Alternative energy
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.
Measures to expand electric vehicle (EV) charging infrastructure are moving expeditiously driven by state zero-emission vehicle (ZEV) goals and decarbonization mandates. Among recent actions, Washington has adopted legislation requiring a mapping tool to plan charging infrastructure investments, while New Jersey is exploring an EV charging ecosystem for medium- and heavy-duty vehicles. A handful of states have adopted measures to exempt charging station operators from regulatory oversight.
Changing power sector trends driven by mandates and goals to achieve carbon-free electricity have renewed interest in the future role of hydropower. As the target years draw near, large-scale hydropower offers an attractive solution to contribute to the evolving generation mix.
Options to sustain the existing nuclear generation fleet have resurfaced as states reevaluate their resource portfolios to expedite the transition to carbon-free energy. Policy support for the resource emerged as a means to stave off plant closures in the face of economic challenges, by rewarding its fuel diversity and zero-carbon attributes.
The prospects of the U.S. offshore wind industry are brightening as East Coast states and the Biden administration step up efforts to harness the potential of carbon-free electricity. The administration has established a goal to deploy 30 GW of offshore wind in the U.S. by 2030. To facilitate the achievement of the goal publicized on March 29, the administration announced several investment and funding opportunities. These include access to $3 billion in funding for offshore wind projects through the Department of Energy’s Innovative Energy Loan Guarantee Program and $230 million in funding opportunity for port authorities and other applicants for infrastructure-related projects through the Department of Transportation’s Maritime Administration.
Recent progress towards commercializing small modular reactors (SMRs) has sparked interest in the role of advanced nuclear technologies to accomplish decarbonization goals. Twenty states and jurisdictions across the U.S. now have 100 percent clean energy mandates or goals, implying the need for a portfolio of every available carbon-free technology that can be deployed on a timeline compatible with their targets.
Amid commitments to procure more than 29 gigawatts (GW) of offshore wind capacity by 2035, U.S. states are exploring measures for transmission planning, interconnection reforms, supply chain development, and components production.
The pressing trend towards revisiting retail rate net metering for rooftop solar continues, in a bid to ensure proper compensation for solar customers and avoid cost shifting to non-solar customers. Net energy metering, 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.
With the growing adoption of electric vehicles (EVs), the need for flexible storage resources in the electric grid has drawn increased attention to how well the vehicles can integrate into the grid as temporary batteries. While California is making strides in furthering the utilization of EVs as a grid resource, a handful of states are contemplating the technology in connection with electrification of fleets, and medium- and heavy-duty vehicles.