Sign In or Create an Account.

By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy

Climate

An Eye-Opening Projection About America’s Clean Energy Future

In a new estimate, the National Renewable Energy Laboratory says the U.S. is on track for a major milestone.

An American flag and clean energy.
Heatmap Illustration/Getty Images

America’s electricity grid may be only eight years away from hitting a major decarbonization milestone, according to a new federal report.

On Wednesday, researchers at the National Renewable Energy Laboratory published a new forecast about what the Inflation Reduction Act and the bipartisan infrastructure law could mean for the country’s power grid. They find that the grid could hit a crucial target — generating 80% of its electricity without burning fossil fuels — by the end of the decade.

Under some of the lab’s scenarios, the American grid could, by 2030, generate 90% of its electricity without burning carbon.

That is more than double today’s share, and it would make America’s power grid one of the cleanest in the world. Climate pollution from the power sector could plunge to 84% below its 2005 levels, when U.S. carbon pollution reached an all-time high.

The report is the National Renewable Energy Laboratory’s first analysis of the two laws’ effects. Although NREL is funded by the Department of Energy, it is operated independently of the federal government.

In one sense, the report’s biggest finding isn’t so shocking. The two laws — which Energy Department staffers lovingly call “Uncle IRA and Uncle BIL” — have always stood to transform the power sector more than other parts of the economy. “NREL’s analysis aligns fairly well with other independent assessments of the impact of federal policies passed by the last Congress,” Jesse Jenkins, a Princeton professor of mechanical and aerospace engineering, told me.

Last year, Jenkins’s research group estimated that the IRA and BIL would produce a 75 to 77% zero-carbon grid by 2030. That estimate is slightly below NREL’s estimate because the Princeton researchers forecast that Americans will adopt electric cars and other climate tech more quickly, causing the country’s demand for electricity to grow and forcing natural-gas power plants to meet the gap.

But the new NREL estimate is a reminder of just how significant the two laws are for the climate. Over the next eight years, the American electricity grid will change as much as it has in the past two decades. And the rapid decarbonization of the American grid was not a foregone conclusion, but driven entirely by policy. As recently as 19 months ago, U.S. power sector emissions were expected to plateau after 2025. Now they will plunge through the end of the decade.

The forecast contains a few more findings worth drawing out.

First, it looks at whether America’s ongoing struggle to build new transmission lines and other large-scale energy infrastructure could imperil the grid’s transformation. Its results are mixed but not catastrophic. Under its most transmission-constrained scenario, a little more than a fifth of the IRA’s potential carbon-pollution cuts to the power sector would fail to materialize. At the absolute low end, this would produce a grid that’s 71% clean in 2030 — still much better than today. Yet it lags the high-end estimate: If the U.S. passed optimal policy, and technology costs fell faster than expected, then the grid could become 90% zero-carbon by 2030.

Second, it looks at the IRA’s less discussed conventional environmental benefits — which are substantial. Coal and natural-gas power plants release a slew of toxic air pollutants, including tiny shards of soot and particulate matter known as PM2.5 because they measure less than 2.5 microns across. PM2.5 is so small that it wreaks havoc in the body, inflaming and damaging heart, lung, and brain tissue. But over the next decade, as coal and gas plants close to make way for new renewable and nuclear facilities, PM2.5 will subside.

Thanks to the climate and infrastructure laws, fewer Americans will suffer heart attacks, lung disease, and asthma attacks, the report finds. By 2030, the law could avert 11,000 to 18,000 early deaths, the analysis finds.

And that points to the final finding: The IRA and the infrastructure law will save society perhaps more than a trillion dollars — in ways that will and won’t ever show up on a traditional balance sheet. The two laws’ subsidies, first, will reduce electricity costs for people and businesses, saving $50 to $115 billion in this decade alone. Second, the health effects mentioned above could save $120 to $190 billion in health-care costs. But most impressive is NREL’s estimate of the laws’ benefits to the climate, as measured in dollars. In its view, the IRA and BIL could avert enough carbon emissions that they could save $880 billion in climate damages.

These suggest that even if the highest estimates of the IRA’s cost to the government come to pass, the law will more than pay for itself through its benefits to the climate alone.

Much could still go wrong in either law’s implementation, of course. But for now, research continues to suggest that some of the summer’s lofty predictions were not inaccurate. The IRA and the bipartisan infrastructure law, while imperfect, stand to turbocharge the transformation of the American energy system. The climate era is upon us.


Get the best of Heatmap directly in your inbox every weekday:

* indicates required
  • Blue

    You’re out of free articles.

    Subscribe to access Heatmap’s expert analysis of climate change, clean energy, and sustainability. Save $57 on an annual subscription, just $156 $99/year.
    To continue reading
    Create a free account or sign in to unlock more free articles.
    or
    Please enter an email address
    By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
    Daily Briefing

    Ford’s Fathom? Drive!

    Facing down a sea change, the automaker has staked its next EV bet on a compact, sporty pickup.

    Ford headquarters.
    Heatmap Illustration/Getty Images

    “Full fathom five, your father lies,” the invisible spirit Ariel sings early in The Tempest, as a handsome and grieving prince listens, rapt. The song tells of a shipwrecked skeleton transforming into something else — its eyes have become pearls, and its bones pink coral — as it undergoes, yes, a “sea change.” It is the first time that phrase appears in the English language.

    Ford is now facing its own kind of sea change. Over the past decade, the automaker has doubled down on its most profitable and exciting vehicles — pickups, SUVs, and the Mustang muscle car — and dropped from its line-up the cheap, boring cars that once made it famous. It embraced, then backed off, the transition to electric vehicles, in part because it failed to make money from them; and it began to reckon with the surge of cheaper, cleaner, and “far superior” EVs from Chinese producers that are transforming global auto markets around the world.

    Keep reading...Show less
    Blue
    Energy

    Amazon Is Building America’s Biggest Fossil Fuel Plant to Power AI

    The company confirmed its plans to market research company Cleanview.

    The Amazon logo and smokestacks.
    Heatmap Illustration/Getty Images

    The data center buildout has hit a new inflection point. It has long been true that artificial intelligence is fueling climate change by driving up power demand; more recently, tech companies have started directly financing new natural gas plants in their quest for AI glory. Now one is backing the biggest fossil fuel-fired power plant ever to exist in the United States — exclusively to power an AI data center complex.

    That company is Amazon, according to the market research company Cleanview, which reported on Friday that the tech giant is building an AI data center campus in Texas powered by an up to 7.65-gigawatt off-grid natural gas plant.

    Keep reading...Show less
    Red
    Climate

    Which Wildfire Smoke Is Worst?

    The smoke pouring into Seattle from Spokane is particularly bad, but there’s also no such thing as good smoke.

    An AQI city.
    Heatmap Illustration/Getty Images

    I wrote this story from inside a cloud of smoke. Owing to some funky meteorology in the Seattle area this week — a pressure ridge paired with a thermal trough — the region’s usual westerly winds reversed, causing smoke from the fires burning in the eastern half of the state to pour through the mountain passes and river valleys of the Cascades and pool over the populous Puget Sound lowlands, where I live.

    Though it’s cleared up some today, I’m still running my air purifier on full blast because I know what’s in the lingering smoke. Unlike the still blazing wildfires in Ontario that are burning through mostly uninhabited forests, the smoke in the Seattle area this week came to us partially from Spokane, where the Old Trails fire razed at least 700 buildings and homes last weekend. That means that beyond the usual organic matter associated with wildfire smoke, the pollution that has hung over Seattle has likely also contained particles and chemicals from burned plastics, batteries, cars, and household appliances.

    Keep reading...Show less