Advanced Energy Perspectives

2022 has been a banner year for clean energy, with several important policy, market, and geopolitical drivers shifting the conversation. Electric building heating technologies are no exception and as the use of natural gas declines in response to these trendlines, a lot remains “TBD” on how to transition away from the fossil fuel. Because the decisions we make today will lock in infrastructure and costs for decades, state policymakers are beginning to reexamine the way we plan and pay for the use of gas in buildings today. They need new tools, and AEE is here to help. 

For the second time this year, Nevada’s energy leaders are convening to discuss the future of Nevada’s transmission system. Born from bipartisan (and AEE-supported) Senate Bill 448 (2021), the Regional Transmission Coordination (RTC) Task Force is charged with studying issues and policies related to transmission development and regional electricity markets for the Silver State. At the meeting today, the Task Force will hear about several competing efforts to create a more efficient and affordable western grid. There will be presentations from the California Independent System Operator, the Southwest Power Pool, and the Western Power Pool – each vying for Nevada’s attention and consideration. And while the exact contours of the West’s “Grid of the Future” remain to be determined, the benefits of a west-wide power system are becoming increasingly clear.

Extreme weather. Spiking natural gas prices. Peak levels of electricity use that push the grid to its limit. Our energy system faces a growing set of challenges, and our utilities and their regulators have to make big infrastructure and investment decisions today to solve those challenges. But even with a growing number of advanced energy technologies and solutions available – including those on the demand-side – many electric utilities just want to build more natural gas-fired power plants. We think there is a better way. Here’s how utilities – and one utility in particular – can use rates, incentives, and technology to manage energy use and save customers money.

If transportation electrification is a puzzle, Governor Sisolak just put another critical piece in place. Last Thursday, he announced that Nevada would be joining a multi-state memorandum of understanding (MOU) that commits the Silver State to collaborating with 16 other states, the District of Columbia, and the Province of Quebec, to accelerate the market for zero-emission medium- and heavy-duty vehicles. The goal of the MOU is to ensure that 30% of all in-state sales of trucks, buses, and vans are zero-emission by 2030, and 100% by 2050. Now representing nearly 40% of the U.S. population, the consortium of states will be a powerful market mover in a space that’s already got plenty of momentum behind it.

America is re-thinking the way it powers its homes and businesses, and we’re seeing this debate emerge in state legislatures, at public utility commissions, at county and city councils, and in our own kitchens and living rooms. This is because changing appliance economics and performance, consumer preferences, and state and local policies are driving support for clean, efficient, and affordable electric technologies. It is also because a realistic look into the future of energy indicates that we can expect a dramatic decline in the use of natural gas, and an unwieldy and expensive transition if we fail to plan for it.