Search Climate Insights Directory

The report highlights a trend of massive infrastructure spending by both electric and gas utilities in the U.S., which is driving up consumer energy bills. While the electric sector has a 'full toolbox' of regulatory and technical solutions to manage costs, the author contends that gas utility solutions are 'more nascent and uncharted.' The document proposes the use of a gas system analysis (GSA) to provide the foundational technical information necessary for decision-makers to avoid investing in redundant or irrelevant long-lived assets.

In 2025 Q3, US utility resource plans showed increasing projected electricity demand and emissions, with many utilities delaying fossil plant retirements to ensure resource adequacy. Load growth is primarily driven by large loads like data centers, while the phase-out of federal renewable tax credits and MISO regulatory changes have led to reduced wind and solar plans and increased reliance on gas capacity. Current IRP projections indicate a significant gap between planned emissions reductions and the net-zero targets required by 2035 for climate alignment.

The document examines the financial mechanisms of utility regulation, specifically the gap between the allowed return on equity (ROE) and the cost of equity (COE). It argues that current ROEs are excessively high, creating a 'capex bias' that incentivizes expensive capital projects over cost-effective solutions like energy efficiency. By analyzing price-to-book ratios and applying discounted cash flow models, the authors estimate that the required return for investors is significantly lower than currently approved rates. The guide provides a framework for stakeholders to challenge inflated COE estimates by correcting flawed model assumptions regarding interest rates, growth rates, and historical means. It further dismisses common industry claims that lower ROEs would limit access to capital or increase customer costs via credit rating downgrades.

In Q4 2024, US utilities updating their IRPs reduced planned wind and solar capacity by 20 GW and increased planned gas capacity by 12 GW, leading to an 8 percent increase in projected emissions despite a small downward adjustment in projected load.

The report evaluates transition planning among ASEAN companies in sectors like cement, steel, and chemicals against the Climate Bonds Initiative's 'Five Hallmarks' of a credibly transitioning company. It finds that while net-zero commitments are increasing, most plans are fragmented and lack the robust, costed, and science-based pathways necessary for a 1.5°C alignment. The document provides specific analysis of companies such as Siam Cement Group and PTT, and offers guidance on improving the credibility of sustainability-linked bonds (SLBs) by ensuring they include material emission scopes and absolute targets.

The analysis finds that adopting a Federal Advanced Clean Trucks (ACT) and NOx Omnibus policy would significantly reduce greenhouse gas and NOx emissions, create over 63,000 net jobs by 2035, and generate $487.7 billion in cumulative net societal benefits by 2050. It highlights that the EPA's baseline underestimates ZEV adoption, thereby overestimating the relative impact of NOx standards. The report projects that average Class 4-8 ZEVs will reach total cost of ownership parity with internal combustion engines by model year 2030, with significant lifetime savings by 2040.

This guide explains the role of electric utilities and Public Utilities Commissions in US energy policy, while detailing specific mechanisms like distributed generation, community solar, net metering, and decoupling that facilitate the transition to renewable energy.

The author contends that European electric utilities' financial losses result from failed investment strategies and a failure to adapt to disruptive renewable technologies rather than the technologies themselves. The letter highlights the macroeconomic benefits of renewables in Germany, the technical feasibility of high renewable penetration in Denmark, Spain, and Portugal, and the global trend of non-hydro renewables outproducing nuclear power. It suggests that utilities need new revenue models, such as bidirectional value tariffs, to survive the transition to a decarbonised, distributed energy system.

The report critiques a study by the Utility Solid Waste Action Group (USWAG) which claimed that strict coal ash regulation could lead to the loss of 183,900 to 316,000 jobs. The author argues these figures are based on arithmetic errors, a misapplication of an unpublished academic paper, and unfounded claims regarding 'regulatory stigma'. Using the IMPLAN model and a high-end cost estimate from the Electric Power Research Institute (EPRI) of $6.47 billion annually, the author calculates that the spending required for waste management, wastewater treatment, and construction would create 117,000 jobs, while the resulting electricity price increases would cause a loss of 89,000 jobs. The final result is a projected net gain of 28,000 jobs.

The report challenges the traditional utility assumption that 'baseload' power plants are necessary for grid stability, noting that all generators, including coal and nuclear, experience outages. It proposes a new electricity paradigm integrating energy efficiency, demand response, renewables, and storage. The authors assert that variable renewables like wind and solar can reliably meet demand if utilities use existing plants differently, incorporate new storage technologies, and increase control over demand. Examples from Denmark, Germany, and a NREL study on the eastern U.S. are cited to demonstrate the feasibility of high renewable penetration.

The report analyzes four energy scenarios for the US up to 2030: a Reference case, a Market case, an Environmental case, and a Climate Stabilization case. It finds that shifting toward efficiency and renewables can lead to net economic savings of up to $2.3 trillion and dramatic reductions in CO2 emissions. The authors propose a comprehensive policy framework based on harnessing market forces, establishing efficiency standards, and increasing R&D investment to move the US away from its current reliance on polluting fossil fuels.

The document examines the transition of the U.S. electric power sector toward a high-renewable energy future, specifically referencing NREL's goal of 80 percent renewable generation by 2050. It identifies pressures such as aging infrastructure, environmental regulations, and flat load growth that necessitate a new 'social compact' between utilities and regulators. The authors propose a spectrum of utility roles—ranging from a minimal 'wires company' to a maximum 'energy services utility'—and suggest shifting from traditional cost-of-service regulation to performance-based models like the UK's RIIO, the Iowa settlement model, or a comprehensive 'Grand Bargain' to incentivize efficiency and decarbonization.

The report examines the 'death spiral' facing traditional U.S. electric utilities caused by falling costs of renewables, energy efficiency, and declining demand. It proposes a regulatory shift by Public Utilities Commissions (PUCs) toward 'performance-based regulation,' where utilities are rewarded for meeting reliability, affordability, and environmental goals rather than the volume of electricity sold. The author suggests that utilities, given their infrastructure and market reach, are the ideal vehicles for decarbonization if incentivized to prioritize system optimization over electron supply.

The document advocates for the use of city-utility partnership agreements in the United States to facilitate the collaboration between local governments and electric utilities necessary to meet climate and energy targets.

The paper identifies three primary barriers to the adoption of residential rooftop solar PV in India: a lack of objective, accessible information; a lack of customized financing options; and poor coordination between government agencies and utilities. It emphasizes that meeting India's 40 GW rooftop solar target by 2022 requires a consumer-centric approach that complements top-down policies with bottom-up initiatives.

The document examines the emergence of green tariffs as a tool for traditional U.S. utilities to compete with third-party renewable energy providers. It argues that utilities can leverage their existing infrastructure and capabilities to offer cost-effective, flexible renewable energy options while avoiding cost shifts to other customers.

A fact sheet detailing the efforts of major U.S. companies to scale up renewable energy use and reduce emissions through collaboration with utilities and regulators.

The research paper examines the financial distress of Tamil Nadu's electric utility, TANGEDCO, which had an accumulated debt of ₹1,25,200 crores as of FY 2022-23. Using the RATE modeling tool, the study analyzes how factors such as renewable energy penetration, coal cost inflation, and consumer sales migration affect the utility's financial health and consumer tariffs. The analysis is critical as the state aims to increase generation capacity by 33 GW by 2030, with over 80 percent of that new capacity expected to be renewable energy.