Energy Policy Now

Long-distance electric transmission lines are a critical to the energy transition, yet construction of new lines has come to a near standstill in the U.S. Rob Gramlich of Grid Strategies discusses recent market and regulatory action to resurrect transmission development. --- Electric transmission line mileage will need to triple by the middle of this century to make a net-zero carbon grid a reality, according to estimates cited by the U.S. Department of Energy. Yet new transmission development has plummeted over the past decade, while efforts to spur new construction of long-distance power lines have largely come up short. Rob Gramlich, president of power sector consultancy Grid Strategies and a frequent expert witness on grid issues before Congress, discusses transmission’s critical role in making the grid of the future clean and reliable, and the reasons behind the development slowdown. He reviews the results of a recent report card analysis of transmission development activity across the country, and highlights efforts among grid operators and regulators to incentivize new development. Rob Gramlich is president of power sector consultancy Grid Strategies. Related Content Energy Transition Puts Grid Reliability to the Test https://kleinmanenergy.upenn.edu/podcast/energy-transition-puts-grid-reliability-to-the-test/ The Prospects for Pennsylvania as a RGGI Member https://kleinmanenergy.upenn.edu/research/publications/the-prospects-for-pennsylvania-as-a-rggi-member/ Wholesale Electricity Justice https://kleinmanenergy.upenn.edu/research/publications/wholesale-electricity-justice/   Energy Policy Now is produced by The Kleinman Center for Energy Policy at the University of Pennsylvania. For all things energy policy, visit kleinmanenergy.upenn.eduSee omnystudio.com/listener for privacy information.

As COP 28 draws closer, climate negotiators race to finalize a financing structure to help countries that suffer climate change-related damages. --- In late November this year’s global climate conference, COP 28, will begin in Dubai. The headline issue at COP will be the global stock take, which is a country by country review of progress toward fulfilling emissions reduction pledges under the Paris Climate Agreement. Yet while much attention at COP will be focused on emissions reductions, a second issue, and one that has long been critical to developing nations, will finally and concretely share the limelight. The issue is that of loss and damage finance, or financial support for countries that sustain damage resulting from a changing climate. In Dubai negotiators are expected to endorse a financing framework, and purpose-built fund, to explicitly address the recovery needs of countries impacted by climate change. Michael Franczak, a research fellow at the International Peace Institute, explores loss and damage finance and the race to deliver a formal finance mechanism in time for COP28. He also explains why the issue of loss and damage finance has been so contentious, and discusses innovative means to provide loss and damage funding on the scale that’s needed. Michael Franczak is a research fellow at the International Peace Institute and author of the recent IPI report, “Financing Loss and Damage at Scale: Toward a Mosaic Approach.” Related Content COP 27 and Climate Finance: Renovated Debates, Same Old Dilemmas https://kleinmanenergy.upenn.edu/news-insights/cop27-and-climate-finance-renovated-debates-same-old-dilemmas/ COP27 Dispatch: Why Loss and Damage Finance Is Critical to Small Island States  https://kleinmanenergy.upenn.edu/podcast/cop27-dispatch-why-loss-and-damage-finance-is-critical-to-small-island-states/   Energy Policy Now is produced by The Kleinman Center for Energy Policy at the University of Pennsylvania. For all things energy policy, visit kleinmanenergy.upenn.edu.See omnystudio.com/listener for privacy information.

California is set to present its strategic plan to scale an offshore wind power industry based on unconventional floating wind technology. --- In late June the California Energy Commission will submit its strategic plan for the development of offshore wind energy to the state’s legislature. The plan is the culmination of two years of efforts by California to jump start its offshore wind industry and help the state reach its goal of 100% carbon free electricity by the year 2045. Yet California’s offshore wind ambitions are also a bet on floating offshore wind technology that is required by the state’s deep ocean waters. The technology has scarcely been applied anywhere in the world, and it presents infrastructure and economic hurdles that could complicate the state’s offshore wind efforts. Tim Fischer, Executive Director for Global Wind with Ramboll, a Danish offshore wind consultancy and engineering consultant to California effort, and Joe Rand of the Lawrence Berkeley National Laboratory, discuss the challenges of quickly scaling floating wind power to meet California’s energy goals. They also consider the challenges of connecting large amounts of renewable energy to the on-shore grid, taking into account the need to balance infrastructure development with community priorities. Related Content Ammonia’s Role in a Net-Zero Carbon Economy https://kleinmanenergy.upenn.edu/research/publications/ammonias-role-in-a-net-zero-hydrogen-economy/ The Economics of Building Electrification https://kleinmanenergy.upenn.edu/research/publications/the-economics-of-building-electrification/ Scaling Private Finance for Global Solar Growth https://kleinmanenergy.upenn.edu/podcast/scaling-private-finance-for-global-solar-growth/   Energy Policy Now is produced by The Kleinman Center for Energy Policy at the University of Pennsylvania. For all things energy policy, visit kleinmanenergy.upenn.eduSee omnystudio.com/listener for privacy information.

Nick Rohleder, Energy Policy Now’s former editorial assistant and current climate entrepreneur, discusses the challenge of managing the investment risk inherent in emerging clean energy technologies. --- Last year, $1.1 trillion dollars were invested globally in carbon-free energy technologies and infrastructure. This volume of investment marked a significant milestone, as the first year in which money directed to clean energy equaled investment in the global oil and gas industry. Yet rising clean energy investment masks a critical barrier to the deployment of climate technologies and infrastructure, many of which are new and relatively unproven. As low-carbon solutions are rushed to market to meet urgent climate challenges, they carry inherent technology and implementation risks that can create a disincentive to investment, in particular for investors that are not accustomed to weighing such risks. Nick Rohleder, a Penn alumnus, former editorial assistant to Energy Policy Now, and now a climate entrepreneur, discusses the nature of climate technology risk and why it poses a barrier to investment. He also looks at how commercialization and technology risks can be managed with the goal of accelerating the deployment of climate solutions. Nicholaus Rohleder is co-founder of Climate Commodities and Climate Risk Partners. Related Content The Prospects for Pennsylvania as a RGGI Member https://kleinmanenergy.upenn.edu/research/publications/the-prospects-for-pennsylvania-as-a-rggi-member/ Ammonia’s Role in a Net-Zero Hydrogen Economy https://kleinmanenergy.upenn.edu/research/publications/ammonias-role-in-a-net-zero-hydrogen-economy/   Energy Policy Now is produced by The Kleinman Center for Energy Policy at the University of Pennsylvania. For all things energy policy, visit kleinmanenergy.upenn.edu See omnystudio.com/listener for privacy information.

Exploring Pennsylvania's legal and political hurdles to joining the RGGI market, the podcast delves into the economic and climate impacts of transitioning from coal to renewable energy. It discusses the opposition faced by Pennsylvania, job effects of coal plant closures, and the implications of Reggie on gas generators and drillers. The uncertain future lies in Governor Shapiro's hands, who is yet to commit to the market's development.

A geographer explores the impact of location on worker opportunity and equity in the clean energy economy. --- The Inflation Reduction Act earmarks hundreds of billions of dollars for clean energy and the development of jobs in the clean energy supply chain, construction and operations. Critically, the law also acknowledges that the transition to clean energy presents a generational opportunity to address labor inequities that are rooted in race and gender, as well as the often overlooked element of geography.  Nikki Luke, an assistant professor of Geography at the University of Tennessee, explores how state-level labor policies have contributed to geographic labor inequities that, if they persist, could limit access to quality jobs across the new energy economy. She also looks at local models to support inclusivity, and the role of organized labor in the energy transition.  Nikki Luke is an assistant professor of Geography at the University of Tennessee. Related Content Gender Baseline Assessment of Energy Compacts https://kleinmanenergy.upenn.edu/research/publications/gender-baseline-assessment-of-energy-compacts/ Energy Transition and Opportunity in the Oil Patch https://kleinmanenergy.upenn.edu/podcast/energy-transition-and-opportunity-in-the-oil-patch/ Organized Labor Sees Promise in Transition to Clean Energy https://kleinmanenergy.upenn.edu/podcast/organized-labor-sees-promise-in-transition-to-clean-energy/   Energy Policy Now is produced by The Kleinman Center for Energy Policy at the University of Pennsylvania. For all things energy policy, visit kleinmanenergy.upenn.eduSee omnystudio.com/listener for privacy information.

Princeton University researchers have launched a global survey aimed at spotting and eliminating practical barriers to a net-zero carbon future. Description Much work needs to be done, very quickly, if if a net-zero carbon economy is to become reality by the middle of this century. Yet, the fact is that the current rate of investment in clean energy technology and today’s pace of clean infrastructure deployment lag well behind what will be needed to reach the mid-century goal, and limit climate change impacts. On the podcast, two researchers from Princeton University discuss their work to identify key bottlenecks to the acceleration of the energy transition in the areas of finance, workforce mobilization, and related challenges through a recently launched global survey into barriers to achieving net-zero. They also take a deep dive into a series of critical shifts that, if they take place, hold the promise of delivering an accelerated rate of decarbonization toward the 2050 goal. Elke Weber is a Professor of Psychology and Public Affairs, and Professor of Energy and Environment at Princeton University’s Andlinger Center for Energy and the Environment. Chris Greig is a Senior Research Scientist at the Andlinger Center and former energy industry executive. Related Content Accelerating Climate Action  https://kleinmanenergy.upenn.edu/podcast/accelerating-climate-action/ The Net-Zero Governance Conveyor Belt https://kleinmanenergy.upenn.edu/research/publications/the-net-zero-governance-conveyor-belt/ Ammonia’s Role in a Net-Zero Hydrogen Economy https://kleinmanenergy.upenn.edu/research/publications/ammonias-role-in-a-net-zero-hydrogen-economy/   Energy Policy Now is produced by The Kleinman Center for Energy Policy at the University of Pennsylvania. For all things energy policy, visit kleinmanenergy.upenn.eduSee omnystudio.com/listener for privacy information.

PJM Interconnection is in a race to shore up electric grid reliability as the transition from fossil fuels to clean energy accelerates. --- In February PJM Interconnection, the largest wholesale electricity market in the US, published a report that points to the very real possibility that electricity supply in the market could fall short of the level needed for reliable grid operation in just five years. The potential shortfall is tied to the pace of the energy transition, in which fossil fuel generators, and coal plants in particular, are retiring faster than they can be replaced by new clean and renewable generation. The report has led to a flurry of activity in PJM, as its members rush headlong into a process to reform the way the market manages, and values the reliability that generators bring to the electricity system. Abe Silverman, Director of the Non Technical Barriers to the Clean Energy Transition program at Columbia University’s Center on Global Energy Policy, explores efforts underway in PJM to revise market rules to ensure that supply meets demand at all times, including during extreme weather events that have recently threatened the reliability of the grid. The resource adequacy challenges to be addressed are immensely complex, and extend beyond the fundamentals of energy technology to encompass the diverse economic and environmental priorities at play in the market and, more broadly, across the nation. Abe Silverman is Director of the Non Technical Barriers to the Clean Energy Transition research and policy program at Columbia University’s Center on Global Energy Policy. He is former General Counsel for the New Jersey Board of Public Utilities. Related Content Wholesale Electricity Justice https://kleinmanenergy.upenn.edu/research/publications/wholesale-electricity-justice/ Massive Shift toward Solar Power Begins in Largest U.S. Electricity Market https://kleinmanenergy.upenn.edu/podcast/massive-shift-toward-solar-power-begins-in-largest-u-s-electricity-market/ The Economics of Building Electrification https://kleinmanenergy.upenn.edu/research/publications/the-economics-of-building-electrification/   Energy Policy Now is produced by The Kleinman Center for Energy Policy at the University of Pennsylvania. For all things energy policy, visit kleinmanenergy.upenn.eduSee omnystudio.com/listener for privacy information.

A senior climate diplomat discusses scientific, economic, and diplomatic barriers to rapid global decarbonization. --- In March the Intergovernmental Panel on Climate Change released the final volume of its Sixth Assessment report on progress toward addressing climate change. The findings of the report aren’t encouraging, and point to an acceleration of climate impacts and continued growth in fossil fuel use. Possibly the most candid assessment of the report’s findings came in a statement from the United Nations Secretary General, Antonio Gutierrez, who stated that developed countries must reach net zero by the year 2040, well ahead of declared targets, if hope is to remain of minimizing climate risks. In the podcast Simon Sharpe, Director of Economics for the UNFCCC Climate Champions and author of a newly published book, “Five Times Faster,” discusses his experience as one of the United Kingdom’s senior climate diplomats, and the frustrations, and alarm, that accompany the less than adequate pace of emissions reductions to date. Sharpe discusses his book’s exploration of the scientific, economic and diplomatic realities that have prevented rapid progress toward a net-zero global economy, and offers suggestions for constructive collaboration to accelerate the transition to cleaner forms of energy. Simon Sharpe is Director of Economics for the UNFCCC Climate Champions, and a Senior Fellow at the World Resources Institute.   Energy Policy Now is produced by The Kleinman Center for Energy Policy at the University of Pennsylvania. For all things energy policy, visit kleinmanenergy.upenn.edu Related Content The Net Zero Governance Conveyor Belt https://kleinmanenergy.upenn.edu/research/publications/the-net-zero-governance-conveyor-belt/ Nicholas Stern on the Role of Economics in Combating Climate Change https://kleinmanenergy.upenn.edu/podcast/nicholas-stern-on-the-role-of-economics-in-combating-climate-change/ Have We Reached Peak Carbon Emissions? https://kleinmanenergy.upenn.edu/research/publications/have-we-reached-peak-carbon-emissions/See omnystudio.com/listener for privacy information.

New research examines the relationship between climate change-related events and returns on green investment, and why returns for green stocks might lag those of brown. --- At first look it would seem to make sense that, as climate concerns grow, green investments would outperform investments in dirty industries. To put this into an energy context, as policymakers require more renewable energy to be deployed, and as investors flock to companies with low climate impacts and risks, the value of those companies would substantially increase, rewarding investors through higher returns. Yet recent research suggests that this assumption may not be true. Or, at least, that the story isn’t as clear cut as one might intuitively expect. Luke Taylor, a professor of finance at the Wharton School, explores the drivers of green returns. In new research, Taylor and coauthors look at the past decade of returns on ESG portfolios, and at how environmental policies, and investor demand for all things green, combined to influence returns on green stocks. Luke Taylor is a professor of finance at the Wharton School at the University of Pennsylvania. His recent research paper is “Dissecting Green Returns.”   Energy Policy Now is produced by The Kleinman Center for Energy Policy at the University of Pennsylvania. For all things energy policy, visit kleinmanenergy.upenn.eduSee omnystudio.com/listener for privacy information.