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At least 163 records · Page 9

Equity implications of net-zero emissions: A multi-model analysis of energy expenditures across income classes under economy-wide deep decarbonization policies

With companies, states, and countries targeting net-zero emissions around midcentury, there are questions about how these targets alter household welfare and finances, including distributional effects across income groups. This paper examines the distributional dimensions of technology transitions and net-zero policies with a focus on welfare impacts across household incomes. The analysis uses a model intercomparison with a range of energy-economy models using harmonized policy scenarios reaching economy-wide, net-zero CO 2 emissions across the United States in 2050. Here we employ a novel linking approach that connects output from detailed energy system models with survey microdata on energy expenditures across income classes to provide distributional analysis of net-zero policies. Although there are differences in model structure and input assumptions, we find broad agreement in qualitative trends in policy incidence and energy burdens across income groups. Models generally agree that direct energy expenditures for many households will likely decline over time with reference and net-zero policies. However, there is variation in the extent of changes relative to current levels, energy burdens relative to reference levels, and electricity expenditures. Policy design, primarily how climate policy revenues are used, has first-order impacts on distributional outcomes. Net-zero policy costs, in both absolute and relative terms, are unevenly distributed across households, and relative increases in energy expenditures are higher for lowest-income households. However, we also find that recycled revenues from climate policies have countervailing effects when rebated on a per-capita basis, offsetting higher energy burdens and potentially even leading to net progressive outcomes. Model results also show carbon Laffer curves, where revenues from net-zero policies increase but then decline with higher stringencies, which can diminish the progressive effects of climate policies. We also illustrate how using annual income deciles for distributional analysis instead of expenditure deciles can overstate the progressivity of emissions policies by overweighting revenue impacts on the lowest-income deciles.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Fossil Fuel Transitions Framework: Case Studies of the Decision-Making Process for Energy and Economic Development Pathways

Each community is unique, and transitions must be tailored to local and national contexts, with recognition that access to financing is a key differentiator between wealthy and low-to-middle income countries. This analysis examines six community fossil fuel transitions in two different country contexts to provide insights on inclusive processes and decision-making criteria that bring forth positive outcomes for the communities. In both the United States and Chile, a coordination mechanism is established across government agencies and the importance of stakeholder engagement is recognized. In many cases, the government, local community groups, and electric utility or industry players have a critical role in transition planning and support.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Addressing Regulatory Challenges to Tribal Solar Deployment: Preprint

Although Tribal land represents more than 5% of the solar photovoltaic technical potential in the United States, this resource is largely untapped due to a range of barriers, including complex project economics, Tribal technical and human resource capacity, project funding and financing obstacles, and regulatory challenges. To identify and better understand the regulatory barriers, the National Renewable Energy Laboratory (NREL) and the Midwest Tribal Energy Resources Association (MTERA) engaged Tribes, utilities, and regulators. Funded by the U.S. Department of Energy, the 3-year effort seeks to address regulatory challenges or barriers that affect Tribal solar projects differently - specifically or disproportionately because they are located on Tribal lands. This paper, largely excerpted from a comprehensive (draft) guidebook released by NREL and MTERA, provides an overview of 13 key regulatory barriers identified through this research, as well as potential short- and long-term solutions. In addition, the paper points to potential pathways for addressing key barriers through case studies highlighting successful Tribal solar projects along with considerations for stakeholders working with Tribes. These resources can support stakeholders in creating meaningful relationships and pursuing workable solar projects.

ENERGY PLANNING, POLICY, AND ECONOMY,SOLAR ENERGY↗

Intentional and Responsible Energy Transitions: Integrating Design Choices in the Pursuit of Carbon-Neutral Futures

The transitions of energy systems to carbon neutrality are among is one of the most ambitious, complex, uncertain, significant, and transformative projects in human history. They will therefore demand extraordinarily thoughtful, informed, and careful leadership. In recent years, this project has reached an important turning point, with widespread agreement to decarbonize energy systems by 2050. We argue that the next step is to engage leaders in doing the work necessary to achieve that goal. Specifically, we argue that regional leaders, across sectors, should build collaborative initiatives to intentionally and responsibly design and advance regional energy transitions. These transitions will entail navigating uncertain and unknown terrain, requiring diverse organizations and communities to work together to chart and construct potential pathways, assess their implications, and collectively work to make progress. To address these challenges, we recommend adopting region-first, anticipatory, justice-oriented approaches. In such approachesthis process, regions can collaboratively identify, deliberate, design, and navigate toward endpoints along complex and shifting pathways that recognize that design will matter. Efuture energy systems will deeply shape and be shaped by the futures of both societies and economies. Transitions will therefore need to be inclusive, to provide broad public input into both how to proceed with transitions and the goals that guide their design.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

An Economics-by-Design Approach Applied to a Heat Pipe Microreactor Concept

Microreactors present a potential paradigm shift in the nuclear industry. Emphasis thus far has been on large-scale multi-billion-dollar projects that cater solely to grid electricity market. These projects can be challenging to finance and execute. On the other hand, microreactors are intended to target a wide variety of smaller niche markets and are expected to be factory-fabricated and more readily deployable. While diseconomies of scale for microreactors may tend to raise their costs per energy output (MWh) relative to large nuclear plants, offsetting gains can be expected from standardization, simplification, passive safety, lower radionuclide inventories, factory fabrication, fast installation, and low financing costs. To adequately assess these contributions, designers should have a different perspective on cost drivers than for large nuclear plants and can utilize novel approaches for systematic cost reduction. To account for these important aspects of microreactors, this report proposes an economics-by-design approach that places economic considerations at the center of the design process. The methodology builds on existing frameworks such as design-to-cost and value engineering, expanding them to new markets (beyond the grid), new attributes (beyond costs alone), and introducing the approach at earlier points in the design cycle. Design parameters and technical specifications are systematically evaluated until costs meet market entry points, while also providing the high-priority performance attributes of the particular use case. Determining first-order estimates for different components early in the process enables designers to focus R&D efforts on the biggest overall cost contributors and components with the most cost uncertainty. The analysis is always guided by market needs and threshold prices. In addition to microreactors, the approach is expected to be useful for other classes of nuclear reactors as well. The analysis was applied to a concept found in the open literature (the Design A heat-pipe reactor). A comprehensive bottom-up estimate was generated by leveraging a new microreactor-specific code of accounts and a range of cost equations. The initial estimate for levelized cost of electricity (LCOE) unsurprisingly exceeded market ranges since the use case had prioritized technological readiness over economic considerations in design choices. An alternate concept was then proposed, with various assumptions/targets made to reduce the largest cost contributors. Changes in the neutron spectrum, the power output, and building structures were found to make even the first-of-a-kind of this modified concept competitive with diesel generation in some remote communities. Learning rate (LR) assumptions indicated cost reductions achieved from sequential unit deployments could expand the range of competitiveness to include additional markets as deployments proceed.

22 GENERAL STUDIES OF NUCLEAR REACTORS↗

A Recipe for ABC Multifamily Retrofits: Technologies, Financing, and Project Delivery

This report documents the final technical accomplishments and outcomes of Rocky Mountain Institute’s project under the U.S. Department of Energy (DOE) Award DE-EE0009064. The project aimed to develop, validate, and scale whole building retrofit solutions for multifamily buildings, including two configurations of Integrated Mechanical System Pods (IMSP-C and IMSP-U), in alignment with DOE Advanced Building Construction (ABC) initiative's decarbonization and energy efficiency goals. While the project made significant progress in Budget Period 1 (Phase 1) and throughout Budget Period 2 (Phase 2), activities were discontinued as of March 26, 2025, following a Stop Work Order issued by DOE. As such, this report reflects all completed work through that date. The project did not enter Budget Periods 3 and 4 (Phase 2), and demonstration site implementation, field M&V, and final commercialization execution were not conducted.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Bringing Solar Energy to Low- and Moderate-Income Communities

The U.S. solar photovoltaics (PV) industry has taken off over the past decade, but without deliberate action low- and moderate-income communities could be left behind. Key recommendations for policymakers and funders in the renewable energy and community development fields that emerged from this process include the following: • Help to capitalize and support community-based lenders to provide flexible, low-cost, and long- term financing to mission-driven solar projects— including providing guarantees or other forms of credit enhancement. • Provide a grant-in-lieu-of-credits option for the Investment Tax Credit as was done during the last recession. • Develop pools of government and philanthropic support that can complement financing from community-based lenders to complete the capi- tal stack for mission-driven projects, as well as to support education and technical assistance to both consumers and potential project sponsors. • Create a national Renewable Energy Credits pro- gram that includes social equity targets to provide a baseline of support for clean energy generation. • Change utility regulations to remove barriers to low-income solar projects, provide greater certainty for developers, and measure progress toward equity in renewable energy policy implementation.

14 SOLAR ENERGY↗

Implications of climate change mitigation strategies on international bioenergy trade

Most climate change mitigation scenarios rely on increased use of bioenergy to decarbonize the energy system. Here we use results from the 33rd Energy Modeling Forum study (EMF-33) to investigate projected international bioenergy trade for different integrated assessment models across several climate change mitigation scenarios. Results show that in scenarios with no climate policy, international bioenergy trade is likely to increase over time, and becomes even more important when climate targets are set. More stringent climate targets, however, do not necessarily imply greater bioenergy trade compared to weaker targets, as final energy demand may be reduced. However, the scaling up of bioenergy trade happens sooner and at a faster rate with increasing climate target stringency. Across models, for a scenario likely to achieve a 2 °C target, 10–45 EJ/year out of a total global bioenergy consumption of 72–214 EJ/year are expected to be traded across nine world regions by 2050. While this projection is greater than the present trade volumes of coal or natural gas, it remains below the present trade of crude oil. This growth in bioenergy trade largely replaces the trade in fossil fuels (especially oil) which is projected to decrease significantly over the twenty-first century. As climate change mitigation scenarios often show diversified energy systems, in which numerous world regions can act as bioenergy suppliers, the projections do not necessarily lead to energy security concerns. Nonetheless, rapid growth in the trade of bioenergy is projected in strict climate mitigation scenarios, raising questions about infrastructure, logistics, financing options, and global standards for bioenergy production and trade.

09 BIOMASS FUELS↗

Looking Beyond Bill Savings to Equity in Renewable Energy Microgrid Deployment

Microgrids powered by renewable energy can provide backup power to critical infrastructure during grid outages. These systems can also play an important role in advancing energy justice by providing economic, environmental, health, and resilience benefits for underserved communities. The value of microgrids is often measured by the economic savings and resilience provided, but there are other energy justice factors that should be considered. This paper describes a methodology for quantifying broader costs and benefits including utility bill savings, value of resilience, social cost of carbon, public health costs, and jobs associated with the construction and operation of microgrids. We evaluate these factors at three case study sites and find that including energy justice values in the cost-benefit analysis of microgrids can change investment decisions. When climate, health, resilience, and job creation are considered, cost-optimal microgrids include more renewable generation, leading to a 52-82% reduction in emissions and diesel fuel use. The net present values of the microgrids grow from negative $626,000-843,000 in the diesel only case to $10-16 million in the hybrid microgrid case and $12-19 million in the renewable microgrid case, indicating potential for greater microgrid deployment if energy justice values are incorporated in decision making. However, we also see large increases in capital expenses, which could limit deployment unless accompanied by innovative financing measures. These findings may be useful to communities as they seek to strengthen resilience to natural disasters while also improving public health, meeting climate goals, and providing economic opportunity for residents.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Roadmap to reach global net-zero emissions for developing regions by 2085

As climate change intensifies, determining a developing region’s role in achieving net-zero emissions worldwide is crucial. However, regional efforts, considering historical emissions, remain underexplored. Here, we assess energy system changes, technology adoption, and investments needed for developing regions, including five major- and minor-emitting nations. Our analysis, using an integrated assessment model, shows a large gap in regional efforts toward global net-zero emissions, stemming from the necessary shift of energy systems to low-carbon resources. The use of new technologies, like electric vehicles, hydrogen, and carbon capture, varies by region, with the highest adoption required between 2020 and 2030. Financing this shift needs an average gross domestic product (GDP) investment rise of 0.464% in minor-emitting regions and up to 2.1% in major-emitting regions by 2085. Our results could guide policies and support setting quantifiable targets for developing nations. The findings are key to facilitating strategic technology use and finance mobilization to achieve a carbon-neutral future.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

First Look West (FLoW 2.0) (Final Technical Report for Closeout)

DOE’s Cleantech UP was an annual business plan competition, operating nationally between 2015 and 2018 through eight regional nodes that included Caltech’s FLOW. Cleantech UP focused on supporting university students at all levels creating cleantech startups. FLOW operated nationally with a focus on California. In support of the DOE’s objectives FLOW developed an immersive five point program that targeted major gaps in the educational support and practical resources available to scientists and engineers starting their first cleantech companies that prevented such young innovators from becoming entrepreneurs. Specifically, the FLOW program augmented the number of participants entering the energy entrepreneurship pipeline via the Cleantech UP competition; helped the US remain competitive by increasing the viability and financing potential of these cleantech companies started by young academics; and helped build the regional, state and national infrastructure that spurs and supports entrepreneurship. Each year the FLOW featured two major judging rounds for candidates drawn from as many as 80 applicants annually, providing essential experience and feedback that helped define the direction of these young entrepreneurs. The FLOW winners competed at the DOE’s national event, and FLOW companies took the top prize twice in the total history of the DOE program which was started in 2011.

96 KNOWLEDGE MANAGEMENT AND PRESERVATION↗

Solar Industry Update: (H2 2020) [Slides]

Each quarter, the National Renewable Energy Laboratory (NREL) conducts the Quarterly Solar Industry Update, a presentation of technical trends within the solar industry, to the solar office staff. Each presentation focuses on global and U.S. supply and demand, module and system price, investment trends and business models, and updates on U.S. government programs supporting the solar industry.

14 SOLAR ENERGY↗

Solar Industry Update (Winter 2023) [Slides]

Each quarter, the National Renewable Energy Laboratory (NREL) conducts the Quarterly Solar Industry Update, a presentation of technical trends within the solar industry, to the solar office staff. Each presentation focuses on global and U.S. supply and demand, module and system price, investment trends and business models, and updates on U.S. government programs supporting the solar industry.

14 SOLAR ENERGY↗

From Concept to Capital: How Developers Secure Private Investment

With an increased need for funding diversity in hydropower, private capital is becoming more important than ever. Investors are actively seeking opportunities, but what makes a project attractive for investment, and how can companies secure private equity or venture capital backing? This session brings together experts to discuss what capital providers look for in providing financing for hydropower projects. Panelists will explore key barriers - such as the lack of diversified portfolios and long-term revenue certainty - and strategies to overcome them through innovative financing mechanisms, partnerships, and market-driven solutions.

16 TIDAL AND WAVE POWER↗

Performance contracting centers of expertise: a framework for federal implementation

This report examines the establishment and operation of Energy Performance Contracting (EPC) Centers of Expertise (COEs) within the federal government. EPCs, including Energy Savings Performance Contracts (ESPCs) and Utility Energy Service Contracts (UESCs), are critical mechanisms for advancing energy efficiency, resilience, and infrastructure modernization without the need for significant upfront appropriations. However, EPCs require specialized knowledge in project development, contracting, financing, legal parameters and technical project oversight. Currently federal agencies have varying levels of expertise and institutionalized policy to effectively and consistently use congressionally authorized EPCs which have decades of proven and impactful use. To address these challenges, several federal agencies have created COEs to centralize expertise, standardize practices, and streamline implementation. This report reviews statutory and policy drivers, highlights the benefits and challenges and presents case studies from the General Services Administration (GSA), the Department of Veterans Affairs (VA) and the U.S. Army Engineering and Support Center Huntsville (HNC). Recommendations are also provided for agencies considering the establishment of EPC COEs, which will bring much needed structure, consistency and lead to implementation of these energy and infrastructure building projects to save costs for U.S. taxpayers.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Pumped Storage Hydropower (PSH) FAST Commissioning Prize Technical Analysis

The US energy landscape has undergone major changes over the past 10 years and will continue to see significant changes in future decades as the power grid increases its reliance on variable renewable energy resources. Because of the inherent variability of these resources, renewable energy growth may require additional energy storage capacity to provide flexible load-following capabilities and other grid services that can quickly adjust to changes in energy demand and generation. Pumped storage hydropower (PSH)—one such energy storage technology—uses pumps to convey water from a lower reservoir to an upper reservoir for energy storage and releases water back to the lower reservoir via a powerhouse for hydropower generation. PSH facility pump and generation cycling often follows economic and energy demand conditions. Across the United States, 43 PSH facilities are in operation and 55 projects are in various permitting or licensing stages. Altogether, the 43 operational projects provide the wide majority (95%) of utility-scale electricity storage in the United States. These facilities also provide significant power and nonpower grid benefits, including large-scale electrical system reserve capacity, grid reliability support, and electricity supply-demand balancing through quick-response capabilities and operational flexibility. PSH systems can accomplish these at a scale (e.g., size) and cost that makes these systems highly attractive from a technical standpoint. Although these research concepts are still in their infancy, they demonstrate promising potential as future PSH energy storage technologies. Although PSH has many advantages, development in the United States has effectively stalled since the 1990s, partially because of the magnitude of project costs and financing interest during development and construction, the length of time from project investment until project revenue begins, permitting challenges, construction risks, competition from other storage technologies (e.g., batteries, hydrogen storage), and electricity market evolution and uncertainty. In short, the time, cost, and risk associated with modern PSH development have resulted in limited growth in the United States recently, despite the growing energy storage demand stemming from increased wind and solar power deployment. Technology innovation is needed to help reduce PSH commissioning time, cost, and risk, particularly during the post-licensing phase of project development. To address challenges facing the PSH industry and to improve PSH commissioning timelines, the US Department of Energy (DOE) Water Power Technologies Office (WPTO) initiated the PSH Furthering Advancements to Shorten Time to (FAST) Commissioning Prize project.

13 HYDRO ENERGY↗

Bringing Solar to BIPOC Houses of Worship - Solar Energy Innovation Network (Final Technical Report)

As is well documented in the research, there is a great disparity of where solar is installed in the US based on race and ethnicity. Black, Indigenous and People of Color (BIPOC) communities have significantly less solar power installed on average than non-BIPOC communities. However, when solar installations do occur in BIPOC communities, the rate of subsequent adoption by neighbors is faster on average than in non-BIPOC communities. In addition, nonprofit organizations, such as houses of worship, have limited access to solar financing options. The goal of this initiative by RE-volv, Interfaith Power & Light, and Green the Church is to help BIPOC-led houses of worship go solar, and in doing so, demonstrate the benefits of solar energy to their community. This report details the progress achieved during the contract term of February 2022 through May 2023.

14 SOLAR ENERGY↗

Affordable and Accessible Solar for All: Barriers, Solutions, and On-Site Adoption Potential

Solar energy technologies can be used as part of a suite of tools to reduce the energy burden of low-income customers, but to date, low- and moderate-income (LMI) customers have not adopted solar at the same rate as other income groups. This paper summarizes the barriers of LMI solar adoption related to finance and funding, community engagement, site suitability, policy and regulatory, and resilience and recovery and discusses existing and potential future solutions to address these barriers. In addition, we model future LMI on-site solar adoption, using the National Renewable Energy Laboratory's (NREL's) dGen model. We model future scenarios assuming no changes in the current LMI solar policy and program environment, and we add two incentives to low-income households for adopting solar: a $\$$3,000 incentive and a full incentive (i.e., the full cost of a PV system). While we model a financial incentive, this dollar reduction in cost could also come from other efforts, for example, reductions in solar soft costs. We find that by 2050, 48-49% of LMI households adopt solar, resulting in $\$$69- $\$$101 billion in first year utility bill savings to these consumers.

14 SOLAR ENERGY↗