dioxide. CCS involves the capture of carbon dioxide (CO2) emissions from power plants or industrial processes before they are released into the atmosphere for storage in subsurface geological formations.
To address the escalating demand on the power grid due to the rise in electric vehicle (EV) charging, electric utilities are compelled to develop rate structures that encourage EV owners to charge during off-peak hours, thereby aiding utilities in managing the grid's overall demand.
As renewables continue to grow in the move towards a low-carbon future, energy storage is critical to mitigate the variability of wind and solar resources and enhance reliability and resiliency of the electric grid. Federal and state actions continue to facilitate the adoption of storage as a key solution in this transition. U.S. utility-scale battery storage capacity is expected to increase from 1.5 gigawatts (GW) in 2020 to 30 GW in 2025, according to the U.S. Energy Information Administration.
Discussions around carbon markets reflect the growing emphasis on collaborative efforts to advance climate solutions. Despite gaining prominence as an efficient market-based solution to reduce emissions, carbon trading initiatives face obstacles due to concerns of higher energy prices.
The drive towards a low-carbon future has prompted changes to solar incentive programs as lawmakers and regulators emphasize the role of the distributed generation market in achieving energy and environmental goals. Recent measures range from New Jersey’s dual-use solar pilot to California’s revisions to solar tariffs and a report examining virtual power plants for grid reliability.