Utility Renewable and Distributed Energy Strategies for Addressing Climate Change

Abstract

This Energy Insights report evaluates how regulatory and market activity surrounding greenhouse gas (GHG) emission reductions in North America is triggering utility responses favorable to renewable energy (RE) and distributed energy (DE) technologies. After first reviewing the shifting carbon regulatory landscape and assessing the specific RE and DE technologies that stand to benefit from CO₂ abatement, we then describe six utility strategies - including examples of their real-world implementation - that successfully hedge, adapt to, comply with, and profit from a future carbon-constrained business environment.

According to Nadav Enbar, senior research analyst, Energy Insights, "The utility sector will be the primary target for reducing GHGs given its considerable carbon footprint, comprising roughly 40% of U.S. emissions. The onus will therefore be on industry executives to proactively make the tactical decisions, many of which advocate the greater use of RE and DE technologies, that address approaching CO₂-limiting directives."