New innovative tool empowers utilities to reduce emissions in investment planning
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New York has actually been at the forefront of this effort, seeking to stabilize ambitious climate goals with out-of-date natural gas financial investment preparation processes.To assistance energy organizers align company decisions with ecological targets, EDF engaged MJ Bradley and Associates to develop the Gas Company Climate Planning Tool, an ingenious brand-new framework for New York and other states.This first-of-its-kind tool has the power to transform natural gas utility investment decisions. An accompanying report further assists state regulators in developing a framework for examining life cycle greenhouse gas emissions of financial investment options.There is more urgency than ever to chart a new course forward for natural gas investmentsIn addition to carbon dioxide produced from combustion of natural gas, its production, circulation and transmission results in significant emissions from methane– a greenhouse gas 84 times more potent than carbon dioxide during the very first 20 years after its release. To address this need, the Gas Company Climate Planning Tool supplies an independent, data-driven method to examine the long-term greenhouse gas emissions of different planning circumstances in a method that decreases both climate pollution and expenses for the energy and the customer.This tool could not come at a much better time, as more states are adopting strong environment goals but gas utilities continue to run under a business-as-usual paradigm– preparing for year-over-year development and expansion of the natural gas system.The New York Public Service Commission, for example, acknowledged this stress and discovered that present gas energy preparation in the state is not keeping rate with the energy system transformation. To help with these jobs, EDF sent the Gas Company Climate Planning Tool, along with comprehensive suggestions to the PSC.Aligning long-term gas planning with climate goals needs more than a quantitative toolTransparent, unbiased and publicly available data will improve gas supply decision-making to align gas preparation with the crucial to decarbonize.
By Erin Murphy and Christie Hicks As the United States moves toward decarbonization, states and cities must utilize all methods available to minimize environment pollution, and natural gas energies should be at the forefront of this rapid energy shift. Since plans to expand and fortify their facilities might lock in greenhouse gas emissions and costs for decades, gas energies are the topic of increasing examination. As the industry considers its role in a decarbonized future, regulators, utilities and advocates alike are requiring a carefully-managed transition that avoids pricey long-lasting financial investments. New york city has been at the forefront of this effort, seeking to balance enthusiastic climate goals with out-of-date gas financial investment planning processes.To help utility planners align organization choices with ecological targets, EDF engaged MJ Bradley and Associates to establish the Gas Company Climate Planning Tool, an innovative brand-new framework for New York and other states.This first-of-its-kind tool has the power to change gas utility financial investment choices. It is pre-populated with publicly reported information on the life cycle greenhouse gas emissions related to natural gas financial investments, including adjustable choices that show the myriad of alternatives utilities have to broaden service. It is offered and totally free to the public, enabling regulators, utilities and stakeholders to compare emissions related to various need- and supply-side options to meet energy needs. For instance, utilities can compare the impact of traditional pipeline capability, utilizing energy performance to decrease demand, or incorporating alternative fuels like biogas and hydrogen in their fuel mix. An accompanying report even more helps state regulators in establishing a framework for evaluating life cycle greenhouse gas emissions of financial investment options.There is more urgency than ever to chart a new course forward for natural gas investmentsIn addition to carbon dioxide given off from combustion of natural gas, its transmission, production and distribution lead to considerable emissions from methane– a greenhouse gas 84 times more potent than carbon dioxide throughout the very first 20 years after its release. Attention to this issue is more essential than ever, since decreasing methane emissions could result in more immediate benefits in the battle against global warming. New ingenious tool empowers utilities to lower emissions in investment planning Click To TweetMost natural gas planning occurs through piecemeal procedures and frequently behind closed doors. It has been hard, if not impossible, for energies, regulators and the public to quickly and properly compare the environment impact of supply and need management choices. To address this need, the Gas Company Climate Planning Tool offers an independent, data-driven way to examine the long-lasting greenhouse gas emissions of various preparing situations in a way that decreases both environment pollution and costs for the utility and the customer.This tool could not come at a better time, as more states are embracing vibrant climate objectives however gas energies continue to run under a business-as-usual paradigm– preparing for year-over-year growth and growth of the gas system.The New York Public Service Commission, for instance, found and acknowledged this stress that present gas utility planning in the state is not keeping pace with the energy system transformation. New York enacted the Climate Leadership and Community Protection Act in 2019– needing an 85% decrease in statewide greenhouse gas emissions by 2050. In 2020, the commission introduced a proceeding to update the gas preparation process. Acknowledging that comprehensive, transparent, equitable long-lasting preparation must be at the core of reforms, the PSC recommended that energies report the greenhouse and calculate gas emissions connected with all supply and demand options. It likewise proposed that, rather than typical facilities investments, gas energies consider retirement of leak-prone pipeline and usage of non-pipeline options to meet customer requirements. To aid with these tasks, EDF sent the Gas Company Climate Planning Tool, together with comprehensive suggestions to the PSC.Aligning long-term gas preparation with environment goals needs more than a quantitative toolTransparent, openly available and impartial data will improve gas supply decision-making to align gas planning with the essential to decarbonize. The Gas Company Climate Planning Tool not only meets the details needs of the commission, but likewise those of other regulators throughout the country dealing with similar concerns who are facing how to improve their states long-term gas planning processes to line up utility financial investments with climate goals.There is more work to be done. The tool is simply quantitative, and other elements need to be thought about. Qualitative elements can be equally important in investment decisions, particularly when considering disproportionately impacted and low-income communities. Equity should be at the core of policies and reform procedures. The Gas Company Planning Tool is the initial step for a more equitable, inclusive long-term gas preparation process.Utilities, regulators and stakeholders in New York and across the nation can begin using this tool today. Every dollar spent by gas energies either gets us closer to or further from our environment targets.Jolette Westbrook contributed to this blog.