Alternative energy
Policy developments around nuclear energy continue to evolve driven by new reactor technologies and the need for carbon-free power to support clean energy goals. Nuclear operators can have their yellowcake and eat it too as massive federal and state subsidies protect traditional nuclear power plants while underwriting the development of advanced reactors.
The market for electric vehicles (EV) continues to evolve as do efforts to address future charging needs. Recent actions range from the U.S. Environmental Protection Agency’s (EPA) proposals for tougher vehicle emissions standards to new national standards for federally-funded EV chargers, and the first round of funding under a $2.5 billion program to support charging and alternative fueling infrastructure.
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.
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.
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.
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.
Net metering policies, which have been instrumental in driving the growth of distributed solar across the U.S., are poised for further evolution as states explore a holistic approach to establish compensation mechanisms. In California, a long-time leader in solar adoption, regulators have approved a significant overhaul of the net metering program, a decision that will likely have broad implications for the industry nationwide.
Efforts to preserve and expand the U.S. nuclear fleet are figuring more prominently across the U.S., spurred by the growing demand for emission-free energy. In particular, policy actions and initiatives are geared towards making nuclear power more competitive.
Ambitious federal goals and initiatives to boost offshore wind power generation, coupled with state commitments, are opening new frontiers for the industry. Recent developments reflect the growing emphasis on transmission infrastructure upgrades and regional planning required to make these goals a reality.
Technological advancements and climate goals are driving the transformation to distributed energy resources (DER), such as solar photovoltaic systems. The transformation, which is empowering consumers with more choices and energy management options, has also prompted an evaluation of potential cybersecurity risks stemming from anticipated future growth.
The U.S. nuclear energy sector is now on the verge of a revival after years of premature plant closures and dim forecasts. Investments and tax incentives included in the Inflation Reduction Act (IRA), enacted in August, add new momentum to the nuclear power industry.