1. Exclusive: Power-sector emissions cuts to flatline by 2026
It’s not inevitable, but that’s the grim course we’re on if lower-carbon technologies and net-zero commitments don’t pick up steam, according to our new power-sector trends report.
The good news: Many of America’s biggest energy companies and public utilities have already made significant pledges amounting to emissions reductions resulting in 56% of 2005 levels by 2050 — and we’ve seen solid progress over the last 15 years.
The bad: The easy part is over.
What’s clear: To keep emissions dropping, we urgently need smarter policies to get new energy innovations to market.
How we know: We partnered with Rhodium Group, a leading research firm that analyzes energy policies and climate risks, to model two possible scenarios.
What we found: If natural gas prices stay low, because of high load growth, power-sector emissions will stop falling by 2026 and stall through 2050 – at just 4% below where they are today.
We modeled the impact of electric utility decarbonization commitments for the first time – and found that the commitments made so far can avoid this flatline.
Even if utilities nail them, the entire power sector is on pace to emit over a gigaton of CO2 annually by 2050 — a gap we can’t close without more market-friendly policies boosting better technologies, or more utilities establishing targets.
One cheap way to start — maintain existing nuclear reactors.
Plug in: Be the first to read Clear Path to a Clean Energy Future, led by senior ClearPath researcher Spencer Nelson, for sharp analysis and modeling of our most promising policies and technologies.
Check out additional ClearPath reports and analyses here.
2. BIB notes: Big boosts for clean energy
We read the entire bill of the Senate’s bipartisan infrastructure bill so you don’t have to — check out our snap take on all the top energy provisions in our Twitter thread.
The big ones: Eagle-eyed investments in enhanced geothermal, advanced nuclear, carbon capture, and grid-scale storage.
Rich’s take: “This bipartisan energy agreement will keep America’s energy sector competitive long-term, especially with China.”
And the best part, “all of these provisions will be done in close partnership with private sector innovators who are working to maintain American energy jobs and create new clean energy markets.”
3. Around-the-clock clean electricity for federal facilities
A new bipartisan House proposal would let the government ink long-term Power Purchase Agreements with newly constructed nuclear reactors — a win-win for the sector and American energy independence.
What’s clear: The Nuclear PPA Act sends early movers a powerful market signal that should help speed up developments in advanced nuclear.
How it works: The bill directs DOE to help other federal agencies tap into the technology’s unmatched capacity to provide reliable clean energy.
That’s especially key for off-grid or high-value federal facilities that deal with national security or need to maintain power during emergencies.
Cosponsors: Reps. Elaine Luria (D-VA) … Dan Newhouse (R-WA) … Anthony Gonzalez (R-OH) … and Scott Peters (D-CA).
4. 180+ groups call for carbon capture incentive
It’s the largest and most diverse group of companies and nonprofits to unite behind a common federal policy agenda for carbon capture and storage.
Theopen letter calls on Congress to include a portfolio of priority 45Q tax credit improvements in any moving legislative package, including:
A direct-pay option and an end to annual carbon capture thresholds that deter innovation.
Higher credit values for industrial and power-plant carbon capture and direct air capture projects.
More time to start construction without losing the credit.
Regional networks for CO2 transport and storage.
Robust funding for commercial-scale demonstrations.
What’s clear: We agree on all points which is why we signed on.
5. ICYMI
DOE needs an “investor mindset” to fix funding for technology demonstrations, according to a new memo from the Nuclear Innovation Alliance.
NIA’s rec: Tying federal funds to commercial milestones — not conventional cost reimbursement models — “reduces taxpayer risk, reduces project performance risks, and can accelerate commercialization.”
