Step into the first 2024 installment of the Energy Policy Pulse. 2024 has already proved to be a busy and exciting time for energy policy. This edition takes a look at what trends experts are predicting for the year and highlights the most significant advancements from the last few weeks.
2024 predictions
Before we dive into our clips, Travis Kavulla, NRG VP of Regulatory Affairs, shares what is driving our focus in 2024.
“This year, we will continue to monitor and actively participate in the evolving energy policy landscape by advocating for clarity and flexibility for the customer. While there were many wins in 2023, we understand that there is still more work to be done to ensure that customers are empowered and protected across all markets.
NRG also seeks to foster an environment conducive to innovation by supporting and expanding the competitive market – all while keeping customer experience as a top priority. I look forward to the possibilities that lie ahead and encourage you to stay up to date on the latest energy policy news.”
9 U.S. power sector trends to watch in 2024
In 2024, the U.S. will continue its push toward decarbonizing the electric system with a focus on balancing climate goals, reliability, affordability, and other objectives. Key areas of focus include: transmission planning and cost allocation reform at FERC, a potential significant buildout of the U.S. transmission system, continued growth in renewable energy demand, and investments in energy storage technology.
Renewable Energy Outlook: Addressing supply chain, project hurdles could see dividends in 2024
Despite 2023 challenges from the global supply chain and regulatory landscape, both the U.S. solar and offshore wind industries experienced rapid growth, with significant solar capacity added to the grid and offshore wind farms nearing completion. This positive trend is expected to continue in 2024, supported by clean energy investments from the Inflation Reduction Act, although challenges like tariff uncertainties and regulatory hurdles persist.
Utility Business Outlook: Power prices stay elevated as elections sow uncertainty for clean energy plans
For the clean energy sector, 2024 presents both volatility and opportunity. Some potential challenges include higher interest rates affecting project viability and uncertainty surrounding the presidential election's impact on energy policy and incentives. Despite these obstacles, investment in new technologies like hydrogen and virtual power plants is expected to grow, offering potential solutions to pressing utility challenges such as reliability and cost management.
Northeastern updates
Energy companies gear up for fight on electric regulation bill
Large national energy companies are pushing back against proposed legislation on the electricity marketplace. The legislation seeks to add guardrails to the competitive marketplace in Maryland; however, energy suppliers argue it would stifle competition. Travis Kavulla, NRG Vice President for Regulatory Policy shared, “…Overall, this bill is a market killer.”
Court scraps last-minute FERC rule change in largest power market
A federal appeals court ruled against FERC's approval of PJM's retroactive rule change for a capacity auction, potentially leading to higher electricity bills for some East Coast residents. The decision, based on the filed rate doctrine, emphasizes the importance of predictability in electricity markets, and represents a significant setback for FERC and PJM, highlighting the need for adherence to regulatory standards.
Travis Kavulla shared insight for this piece and called the 3rd Circuit’s decision “a vindication for certainty in how these electricity markets are conducted.”
Texas news
Reliant announces initial plans being offered to Lubbock residents
The Lubbock market opened January 5, 2024 – a huge win for energy choice. Reliant introduced various residential electricity plans for Lubbock Power & Light customers, including innovative options like the Flextra Credits plan offering free electricity on high-use days and Truly Free Nights with 100% Solar.
How Texas kept the lights on in the recent deep freeze
Despite Texas investing heavily in wind and solar power, natural gas played a crucial role in maintaining electricity during the recent cold snap. The state's investment in renewables has led to significant growth in wind and solar capacity, however natural gas remains essential for ensuring continuous electricity supply.
