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Clean energy policies refer to the regulations, programs, and incentives that governments put in place to promote the development and use of clean energy sources, in addition to energy efficiency and conservation strategies.
Clean energy policies refer to the regulations, programs, and incentives that governments put in place to promote the development and use of clean energy sources, in addition to energy efficiency and conservation strategies. In recent decades, clean energy policies have been implemented with the stated intention of reducing our reliance on fossil fuels to minimize the harmful impacts of climate change and pollution.
Many different programs and policies can have many different impacts on infrastructure, economics, and technological development. Energy policy can have major implications for entire industries, regional economies, public health, and the cost of living for individuals. Some of these impacts can be enormously beneficial, some may end up receiving widespread criticism.
Primary energy refers to the combination of major sectors of energy consumption spanning the electric grid, transportation, and heating, which includes residential, commercial, and industrial uses. These three major categories of energy consumption presently rely on fossil fuels to a major extent. Clean energy policy can therefore involve economic activities spanning across any of these categories.
Power generating stations often rely on carbon-heavy sources of energy to power the grid. Clean energy policy guides the development of the electric grid by providing a framework for expanding the use of low-carbon energy sources. With a well-designed policy strategy incorporating regulatory compliance, tax incentives, and market mechanisms, the development of low-carbon technologies and infrastructure can be prioritized in the marketplace.
Heating accounts for a significant portion of global greenhouse gas emissions, making it a key target for reducing our carbon footprint. Directly heating buildings by using natural gas or oil is almost always less expensive than using electric heating systems powered by the grid. This is mostly due to the physics of fuel and energy conversion, as all the energy stored in a liter of gas will be effectively converted to heat within the building it is intended to heat if it is burned in a gas heating system. However, the same liter of gas burned in a gas power plant would have losses associated with converting it to electricity. In buildings that require routine heat, these cost differences often incentivize the purchase of domestic carbon fuel-based heating systems. Policymakers attempting to reduce fuel use for heating purposes face a challenge when the market incentive is this steep to begin with.
There have been several proposed solutions that clean energy policies have attempted to incorporate. London has passed a policy that will ban fossil fuel-based heating systems in new buildings constructed, opting instead for either biofuel or electric heating systems. (UK BEIS, 2021) Biofuel has been criticized for releasing carbon emissions and pollution much like fossil fuels, however, it is often categorized differently due to the carbon being sourced from plants and is often considered “renewable”. The categorization of biofuels as being “clean” has received significant criticism due to the carbon emissions from combustion, the low energy density of the fuel, contested accounting methods, and upstream impacts on the environment. (Baptista, 2019)
One “loophole” in the physics of electrifying heating systems involves using electricity to operate a geothermal heat pump instead of converting the electrical power to heat directly. Heat pumps can use a refrigerant fluid within a thermal management cycle to extract heat from the relatively stable underground temperature. Heat pumps can be measured by the Coefficient Of Performance (COP) which is the ratio between how much heat was effectively delivered by the heat pump over the amount of heat that would have been delivered by converting the same electrical energy directly to heat. Ideally, heat pumps operate with a COP of three, meaning there is three times as much heat delivered that could otherwise be delivered with the same amount of electrical energy converted to heat directly.
Another method of decarbonizing building heat involves the use of district heating networks, which utilize conduits of heated fluid that flow through a district as a municipal utility, similar to water and gas lines. The first district heating systems would use high-temperature water which presented some safety risks and resulted in substantial heat loss through the network. There have been multiple generations of district heating systems that have improved upon performance and efficiency since the early designs. The latest district heating systems use heat pumps at every receiving port and the heating network contains moderately heated fluid. Every meter of a district heating network has the potential for some heat loss in moving the fluid which is why these conduits are heavily insulated. However, the physics of heat loss also relies on the temperature difference between the fluid and the surroundings. Reducing that temperature difference by keeping the fluid merely warm instead of scalding hot greatly improves the efficiency of heat retention over longer distances, even if that means heat pumps are needed at access ports.
A significant portion of global primary energy falls into the transportation category. Across the road, rail, air, and maritime transportation, lots of carbon fuel is burned emitting pollution and greenhouse gasses. Transportation methods are often assessed by the metrics of “passenger miles” for transporting people and “ton-miles” for transporting cargo. This can be useful for assessing economic costs or environmental footprints like carbon emissions. A train carrying 100 people traveling 100 miles would account for 10,000 passenger miles as the passenger count is multiplied by the mileage count. A bus typically gets much lower fuel mileage than a car, but the higher number of passengers on board a bus will often result in a better fuel per passenger mile to have better overall performance than a car. These metrics are important to consider when crafting clean energy policies or making big business decisions. The ton-miles concept is applied to tons of cargo transported in the shipping sector.
Using the ton-miles metric, about 90% of international trade is conducted by maritime shipping methods. (OECD, n.d.) Most maritime shipping vessels run on bunker oil, which is considered a cheap but dirty fuel as it is less refined and burns with harsher emissions.
“Slow steaming” is one of the simplest forms of reducing the fuel per ton-mile on maritime shipping vessels, which is just traveling at a lower cruising speed. This would increase time to delivery and there would be some additional costs associated with staffing the ship over longer periods, however adopting this practice was ultimately a business decision. The shipping industry adopted this practice without the need for government mandates as the cost savings on fuel were substantial enough to make this change on many routes.
In the physics of keeping a moving vessel at a stable velocity through a fluid, the propulsion force would need to roughly match the drag force. The general drag equation is calculated using this formula where the velocity (V) is squared, while the drag force coefficient (Cd), cross-sectional area (A), and fluid density remain effectively unchanged:
D = Cd * A * .5 * r * V^2
Meaning reducing the velocity by half would effectively reduce the drag force by a factor of 4, which would correspond to fuel consumption. However, this is a rough approximation, real-world research on the physics of maritime shipping utilizes far more involved equations that account for many more factors.
The gasoline and diesel fuel that power most vehicles on the road make up a significant portion of primary energy, especially in the United States. Electric vehicles have been pushed as an alternative to fossil fuel-powered vehicles following a range of clean energy policies that have incentivized their development and integration. Tax credits both on the consumer and industry side have helped spur the growth of the EV industry. Government programs building out standardized charging stations into the national infrastructure have also helped with consumer adoption.
Most locomotives are diesel-electric hybrids, meaning a diesel engine powers electrical motors in addition to onboard systems. Many high-traffic rail lines have been electrified allowing the electric motors to be powered by the grid instead of the onboard diesel generator, however many rail lines remain unelectrified, leaving most routes diesel dependent. Government programs to electrify more rail lines could reduce the diesel dependence of rail locomotives.
Electrifying systems that currently run on fossil fuels, and decarbonizing the source of electricity tends to be a common theme across plans to decarbonize our economy. Electrifying everything will Increase electric demand, therefore it is important to guide energy policies in a manner that will not only decarbonize electricity but increase the total supply of electricity.
Energy efficiency standards require appliances and buildings to meet certain criteria for energy efficiency. Refrigerators, laundry machines, dishwashers, and HVAC systems are all required to operate above a certain threshold of efficiency. Other aspects of the building like insulation, lighting, and water use can also fall under these standards.
RPS is a type of policy that requires grid operators to purchase a certain percentage of electricity which was generated from renewable sources, such as solar, wind, biomass, landfill gas, and some forms of hydropower. (EPA, 2008) There have been some criticisms of this policy as low-carbon sources like nuclear and large-scale hydroelectric have often been excluded while municipal solid waste incinerators have been included. The portfolio criteria can vary by state, and some have included nuclear.
If grid operators need to satisfy an RPS mandate yet are coming up short on direct sourcing, the role of Renewable Energy Credits can satisfy the difference in terms of total accounting. (EPA, 2008) Producers of renewable energy can sell RECs to increase their revenue on top of the price they sell electricity enabling grid operators or businesses to buy these credits. These act as a type of currency or receipt for consuming electricity produced from renewables to satisfy contractual or voluntary obligations. With the knowledge that grid operators need to buy electricity produced from energy sources designated as renewable, even at a higher cost, a business incentive is created to build renewable generating assets to profit from mandatory demand.
Net metering is a policy allowing grid customers with renewable energy systems to sell any surplus electricity they produce back to the grid. The electricity sold back to the grid is typically deducted from their monthly bill creating an incentive for developing small-scale renewable energy projects. This policy has been criticized since the cost of grid maintenance and infrastructure which is typically included in the price of electricity is also included in the deductions, which effectively distributes those added costs onto all other grid customers.
Carbon pricing policies seek to put a price tag on carbon emissions, either through a carbon tax or a cap-and-trade system. The strategy involves leveraging market mechanisms to incentivize companies and individuals through market engagement dynamics where the rational choices that reduce costs would also result in reducing carbon emissions. There have been criticisms of these policies related to accounting methods and difficulties with enforcement.
Feed-in tariffs are policies that make an economic guarantee to individuals or businesses that any renewable energy they generate will be purchased at a certain price. This establishes some business security on prospects for private investors and developers to invest in the development of renewable energy projects.
Governments will often provide direct funding and grants to clean energy research, projects, and programs. These can be awarded to companies, institutions, or organizations that are engaged in qualifying clean energy endeavors.
The first generation of new technologies with low market penetration tends to be high cost. Electric vehicles and solar panels were high-cost in the early stages of their market availability however there was an appeal to utilizing them. “Lead-by-Example” is a term used to describe the practice of governments and institutions with high spending power directing their resources to adopt high-cost clean technologies to accelerate adoption and spur further demand.
Energy policy can make or break economic prosperity, grid stability, air quality, and national security. The most pressing global issues of climate change, poverty, environmental protection, sustainability, and geopolitical stability rely on well-crafted and implemented energy policy. If energy production is allowed to engage in unrestrained pollution, there would be consequences ranging from environmental contamination to harmful impacts on public health. If a clean energy policy compromises operational effectiveness or generating stations, then grid stability and energy security would also be compromised. The importance of a well-crafted clean energy policy cannot be understated.
Nuclear energy has been incorporated into many clean energy policies ranging from electric generation to hydrogen production. (Trabish, 2021). Recently at COP28, over 22 countries pledged to triple nuclear by 2050.
Electrifying public transit and EVs will require a lot more electricity, which is why nuclear will be a valuable energy source moving forward. The high energy density, small land footprint, cleanliness, longevity, and reliability of nuclear energy make it well-positioned to scale as a major energy source moving forward.
Nuclear's ability to provide both clean electricity and heat means it is ideal for district heating solutions. Nuclear power stations have been used in district heating networks around the world. For instance, Haiyang, China began using nuclear energy to provide district heating as recently as 2020. (World Nuclear News, 2020) The increasing popularity of SMRs can also allow more flexible integration with district heating networks. (Proctor, 2020)
Baptista, A. (2019, June 23). Is burning trash a good way to dispose of it? Waste incineration in charts. PBS. Retrieved March 3, 2023, from https://www.pbs.org/newshour/science/is-burning-trash-a-good-way-to-dispose-of-it-waste-incineration-in-charts
EPA. (2008). EPA Clean Energy-Environment Technical Forum Renewable Energy Certificates: Background & Resources. EPA. Retrieved March 3, 2023, from https://www.epa.gov/sites/default/files/2016-03/documents/background_paper_3.pdf
Nuclear Energy Institute. (2018). ZERO-EMISSION CREDITS. Nuclear Energy Institute. Retrieved March 3, 2023, from https://www.nei.org/corporatesite/media/filefolder/resources/reports-and-briefs/zero-emission-credits-201804.pdf
OECD. (n.d.). Ocean shipping and shipbuilding. OECD. Retrieved March 2, 2023, from https://www.oecd.org/ocean/topics/ocean-shipping/
Proctor, D. (2020, February 25). Tech Guru's Plan—Fight Climate Change with Nuclear Power. POWER Magazine. Retrieved March 3, 2023, from https://www.powermag.com/tech-gurus-plan-fight-climate-change-with-nuclear-power/
Trabish, H. K. (2021, September 28). State, federal actions show growing push for a nuclear role in reaching net zero emissions. Utility Dive. Retrieved March 3, 2023, from https://www.utilitydive.com/news/state-federal-actions-show-growing-push-for-a-nuclear-role-in-reaching-net/606107/
UK BEIS. (2021, October 19). Phasing out the installation of fossil fuel heating in homes off the gas grid. GOV.UK. Retrieved March 2, 2023, from https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1026356/domestic-offgg-consultation.pdf
World Nuclear News. (2020, November 20). Haiyang begins commercial-scale district heat supply : New Nuclear. World Nuclear News. Retrieved March 3, 2023, from https://www.world-nuclear-news.org/Articles/Haiyang-begins-commercial-scale-district-heat-supp
