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Energy Innovation analyzed policy combinations using the Energy Policy Simulator to identify a cost-effective path for the U.S. to meet the Environmental Protection Agency's (EPA) Clean Power Plan (CPP). The report proposes a six-policy package that would meet the CPP's requirement of 32 percent less CO2 emissions from the power sector by 2030 while generating nearly 40 billion dollars in savings between 2016 and 2030.

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  • Energy Innovation identified a cost-effective package of six policies that allows the U.S. to meet the Clean Power Plan (CPP) targets and save nearly 40 billion dollars between 2016 and 2030. This scenario is projected to exceed emissions goals in later years as early policies continue to provide benefits.
  • To clean the existing power fleet, the proposed CPP scenario includes a six percent improvement in the efficiency (heat rate) of coal power plants by 2030 and the retirement of an additional 3 gigawatts (GW) of coal-fired power plants annually beyond business-as-usual. This would reduce total U.S. coal power plant capacity from 330 GW in 2013 to 241 GW in 2030.
  • The CPP scenario targets demand reduction through industrial energy efficiency standards to achieve a three percent improvement in energy intensity by 2030. In the buildings sector, it aims for a 50 percent improvement in the efficiency of newly sold lighting by 2030, aligned with Department of Energy projections for LED market share.
  • To build clean power, the report recommends a 25 percent national average renewable portfolio standard (RPS) and a five percent increase in transmission capacity by 2030. Under this scenario, wind capacity would grow to 227 GW and solar photovoltaics to 162 MW by 2030.
  • Analysis of policy cost curves indicates that an electricity sector carbon tax (growing to $50/ton by 2030) and a renewable portfolio standard with added transmission capacity have the largest abatement potential. Efficiency-oriented policies are noted as cost-effective because they often pay for themselves through fuel savings.
  • The report advises against increasing the utilization of existing natural gas plants as a primary strategy because modeling suggests natural gas can act as a substitute for renewable energy, which provides deeper carbon reductions at a lower cost.

Cite the original document

APA
Energy Innovation (2015). THE CLEAN POWER PLAN IS WITHIN REACH. https://energyinnovation.org/wp-content/uploads/CleanPowerPlanAlternatives.pdf
Chicago
Energy Innovation. THE CLEAN POWER PLAN IS WITHIN REACH. 2015. https://energyinnovation.org/wp-content/uploads/CleanPowerPlanAlternatives.pdf.
Wikipedia
{{cite report |author=Energy Innovation |title=THE CLEAN POWER PLAN IS WITHIN REACH |date=October 2015 |url=https://energyinnovation.org/wp-content/uploads/CleanPowerPlanAlternatives.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
BibTeX
@techreport{energyinnovation2015clean, author = {{Energy Innovation}}, title = {{THE CLEAN POWER PLAN IS WITHIN REACH}}, institution = {Energy Innovation}, year = {2015}, month = oct, url = {https://energyinnovation.org/wp-content/uploads/CleanPowerPlanAlternatives.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }

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