Alternative energy
The U.S. Energy Department’s $6 billion nuclear credit program, the pursuit for carbon-free generation to meet climate goals, and technological advancements are reigniting support for nuclear power. The global impact of Russia’s war on Ukraine has also escalated the importance of national security considerations in energy policies including a discussion about the role of nuclear power.
Amid federal and state policies aimed at catalyzing solar power to facilitate power sector decarbonization, an investigation into circumvention of tariffs on solar panels imported from Southeast Asia has created market uncertainty, threatening U.S. solar buildout.
The U.S. offshore wind industry is poised for continued progress as evident from the recent record-setting New York Bight wind auction, the first to be held under the Biden administration.
Across the U.S., state and federal agencies are accelerating efforts to bolster electric vehicle (EV) charging infrastructure, expand consumer incentives, or electrify fleets, reflecting the growing importance of transportation electrification to achieve clean energy goals. States are also tasked with deploying billions in new federal funds for charging stations under the 2021 Infrastructure Investment and Jobs Act (IIJA).
Nuclear power is increasingly viewed as a necessary resource to compensate for the decline in fossil fuel-based electricity in the transition towards a low-carbon future. Recent actions range from the U.S. Energy Department’s launch of a $6 billion program to sustain the existing nuclear fleet to West Virginia’s move to end a ban on nuclear plant construction and efforts to delay the closure of the Diablo Canyon nuclear power plant in California.
U.S. offshore wind is gaining traction with new milestones spurred by state commitments of almost 40 gigawatts (GW) by 2040 and a federal goal of 30 GW by 2030. Recent developments include state-level project selections that could add more than 3.2 GW of new capacity, New Jersey’s proposal for a novel offshore wind transmission solution, and New York’s move to advance transmission technologies for offshore wind integration.
Discussion around performance-based regulation (PBR) continues to evolve as utilities and regulators explore a framework aimed at strengthening the connection between utility returns and performance.
Carbon reduction goals are driving policy support to keep financially-struggling nuclear generation plants operating and encourage new reactors. The fuel diversity and zero-carbon attributes of the resource are fueling the policy debate over its role in meeting state and federal energy and environmental goals.
The importance of U.S. state renewable portfolio standards (RPS) continues to grow, with recent changes reflecting the trend of strengthening renewable energy targets. Several states have expanded their RPS programs to broader clean energy standards, which establish milestones to achieve a carbon-free electricity supply.
The expansion of renewable portfolio standards (RPS) has prompted several states to reshape their solar incentive programs. The market for solar renewable energy certificates (SRECs) is driven by solar carve-outs in RPS programs, which require utilities to procure a certain percentage of their electricity from renewable resources.
A growing number of states are gearing up to leverage distributed energy resources (DER) to support grid operations amid clean energy and climate goals that require investments in and incentives for renewables and customer-sited generation.
The U.S. offshore wind industry is making strides with significant milestones including approval of the first large-scale project in federal waters, federal efforts to advance permitting processes, and actions towards potential development in the Pacific.