The electricity system is in a state of transition amid the increase in fossil-fueled generation retirements and the penetration of intermittent renewable resources. Grid operators and regulators across the U.S. are exploring tools and strategies to adapt resource adequacy planning to the changing generation mix.
Amid the growing number of initiatives to unlock the benefits of distributed energy resources, states across the U.S. are pursuing measures that support customer-oriented solutions while ensuring reliable system operations.
Energy storage plays a key role in managing the pace of the transformation of the electric system. The versatility of the resource has allowed for multiple grid roles, including supporting transmission reliability.
The focus on decarbonization and energy security has elevated the importance of nuclear power as a critical technology to achieve national and state goals. Recent actions include the second award cycle of a $6 billion federal program established to maintain the existing reactor fleet and proposals to explore the feasibility of deploying advanced nuclear technologies.
Recent developments around grid modernization strive to enable greater adoption of clean energy resources while ensuring a more resilient and responsive grid.
Stringent climate policies have prompted discussions around comprehensive cap-and-invest programs to address emissions across multiple sectors. Several U.S. states have devised bold climate action plans that call for transformations across industry, energy, and transportation sectors.
The U.S. offshore wind industry is experiencing a flurry of activity with commercial-scale wind projects advancing in the Atlantic Ocean and the Pacific now open for development, following a federal auction held in December.
State regulators in the U.S. are tightening regulations governing competitive retail electricity markets, as they closely examine supply offers to determine if they are fairly priced, offer intended benefits of competition, and support clean energy goals.
The U.S. is on the verge of a boom in transmission projects driven by a massive buildout of renewable energy generation and an increase in federal transmission planning initiatives. Several long-distance power lines, such as the Champlain Hudson and SunZia, have reached major permitting milestones after years of planning and review.
Recent long-term resource plans of several electric utilities include accelerated timelines to develop renewables or retire coal-generation fleet, reflecting the impact of policy changes ensuing from 2022 Inflation Reduction Act (IRA). The IRA includes provisions to support the transition of the U.S. electricity generation fleet to cleaner energy sources and lower carbon emissions.
The market for renewable natural gas (RNG) is in transition as decarbonization mandates have led more states and jurisdictions to embrace strong policies lowering barriers to market access.
Several U.S. states have unveiled new climate action plans or revised existing strategies to achieve their emissions reduction mandates. California, New York, and Michigan are among states that have recently adopted plans to achieve net-zero emissions or to move towards carbon neutrality by mid-century.