Electricity Retail Rate Design in a Decarbonizing Economy

Currently, U.S. residential and small commercial electricity consumers typically pay a constant price per kWh consumed that accounts for most of their bill. Ongoing developments in the power system, both on the supply and demand sides, increase efficiency gains that can be made from exposing consumers to widely varying wholesale spot prices. Pure spot pricing is not popular among consumers; consumers value price predictability and bill stability. Also, sudden increases in bills often become a political problem. We focus on second-best alternatives: time-of-use (TOU) and critical peak pricing (CPP). The existing literature has been skeptical about TOU rates, typically finding …

Two Economies Collide: Competition, Conflict and the Financial Case for Fossil Fuel Divestment

The coal, oil and gas sectors have lost their financial rationale.

Competitive forces inside and outside the industry have undermined this once mighty economic force. Politics now drives oil and gas prices, with the war in Ukraine serving as a vivid reminder of this stark reality. Market forces now favor fossil fuel competitors; cost efficiencies, innovation and public opinion are converging to move trillions of dollars to sustainable alternatives. Meanwhile, an increasing number of destructive weather events have underscored the destruction caused by climate change and increased public demands for solutions.

Investors should move away from fossil fuels because the …

The Potential Role of Blue Hydrogen in Low-Carbon Energy Markets in the US

Given the high level of interest in the potential use of hydrogen as part of comprehensive carbon mitigation strategies in the US and around the world, this study was conducted at the request of the American Petroleum Institute to answer the following questions:

• How might hydrogen fit into a low-carbon future for the US? • What productive role could be played by hydrogen made from natural gas with carbon
capture and geologic storage (“blue hydrogen”)? • What benefits can be realized when all hydrogen supply options are on an equal footing
and receive the same incentives (on a basis

OurEnergyPolicy Event Summary – Securing New York’s Energy Future

This event summary highlights key comments made by Doreen Harris (NYSERDA) and Sadie McKeown (Community Preservation Corporation) during a live event in New York that took place in October 2022. Speakers discussed New York’s major climate legislation, renewable energy goals, and the impacts of recent federal infrastructure laws. …

Clean Takeoff: Policy Solutions to Promote Sustainable Aviation in California

Airplane travel is essential for mobility, economic development, and quality of life. Yet the sector emits approximately 915 million metric tons of carbon dioxide (CO₂) each year, accounting for 2.1 percent of global carbon dioxide (CO₂) emissions. Non-CO₂ emissions raise the total impact further, accounting for approximately two-thirds of aviation’s overall climate impact. Lowering the emissions intensity of aviation will be a critical, if challenging, piece of the transition to a sustainable advanced economy.

California is uniquely suited to be a global leader in sustainable aviation. The state has ambitious goals to decarbonize its economy by 2045, including programs (like …

Implementing The Inflation Reduction Act: A Roadmap For State Electricity Policy

The Inflation Reduction Act of 2022 (IRA) is the most significant climate legislation in United States history. Several independent studies find the IRA’s $370 billion in climate and clean energy investments could help cut U.S. greenhouse gas (GHG) emissions roughly 40 percent by 2030. Combined with state action and forthcoming federal regulations, the IRA puts the U.S. within reach of its Paris Agreement commitment to cut emissions 50 to 52 percent by 2030.

Energy Innovation Policy and Technology LLC® prepared a series of research notes to detail the IRA’s provisions across the electricity, buildings, and transportation sectors. The notes also …

Job Opportunities in Advanced Energy: High-Growth Occupations for Workers of All Backgrounds

AEE partnered with the Burning Glass Institute, a nonprofit labor market analytics firm, to research jobs in demand by advanced energy employers as manifested in online job postings. Analysis of job posting data, combined with data on year-over-year job growth, reveals the occupations accounting for the jobs being created in advanced energy in both professional and non-professional spheres, as well as providing insights into the qualifications necessary to join this industry.

Understanding employment opportunities in the advanced energy industry becomes particularly important today. Passage of the federal Infrastructure Investment and Jobs Act (IIJA) and Inflation Reduction Act (IRA) has set …

Increasing Equitable EV Access and Charging

Electric vehicles are more popular than ever. As demand rises and policies provide essential incentives, states need to act fast to ensure they are prepared to accommodate an influx of EVs. Most EV charging takes place at work or home, but a significant number of Americans live in apartments or condo buildings, which are often unequipped for charging. Thus, state funds and policies must be directed at ensuring all people can access and charge EVs.

This report outlines key policy recommendations for states and analyzes the potential impacts of a California ballot measure designed to boost EV adoption and charging …

Coal-to-Gas Switching Threatens Energy, Security, and Global Climate Goals

The global shift away from coal risks becoming a long-term shift toward gas, according to data from Global Energy Monitor, which show that approximately 89.6 gigawatts (GW) of gas plants in development, totalling 5,070 million tonnes CO2e lifetime
emissions if built, are coal-to-gas conversions or replacements. The economic case for leapfrogging gas and switching to renewables is supported by the increased volatility of gas prices and the tightening supply of imported gas to Asian countries, as well as the rapidly declining costs of renewables and battery storage. Any reductions in CO2 emissions from cancelling coal plants could be offset by …

Electric Vehicle Adoption Playbook

If current projections hold, Boston Consulting Group estimates that electric vehicles could create between $3 and $10 billion in new value between now and 2030 for an average energy business with 2 to 3 million customers. This colossal increase represents the most significant opportunity in a generation to increase base demand and margins while simultaneously introducing new utility services like home and public charging infrastructure and bolstering grid reliability and resiliency.

The potential is massive, and at the same time the business transformation required to achieve it is equally large. In less than 10 years, analysts predict 200 million chargers …