Over the past several years, the Energy Innovation Reform Project (EIRP) has developed and promoted an Innovation + Regulation Policy Framework (I+R) for decarbonizing the U.S. electric power sector. OnLocation, Inc. completed a comprehensive modeling analysis for EIRP to identify the potential benefits and challenges of employing the I+R Framework. The study found that the I+R Framework is more cost-effective and results in greater diversity of generation options, including more firm and dispatchable clean power, than the alternative regulation-only clean energy policy examined.
Frances Wood and Sharon Showalter at OnLocation co-authored a paper that was recently published in the journal Energy Policy titled “Could congressionally mandated incentives lead to deployment of large-scale CO2 capture facilities for enhanced oil recovery CO2 markets and geologic CO2 storage?” The paper describes the results of a joint study performed in coordination with the Stanford University Energy Modeling Forum, an organization that promotes the use of energy policy models to improve the understanding of important energy and environmental issues. Other organizations involved in the study include the Pacific Northwest National Laboratory, the National Energy Technology Laboratory, the U.S. Environmental Protection Agency, and the Electric Power Research Institute. The study was performed using five energy models, including a customized version of the National Energy Modeling System created by OnLocation and referred to here as the CTUS-NEMS model.
Tucked in amongst a host of energy credits in the February Congressional Budget deal were several changes to the existing 45Q federal tax credits for carbon capture and sequestration (CCS) aimed at making the technology more economical. CCS has the potential to be revolutionary for the power sector, once regulatory hurdles are overcome and the technology becomes affordable to scale-up across fossil fuel emitting power plants. These changes to the 45Q tax credits might just be a significant step towards that goal.
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