Advanced Energy Perspectives

The 2022 election is still not in the books, but with the outcome of most contests already known, advanced energy and its champions at the state and federal level were clear winners. Heading into any midterm election we expect to see a swing away from the sitting president’s party. This year that meant the potential to see the progress of the past four years slowed in key states across the country and at the federal level. But now, with the votes mostly tallied, we can say the stage is set for more clean energy progress next year, especially with the funds and incentives from federal legislation arriving in states ready to put it to work.

Last week, the White House and Congress celebrated the one-year anniversary of the Infrastructure Investment and Jobs Act – IIJA, also known as the Bipartisan Infrastructure Law. Between IIJA and the more-recently enacted Inflation Reduction Act (IRA), the federal government has devoted almost $500 billion in grants, tax credits, and other incentives to accelerate America’s energy transition, electrify transportation, and address many of the energy-related challenges facing the nation. For all the attention paid to the work inside the Beltway, however, whether the U.S. realizes that potential hinges largely on what happens outside the Beltway.

In Texas, regulators and stakeholders are paving the way to a cleaner, more reliable future with a pilot project that puts flexible energy resources at the forefront of the state’s grid planning efforts. Following a months-long effort involving industry stakeholders and state regulators, the Electric Reliability Council of Texas (ERCOT) voted unanimously on November 3 to greenlight a pilot project that will allow residential participants to receive compensation for their contributions to the state’s electrical grid.

From the earliest days of AEE, we’ve operated under the principle that if we can remove the barriers preventing the adoption of clean energy, and allow our industry to compete in the market, then the businesses we represent will provide a secure and affordable energy future and stimulate a robust and globally competitive economy. Our work at AEE is to improve or introduce policies that lead to new market opportunities for clean energy. Sometimes, however, the barriers go beyond public policy and exist due to a complex combination of policy, politics, and even physical obstruction. One clear example is transmission, and the significant barrier it represents for our industry. If we do not meaningfully improve and expand the electrical transmission infrastructure in this country, then we, as a nation, in our regions, and in our states, won’t be able to connect clean energy resources to meet rapidly growing energy demand, and we won’t be able to reach the goal of 100% clean energy or electrified transportation. Addressing this barrier is a monumental task — and it’s a problem our team knows how to tackle. That is why, on October 27, AEE launched a campaign to enable and promote solutions.

2022 has been a banner year for clean energy, with several important policy, market, and geopolitical drivers shifting the conversation. Electric building heating technologies are no exception and as the use of natural gas declines in response to these trendlines, a lot remains “TBD” on how to transition away from the fossil fuel. Because the decisions we make today will lock in infrastructure and costs for decades, state policymakers are beginning to reexamine the way we plan and pay for the use of gas in buildings today. They need new tools, and AEE is here to help.