Search Climate Insights Directory

The U.S. clean energy sector saw record growth in 2023, particularly in solar installations and EV sales, supported by the Inflation Reduction Act and Bipartisan Infrastructure Law. However, the transition faces significant headwinds from rising interest rates, supply chain shortages for transformers, and a lagging transmission system. To meet 2035 carbon-free electricity goals, annual renewable installation rates must nearly double, and transmission capacity may need to double or triple.

The document introduces resource adequacy (RA) as a planning concept to minimize blackouts while balancing costs, specifically focusing on India's new Resource Adequacy Planning Framework released in June 2023. It details the metrics used for reliability, such as loss of load probability (LOLP) and normalized energy not served (NENS), and outlines the roles of the Central Electricity Authority (CEA), National Load Dispatch Center (NLDC), and distribution utilities (Discoms) in executing national and state-level plans. The guide emphasizes that adopting integrated resource planning (IRP) best practices and advanced planning tools will help Discoms manage peak demand and integrate renewable energy more effectively.

The document examines the vulnerability of the US gas-fired power plant fleet to extreme winter and summer weather, noting that gas plants are the primary source of generation failures during major storms. It argues that current resource adequacy metrics overvalue gas reliability and recommends transitioning to probabilistic modeling, increasing transparency, and prioritizing renewables, storage, and demand-side solutions to ensure a resilient power grid.

The document examines the reliability of natural gas power plants in the US, noting that they are disproportionately prone to failure during extreme weather, such as winter storms. It highlights the 2021 Winter Storm Uri as a critical example of how gas plant failures lead to catastrophic blackouts. To improve grid reliability and mitigate climate change, the author recommends transitioning to clean energy solutions—including renewables, energy storage, and demand-side efficiency—and urges regulators to restrict the approval of new gas plants.

New England's energy transition requires a massive shift from fossil fuel reliance to a decarbonized grid, with peak electricity demand projected to double to 55 GW by 2050. The report argues for a 'clean energy portfolio approach' combining solar, offshore wind, energy storage, and interregional transmission to ensure reliability and affordability. It highlights significant sociopolitical barriers, including community opposition and outdated permitting processes, and recommends comprehensive state-level reforms and proactive community engagement to accelerate deployment.

The document asserts that the United States lacks a centralized plan to manage the reliable transition of its electricity sector, noting that current decarbonization targets are set without sufficient coordination to ensure grid reliability. It argues that market-based mechanisms, such as Regional Transmission Organizations (RTOs) and Energy Imbalance Markets (EIMs), are insufficient on their own to incentivize the specific generation resources needed for both resource adequacy and operating reliability. The author highlights that while New York and California are beginning to explore reliability-informed planning, a broader alignment between state policymakers, regulators, and grid operators is necessary to prevent reliability risks as fossil-fuel resources are retired.

The policy brief advocates for a transition to 24/7 carbon-free energy (CFE) in Europe, asserting that variable renewable energy alone cannot maintain grid reliability. It proposes a three-pronged approach: commercialising 'clean firm' technologies (such as next-generation nuclear, CCS, and geothermal), reforming electricity market designs to move beyond short-term marginal cost pricing toward hybrid markets that reward capacity, and updating the GHG Protocol's Scope 2 accounting from annual to hourly tracking to incentivise the procurement of dispatchable carbon-free power.

The report asserts that the EPA's proposed rules for coal and gas power plants are technically feasible and will not threaten resource adequacy or operational reliability. It synthesizes six industry-standard studies showing that the U.S. grid can remain stable even if all unabated coal is retired by 2035. The authors argue that reliability risks are institutional rather than technical, stemming from slow interconnection processes and inadequate transmission planning. To manage the transition, the report recommends adopting 'connect-and-manage' interconnection processes, deploying grid-enhancing technologies, and proactively planning transmission for coal retirements.

The Canadian Climate Institute and Clean Energy Canada propose adjustments to the Clean Electricity Regulations (CER) to ensure they are achievable and cost-effective. Key recommendations include raising the performance standard to 60 tonnes of CO2 per GWh, increasing the capacity factor for peaker plants to 15%, and introducing interim standards for facilities commissioned after 2025. To complement the CER, the authors argue for reforming the Output-based Pricing System (OBPS) to apply full carbon pricing to the electricity sector, federally procuring negative emissions via DAC-CCS and BECCS to offset residual emissions, and increasing support for demand-side management and distributed energy resources.

The report finds that while wind, solar, and battery prices have recently leveled off or risen due to supply chain disruptions, trade issues, and high interest rates, they remain competitive with fossil fuels. It argues that the long-term trend of cost reduction will continue and recommends that regulators use competitive procurement, leverage Inflation Reduction Act (IRA) incentives, and reform interconnection and transmission planning to lower costs.

The document advocates for a diverse energy mix that includes 'clean firm power'—non-weather-dependent zero-carbon sources—to complement wind, solar, and battery storage. It argues that relying solely on variable renewables would lead to excessive costs, land use, and infrastructure requirements, while a diversified approach could significantly reduce the time and cost of the energy transition.

The document asserts that nuclear energy is essential for a decarbonized global energy system to provide 'clean firm' power, reducing reliance on over-built variable renewables and expensive long-duration storage. It identifies a 'profoundly dysfunctional' current delivery model characterized by high costs and delays, exemplified by the Vogtle 3 and 4 projects in Georgia. To achieve a target build rate of hundreds of Gigawatts per year, the author proposes transitioning from bespoke construction projects to standardized, commoditized 'products' with capital costs below $4,000/kw and delivery times of 3-5 years. Key recommendations for U.S. policy include reforming the Nuclear Regulatory Commission (NRC) to adopt performance-based licensing, establishing a 'sandbox' for testing new designs, creating an International Bank for Nuclear Infrastructure, and ensuring the domestic availability of high assay low enriched uranium (HALEU).

RMI analysis finds that utility-scale solar and onshore wind are already cheaper to build than new natural gas plants in Texas, even without the Chapter 313 tax incentives. The report argues that excluding renewables from the next iteration of Chapter 313 via House Bill (HB) 5 is economically inefficient, as it would require $150 to $300 in taxpayer funds per kilowatt to make natural gas competitive. Furthermore, rapid adoption of clean technologies could allow Texas to retain $130 billion in-state through federal tax credits, with approximately 35 percent of that amount stimulating the electricity sector.

The document evaluates the transition to a western RTO, arguing it could streamline clean energy deployment, improve grid reliability, and reduce costs, while warning of risks regarding California's Renewables Portfolio Standard, gas plant retirements, and governance shifts.

Virtual power plants (VPPs) aggregate distributed energy resources like batteries and electric vehicles to provide grid benefits. In the United States, VPPs could reduce peak demand by 60 GW by 2030 and 200 GW by 2050, while potentially reducing annual power sector expenditures by $17 billion by 2030. They support decarbonization by reducing reliance on polluting peaker plants and enable economy-wide electrification by providing revenue streams and avoiding grid bottlenecks.

The document advocates for expanding U.S. electricity transmission to meet climate goals while rejecting the idea that speed requires gutting environmental protections. It argues that upfront community engagement and holistic planning actually accelerate project delivery, citing a 2022 MIT study and offshore wind projects in Maryland. The author calls for the Biden administration and FERC to address transmission bottlenecks and for Congress to pass the Environmental Justice for All Act and the CHARGE Act of 2022 to ensure the transition is equitable and efficient.

The guide outlines five key tips for understanding decarbonization models, emphasizing that they are often deterministic 'black box' optimizations that may prioritize lowest cost over the best societal outcome, overlook non-electric sectors, undervalue grid reliability, present scenarios as predictions rather than possibilities, and rely on implausible assumptions regarding implementation and infrastructure.

California has passed a series of climate and energy measures to increase clean energy options and accelerate infrastructure projects to meet its ambitious emissions goals and ensure grid reliability.

The report argues that California can reliably reach an 85 percent clean electricity target by 2030 through a diverse portfolio of resources, including offshore wind and geothermal, while retiring significant natural gas capacity. It emphasizes the need to prioritize the retirement of gas plants in disadvantaged communities (DACs) to improve environmental justice. The authors recommend leveraging demand-side resources as a risk mitigation strategy and expanding regional coordination through a West-wide Regional Transmission Organization (RTO) to enhance grid resilience and reduce costs. The report serves as a policy companion to a technical analysis that stress-tested these portfolios against extreme weather events.

The Canadian Climate Institute proposes a two-pronged strategy to reach carbon neutrality in the electricity sector by 2035. First, it recommends enhancing carbon pricing by eliminating the Output-Based Pricing System (OBPS) for electricity and using financial instruments like the Canada Infrastructure Bank to reduce investment uncertainty. Second, it suggests a clean electricity standard that sets emission intensity ceilings for new plants and mandates full carbon neutrality for all plants by 2035, allowing for flexibility through carbon offsets to ensure grid reliability.