In a Q&A, Stanford economists discuss the importance of this number and its role in creating environmental policies.
The Biden administration has pledged to reduce US greenhouse gas emissions to half of 2005 levels by 2030. A large share of these reductions would have to come from the power sector, with high-emitting coal-fired power plants being obvious targets for closure. Program on Energy and Sustainable Development (PESD) Associate Director Mark Thurber spoke on NPR's Here & Now about why phasing out coal-fired generation in the US by 2030 is an achievable goal -- and how we need to take care of affected workers along the way. Listen to the interview.
The Stanford Center on China's Economy and Institutions (SCCEI) and the Stanford King Center on Global Development held a special event on the potential for China and U.S. collaboration on climate change.
China and the U.S. are critical for global action on climate change. Together, the two countries created up to 40 percent of global greenhouse gas emissions in 2019, and both countries have significant global influence. This event highlights several important challenges for climate action at the start of the Biden Administration. How can China-U.S. cooperation on climate be revived in light of the current bilateral relationship, in particular for fostering innovations in both technologies and policies for mitigating climate change?
The special event featured Steven Chu, William R. Kenan Jr. Professor of Physics and Professor of Molecular & Cellular Physiology in the Medical School at Stanford University, and was moderated by Gretchen C. Daily, Bing Professor of Environmental Science and co-founder and faculty director of the Natural Capital Project at Stanford University.
Watch the recording:
Following the lecture, SCCEI and the King Center hosted a virtual reception for audience members to continue the conversation in small breakout rooms. The Zoom meeting link was distributed at the end of the lecture.
He served as U.S. Secretary of Energy from January 2009 through April 2013. Prior to that, he was director of the Lawrence Berkeley National Laboratory, professor of Physics and of Molecular and Cell Biology (2004 to 2009) at UC Berkeley, the Francis and Theodore Geballe professor of Physics and Applied Physics at Stanford University (1987 to 2009), a member of the technical staff and head of the Quantum Electronics Research Department at AT&T Bell Laboratories (1978 – 1987).
Dr. Chu is the co-recipient of the 1997 Nobel Prize in Physics for his contributions to laser cooling and atom trapping. He received numerous other awards and is a member of the National Academy of Sciences, the American Philosophical Society, the American Academy of Arts and Sciences and 8 foreign Academies. He received an A.B. degree in mathematics and a B.S. degree in physics from the University of Rochester, and a Ph.D. in physics from the University of California, Berkeley, and 32 honorary degrees.
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Stanford King Center on Global Development
Stanford Center on China's Economy & Institutions
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Bruno is a Research Data Analyst at the Center on Food Security and The Environment where he supports David Lobell in tackling issues related to food security using satellite imagery along with applied data analytics. He is a past intern at the Monterey Bay Aquarium Research Institute where he used satellite imagery to analyze phytoplankton blooms in the Gulf of Alaska. Bruno graduated from the University of California, Santa Cruz in June 2020, with a B.S In Earth Science. Here he examined regions heavily affected by rising Sea Surface Temperature Extremes throughout the globe.
Stanford's Program on Energy and Sustainable Development (PESD) is collaborating with the California Public Utilities Commissions (CPUC) on an Impact Lab that tackles an urgent policy question: How do we make sure the lights stay on as the electricity mix climbs towards state targets of 50% renewable energy in 2026 and 60% in 2030? Wind and solar are essential zero-carbon energy sources, but they are only available when the wind blows and the sun shines. Blackouts in Northern California last August were a warning that system reliability is at risk if the state doesn't act quickly to implement policies that ensure backup generation is available when needed.
The existing regulatory instrument for ensuring long-term resource adequacy, capacity payments, is not well-adapted to a high-renewables future. Capacity payments aim to ensure enough "firm capacity" is always available to keep the lights on, but the firm capacity construct is not applicable to wind and solar, which cannot be turned on and increased at the system operator’s discretion.
The PESD/CPUC Impact Lab has proposed an alternative resource adequacy mechanism that is robust to a world of high and solar generation: auctions of Standardized Fixed-Price Forward Contracts (SFPFCs) that ensure every megawatt-hour of energy consumed in the state is hedged through long-term financial contracts. Unlike capacity payments, the SFPFCs provide a strong financial incentive for generators to meet their commitments to supply reliable energy wherever and whenever it is needed. PESD research suggests this novel policy mechanism can provide enhanced reliability and major cost savings relative to the capacity payment approach.
The CPUC has initiated a stakeholder process to consider possible implementation of this proposal, and PESD is assisting with research, policy outreach, and development of market simulation games that will allow stakeholders to gain hands-on experience with how the SFPFC mechanism would work in a realistic electricity market.
In a virtual panel discussion November 19 hosted by MIT’s Center for Energy and Environmental Policy Research (CEEPR), PESD Director Frank Wolak joined Alex Breckel, Associate Director of Strategic Research at Energy Futures Initiative (EFI), in addressing the impacts of power sector decarbonization on grid reliability. View recording
Recent record-breaking heat waves followed by rolling blackouts in California have sparked renewed discussion about the state’s options to address future power outages. Program on Energy and Sustainable Development Director Frank Wolak spoke to Bloomberg about power market reforms as one option where California could open up its electricity to retail competition. While pricing would better reflect grid supply and demand, it’s unlikely this option would have backing given today’s political climate. Read more (may require subscription)
The basic features of an efficient short-term wholesale market design do not need to change to accommodate a significantly larger share of zero marginal cost intermittent renewable energy from wind and solar resources. A large share of controllable zero marginal cost generation does not create any additional market design challenge relative to a market with a large share of controllable positive marginal cost generation. In both instances, generation unit owners must recover their fixed costs from sales of energy, ancillary services, and long-term resource adequacy products.
The Program on Energy and Sustainable Development (PESD) and the California Public Utilities Commission (CPUC) are partnering on an Impact Lab to design and implement next-generation policies and regulations that support California's ambitious renewable energy goals. “Public support for aggressive climate action in California could decline if there are adverse grid reliability and cost implications from pursuing these goals,” said Frank Wolak, professor of economics and director of PESD. Wolak and the PESD team are working with the CPUC to develop: 1) policies to ensure resource adequacy with a very high share of intermittent renewable energy, 2) distribution pricing to support cost-effective and equitable renewable energy deployment, and 3) transmission planning frameworks that are robust to high wind and solar shares as well as future climate impacts. Read more (fifth white box near the bottom)
On June 3, Program on Energy and Sustainable Development (PESD) Director Frank Wolak participated as one of three energy experts in a virtual panel discussion evaluating the pros and cons of proposed “reach codes” banning natural gas in the city of Los Altos, California. The panel discussion - "Mandating All Electric: Is Banning Natural Gas Really The Answer?" - was organized by a group of Los Altos residents who believe city residents’ voices need to be considered in government decisions.
Reach codes are being considered for all new residential and commercial building construction, and all “scrape” remodels in the city. A reach code is a local building energy code that reaches beyond the state minimum requirements for energy and its use in building design and construction. These codes facilitate local government’s efforts focused on clean air, climate solutions, and renewable energy economics.
