You have likely heard experts suggest energy regulations will be more robust and stringent in the coming years. Organizations are preparing for a culture shift in how they navigate regulatory frameworks in a more sustainable world. How will this impact your industry and workflow?
Why Should Expectations Change for Energy Workers?
The world’s energy demand is ballooning because of innovations like artificial intelligence (AI) and electrification. Many of these power-intensive industries overlap. AI is even powering solar panel inverters, making them smarter than ever. Other trends like reshoring and expanding data centers are boosting power expectations on places acclimated to less-intensive operations.
Electricity must avoid relying on fossil fuels to be sustainable in more ways than one. The U.S. energy sector was responsible for 6,343 million metric tons of carbon dioxide in 2022, with coal accounting for 20% of generation but 55% of emissions. These statistics also prove energy’s adverse impacts come from several industries, including transportation, agriculture and heating.
Adhering to climate objectives does not permit leveraging these damaging resources anymore. Therefore, regulatory bodies must provide guidance on how to roll out cleaner power in a standardized, safe and sustainable way. However, these regulations will continue changing as sociopolitical shifts switch government focuses.
Why Are Regulations Changing?
In the U.S., the Biden administration sought to push a climate-focused agenda. The strictness of these regulations are directly influenced by global climate commitments. This amplified the efforts of the Environmental Protection Agency to push renewable adoption, electric vehicle sales and reduction of fossil fuels.
However, President-elect Donald Trump is suspected to issue a rollback, and his administration did previously when withdrawing from the Paris Agreement. Many established rules, such as the Clean Air Act, would take years to unravel and will likely not be the source of major changes. In-progress legislation will be the most affected, so your energy employer must stay informed.
One example is proposed changes to the New Source Performance Standards for Stationary Gas and Combustion Turbines. The revision creates different emissions rules for each size of turbine while allowing some turbines to be exempt from stricter standards.
How Will Regulations Change Energy’s Priorities?
Rising demand equates to rising company costs. The efforts regulatory action supports will inevitably force businesses to invest in the causes environmental laws support if they provide incentives for compliance.
For example, grid modernization is key. Utility firms are expected to devote 42% of capital expenditures to transmission and distribution infrastructure to accommodate increased loads. If government grants or tax credits are available to support these efforts, your organization might put a greater focus on this.
Alternatively, you may also notice ever-changing power regulation causes confusion in stakeholders. They may question whether to commit to sustainable objectives or not based on the ideologies forming these guidelines. Some leadership may not feel incentivized to choose greener energy while others may ramp up production as a way to advocate for more robust regulations.
It is possible to take advantage of deregulation if it happens. One of the issues in the constantly changing rules is long wait times for permits. Simply because regulations are minimal or noncomprehensive does not mean your teams cannot utilize cleaner energies. It could be an opportune time to push energy storage or private solar farm expansion despite resistance against sustainable generators.
Regulated Energy
Your teams must embrace the evolving nature of these frameworks and continue advocating for cleaner power despite the attitudes of regulatory agencies. Rules guide your enterprises into compliance, becoming more eco-friendly and energy-aware as a result. If they keep changing, you remain knowledgeable and agile to accommodate the changing times.
About the author: Ellie Gabel is a science writer specializing in astronomy and environmental science and is the Associate Editor of Revolutionized.
Energy in Demand - Sustainable Energy - Rod Janssen 