Roadmap to a Low Carbon Electricity System in the U.S. and Europe

The report identifies that current investor-owned utility and independent power producer models are ill-suited for the low-carbon transition, potentially raising renewable energy costs by up to 20%. It proposes a systemic evolution across five segments: generation (matching financing to risk profiles), transmission (improving renewable integration), market operation (valuing flexibility), distribution (adapting to distributed generation), and customer management (integrating demand response and electric vehicles). The document highlights the emergence of new financing models like YieldCos as a way to provide secure cash flows and lower costs.

• Existing financing models for renewable energy are not aligned with the risk profiles of projects or the needs of institutional investors and municipalities, which can increase the cost of renewable energy by as much as 20%.
• The transition to a low-carbon system requires evolution across five key industry segments: generation must focus on grid flexibility and new financing; transmission must consolidate to balance resources; market operations must value flexibility services; distribution must adapt to distributed generation; and customer management must integrate electrification and demand response.
• New financing vehicles such as YieldCos are emerging to lower costs by providing investors with secure cash flows and the liquidity of exchange-traded stocks and bonds, though they require further optimization to reach their full potential.

APA

Climate Policy Initiative (2014). Roadmap to a Low Carbon Electricity System in the U.S. and Europe. https://www.climatepolicyinitiative.org/wp-content/uploads/2014/06/Roadmap-to-a-Low-Carbon-Electricity-System-Executive-Summary1.pdf

Chicago

Climate Policy Initiative. Roadmap to a Low Carbon Electricity System in the U.S. and Europe. 2014. https://www.climatepolicyinitiative.org/wp-content/uploads/2014/06/Roadmap-to-a-Low-Carbon-Electricity-System-Executive-Summary1.pdf.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Roadmap to a Low Carbon Electricity System in the U.S. and Europe |date=May 2014 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2014/06/Roadmap-to-a-Low-Carbon-Electricity-System-Executive-Summary1.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2014roadmap, author = {{Climate Policy Initiative}}, title = {{Roadmap to a Low Carbon Electricity System in the U.S. and Europe}}, institution = {Climate Policy Initiative}, year = {2014}, month = may, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2014/06/Roadmap-to-a-Low-Carbon-Electricity-System-Executive-Summary1.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }