Authors: Jonas J. Monast, Franz T. Litz, and Kate Konschnik
Cost-of-service states with vertically integrated utilities can manage a rapidly changing electricity sector by expanding opportunities for competition, even while maintaining the traditional vertically integrated utility. In fact, competition has been deployed successfully by cost of service states to meet customer needs, bring down costs, and encourage innovation. Building on these models, states can strategically create new opportunities for competition between utilities and third-party providers to manage the risks of a changing sector while seizing new benefits for electricity customers, utilities and third-party providers. This policy brief identifies ways that cost-of-service states can increase third-party participation or utilize competition to spur new utility strategies, products, and services.
Authors: Jess Siegel
Throughout the Southeast, state and local leaders are recognizing the benefits of electric vehicles (EVs) and beginning to develop goals and strategies to increase EV penetration. Regional collaboration will be an important aspect of the EV build-out to truly offer expanded transportation options for families and corporate fleets, especially when travel crosses state lines. The development of a consistent regional standard for EV charging stations—including administration and interoperability—will simplify the process of building infrastructure throughout the Southeast as well as make it less costly to develop. A concerted effort to develop policies that standardize infrastructure in support of EVs as an accessible option for travel across state borders will increase EV adoption in the Southeast.
Authors: Sarah Marie Jordaan and Kate Konschnik
Tracking and reducing methane emissions from oil and gas operations needs an innovative approach, according to new report from the C.D. Howe Institute. In “Measuring and Managing the Unknown: Methane Emissions from the Oil and Gas Value Chain” authors Sarah Marie Jordaan and Kate Konschnik highlight the growing pressure on industry and policymakers to address the “unknown” factor in greenhouse gas emissions and propose a regulatory approach that remains open to new technologies.
The Canadian government has pledged with its North American neighbours to reduce methane emissions from oil and gas infrastructure 40–45 percent below 2012 levels by 2025. Methane packs a powerful punch with up to 36 times the global warming potential of carbon dioxide over a 100-year time frame. However, scientists have not reached consensus on how much methane escapes from leaky oil and gas infrastructure in Canada and across North America.
Over a billion people around the world continue to lack access to basic electricity, many of them unlikely to be connected to the grid for years or decades. Pay-as-you-go solar home systems (SHS)—kits that consumers can frequently purchase on credit that include a small solar panel, battery, light bulbs and wires, phone charging equipment, and sometimes televisions and other appliances—have quickly become a viable, private sector-driven solution that empowers consumers to take control of their energy future.
Energy efficiency may be an inexpensive way to meet future demand and reduce greenhouse gas emissions, yet little work has been attempted to estimate annual energy efficiency supply functions for electricity planning. The main advantage of using a supply function is that energy efficiency adoption can change as demand changes. Models such as Duke University’s Dynamic Integrated Economy/Energy/Emissions Model (DIEM) have had to rely on simplistic or fixed estimates of future energy efficiency from the literature rather than on estimates from energy efficiency supply curves. This paper attempts to develop a realistic energy efficiency supply curve and to improve on the current energy efficiency modeling. It suggests an alternative approach based on saved-energy cost data from program administrators and explains the methodologies employed to create the supply curve. It illustrates this approach with results from DIEM for various electricity demand scenarios. The analysis suggests that an additional 5–9% of energy efficiency is deployed for every 10% increase in the cost of electricity. Therefore, DIEM “invested” in energy efficiency up to an inelastic point on the energy efficiency supply curve. By contrast, the U.S. Environmental Protection Agency’s energy efficiency approach assumes that realized energy efficiency is fixed, and has no elasticity, regardless of changes to marginal costs or constraints that affect emissions or economics.
Authors: Gabrielle Murnan, Zoe Ripecky, Jennifer Chen
The Federal Energy Regulatory Commission (FERC) is an independent agency regulating the interstate transport of energy. As innovations and changing consumer preferences reshape the energy industry, FERC must grapple with key issues. This policy brief summarizes pending issues before FERC, including grid resilience, market reforms that would affect newer technologies and non-emitting resources, and transmission and gas pipeline infrastructure build. How FERC decides on these issues would impact consumer costs, determine which resources would receive revenues from FERC-regulated markets, help shape infrastructure investments, and affect the costs of decarbonization policies.
Authors : Edward T. Game, Heather Tallis, Lydia Olander, Steven M. Alexander, Jonah Busch, Nancy Cartwright, Elizabeth L. Kalies, Yuta J. Masuda, Anne-Christine Mupepele, Jiangxiao Qiu, Andrew Rooney, Erin Sills, and William J. Sutherland
Social and environmental systems are linked and, as this relationship becomes ever more apparent, governments, communities and organizations are increasingly faced with, and focused on, problems that are complex, wicked and transgress traditional disciplinary boundaries. This article in the journal Nature Sustainability suggests that evidence-based approaches to solve these complex multi-disciplinary challenges must draw on knowledge from the environment, development, and health domains. To address barriers to the consideration of evidence across domains, this paper develops an approach to evidence assessment that is broader and less hierarchical than the standards often applied within disciplines.
Green banks use funds to reduce the risk for private investment to support energy efficiency and clean energy. As local governments and corporations across the Southeast make progress on ambitious clean energy goals—including some with 100 percent renewable energy targets by as early as 2025—demand is growing for financing to make those goals attainable. This primer outlines the design elements of a green bank and explores how a green bank might leverage public funds in the Southeast to create a robust market for clean energy investment.
Author: Jennifer Chen
The Federal Energy Regulatory Commission, which regulates wholesale capacity markets, is looking to reconcile market design with state, and potentially federal, policy preferences. In an effort to mitigate this apparent tension in the gas- and coal-heavy Mid-Atlantic and Midwest, the Federal Energy Regulatory Commission proposed a framework on June 29 for carving out those policy-sponsored resources from PJM's capacity market. The June order poses many questions and leaves open many details for stakeholders to resolve ahead of the close of FERC’s initial round of public comments on October 2, 2018. This policy brief offers recommendations to improve the efficiency of the developing proposals and help those responding to the FERC order understand the implications of different design choices related to the Federal Energy Regulatory Commission's proposal.
Authors: Kate Konschnik
In the United States, expansion of onshore fracturing and horizontal drilling technologies has sparked calls for greater control of industry impacts. Alongside fractured regulatory efforts, a broad private governance movement has encouraged adoption of voluntary measures—often called “best management practices.” To explore the role of best management practices in unconventional oil and natural gas production, this article in the Florida State Journal of Land Use & Environmental Law focuses on surface spills of hydrocarbons, drilling wastes, fracturing fluid, and wastewater at production sites.