Utilities across the United States continue to announce coal plant closures and reaffirm previous plans to remove coal from their generation fleets. What’s behind this trend? And how can U.S. utilities profitably transition themselves and affected coal communities to a 21st century generation mix?
In April, Department Of Energy Secretary Rick Perry issued a memorandum to his staff asking pointed questions about the future of the electric grid as coal is retired off the system. DOE’s publication of this memorandum presents an opportunity to uncover many outdated assumptions about grid reliability and understand what’s driving the unstoppable transition from coal to other technologies.
At the Navigating the American Carbon World Conference, Director of Research Chris Busch joined a panel charged with forecasting future trends in North American carbon markets. The panel covered the linked California-Quebec cap-and-trade program, the Regional Greenhouse Gas Initiative, and emerging programs in Canadian provinces.
California Gov. Jerry Brown (D) is going to China early next month to drum up support for climate and clean energy policies as well as general trade cooperation. “We should expect to see more action this year,” said Chris Busch, research director with advisory firm Energy Innovation, who was in Beijing in March with Stanford University economist Larry Goulder. “[China’s] looking at this as an opportunity for international leadership…”
California governor Jerry Brown (D) says there is a “very good chance” state lawmakers will pass legislation next month to extend the state’s greenhouse gas cap-and-trade program. Now is the right time for Brown to make a strong push, according to Chris Busch, research director at the clean energy advisory firm Energy Innovation.
The Trump Administration is attempting to alter America’s energy landscape. Energy Innovation used the Energy Policy Simulator (EPS) to forecast wind and solar capacity additions to 2050 under three scenarios: a business-as-usual (BAU) scenario, a low natural gas price scenario, and a solar import tariff scenario.
Following the province’s first carbon auction in March, Ontario’s Cap And Trade Forum brought together a range of stakeholders to provide insight and expertise on dealing with carbon market uncertainties and developing strategies for successful cap-and-trade programs. Director of Research Chris Busch spoke on a panel discussing the implications of linking Ontario to the broader Western Climate Initiative carbon market.
The carbon offset industry is reeling from a new proposal by California lawmakers that would shut them out of the state’s carbon market after 2020. “SB 775 has a more direct form of cost containment, a true price ceiling… I would argue it is a bigger matter of concern for international or out-of-state-offset developers.” Chris Busch, research director with advisory firm Energy Innovation, said in an email.
New technology has tipping points—defined by functionality, consumer preference, and price. Clean energy is passing a huge one. It is now cheaper, in many parts of the country, to build a brand-new wind farm or solar plant than simply to pay the operating costs of coal, and sometimes even natural gas. That is the kind of tipping point worth paying attention to. There is clean energy, and cash, on the table—let’s use them to accelerate our low-carbon energy transition.
In his first 100 days, allies and adversaries saved Trump and the country from some of his most extreme, ill-considered campaign promises. As for the next 100 days, who will protect us? On the issues I care about most, I’m actually counting on California.
