Search Climate Insights Directory

The document introduces an exploration of how the location and utilization of battery energy storage systems affect the value they provide to the U.S. electricity grid, specifically focusing on the potential for 'stacked' services and the regulatory hurdles preventing their implementation.

The analysis finds that grid-connected solar-plus-battery systems will become the lowest-cost option for many customers within 10-15 years, potentially causing massive revenue losses for utilities. In the Northeast U.S. alone, potential residential and commercial kWh sales erosion by 2030 could reach 58 million MWh and 83 million MWh respectively. The report argues that eliminating net metering or adding fixed charges only delays this outcome. To avoid a future of stranded assets and high costs for non-adopters, the authors advocate for an 'integrated grid' featuring locational and temporal pricing, performance-based regulation, and the monetization of distributed energy resource (DER) values.

The analysis finds that grid-connected solar-plus-battery systems will rapidly become cost-effective, potentially leading to significant load defection that could undermine utility revenues and create stranded assets. The report argues that the electricity system is at a 'fork in the road,' where current regulatory and pricing models will either lead to fragmented grid defection or an integrated grid where distributed energy resources (DERs) provide value back to the system.

The report introduces the electricity system value chain, a non-linear framework designed to map the flow of energy, information, and money across the grid. It breaks the system into three fundamental layers—organizational, electrical, and communications—and defines essential functions (input, process, output) within each. By applying this framework, stakeholders can identify the specific technical and regulatory connections required to realize and monetize system values, such as frequency regulation or renewable energy integration. The document provides step-by-step examples of applying the framework to solar PV and battery systems in both behind-the-meter and distribution-scale environments.

The briefing outlines the unique energy context of India—characterized by high total emissions but low per capita emissions—and proposes four areas for US-India cooperation: facilitating investment in renewable energy, leading a global clean energy collaborative, expanding climate resilience partnerships through data access, and establishing direct high-level communication to support the 2015 Paris climate agreement.

Bonaire transitioned its electricity system after a 2004 fire destroyed its diesel plant, implementing 11 MW of wind capacity and 6 MWh of battery storage. The island currently generates 40–45 percent of its annual electricity from wind and aims for 100 percent renewables by utilizing local algae for biodiesel in its remaining generators. This shift has reduced electricity costs to $0.22/kWh, compared to $0.36/kWh or more on nearby islands, and increased energy reliability and local employment.

The document outlines five core elements for BESS zoning ordinances: treating BESS as a distinct land use, creating clear approval pathways, referencing national safety standards, basing setbacks on safety rather than size, and addressing project lifecycle changes. It provides detailed technical recommendations on permitting, environmental mitigation, noise and visual impacts, and the incorporation of NFPA and UL safety standards.

The study evaluates four primary technology pathways for Germany's power sector decarbonisation by 2050: 'All Tech.' (inclusive of nuclear and CCS), 'No CCS', 'No Nucl.', and 'No Nucl. No CCS'. The 'All Tech.' scenario is identified as the most competitive, offering the lowest total system costs and electricity prices. The 'No Nucl. No CCS' scenario, which most closely represents current German policy, results in the highest costs, highest electricity price volatility, and greatest reliance on transmission and hydrogen infrastructure. The analysis emphasizes that nuclear power and Carbon Capture and Storage (CCS) significantly enhance economic competitiveness and system resilience. It also explores the role of long-duration energy storage (LDES), finding that 24-hour systems can facilitate solar expansion and reduce reliance on costly hydrogen-fuelled power plants.

The report assesses California's path to a net-zero carbon economy by 2045, specifically examining the necessity of 'clean firm power'—zero-carbon electricity that is available on demand regardless of weather. Using three different optimization models (RESOLVE, urbs, and GenX), the authors find that relying solely on wind, solar, and batteries would require nearly 500 GW of capacity and increase wholesale electricity rates by approximately 65%. In contrast, integrating 25-40 GW of clean firm power—such as nuclear, geothermal, or gas with carbon capture and storage (CCS)—can maintain costs similar to today's levels (around 9 cents/kWh) while significantly reducing the land and transmission infrastructure needed. The report concludes that a diverse portfolio of clean firm resources is the most cost-effective way to ensure grid reliability during extended periods of low renewable output, known as 'dunkelflaute'.

The report argues that the proposed 1.2 GW Karpowership gas power plants are not aligned with a least-cost investment pathway for South Africa. Drawing on a study by Meridian Economics and the CSIR, it finds that the grid should prioritize rapid renewable energy build-out and storage, with new gas capacity not being economically optimal until the mid-2030s. The document concludes that commissioning these plants by 2022 would create an unnecessary economic burden for ratepayers and that the procurement process (RMIPP) was biased against renewable energy options.

South Africa's Critical Minerals and Metals Strategy aims to maximise the economic value of its vast mineral reserves—including PGMs, manganese, and vanadium—by shifting from raw ore exports to local beneficiation and high-tech manufacturing. The strategy identifies a specific list of high, moderate-to-high, and moderate criticality minerals and proposes six pillars of intervention: geoscience mapping, value addition, R&D, infrastructure/energy security, financial instruments, and regulatory harmonisation. It emphasizes the need to overcome domestic bottlenecks in energy and logistics, foster regional integration within Africa, and navigate geopolitical tensions, particularly China's dominance in the supply chain, to secure a role in the global green energy transition.

The toolkit critiques the draft IRP 2023, arguing that it deviates from 'least cost' energy pathways by favoring fossil fuels over renewables and failing to adequately address air quality, health impacts, and climate commitments. It provides a framework for the public to challenge the DMRE's modelling assumptions, the premature timing of the plan relative to the Integrated Energy Plan and Sectoral Emission Targets, and the lack of transparency in public participation.

The document argues that integrating public health and equity into climate policy can broaden political support and save lives, estimating that low-carbon policies could avoid 1 million American deaths annually. It proposes a roadmap of legislative and agency actions, including banning natural gas expansion, transitioning to regenerative agriculture, and electrifying public transit, to align the U.S. with the Paris Agreement's 1.5C target. The brief emphasizes that health co-benefits could offset 10% to 41% of U.S. mitigation costs.

The report identifies Atlantic Canada as a leader in decoupling GDP growth from greenhouse gas emissions, though it faces significant fiscal risks due to a reliance on oil, gas, and coal. While Nova Scotia is a hub for transition-related innovation in batteries, smart grids, and low-carbon shipping, regional companies generally remain small and undercapitalized. Vulnerabilities are concentrated in rural areas and specific provinces, notably Newfoundland and Labrador, where oil and gas sectors are critical to government revenue.

The report finds that Canadian provinces are generally underplanning for industrial electricity growth and lagging in transmission investment, though hydro-led jurisdictions possess a natural advantage in system flexibility. It recommends that the federal government support inter-provincial planning, provide strategic funding for grid build-out, implement flexible Clean Electricity Regulations, and prioritize system flexibility in investment programs.

Manitoba is well-positioned for the energy transition due to its low-cost clean electricity, critical mineral deposits, and established ag-tech sector. However, the province lags behind other jurisdictions in public and private R&D investment and lacks a comprehensive government strategy to attract innovative companies. Economic risks include a high debt-to-GDP ratio and a workforce in vulnerable sectors, particularly affecting visible minorities and Indigenous peoples. While some companies are electrifying operations, the province's overall adoption of electric vehicles and heat pumps remains below national and provincial averages.

Québec is well-positioned for the energy transition due to its low-cost, low-carbon electricity and a mature mining sector for critical minerals. However, the province faces significant challenges, including a high public debt-to-GDP ratio of 45% (2020-2021), a shortage of skilled labor in clean-tech SMEs, and the need to rebuild trust with Indigenous peoples for new large-scale projects. While the province has a strong ecosystem of transition-supporting companies—particularly in electric transport and industrial transition—it faces intense global competition from the US, EU, and China, and its firms often secure less capital at each funding stage compared to US counterparts.

The document argues that while Canada possesses a competitive advantage in clean energy, its electricity grids are often optimized for legacy technologies and lack sufficient planning for industrial growth. It compares Ontario, Alberta, Quebec, and British Columbia with international peers, highlighting that hydro-dominant provinces have a flexibility advantage, while others must proactively develop storage and interconnections. The report recommends that the federal government support interprovincial planning, provide targeted funding for grid development, ensure climate policy stability, and prioritize grid flexibility to avoid wasting renewable energy and to attract global capital.

The report identifies four priority sub-sectors for green investment in India: Green Hydrogen, Battery Energy Storage Systems (BESS), Climate Smart Agriculture (CSA), and Waste Management & Material Circularity. It highlights a significant investment gap, noting that India may face a shortfall of $3.5 trillion to achieve its net-zero target. For Green Hydrogen, the report emphasizes the need to reduce costs from above $4/kg to $2/kg to achieve economic viability. In the BESS sector, it projects annual battery demand between 106 GWh and 260 GWh by 2030. Climate Smart Agriculture is presented as a critical area for both mitigation and adaptation, though currently underfunded in upstream and on-farm solutions. Waste Management is highlighted as a $45 billion market opportunity by 2030, with a specific focus on the growing potential of lithium-ion battery recycling. The document also argues for the urgent scaling of private adaptation financing, noting that 80% of key adaptation markets in India are currently nascent or mid-level.

The document describes distributed solar as small arrays that power the buildings they are attached to, noting that while PV costs have dropped by over 60 percent in the last decade, high upfront costs still limit adoption. It argues that on-bill financing (OBF) promotes equity by removing barriers like credit and capital access, allowing families and businesses to install solar with no upfront costs and integrate repayments into their utility bills.