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In the same week pricing in one segment of the drive for
decarbonization upset the apple cart at the US Federal Energy
Regulatory Commission (FERC), a collective of American consumers
demanded improvements in markets the regulator already oversees and
an expansion beyond those regional entities.
The Renewable Energy Buyers Alliance (REBA) issued a call to
arms in the first week of November, seeking wholesale markets
across the US as well as improvements to existing markets run by
regional transmission organizations (RTOs).
The
Buyers' Principles on Wholesale Market Design demand "critical
design components necessary to reduce energy costs for all
customers, improve reliability of the power grid, drive innovation,
and provide energy customers more options to meet ambitious clean
energy goals."
"REBA's vision is that every organization has a viable,
expedient, and cost-effective pathway to renewable energy," said
Miranda Ballentine, CEO, REBA.
REBA said there were three underlying themes in its 10-point
plan:
Unlocking wholesale market competition to catalyze clean energy
by ensuring a level playing field, large energy buyer
participation, and services that provide actual value for energy
customers.
Safeguards for market integrity through independent and
responsive governance structures, transparency, and broad
stakeholder engagement and representation.
And design to scale to the future by ensuring operational
scale, customer-oriented options to meet decarbonization goals,
alignment with federal and state public policy, and predictable
investment decisions.
According to IHS Markit data, some 220 companies operating in
the US are already procuring renewable energy or soon plan to do
so.
Of these "active" companies, more than 160 have renewable
targets and over 140 are targeting 100% renewables by 2050, the
data show.
Corporate renewable demand is projected to rise from 3.3% of
total US corporate electricity use this year to 8.4% in 2030,
according to analysis by IHS Markit.
REBA's membership constitutes more than 200 companies with a
market cap of $3.8 trillion in revenue.
"Wholesale markets support GM's overall commitment to protecting
the environment by providing a platform that hastens the deployment
and procurement of cost-effective clean energy as we pursue our
vision of an all-electric, zero-emissions future," said Rob
Threlkeld, Global Manager of Sustainable Energy, Supply &
Reliability at General Motors.
"We are committed to using our scale and resources to grow clean
energy demand and availability in support of our accelerated
renewable energy commitment to power 100% of our US facilities with
renewables by 2030 and global facilities by 2040," he added.
In March, the global automaker debuted its "Ultium" battery
technology, which it believes will allow "GM to offer an EV for
everyone." Among the company's efforts to pivot to electric
vehicles will be EV versions of its super-sized, gas-guzzling
Cadillac Escalade and GMC Hummer models.
And in Europe
Of course, carbon pricing, the topic that led to the demotion of
former chairman Neil Chatterjee at FERC, is somewhat old news in
Europe.
But with the EU Emissions Trading System (ETS) now 15 years
young and moving into its fourth phase come 1 January 2021, the
availability of free credits is set to decline and consumer
organizations are worried about prices.
At the end of October, the Bureau Européen des Unions de
Consommateurs (BEUC) - an umbrella group for 44 consumer
organizations from 32 countries - sought to ramp up the pressure on
lawmakers, especially as the European Commission considers
extending the ETS to road transport and buildings.
BEUC laid down some markers to Brussels. It argued there were
seven principles that must be borne in mind:
costs should be distributed fairly;
the impact of carbon price changes on different socio-economic
groups should be assessed;
transparency in the use of revenues was required;
revenues should be used to alleviate any burden of carbon
pricing measures and/or provide alternative lifestyle choices;
make carbon pricing a complement to, not a substitute for,
sector-specific climate policies;
don't displace CO2 emissions to other parts of the world;
and
ensure consistency across all pricing measures.
Players in energy-intensive industrial sectors - from oil
refineries to cement manufacturers to power generators - must cover
their emission allowances, either through receiving allocations or
buying them.
But the consumer groups are also growing more worried about
energy pricing itself. In the middle of October, with help in the
not inconsiderable form of the Council of European Energy
Regulators, issued a call to arms.
The two groups issued a roadmap in which "a future where
effective policies deliver on both our climate objectives and
consumer rights protection," calling on governments, industry,
regulators, consumer bodies and authorities "to deliver for
consumers."
The roadmap for energy prices consists of six segments:
affordability, simplicity, protection, inclusiveness, reliability
and empowerment.
"Looking ahead to 2030 and the EU's 2050 sustainability and
climate neutrality objectives, we envision a future where effective
policies and frameworks ensure that consumer rights are promoted
and protected, whilst delivering these objectives," it said when
launching its "vision."
"For the energy transition to be successful, consumers will need
to be informed, supported and nudged throughout this
transformation. It is, therefore, key that all relevant
stakeholders (i.e. governments, regulators, consumer protection and
enforcement authorities, consumer organizations, as well as
companies) work closely and effectively, across sectors, to ensure
that consumers engage with and benefit from the opportunities of
the new developments," it added.
Posted 13 November 2020 by Keiron Greenhalgh, Editor, Energy and Natural Resources Group, IHS Markit