Full Title: Implications of Policy-Driven Residential Electrification
Author(s): American Gas Association Study and ICF
Publisher(s): American Gas Association Study
Publication Date: July 1, 2018
Full Text: Download Resource
As states and local municipalities pursue “deep decarbonization” of their economies and as the electric grid becomes less carbon-intensive some policy-makers and environmental advocates are looking at mandated residential electrification as one option for reducing residential greenhouse gas (GHG) emissions. This AGA study sets out to answer several key questions regarding potential costs and benefits of these residential electrification policies.
These questions include:
• Will policy-driven residential electrification actually reduce emissions?
• How will policy-driven residential electrification impact natural
gas utility customers?
• What will be the impacts on the power sector and on electric transmission
• What will be the overall cost of policy-driven residential electrification?
• How do the costs of policy-driven residential electrification compare to the
costs of other approaches to reducing GHG emissions?
This AGA Study of residential electrification is based on a policy case that requires the halt of sales of furnaces and water heaters fueled by natural gas, fuel oil, and propane, starting in 2023. As existing equipment is replaced and new construction built, the analysis assumes the associated space and water heating requirements would be met solely with electric based technologies. The analysis then estimates the impact of such a policy on annual energy costs for residential end-users, as well as the associated impact on emissions generated by the residential end-use and power generation sectors through 2050.