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.
Grid operators and utilities across the U.S. have enhanced their winter preparation initiatives building on lessons learned from winter storms Uri and Elliott. Higher-than-average temperatures in the northern half of the U.S. are expected to lower electricity and natural gas demand, and all regions are projected to have adequate resources for a normal winter. However, extreme weather, such as a prolonged cold snap, continues to pose reliability risks to the grid.
Long-term planning strategies of natural gas utilities across the U.S. are evolving in response to ambitious clean energy and emissions reduction goals. Policies to achieve net-zero emissions by mid-century are leading state regulators and utilities to explore pathways to decarbonize the energy system.
Strategic actions to optimize the distribution grid are imperative to meet the demands of the evolving power sector. Changing policies, climate action, and customer preferences have led to the growth in distributed energy resources and demand-side opportunities, prompting regulators and utilities to explore robust grid planning approaches that accommodate the growth and meet increased demand from electrification.
Amid growing federal and state efforts to encourage advanced nuclear technologies to accomplish decarbonization goals, a recent announcement to terminate a first-of-a-kind small modular reactor (SMR) power project in the U.S. signifies the hurdles facing the industry.
Strategic actions to optimize the distribution grid are imperative to meet the demands of the evolving power sector. Changing policies, climate action, and customer preferences have led to the growth in distributed energy resources and demand-side opportunities, prompting regulators and utilities to explore robust grid planning approaches that accommodate the growth and meet increased demand from electrification.
Even as the offshore wind industry is seeking to scale up, economic challenges cast shadow on future development. Inflation and supply chain disruptions have resulted in some major developers seeking to exit or revise their power purchase contracts. A recent announcement to cancel two large projects off New Jersey has dealt a setback to the industry, reflecting the deepening financial challenges of the sector.
There is a growing focus on regional collaboration to improve transmission planning and operations as grid operators and states explore strategies to enhance system reliability while transitioning to a lower-carbon grid. Recent actions include a comprehensive action plan to connect offshore wind projects to the electric grid and a multi-state proposal to establish a collaborative on interregional transmission.
Carbon management is emerging as an important component of regulatory strategies to progress towards a net-zero economy. Recent actions range from funding for the first direct air capture facilities to establishing an action committee to advance marine carbon dioxide (CO2) removal.