Why fully liberalised electricity markets will fail to meet deep decarbonisation targets even with strong carbon pricing

Full decarbonisation of the electricity system is one of the key elements to limit global warming. As this transition takes place, the electricity system must maintain system adequacy and remain affordable to consumers. In liberalised electricity markets investors are seen as key actors driving this transition.

Due to the intermittent character of renewable assets, such as wind or solar parks, electricity systems with large shares of renewable electricity will need to become increasingly flexible. Evaluating whether specific market designs provide the right incentives to invest in flexibility, requires the simulation of realistic investor behaviour. Agent-based modelling provides the means to …

The Role of Natural Gas in the Transition to a Lower-Carbon Economy

The evolving role of natural gas continues to be at the forefront of US energy industry developments. This evolution to a lower carbon economy, including how growing renewable power generation and battery storage will affect gas-fired power generation, and the resulting effect on the utilization of midstream natural gas infrastructure is an important consideration for natural gas midstream operators and the value chain supporting the construction and operation of midstream infrastructure.

This study on the role of natural gas in the transition to a lower-carbon economy was undertaken to examine trends affecting energy use in the United States over a …

Actions to Limit Utility Costs and Rates – Annual Report to the Governor and Legislature

Public Utilities Code Section 9.13.1 mandates that investor-owned utilities study and report on measures that they recommend be undertaken to limit costs and rate increases. These submissions include a list of each utility’s proceedings before the CPUC and their expected impact on rates, as well as descriptions of each utility’s expected upcoming revenue requirements. The recommendations from the utilities are summarized below.…

Changes in Awareness of and Support for the Green New Deal: December 2018 to April 2019

From December 2018 to April 2019, public familiarity with – and support for – the Green New Deal shifted dramatically. In particular, Republicans now say they are both much more familiar with the proposal and much more opposed to it. Opposition to the Green New Deal is especially strong among those Republicans who have heard “a lot” about it. In contrast, support among Democrats has remained high regardless of how much they have heard about it. Here, we summarize this rapid political polarization on the Green New Deal and discuss how it may relate to politicized media coverage.…

Coal in a New Carbon Age

The United States is embarking on a “New Age of Carbon” which will usher in significant opportunities for coal beyond conventional markets for power generation and steelmaking. Coal, and the carbon it contains, is on the crest of powering a wave of innovation in advanced products and manufacturing.

Advanced markets for coal-derived products, materials and technologies, referenced in this report as “coal-to-products,” include:
 Coal to Liquids – fuels and chemicals
 Coal to Solid Carbon Products – carbon fiber, activated carbon, graphite, electrodes, graphene, building and construction products, carbon foam and carbon black
 Rare Earth Elements – component …

US Nuclear Energy Leadership: Innovation And The Strategic Global Challenge

Throughout 2018, the Atlantic Council Global Energy Center convened a “Task Force on US Nuclear Energy Leadership,” which comprised civilian and military experts in foreign policy, defense, and nuclear energy. Senators Mike Crapo (R-ID) and Sheldon Whitehouse (D-RI) served as honorary co-chairs of the Task Force. This report, entitled “US Nuclear Energy Leadership: Innovation and the Strategic Global Challenge,” is the result of these efforts.
The Task Force found that a flourishing domestic nuclear energy sector is critical to US national security, both in the interconnections between military and civilian uses of nuclear energy, as well as in foreign policy. …

Federal Policy Blueprint for Carbon Capture

This blueprint builds on the foundational policy of the Section 45Q carbon capture tax credit passed last year by Congress as part of the Bipartisan Budget Act of 2018. The blueprint offers a portfolio of policies that would increase carbon capture deployment in key sectors of the economy, from industries like cement and steel to electric power generation.

Accelerating deployment of carbon capture is critical to achieving midcentury decarbonization goals. Carbon capture can reduce emissions in key industries and is the only technology available to manage emissions from a number of industrial processes essential to modern economies.

Given the incredible …

Grid Vision: The Electric Highway to a 21st Century Economy

Electricity is the lifeblood of the modern U.S. economy, yet much of America’s electric grid is outdated and in dire need of investment and expansion to bring it into the 21st Century. The American Society of Civil Engineers recently gave America’s electricity infrastructure a mark of “D+,” and grid congestion and power outages cost American businesses billions of dollars each year.

To better understand the best way to update and invest in the grid, and any associated consumer benefits, the American Wind Energy Association (AWEA) undertook a literature review that examines building out the country’s transmission infrastructure. This paper finds …

Burning the Gas ‘Bridge Fuel’ Myth: Why Gas Is Not Clean, Cheap, or Necessary

This new report released by Oil Change International makes the case that gas is not a ‘bridge fuel’ to a safe climate. As the global climate crisis intensifies and gas production and consumption soars, it is clearer than ever that gas is not a climate solution. Leaking methane along the gas supply chain has been at the center of the debate around the climate impact of gas, but it’s far from the only issue at stake. There are five additional reasons why gas cannot form a bridge to a clean energy future, even if methane leakage is addressed.…

Final US Emissions Estimates for 2018

In January, Rhodium provided preliminary estimates of US carbon dioxide (CO2) emissions in 2018. In this note, we provide final energy CO2 emissions data and preliminary estimates for economy-wide US greenhouse gas (GHG) emissions in 2018. CO2 emissions from fossil fuel combustion rose by 2.7% in 2018, the second largest annual increase since 2000. Economy-wide GHG emissions likely rose by between 1.5% and 2.5% last year. That puts US emissions at 10.7% to 11.6% below 2005 levels, leaving a decently large gap to close in the next two years to meet the country’s Copenhagen Accord target of a 17% reduction …