A team of researchers from the Electric Power Research Institute (EPRI) has conducted a comprehensive study on the impacts of voluntary carbon-free electricity (CFE) procurement in the U.S. The study, titled “System Effects of Carbon-Free Electricity Procurement: Regional Technology and Emissions Impacts of Voluntary Markets,” was published in the journal Applied Energy.
The researchers, including John Bistline, Geoffrey Blanford, Adam Diamant, Arin Kaye, Daniel Livengood, Qianru Zhu, and Francisco Ralston Fonseca, used a detailed energy systems model to assess the system-wide effects of voluntary CFE procurement across various program designs, eligible technologies, policy environments, and modeling assumptions.
The study found that hourly matching, where clean electricity procurement aligns with hourly load, combined with new and local generation could maximize emissions reductions from CFE procurement. This is particularly effective under existing Inflation Reduction Act incentives and state policies. However, the costs of CFE vary significantly across regions, with a national range of \$11-63/MWh and a regional range of \$1-130/MWh. This cost variation is broader than previous estimates.
Expanding the eligible technology portfolio to include renewables, nuclear, carbon capture, and energy storage reduces costs, particularly in regions with lower wind and solar resource quality. However, variable renewables and battery storage remain the dominant resources in many scenarios.
The study also highlights that the future policy environment strongly influences the effectiveness of voluntary CFE programs. More stringent emissions policies or subsidies could potentially limit the incremental benefits of procurement. The analysis also quantifies how features of the model framework can shape insights about CFE procurement strategies.
For the energy industry, this research underscores the importance of aligning procurement strategies with local and hourly energy demands to maximize emissions reductions. It also highlights the need for a diverse technology portfolio to minimize costs and the potential impact of future policies on the effectiveness of voluntary CFE programs. The findings can guide energy providers and policymakers in designing more effective and cost-efficient CFE procurement strategies.
Source: Applied Energy, Volume 325, November 2022, 119847
This article is based on research available at arXiv.