THE NET-ZERO BLOG
Climate policy analysis and updates from Sacramento
A clean energy infrastructure plan for the GGRF
There is evidence that California’s Greenhouse Gas Reduction Fund investments are underperforming with multiple programs requiring thousands of dollars to reduce one ton of carbon emissions. Identifying opportunities for leverage - where $1 of public investment can generate a 3x, 4x, 5x or more improvement on key priorities such as residential rate reductions, clean energy deployment, climate resilience, and similar - could significantly improve the overall performance of the portfolio. This blog highlights one such opportunity: dedicating a portion of annual GGRF revenues into a revolving clean energy infrastructure fund. By targeting investments at high priority infrastructure, such as transmission, the fund can have the catalytic effect of unlocking gigawatts of new clean generation at low-cost.
Policy reforms to address California’s electricity rate crisis
California’s high electricity rates have to come into focus in recent weeks with affordability packages proposed by the State Legislature and Administration. These packages consider alternative ways to finance transmission infrastructure as one way to reduce costs. In this blog we provide context for these proposals by examining a suite of potential options to reduce electricity rates. We show how alternative financing strategies such as public financing or securitization can directly reduce utilities’ revenue requirement. We also highlight the potential for indirect strategies, including increased competition, reduced siting and permitting risk and public ownership of assets.
Great ideas and glaring omissions: Analyzing BCG’s California climate report
Although California has made significant climate progress, there is growing evidence of implementation barriers such as financing, procurement and permitting bottlenecks that are slowing clean energy deployment. In this blog we summarize recommendations from a recent Boston Consulting Group report to overcome these barriers and highlight three overlooked policies, including: the role of IOUs in slowing transmission deployment and ideas to overcome this delay; how increasing competition for transmission can increase speed and reduce ratepayer costs; and how alternative financing and deployment models such as public-private partnerships may be more effective for facilitating rapid and low-cost clean energy infrastructure delivery in California.
Barriers and opportunities to transmission in California
California’s ambitious goals to achieve 90% clean electricity by 2035 and 100% by 2045 hinge on whether the state can rapidly develop new transmission. In this blog post we analyze six key barriers and opportunities to developing this infrastructure, including siting and permitting, public financing, competitive solicitation, grid-enhancing technologies and advanced reconductoring, interregional transmission and issues related to offshore wind.
How clean firm power can enable California’s climate goals
California has set goals of 90% retail electricity sales to be carbon-free by 2035 and 100% by 2045. Solar and wind will provide the majority of this generation, but non-intermittent resources capable of meeting electricity demand on a 24/7 basis have also been identified as key to ensure grid reliability and lower ratepayer costs. These are known as “clean firm” resources. In this blog post we analyze the role for clean firm power in decarbonizing California’s power sector.
Governor Newsom and Legislature reach landmark agreement on Clean Energy Central Procurement
Last week the Administration and Legislature reached an agreement on a new package of clean energy policies, key to which is the proposed authorization for the Department of Water Resources to centrally procure diverse clean energy resources. By providing a demand backstop, central procurement can give investors more confidence to allocate risk-capital towards these projects.