COVID-19 has reminded Americans of the importance of cheap electricity and clean air – consumers and businesses are looking for ways to save money, and people who breathe dirty air suffer higher mortality rates from the virus. One of the quickest ways to overcome both challenges, at least in the U.S. power sector, has been replacing fossil fuel generation with renewable energy.
However, the way utilities procure new generation hasn’t kept pace with fast-falling renewable energy prices, often resulting in investments that cost consumers too much money while emitting more greenhouse gases and conventional air pollutants than if renewable energy were evaluated on the same basis as coal and natural gas. So how can regulators help ensure utilities invest in new generation that saves money and cleans the air?
