The Distance
Executive Summary
The energy transition remains much discussed in the energy and utilities industry. For some, this transition is not moving at the pace and linearity they would prefer. But some ambitions are meeting the reality of the time and cost of making dramatic changes to an energy system.
The theme of this issue is "The Distance," which reflects time and effort (i) to get new non-emitting energy technologies to commercialization (long-duration storage, next-generation geothermal), (ii) to improve regional transmission planning and get transmission projects under way (FERC orders), (iii) to reconfigure (if feasible) power generation or to preserve resources as long as possible for reliability (EPA greenhouse gas regulations), and (iv) to implement effective programs for affordability (low-income energy affordability).
Below we preview the sections in this edition of the Energy Industry Update.
HIGHLIGHTS FROM THIS
ENERGY INDUSTRY UPDATE
EPA Greenhouse Gas Emissions Rules for Power Generators
Citing its authority under §111 of the Clean Air Act, the Environmental Protection Agency promulgated new emissions standards for existing fossil steam generators and new gas combustion turbine units. The performance standard—90% carbon capture and storage—is controversial, as many in the industry do not believe the technology is well proven. Continuing litigation will determine whether, how, and when the rules are implemented.
FERC Regulatory Developments
Growing levels of renewable resources, more frequent, widespread extreme weather events, and growing energy demand are generating the need for increasing investment in electric transmission.
FERC has prioritized transmission development to address this perceived gap. With the issuance of Orders 1920 and 1977 in spring 2024, FERC hopes that a longer-term view of regional and interregional needs and improvements in siting will bolster transmission buildout.
Long-Duration Energy Storage
Electric energy storage is the “holy grail” of a decarbonized electric system. Many current storage installations have used lithium-ion battery technology that has, on a unit basis, four hours or less of duration.
With longer-lived disruptions due to extreme weather and to help “firm up” variable, weather-dependent resources, longer-duration storage solutions are necessary. Many firms are researching new technologies to extend the discharge life of storage solutions from intraday to multiday durations.
Low-Income Energy Affordability
The issue of energy and specifically electricity affordability continues to have currency among both utilities and regulators. Contemporaneously, utility investments in aging infrastructure and in decarbonizing energy systems is leading to increased cost pressures. Low-income affordability is a focus area for policymakers, and states are testing approaches to satisfy policy goals such as electrification without placing undue burden on those customers.