Advanced Energy Perspectives

In our nation’s capital, 2019 hardly started with celebratory fireworks, as President Trump and congressional leaders were in the midst budget stalemate that has led to a government shutdown, now 20 days and counting. While much of the government remains closed, advanced energy has moved into the spotlight as a major policy item for the new Congress. This is because the Democrats taking control of the House, bolstered by a bold incoming class of congressional freshmen, has put climate change, and the investments in advanced energy that could be employed to address the issue, back on the Washington agenda. It’s early days in this new and unsettled political landscape, but already three factors seem likely to shape a coming debate on climate change legislation in the 116^th Congress, with potential implications for the advanced energy industry.

Image courtesy of Chrishna and used under a Creative Commons license.

Severe weather events – whether hurricanes, wildfires, cold snaps, or heat waves – increasingly play a role in the lives of Americans. While extreme weather creates all sorts of problems, high on the list is the stress they put on the electric grid. Prior to this year, the 2014 Polar Vortex has been pointed to by those concerned about the ability of the electric grid to withstand severe weather events, and we’ve noted how wind and demand response helped keep the lights on during that cold snap. But in 2018, it was an expected heat wave in Texas that loomed as a potential threat to the grid. Would the Electric Reliability Council of Texas (ERCOT), the grid operator that relies more on market principles than any other in the country, be able to keep on the lights? The answer turned out to be yes – with lessons that could prove instructive to the 116th Congress when it convenes in January.  

Chinese container ship unloading at Charleston, S.C. Photo by Mr.TinDC used under a Creative Commons license. 

From his first campaign speech to the first 15 months of his Administration, President Trump has made changing the terms of U.S trade deals a central priority, and in 2018 he has proposed a variety of tariffs. In particular, tariffs on Chinese imports have been one of the major trade policies put forward by the Administration. Most analysts have focused on the tariff impacts on particular products, such as steel and aluminum, or how potential retaliatory tariffs from China could impact American interests, such as agriculture.

Unfortunately, advanced energy will be impacted too. In comments to the U.S. Trade Representative, we outline the impacts of proposed tariffs on advanced energy products such as smart thermostats, electric vehicles, and wind turbine components. AEE believes the Administration is taking important steps to combat unfair trade practices by China, but we are also concerned that imposing tariffs on certain products will hurt the advanced energy industry and consumers, without achieving the administration’s goals.

 President Trump has been vocal on the need to improve America’s infrastructure. Given his background as a businessman and high profile for building things, upgrading the nation’s infrastructure has been a natural fit. Much of the public dialogue and the President’s announced priorities, however, focus exclusively on improving roads and bridges. But the need for modernizing our energy infrastructure is just as pressing, and there is broad and growing bipartisan support for including energy in an infrastructure plan.

In what is becoming a monthly ritual in DC, Congress passed a month-long spending bill late last week to avoid a government shutdown. While headlines captured the story of another dodged shutdown (at least until next month), the eyes of the advanced energy industry caught another storyline. Congress fulfilled a promise to level the playing field for a variety of advanced energy technologies, giving the industry a better chance to grow. The bill provides the market certainty that will support investment in technologies like fuel cells, combined heat and power, energy efficiency, geothermal, and advanced nuclear. Read on for the details of the tax deal, and how we got here.