Energy Systems Consulting Perspectives

In the fight to minimize human-caused carbon dioxide (CO2) emissions associated with climate change, one of the latest and most exciting technologies is carbon capture and storage (CCS). The idea behind this method is that the CO2 emitted during certain activities, such as fracking for oil and gas, burning coal and natural gas for electricity, and many industrial activities such as ethanol production, can be captured instead of being released into the atmosphere. Once captured, the CO2 can be compressed into a denser gas or liquid and then transported by pipeline and used for enhanced oil recovery or permanently stored underground in saline aquifers, coal beds, salt caverns, or other geological formations. While the technology for capturing, condensing, transporting, and ultimately injecting CO2 has advanced notably in recent years to make the technology theoretically viable on a large scale, the actual implementation of the practice has lagged behind largely due to the regulatory hurdles associated with the transport and storage of the CO2.

The mix of fuels making up the U.S. power sector is constantly evolving, responding to market forces including the changing price of fuels, the mix of new generator construction, government policies such as renewable portfolio standards, and technological improvements. As the share of U.S. electricity that is being generated from renewable energy and natural gas continues to grow, increasing focus is being placed on ensuring adequate and reliable baseload generation at a time when traditional baseload energy sources are being replaced with non-dispatchable, or intermittent, power generation.

The recent Bipartisan Budget Act of 2018 re-instated residential energy efficiency tax credits - but only retroactively for one year through 2017.  This ‘Section 25C’ credit provides a tax credit for the purchase of certain energy-efficient equipment up to $300, which incentivizes homeowners to choose energy-efficient products over less efficient alternatives. Over $1.6 billion of these ‘Section 25C’ tax credits were claimed by homeowners in 2015 for investments in energy efficiency improvements.

Frances Wood recently presented results of an OnLocation analysis at the 35^th Annual USAEE/IAEE North American Conference held in Houston Texas in November 2017.  The United States Association for Energy Economics (USAEE) is the largest affiliate of the International Association for Energy Economics (IAEE), an organization that provides a forum for industry professionals to exchange ideas on a variety of issues and challenges facing the energy industry. 

Puerto Rico was devastated by Hurricane Maria. Though the death toll was limited, weeks later 3.4 million Americans still lack power and basic services. Officials estimate that it will take several months until the power is restored, and the sheer effects of the destruction will be visible for years.