The Biden administration unveiled a comprehensive plan to revamp the United States’ aging power grid system, with the main goal being to reduce utility bills, prevent blackouts, and decrease greenhouse gas emissions from power plants. This package of regulations is the first of its kind and includes limitations on greenhouse gas emissions, stricter regulations for mercury gas and coal ash, and measures to expedite the construction of much-needed transmission lines. The ultimate aim of these regulations is to avoid nearly 1.4 billion metric tons of carbon pollution by 2047, which is equivalent to removing 328 million gasoline-fueled cars from the road for a year.
One of the major parts of the regulatory package is the Environmental Protection Agency’s rule requiring existing coal-fired and new natural gas plants to capture 90% of carbon emissions before they are released into the atmosphere or face closure by 2039. The rule does not apply to existing natural gas plants that provide over 43% of the country’s electricity, or new natural gas plants used to stabilize supply on the grid during times of high demand or variable output from renewable energy sources. The EPA is also establishing guidelines for “systems emergencies” in which gas-fired plants can prioritize electricity supply over meeting emission standards.
In terms of cost, natural gas plants can generate electricity for as little as $33 per megawatt hour without subsidies, whereas wind and solar power can produce electricity for as low as $24 per megawatt hour. Renewable energy costs can drop to $0 with federal tax credits, making them competitive with traditional gas and coal costs. The challenge, however, lies in expanding the transmission network to accommodate the growing demand for renewable energy installations totaling 1,500 gigawatts waiting for grid connection approval. To address this, the Department of Energy issued rules to streamline environmental reviews and accelerate the permitting process for new transmission lines.
Despite not being explicitly part of the regulatory package, Biden administration officials have highlighted advances in nuclear and geothermal power plant projects as zero-carbon electricity sources that operate continuously and require less land than wind and solar options. The Nuclear Regulatory Commission has proposed expediting permitting for advanced nuclear reactors, while the Bureau of Land Management has exempted geothermal projects on public lands from certain environmental review processes. The emphasis on power plants’ emissions is crucial for the U.S. decarbonization strategy, as transitioning to electric alternatives relies on low-carbon electricity sources.
The need to overhaul the power grid system comes at a time when years of underinvestment have left the grid vulnerable to increased demand from data centers and air conditioning during hotter days. Past administrations, including Obama’s Clean Power Plan and Trump’s Affordable Clean Energy rule, have attempted to regulate power plant emissions, but faced legal challenges and reversals. The Biden administration’s regulations aim to withstand legal challenges, as Administrator Michael Regan emphasized ensuring the rules are built on solid legal grounds. The focus on strengthening the power grid and reducing emissions from power plants is a critical step in the U.S.’s efforts to combat climate change and transition to renewable energy sources.
