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The United States has a growing inventory of spent nuclear fuel from commercial power plants that continues to accumulate at reactor sites around the country.

In addition, the legacy waste from U.S. defense programs remains at Department of Energy sites around the country, mainly at Hanford, WA, Savannah River, SC, and at Idaho National Laboratory.

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But now the U.S. nuclear waste storage program is “frozen in place”, according to Rod Ewing, Frank Stanton professor in nuclear security at Stanford’s Center for International Security and Cooperation.

“The processing and handling of waste is slow to stopped and in this environment the pressure has become very great to do something.”

Currently, more than seventy thousand metric tons of spent nuclear fuel from civilian reactors is sitting in temporary aboveground storage facilities spread across 35 states, with many of the reactors that produced it shut down.  And U.S. taxpayers are paying the utilities billions of dollars to keep it there.

Meanwhile, the deep geologic repository where all that waste was supposed to go, in Yucca Mountain Nevada, is now permanently on hold, after strong resistance from Nevada residents and politicians led by U.S. Senator Harry Reid.

The Waste Isolation Pilot Plant in Carlsbad New Mexico, the world’s first geologic repository for transuranic waste, has been closed for over a year due to a release of radioactivity.

And other parts of the system, such as the vitrification plant at Hanford and the mixed oxide fuel plant at Savannah River , SC, are way behind schedule and over budget.

It’s a growing problem that’s unlikely to change this political season.

“The chances of dealing with it in the current Congress are pretty much nil, in my view,” said former U.S. Senator Jeff Bingaman (D-NM).

“We’re not going to see a solution to this problem this year or next year.”

The issue in Congress is generally divided along political lines, with Republicans wanting to move forward with the original plan to build a repository at Yucca Mountain, while Democrats support the recommendations of the Blue Ribbon Commission on America’s Nuclear Future to create a new organization to manage nuclear waste in the U.S. and start looking for a new repository location using an inclusive, consent-based process.

“One of the big worries that I have with momentum loss is loss of nuclear competency,” said David Clark, a Fellow at the Los Alamos National Laboratory.

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“So we have a whole set of workers who have been trained, and have been working on these programs for a number of years. When you put a program on hold, people go find something else to do.”

Meanwhile, other countries are moving ahead with plans for their own repositories, with Finland and Sweden leading the pack, leaving the U.S. lagging behind.

So Ewing decided to convene a series of high-level conferences, where leading academics and nuclear experts from around the world can discuss the issues in a respectful environment with a diverse range of stakeholders – including former politicians and policy makers, scientists and representatives of Indian tribes and other effected communities.

“For many of these people and many of these constituencies, I’ve seen them argue at length, and it’s usually in a situation where a lot seems to be at stake and it’s very adversarial,” said Ewing.

“So by having the meeting at Stanford, we’ve all taken a deep breath, the program is frozen in place, nothing’s going to go anywhere tomorrow, we have the opportunity to sit and discuss things. And I think that may help.”

Former Senator Bingaman said he hoped the multidisciplinary meetings, known at the “Reset of Nuclear Waste Management Strategy and Policy Series”, would help spur progress on this pressing problem.

“There is a high level of frustration by people who are trying to find a solution to this problem of nuclear waste, and there’s no question that the actions that we’ve taken thus far have not gotten us very far,” Bingaman said.

“I think that’s why this conference that is occurring is a good thing, trying to think through what are the problems that got us into the mess we’re in, and how do we avoid them in the future.”

The latest conference, held earlier this month, considered the question of how to structure a new nuclear waste management organization in the U.S.

Speakers from Sweden, Canada and France brought an international perspective and provided lessons learned from their countries nuclear waste storage programs.

“The other…major programs, France, Switzerland, United Kingdom, Canada, they all reached a crisis point, not too different from our own,” said Ewing.

“And at this crisis point they had to reevaluate how they would go forward. They each chose a slightly different path, but having thought about it, and having selected a new path, one can also observe that their programs are moving forward.”

France has chosen to adopt a closed nuclear cycle to recycle spent fuel and reuse it to generate more electricity.

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“It means that the amount of waste that we have to dispose of is only four percent of the total volume of spent nuclear fuel which comes out of the reactor,” said Christophe Poinssot of the French Atomic and Alternative Energy Commission.

“We also reduce the toxicity because…we are removing the plutonium. And finally, we are conditioning the final waste under the form of nuclear glass, the lifetime of which is very long, in the range of a million years in repository conditions.”

Clark said that Stanford was the perfect place to convene a multidisciplinary group of thought leaders in the field who could have a real impact on the future of nuclear waste storage policy.

“The beauty of a conference like this, and holding it at a place like Stanford University and CISAC, is that all the right people are here,” he said.

“All the people who are here have the ability to influence, through some level of authority and scholarship, and they’ll be able to take the ideas that they’ve heard back to their different offices and different organizations.  I think it will make a difference, and I’m really happy to be part of it.”

Ewing said it was also important to include students in the conversation.

“There’s a next generation of researchers coming online, and I want to save them the time that it took me to realize what the problems are,” Ewing said.

“By mixing students into this meeting, letting them interact with all the parties, including the distinguished scientists and engineers, I’m hoping it speeds up the process.”

Professor Ewing is already planning his next conference, next March, which will focus on the consent-based process that will be used to identify a new location within the U.S. for a repository.

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High and growing shares of wind and solar generation can lead to economic retirements of controllable capacity, creating the need for long-term resource adequacy mechanisms that compensate units needed to maintain system reliability. We use game-based simulation to compare two approaches for ensuring long-term resource adequacy: capacity markets and forward contracting. We also conduct “policy prototyping” of a specific implementation of forward contracting, Standardized Fixed-Price Forward Contracts (SFPFCs). SFPFCs are standardized contract products sold through a standardized procurement process in which 100% of expected demand is auctioned off several years ahead of energy delivery. SFPFCs retroactively adjust contract quantities in each covered hour according to that hour’s share of total demand in the compliance period, thereby encouraging generating companies to manage the risk of higher-than expected demand in any given hour. Our game runs suggest that forward contracting can yield significantly lower cost to load than capacity markets because it removes the incentive for gencos to exercise unilateral market power in the short-term energy market. In our games, the SFPFC implementation proved effective at safeguarding system reliability and delivering moderate costs to consumers while maintaining financial viability for gencos, even in scenarios with high carbon prices and high renewable shares incentivized by a Renewable Portfolio Standard (RPS) with tradable Renewable Energy Certificates (RECs). Game-based policy prototyping encouraged us to revise our SFPFC proposal to eliminate one policy element, the “true-up auction,” that proved to be of secondary importance.

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Mark C. Thurber
Trevor L. Davis
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China and the United States are the two biggest carbon-emitting countries in the world. Decarbonization in these two countries will have material impacts on a global scale and is timelier than ever, according to a recent report from Stanford University’s Precourt Institute for Energy, Stanford Center at Peking University, APARC's China Program, and Peking University’s Institute of Energy.

The report is the product of a roundtable series, held in October 2021 that brought together leading American and Chinese current and former officials, and experts in the public and private sectors working on energy, climate, the environment, industry, transportation, and finance. The roundtables promoted discussion around how China and the United States can accelerate decarbonization and cooperate with one another to meet their carbon neutrality goals by mid-century.

The thematic areas of the roundtables included U.S.- China collaboration on climate change, global sustainable finance, corporate climate pledges, and the opportunities and challenges for the acceleration of decarbonization in both countries in general, as well as specifically for the power, transportation, and industry sectors.

The resultant report reviews the key themes and takeaways that emerged from the closed-door discussions. It builds on the “U.S.-China Joint Statement Addressing the Climate Crisis” released by the U.S. Department of State on April 17, 2021 and shares some common themes with the “U.S.-China Joint Glasgow Declaration on Enhancing Climate Action in the 2020s” released on November 10, 2021. Shiran Victoria Shen of the Hoover Institution authored the report, with contributions by Yi Cui of the Precourt Institute for Energy, Zhijun Jin of the Institute of Energy and Jean Oi, Director of APARC's China Program

The report suggests that tensions in U.S.-China relations have hindered the acceleration of decarbonization and that open science in fundamental research areas must be encouraged. Universities can educate future leaders, advance knowledge, and foster U.S.-China collaboration on open-science R&D, regardless of the political environment. The report argues that the most promising strategy to decarbonize energy is to electrify consumption now served by fossil fuels as much as possible while decarbonizing electricity generation. 

The roundtables identified six areas where the U.S. and China could collaborate: global green finance, carbon capture and storage, low-carbon agriculture and food processing, methane leak reduction, grid integration and greater use of intermittent renewables, and governance, including at the subnational level. The report further identifies more concrete and additional promising areas for accelerated decarbonization and bilateral collaboration, as well as the obstacles to be tackled, including institutional, political, and financial constraints. 

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Cover of the report 'Accelerating Decarbonization in China and USA through Bilateral Collaboration'
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A report on China and the United States' decarbonization and carbon neutrality proposes areas of collaboration on climate change action, global sustainable finance, and corporate climate pledges. The report is the product of roundtables with participants from the Stanford Precourt Institute for Energy, SCPKU, APARC's China Program, and Peking University’s Institute of Energy.

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Cover of the report 'Accelerating Decarbonization in China and USA through Bilateral Collaboration'

In October 2021, Stanford University’s Precourt Institute for Energy, Stanford Center at Peking University, and Shorenstein Asia-Pacific Research Center’s China Program partnered with Peking University’s Institute of Energy to organize a series of roundtables intended to promote discussion around how China and the United States can accelerate decarbonization and cooperate with one another to meet their carbon neutrality goals by mid-century. The thematic areas included U.S.- China collaboration on climate change, global sustainable finance, corporate climate pledges, and the opportunities and challenges for the acceleration of decarbonization in both countries in general, as well as specifically for the power, transportation, and industry sectors.

The roundtable series brought together leading American and Chinese current and former officials, and experts in the public and private sectors working on energy, climate, the environment, industry, transportation, and finance. This report reviews the key themes and takeaways that emerged from the closed-door discussions. It builds on the “U.S.-China Joint Statement Addressing the Climate Crisis” released by the U.S. Department of State on April 17, 2021 and shares some common themes with the “U.S.-China Joint Glasgow Declaration on Enhancing Climate Action in the 2020s” released on November 10, 2021.

This report further identifies more concrete and additional promising areas for accelerated decarbonization and bilateral collaboration, as well as the obstacles to be tackled, including institutional, political, and financial constraints. This report could serve as a basis for concrete goals and measures for future U.S.-China cooperation on energy and the climate. It also highlights the contributions universities can make to the global energy transition. The roundtable series identifies areas most critical or potent for bilateral collaboration, paving the way for concrete action plans at the national, local, and sectoral levels. Section 1 offers a brief overview of the acceleration of decarbonization in the U.S. and in China. Section 2 identifies the opportunities and challenges of U.S.-China cooperation on climate change. Sections 3-7 delve into specific promising areas for accelerated decarbonization and opportunities and hurdles for bilateral collaboration in corporate, finance, power, transportation, and industrial sectors.

This report is not a comprehensive review of all the relevant areas pertaining to decarbonization in China and the U.S. and bilateral collaboration on climate change. For example, this roundtable series focused on climate mitigation. Another strategy to respond to climate change is adaption, which we reserve for potential future discussion in a separate report. Additionally, the focus of this report is on energy. Important measures such as reforestation as a carbon sink are reserved for separate discussions. The views expressed in this report represent those of the participants at the roundtable series and do not necessarily represent the positions of the organizing institutions. Chatham House rules were used throughout the roundtables to facilitate open and frank discussion, so views are not attributed to individual participants

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Jean C. Oi
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Declines in the up-front costs of both wind and solar generation units over the past decide has significantly closed the gap between the levelized cost of energy (LCOE) for these resources and the LCOE of natural gas and coal-fired generation. This outcome has the potential to reduce the cost of increasing the share of intermittent renewable resources in a region significantly. The experience of regions with significant shares of intermittent renewables is used to provide recommendations for short-term wholesale market design, a long-term resource adequacy mechanism and a renewables support mechanism to achieve a substantial intermittent renewable energy share at least cost to electricity consumers. A multi-settlement locational marginal pricing short-term market design, a standardardized fixed-price forward contract approach to long-term resource adequacy and a renewables energy certificates market are the major market design elements proposed to achieve this goal.

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PESD Associate Director Mark Thurber co-authored a new paper in The Electricity Journal on the electricity grid improvements that are needed to unlock the full potential of wind and solar energy in Africa. Donors and development agencies need to devote more attention to these missing pieces, rather than assuming that bans on fossil fuel financing alone will spur the desired transition to cleaner energy. 

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Market power has been a persistent challenge in designing wholesale electricity markets. Differences in the number or configuration of pricing zones does not impact the ability of a supplier to exercise unilateral market, but only what market outcomes are impacted by this exercise of market power. For this reason, tools able to detect market power conditions are crucial for ensuring the well functioning of all wholesale electricity markets, regardless of number of pricing zones. We first describe the trade-offs that must be balanced in designing a market power mitigation mechanism for any short- term wholesale electricity market. This is followed by a survey of the market power mitigation mechanisms that currently exist in the California Independent System Operator (ISO), the PJM Interconnection, the New York ISO, Mid-Continent ISO, and Electricity Reliability Council of Texas (ERCOT). Finally, we draw lessons from the US experience and try to address potential issues in the adoption of a market power mitigation mechanism in a low carbon electricity market.

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Christoph Graf
Federico Quaglia
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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.

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The human cost of the power system's failures is clearly unacceptable, but there are ways for Texas policymakers to prevent it from ever happening again that do not involve abandoning a market design that leads the nation in the deployment of wind and solar generation capacity an
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Austin American Statesman
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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.

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California Public Utilities Commission meeting.
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