U.S. Community Solar & Storage Market Part 1: Community Solar Program Design

In this four-part series by DNV, we will evaluate the competitive energy marketplace for the community solar and storage market segment. This includes the typical business model, the rapid rise of the market segment in the U.S. and illumination of the states where it is projected to grow in the coming decade. Community solar and storage is a growing market segment with established market players that is gaining an increasing amount of attention due to the number of new entrants realizing its value every year. The non-traditional business model of community solar and storage is being cultivated by federal agencies …

Interstate Natural Gas Pipeline Siting: FERC Policy and Issues for Congress

Growth in U.S. shale gas production has driven the development of natural gas pipelines from producing regions to consuming markets, typically in different states. If long-term growth trends in U.S. shale gas continue, the need for new pipelines could be substantial. One recent analysis by the pipeline industry projected over 30 billion cubic feet per day of new pipeline capacity would be needed through 2025. This new infrastructure could amount to several thousand miles of additional interstate pipeline and on the order of $40 billion in capital investment.

Under the Natural Gas Act, companies seeking to build interstate natural gas …

Enhancing US-Japan Cooperation on Global Supply Chains

Mounting US-China tensions and the COVID-19 pandemic have led to growing calls in the United States and among its allies and partners, including Japan, to address the vulnerabilities in global supply chains critical to national security and economic competitiveness. Strategic uncertainty has led stakeholders to pose the following questions. What role should government play, and to what extent can, or should, governments require firms to operate more in line with national security interests? How can firms manage short-term and long-term risks to balance national security requirements and commercial interests? How should trusted partners be defined, and what is a desirable …

Competitive Electricity Markets Spotlight: ISO New England

Established in 1997, the Independent System Operator of New England (“ISO-NE”) manages New England’s electric grid and competitive wholesale electric marketplace. ISONE serves 14.8 million New Englanders across six states: Connecticut, Rhode Island, Massachusetts, Vermont, New Hampshire, and most of Maine. ISO-NE has invested $11 billion in grid infrastructure over the past 20 years, and continues to expand its diverse energy mix to provide New England with reliable power.

ISO-NE’s energy markets secure electricity supply to meet consumer demand in real time and in the near term (sometimes referred to as the forward or day-ahead market). Power is …

Green Hydrogen Supply: A Guide to Policy Making

Green hydrogen is a viable solution to reducing greenhouse gas emissions and transitioning away from fossil fuels for “hard-to-abate” sectors. The supply chain for hydrogen is not yet fully developed. Several barriers, such as the high cost of green hydrogen compared to non-renewable alternatives and the lack of dedicated infrastructure, are still impeding hydrogen’s full contribution to the energy transition.

This report from the International Renewable Energy Agency (IRENA) aims to provide a basis for understanding these challenges and the solutions available. It highlights the range of policy options available, complemented by country examples.

Policies presented in this report include …

The Macroeconomic Effects of a Carbon Tax to Meet the U.S. Paris Agreement Target: The Role of Firm Creation and Technology Adoption

We analyze the quantitative labor market and aggregate effects of a carbon tax in a framework with pollution externalities and equilibrium unemployment. Our model incorporates endogenous labor force participation and two margins of adjustment influenced by carbon taxes: (1) firm creation and (2) green production-technology adoption. A carbon-tax policy that reduces carbon emissions by 35 percent—roughly the emissions reductions that will be required under the Biden Administration’s new commitment under the Paris Agreement—and transfers the tax revenue to households generates mild positive long-run effects on consumption and output; a marginal increase in the unemployment and labor force participation rates; and …

Unsafe At Any Charge: Why Financial Regulators Should Actively Mitigate Climate-Related Risk

Avoiding climate disaster demands an economic transformation unprecedented in speed and scope toward a near-zero emissions economy—a transition that inherently threatens to disrupt financial stability in the absence of timely and effective oversight by financial regulators. Thus far, financial regulators have not taken seriously their role in protecting the financial system from the imminent threat of climate change by guiding the disinvestment in fossil fuel assets that will soon be defunct. Their inaction has been the result of a mischaracterization of climate threats as “risks” to be minimized, rather than as unavoidable harms.

In Unsafe at Any Charge: Why Financial …

Net Zero Producers Forum: A catalyst for climate ambition or yet another delaying tactic?

On April 23rd, the United States, Canada, Qatar, Norway, and Saudi Arabia, which jointly account for 40 percent of global oil and gas production, announced the creation of a Net Zero Producers Forum (NZPF) to “develop pragmatic net-zero emission strategies.” Though the initiative was overshadowed by the flurry of announcements made by Heads of Governments at the Leaders Summit on Climate convened by President Biden, the creation of the NZPF is a significant development as it is arguably the first international initiative bringing together fossil fuel producers to discuss the impact of climate policy on the production of oil and …

Lessons From The Texas Big Freeze

This research analyzes the causes of the February 2021 Texas “Big Freeze” power outages that caused the death of nearly 200 people and more than $90 million in economic damages, finding ERCOT’s market design failed both to prepare the state and acceptably manage the crisis. The research identifies lessons learned from the crisis to help policymakers in Texas and other grid regions better prepare for more frequent extreme weather events including taking a more holistic approach to risk management, planning for “managed failure” of the grid, and deploying more demand-side measures like weatherizing homes.…

Climate and Disaster Risk Screening: Making Energy Projects More Resilient

The power sector remains especially vulnerable to natural disasters and extreme weather events exacerbated by climate change. Planning ahead and investing in resilience to mitigate climate and disaster risks in the power sector can help minimize infrastructure damage and yield savings during recovery from a natural disaster. Conducting an in-depth climate and disaster risk screening (CDRS) during the planning and preparation stages of energy infrastructure projects is a crucial first step to building resilience. Data sharing, knowledge exchange, and awareness building on CDRS can substantially improve the screening process, while also helping to bring resilience to the forefront of energy …