Impacts of EPA’s finalized power plant greenhouse gas standards
Emissions reductions may be met with relatively small costs.
Engineering topics
Publications and source records attributed to Bistline, John.
Emissions reductions may be met with relatively small costs.
Carbon dioxide and non-greenhouse gas air pollutants are emitted from many of the same sources. Decarbonization actions thus typically yield air pollutant emission reductions, resulting in significant air quality benefits. Although several studies have highlighted this connection, including in the context of net zero carbon emission targets, substantial uncertainty remains regarding how alternative technological pathways to this goal will affect the spatial distribution and magnitude of air pollutants. Comprehensive multi-model and multi-scenario analyzes are needed to explore the relative impacts of alternative pathways. Here, our study begins to address this gap by leveraging the results from the recent Energy Modeling Forum 37 inter-model comparison exercise on U.S. decarbonization pathways. Comparing the results of the six teams who submitted air pollutant emissions suggests that strategies that target net zero U.S. carbon emissions would yield significant reductions in many air pollutants, and that this finding is generally robust across pathways. However, some energy sources, such as biomass and fossil fuels with carbon capture, will emit air pollutants and can potentially influence the magnitude, spatial distribution, and even sign of localized air pollutant emission changes. In the second part of this analysis, a simplified air quality and health impacts screening model is used to evaluate the air quality impacts in 2035 of sectoral emission changes from the three models that provided sectoral detail. Relative to a reference scenario, a net zero pathway is estimated to reduce fine particulate matter concentrations across the contiguous U.S., with health benefits from reduced mortality ranging from $\$$65 billion to $\$$250 billion in 2035 alone (2023$\$$s). These benefits would be expected to grow over time as the net zero trajectory becomes more stringent. Both the magnitude of potential benefits and the substantial variation of the projections across models underscore the need for an EMF-like inter-model comparison exercise focused on air quality.
The Carbon Management Study Group of the 37 th Energy Modeling Forum (EMF 37) designed seven scenarios to explore the role of three potentially key technology suites – point source carbon dioxide capture and storage (PSCCS), direct air capture of carbon dioxide (DACCS), and hydrogen systems (H 2 ) – in shaping the broader technology pathways to reaching net-zero carbon dioxide (CO 2 ) emissions in United States by 2050. Each scenario was run by up to 13 models participating in the EMF 37 study. Results show that carbon dioxide removal technologies were consistently a major part of successful pathways to net-zero U.S. CO 2 emissions in 2050. Achieving this net-zero CO 2 goal without any form of carbon dioxide capture and storage was found to be impossible for most models; some models also found it impossible to reach net-zero without DACCS. The marginal cost of achieving net-zero CO 2 emissions in 2050 was between two and 10 times higher without PSCCS and/or DACCS available. The carbon price at which DACCS was deployed as a backstop technology depended upon the assumed cost at which DACCS was available at scale. Carbon prices were between $\$$250 and $\$$500 per ton CO 2 when DACCS deployed as a backstop. The average CO 2 capture rate across all models in 2050 in the central net-zero scenario was 1.3 GtCO 2 /year, which implies a substantial upscaling of capacity to move and store CO 2 . Finally, hydrogen sensitivity scenarios showed that H 2 typically constituted a relatively small share of the overall U.S. energy system; however, H 2 deployed in applications that are considered hard to decarbonize, facilitating transition towards net-zero emissions.
With companies, states, and countries targeting net-zero emissions around midcentury, there are questions about how these targets alter household welfare and finances, including distributional effects across income groups. This paper examines the distributional dimensions of technology transitions and net-zero policies with a focus on welfare impacts across household incomes. The analysis uses a model intercomparison with a range of energy-economy models using harmonized policy scenarios reaching economy-wide, net-zero CO 2 emissions across the United States in 2050. Here we employ a novel linking approach that connects output from detailed energy system models with survey microdata on energy expenditures across income classes to provide distributional analysis of net-zero policies. Although there are differences in model structure and input assumptions, we find broad agreement in qualitative trends in policy incidence and energy burdens across income groups. Models generally agree that direct energy expenditures for many households will likely decline over time with reference and net-zero policies. However, there is variation in the extent of changes relative to current levels, energy burdens relative to reference levels, and electricity expenditures. Policy design, primarily how climate policy revenues are used, has first-order impacts on distributional outcomes. Net-zero policy costs, in both absolute and relative terms, are unevenly distributed across households, and relative increases in energy expenditures are higher for lowest-income households. However, we also find that recycled revenues from climate policies have countervailing effects when rebated on a per-capita basis, offsetting higher energy burdens and potentially even leading to net progressive outcomes. Model results also show carbon Laffer curves, where revenues from net-zero policies increase but then decline with higher stringencies, which can diminish the progressive effects of climate policies. We also illustrate how using annual income deciles for distributional analysis instead of expenditure deciles can overstate the progressivity of emissions policies by overweighting revenue impacts on the lowest-income deciles.
An assessment of decarbonization pathways in energy models reveals fundamental limitations in representing factors that are relevant for practical decision-making. Although these modelling limitations are widely acknowledged, their impact on the deployment of individual power generation types is not well understood. As a result, the societal value from such generation types could be vastly misrepresented. Here we explore a wide spectrum of factors that impact offshore wind deployment in the United States using a detailed capacity expansion model. Many factors prescribe a large future role for offshore wind, yet this diverges from what models often show. We extend the typically narrow modelling context through high spatial resolution, several cost and transmission possibilities and various energy-sector policies. Further, we estimate offshore wind to constitute 1-8% (31-256 gigawatts) of total US generation by 2050. This wide range suggests an uncertain but potentially important regional role. Our expansive scenarios demonstrate how to address many limitations of decarbonization modelling.
This study explores the potential future role of nuclear energy in a decarbonized U.S. electricity system through a multi-model comparison approach. We employ four state-of-the-art CEMs with native and harmonized input assumptions, layered with different policy and technology trajectories. Comparing outputs across models, technology assumptions, and policy scenarios informs model understanding, interpretation, and development decisions. Under current policies, models differ in their projections for nuclear retirements, but nuclear power plants consistently run with high capacity factors and new builds only occur in scenarios with very low nuclear costs. String power sector carbon policies drive models to align in keeping existing nuclear capacity and employing nuclear plant flexibility, but they may not be enough to bring new nuclear capacity online in the absence of significant cost declines. Therefore, significant economic deployment of new nuclear capacity requires both a stringent electric sector CO2 policy and very low cost assumptions for new nuclear. While these scenarios should not be interpreted as predictions, they are informative for understanding differing model assessments of the relative competitiveness of nuclear energy under a range of policy and technology conditions.
If goals set under the Paris Agreement are met, the world may hold warming well below 2 degrees C (1); however, parties are not on track to deliver these commitments (2), increasing focus on policy implementation to close the gap between ambition and action. Recently, the US government passed its most prominent piece of climate legislation to date - the Inflation Reduction Act of 2022 (IRA) - designed to invest in a wide range of programs that, among other provisions, incentivize clean energy and carbon management, encourage electrification and efficiency measures, reduce methane emissions, promote domestic supply chains, and address environmental justice concerns (3). IRA's scope and complexity make modeling important to understand impacts on emissions and energy systems. We leverage results from nine independent, state-of-the-art models to examine potential implications of key IRA provisions, showing economy-wide emissions reductions between 43 and 48% below 2005 levels by 2035.
The Energy Modeling Forum (EMF) 37 study on deep decarbonization and high electrification analyzed a set of scenarios that achieve economy-wide net-zero carbon dioxide (CO 2 ) emissions in North America by mid-century, exploring the implications of different technology evolutions, policies, and behavioral assumptions affecting energy supply and demand. Here, for this paper, 16 modeling teams reported resulting emissions projections, energy system evolution, and economic activity. This paper provides an overview of the study, documents the scenario design, provides a roadmap for complementary forthcoming papers from this study, and offers an initial summary and comparison of results for net-zero CO 2 by 2050 scenarios in the United States. We compare various outcomes across models and scenarios, such as emissions, energy use, fuel mix evolution, and technology adoption. Despite disparate model structure and sources for input assumptions, there is broad agreement in energy system trends across models towards deep decarbonization of the electricity sector coupled with increased end-use electrification of buildings, transportation, and to a lesser extent industry. All models deploy negative emissions technologies (e.g., direct air capture and bioenergy with carbon capture and storage) in addition to land sinks to achieve net-zero CO 2 emissions. Important differences emerged in the results, showing divergent pathways among end-use sectors with deep electrification and grid decarbonization as necessary but not sufficient conditions to achieve net zero. These differences will be explored in the papers complementing this study to inform efforts to reach net-zero emissions and future research needs.
There are diverse views on the role nuclear power might play in a decarbonized energy system, with some vocal viewpoints suggesting nuclear should either have no role or that nuclear should be a key pillar. Here we present a perspective on the role of nuclear power based on our collective experience in modeling nuclear power within the decarbonized U.S. power systems. We summarize the costs of current reactor development projects, and compare their stated costs with the costs that our models indicate is necessary in order to see deployment of new nuclear. We also discuss aspects of new nuclear deployment that are not included in our models but can influence decisions about whether to invest in new nuclear capacity.
Increased attention has been focused on the potential role of nuclear energy in future electricity markets and energy systems as stakeholders target rapid and deep decarbonization and reductions in fossil fuel use. This paper examines models of electric sector planning and broader energy systems optimization to understand the prospective roles of nuclear energy and other technologies. In this perspective, we survey modeling challenges in this environment, illustrate opportunities to propagate best practices, and highlight insights from the deep decarbonization literature on the range of visions for nuclear energy's role. Nuclear energy deployment is highest with combinations of stringent emissions policies, nuclear cost reductions, and constraints on the deployment of other technologies, which underscores model dimensions related to these areas. New modeling capabilities are needed to adequately address emerging issues, including representing characteristics and applications of nuclear energy in systems models, and to ensure the relevance of models for policy and planning as deeper decarbonization is explored.
The emergence of variable renewable energy and battery storage technologies have fundamentally transformed the electric power sector and generated demand for analysis to understand their roles in future energy systems. Although unique characteristics of these resources are well-recognized and require more sophisticated methodologies to capture effectively, guidance is limited on best practices and research gaps. This paper selectively reviews recent literature and draws upon our collective modeling experience to offer recommendations to analysts and consumers of model outputs on approaches for modeling variable renewable energy and storage in long-term electric sector models. We focus on regional- and national-scale models with technological, temporal, and spatial detail given their prevalence in planning and policy analysis, though insights are applicable in other settings. The review highlights how the research frontier has advanced in representing renewables and energy storage over the past decade; however, given the many considerations involved with appropriately capturing salient economic and operational characteristics of renewables, there is a gap between commonly used models and state-of-the-art methods. Model simplifications can materially impact policy analysis associated with power sector decarbonization and high renewables deployment, and improving model representations of variable renewables can enhance insights for policymakers and other stakeholders. This review can point the way for improved methods for established models and designs for emerging ones.
This document summarizes the current status and future plans of the Nuclear Model Intercomparison Project. The objectives of this project are to understand how issues central to nuclear energy are modeled in long-term capacity expansion models, to investigate how model structures and input assumptions impact projections for nuclear’s role, to refine model representations of nuclear energy, and to communicate findings to the research community and decision-makers. High-level goals are discussed for each of the four participating model groups: the U.S. Energy Information Administration (EIA), U.S. Environmental Protection Agency (EPA), Electric Power Research Institute (EPRI), and National Renewable Energy Laboratory (NREL). This document summarizes scenarios and assumptions for the model comparison, outcomes from the first workshop, and next steps.
As of 2020, North American natural gas extraction and use in the electricity sector have both reached all-time highs. The combination of North America's increased reliance on natural gas with a potential disruption to the natural gas market has several energy security implications. Additionally, policymakers interested in economic resiliency will find this study's results useful for informing the implications of the energy sectors' long-term planning and investment decisions. This paper evaluates how both the electricity and natural gas sectors could respond to hypothetical gas price shocks under different system configurations. We impose unforeseen natural gas price shocks under reference and alternative configurations resulting from a renewable generation mandate or variations to renewable capacity costs. Results from several different models are presented for the electricity and natural gas sectors separately for Canada, Mexico, and the United States. Generally, the US becomes more (less) reliant on electricity imports from Canada given a high (low) gas price shock but increases (decreases) exports to Mexico. The renewable mandate is shown to buffer electricity price increases under high price shocks but price reductions under the low price shocks are dampened given less flexibility to take advantage of the low-priced natural gas. The United States is demonstrated to reduce natural gas production and net exports with high natural gas price shocks given a reduction in demand.
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