Kleinman Center visiting scholar Severin Borenstein discusses California’s struggle to balance residential solar growth with electricity rate equity.

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California’s residential solar market is at a critical inflection point after years of strong growth. Last year the state, which has more rooftop solar than any other, lowered the net metering rate that it pays solar households for the excess electricity that they feed into the electric grid. The policy change contributed to a steep decline in residential rooftop solar installations. This could complicate the state’s task of achieving 100% carbon free power in just over 20 years.

Yet the reasons behind California’s decision to reduce its solar subsidy are complex and reflect growing tensions over the private versus public costs of rooftop solar. These costs are particularly controversial in a state that already has among the highest electricity rates in the country, as well as aggressive targets for home electrification.

On the podcast Severin Borenstein, a Kleinman Center visiting scholar and faculty director of the Energy Institute at the Haas School of Business at the University of California, Berkeley, discusses California’s residential solar energy policies and the challenge of balancing equity, solar growth, and the pace of electrification. Borenstein also explores the lessons from California’s experience that might be applied to other states where rooftop solar power growth is poised to accelerate.

Severin Borenstein is a visiting scholar at the Kleinman Center for Energy Policy and faculty director of the Energy Institute at the Haas School of Business at the University of California, Berkeley.

Related Content

Overcoming Economic Barriers to Electrifying Everything (podcast) https://kleinmanenergy.upenn.edu/podcast/overcoming-economic-barriers-to-electrifying-everything/

Residential Battery Storage: Reshaping the Way We Do Electricity https://kleinmanenergy.upenn.edu/research/publications/residential-battery-storage-reshaping-the-way-we-do-electricity/

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.

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An expert in electricity markets explains why market price signals alone will struggle to incentivize adequate investment in the flexible electricity resources needed for future grid reliability.

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In the 1990s the process of deregulation – or restructuring – of the U.S. electricity system began, leading to the introduction of competition to an industry that had for a century been dominated by vertically-integrated utility monopolies. Today, competitive markets produce two-thirds of the electricity consumed in the country. Yet concern has grown that these modern markets may not be up to the task of driving the types of investment needed to ensure that an ample and reliable supply of clean electricity will be available in the future.

Kelli Joseph, a senior fellow with the Kleinman Center, offers a deep dive into the theory of competitive electricity markets and the role that market price signals play in driving investment in many parts of the United States. She explores the need to incentivize investment in flexible resources essential to the reliability of a grid that is increasingly reliant on natural gas and renewable generation, and discusses how electricity markets and policy might meet the challenges of the energy transition.

Kelli Joseph is a senior fellow with the Kleinman Center for Energy Policy.

Related Content

The Key to Electric Grid Reliability: Modernizing Governance https://kleinmanenergy.upenn.edu/research/publications/the-key-to-electric-grid-reliability-modernizing-governance/

Coordinated Policy and Targeted Investment for and Orderly and Reliable Energy Transition https://kleinmanenergy.upenn.edu/research/publications/coordinated-policy-and-targeted-investment-for-an-orderly-and-reliable-energy-transition/

Aligning Clean Energy Policy with Grid Reliability https://kleinmanenergy.upenn.edu/podcast/aligning-clean-energy-policy-with-grid-reliability/

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.

Senator Sheldon Whitehouse discusses the prospects for bipartisan U.S. carbon border fee legislation, and the need to protect the Biden administration’s clean energy and climate achievements.
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(This episode was recorded on March 15, 2024, during Penn Energy Week)

Senator Sheldon Whitehouse has a reputation as an advocate for strong climate policies in Congress. The Rhode Island Democrat gained national attention over a decade ago when he gave the first of more than 290 “Time to Wake Up” climate speeches to date on the floor of the U.S. Senate. Many of the speeches were delivered at times when the prospects were bleak for significant leadership from Washington on climate and clean energy issues.

Yet the past three years have been very different. Through the passage of the Bipartisan Infrastructure Law and, most pointedly, the Inflation Reduction Act, Congress has made concrete steps to grow domestic clean energy and improve the nation’s climate resilience. Recently, Senator Whitehouse reintroduced a bill that would levy the first carbon border fee on goods imported to the U.S., and effectively reward American industry for its leadership in energy efficiency and emissions reductions.

On the podcast, Whitehouse discusses his plan for a carbon border adjustment. He also considers an upcoming election that will prove critical for continued progress, and that could jeopardize the full realization of recently passed energy and climate laws and the fate of the Biden administration’s related regulatory accomplishments.

Related Content

The Key to Electric Grid Reliability: Modernizing Governance https://kleinmanenergy.upenn.edu/research/publications/the-key-to-electric-grid-reliability-modernizing-governance/

Advancing the Social License for Carbon Management in Achieving Net-Zero GHG Emissions https://kleinmanenergy.upenn.edu/research/publications/advancing-the-social-license-for-carbon-management-in-achieving-net-zero-ghg-emissions/

Coordinated Policy and Targeted Investment for an Orderly and Reliable Energy Transition https://kleinmanenergy.upenn.edu/research/publications/coordinated-policy-and-targeted-investment-for-an-orderly-and-reliable-energy-transition/

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.

The U.S. Department of the Treasury is finalizing rules that will determine which new clean hydrogen projects will receive the IRA’s generous 45V tax incentives, and whether those projects will deliver promised climate benefits.
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The Inflation Reduction Act provides a range of incentives for the development of clean energy resources in the United States. Highest profile among those incentives are hundreds of billions of dollars in tax credits earmarked for new wind and solar power projects. Yet the IRA’s most aggressive incentives aren’t directed at renewables but at clean hydrogen, which is a fuel that is viewed as crucial to decarbonizing parts of the economy that aren’t readily electrified, such as steel making, air travel and shipping.

Over the past few months, the Department of the Treasury and the Internal Revenue Service have been developing rules to define what will qualify as clean hydrogen, and what level of financial incentive hydrogen producers should receive based on the climate impact of the hydrogen they will make. Final rules are expected this year, and will ultimately determine whether clean hydrogen delivers on its climate promise.

Danny Cullenward, Vice Chair of California’s Independent Emissions Market Advisory Committee and a Senior Fellow at the Kleinman Center, explores the climate stakes surrounding the Treasury’s 45V hydrogen production tax credit. Cullenward explains the draft clean hydrogen rules, and why certain interests would like to see those guidelines relaxed. He also explores what the final rules might mean for the pace of clean hydrogen growth, and for the ability of clean hydrogen producers to thrive after the incentives expire.

Danny Cullenward is a Senior Fellow with the Kleinman Center for Energy Policy. He is also Vice Chair of California’s Independent Emissions Market Advisory Committee, and a Research Fellow with the Institute for Carbon Removal Law and Policy at American University.

Related Content

Coordinated Policy and Targeted Investment for an Orderly and Reliable Energy Transition https://kleinmanenergy.upenn.edu/research/publications/coordinated-policy-and-targeted-investment-for-an-orderly-and-reliable-energy-transition/

Why the IRA’s Carbon Capture Tax Credit Could Increase Greenhouse Emissions (Podcast) https://kleinmanenergy.upenn.edu/podcast/why-the-iras-carbon-capture-tax-credit-could-increase-greenhouse-emissions/

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.

Physical attacks on critical European energy infrastructure have risen since the outbreak of the war in Ukraine, threatening energy security and the pace of the low-carbon transition.

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Sabotage of critical energy infrastructure has been on the rise, most prominently in Europe, where multiple attacks have targeted subsea electric transmission cables and natural gas pipelines, including Nordstream, since the start of the war in Ukraine.

These disruptions come at a time of upheaval in the energy system, as nations push forward with the construction of expansive carbon-free energy infrastructure, spanning renewable generation and electric transmission networks. Simultaneously, European countries have raced to develop new LNG import terminals and pipelines to replace natural gas that had been supplied by Russia. Yet, until recently relatively little public attention has been paid to the challenge that physical sabotage presents to energy security and climate goals.

Benjamin Schmitt, a senior fellow with the Kleinman Center, explores the daunting task of protecting vast networks of often remote infrastructure from everything from hostile nations to small bands of rogue actors. He also discusses why culprits can be so difficult to identify, and how threats to energy infrastructure might undermine public support for the expansive projects needed to transition to a low-carbon energy system in Europe, the US, and elsewhere.

Benjamin Schmitt is a Senior Fellow here at the Kleinman Center whose research has focused on the physical security on the energy system.

Related Content

Coordinated Policy and Targeted Investment for an Orderly and Reliable Energy Transition https://kleinmanenergy.upenn.edu/research/publications/coordinated-policy-and-targeted-investment-for-an-orderly-and-reliable-energy-transition/

America’s Electric Power Transmission Crisis https://kleinmanenergy.upenn.edu/podcast/americas-electric-power-transmission-crisis/

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.

Local opposition to clean energy projects slows the transition to a low carbon energy system. A legal expert explores how a national policy of “repurposed energy” could speed things up.

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Clean energy infrastructure projects often face opposition from communities where they would be built, a fact that stands in the way of efforts to rapidly lower energy-sector carbon emissions. 

Alexandra Klass, a professor of law at the University of Michigan Law School, explores how “repurposed energy”, which directs clean energy projects to abandoned fossil fuel sites and marginal agricultural lands, can effectively counter local opposition and accelerate clean energy development.  She also discusses key provisions in the Inflation Reduction Act and Bipartisan Infrastructure Law that support the development of clean energy in legacy energy communities, and offers recommendations for policy to support repurposed energy nationwide.

Alexandra Klass is the James G. Degnan professor of law at the University of Michigan Law School, and a visiting scholar at the Kleinman Center for Energy Policy.  Her recent work has focused on repurposed energy and policy recommendations to make it reality. 

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A New Era of Policy in Solar Geoengineering  https://kleinmanenergy.upenn.edu/research/publications/a-new-era-of-policy-in-solar-geoengineering/

Ammonia’s Role in a Net-Zero Hydrogen Economy https://kleinmanenergy.upenn.edu/research/publications/ammonias-role-in-a-net-zero-hydrogen-economy/

The CO2 Transportation Challenge  https://kleinmanenergy.upenn.edu/podcast/the-co2-transportation-challenge/

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.

Each fall, the Kleinman Center for Energy Policy hosts a student blog competition, where students from any field of study can showcase their creativity, innovation, and passion for energy policy and sustainability. This year, we welcomed audio submissions, and we’re featuring our first-place audio blog here. This year’s winner is Benjamin Chen, a junior majoring in economics and minoring in computer science and environmental management. Ben’s winning audio blog is titled “Corporate Disclosure Law on Energy Policy”.

Benjamin Chen is a junior majoring in economics at the University of Pennsylvania.

See omnystudio.com/listener for privacy information.

A national network of CO2 and biomass transportation infrastructure, spanning pipelines to rail routes, will be needed to support the permanent removal of atmospheric CO2. Can the network be economically built?

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In December the Lawrence Livermore National Laboratory published Roads to Removal: Options for Carbon Dioxide Removal in the United States, which explores pathways to permanently remove carbon dioxide from Earth’s atmosphere. The report provides a granular, county-by-county look at the potential for atmospheric carbon to be captured and stored across the U.S., and highlights the fact that the best places for carbon to be captured, and stored, are frequently not the same.

On the podcast, two report authors explore the need to develop a nationwide, multi-modal transportation network to move carbon dioxide and a related climate commodity, biomass, at scale, and potentially over great distances, to permanent geologic storage sites.

Pete Psarras is a research assistant professor in chemical and biomedical engineering at the University of Pennsylvania’s School of Engineering and Applied Sciences. Hélène Pilorgé is a research associate whose work focuses on carbon management.

The two explore the geography of carbon removal and storage, the challenging logistics of a future, multi-modal carbon transportation network, and how that network might be most economically built.

Pete Psarras is a research assistant professor in chemical and biomedical engineering at the University of Pennsylvania’s School of Engineering and Applied Sciences, and a researcher with the University of Pennsylvania’s Clean Energy Conversions Laboratory.

Hélène Pilorgé is a research associate with the University of Pennsylvania’s Clean Energy Conversions Laboratory.

Related Content

A New Era of Policy in Solar Geoengineering

https://kleinmanenergy.upenn.edu/research/publications/a-new-era-of-policy-in-solar-geoengineering/

Ammonia's Role in a Net-Zero Hydrogen Economy

https://kleinmanenergy.upenn.edu/research/publications/ammonias-role-in-a-net-zero-hydrogen-economy/

Why the IRA's Carbon Capture Tax Credit Could Increase Greenhouse Emissions (Podcast)

https://kleinmanenergy.upenn.edu/podcast/why-the-iras-carbon-capture-tax-credit-could-increase-greenhouse-emissions/

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.