Stuck on the natural gas bridge

Presented by National Clean Energy Week: Your guide to the political forces shaping the energy transformation

Sep 20, 2022 View in browser   By Arianna Skibell Presented by National Clean Energy Week Pumpjacks in the San Joaquin Valley, Calif. | John Ciccarelli /BLM/Flickr If you thought your summer utility bill was high, brace yourself for winter's electricity costs. That's in part because Russia's invasion of Ukraine and a surge of U.S. exports to energy-starved Europe are driving up the price of natural gas — the major fuel source for Americans' electricity supply. In normal times, a significant uptick in the cost of natural gas would cause power companies to switch much of their output to cheaper-but-dirtier coal — but as POLITICO's E&E News reporter Benjamin Storrow writes today, there's nothing normal about this year. Natural gas prices have risen over 200 percent in recent years. Despite this price hike, energy companies are ramping up production at U.S. natural gas plants, which are generating 7 percent more power compared with this time last year, whereas coal generation is down 8 percent. The unusual dynamic reflects the start of a new chapter in the nation's energy transition, Storrow explains. Supporters have long touted natural gas as the "bridge" between a fossil-fueled economy and an all-renewable future. But the country is stuck in the middle, unable to unleash the full potential of clean power nor return to coal after a decade of power plant retirements. The result: a stubborn dependence on gas, no matter the costs. But it's not all bad news. Not going back to coal has meant lower levels of planet-warming emissions. By some estimates, power plant carbon pollution dropped 1.7 percent so far this year. Coal generation may be shrinking in the national rearview mirror, but swapping out a fossil-fueled grid for a renewable one takes time. Despite significant gains in the last few years, clean energy accounts for only 13 percent of total U.S. power generation. And political and technical hurdles remain. For example, when solar and wind farms began to take off 10 to 20 years ago, they were programmed to temporarily switch offline during certain events that might damage their equipment, like a downed power line. As POLITICO's E&E News reporter Miranda Willson notes, that made sense when renewables made up a small portion of the grid. But now, these tripping incidents, as they're called, are leading to serious, albeit short-lived, blackouts — alarming power operators. "The truth is, we're not really making headway in terms of a solution," National Renewable Energy Laboratory chief engineer Barry Mather told Willson. For now, the U.S. is standing squarely on the natural gas bridge. But if the world cannot find a way to significantly reduce greenhouse gas emissions, including from natural gas, scientists warn the climate consequences will be dire.   It's Tuesday — thank you for tuning in to POLITICO's Power Switch. I'm your host, Arianna Skibell.  Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to askibell@eenews.net. Listen to today's POLITICO Energy podcast Today in POLITICO Energy's podcast: Gloria Gonzalez breaks down Hurricane Fiona's devastation in Puerto Rico. Trends Atlas EV Hub July's electric vehicle sales are in, and the numbers remain strong. July marked the second-highest market share for EVs at 7.3 percent with 76,000 sales, according to Atlas Public Policy, an EV advisory group. General Motors had its strongest month since May 2021, while Ford had its second best month to date.   A message from National Clean Energy Week: Save the date for the 6th annual National Clean Energy Week (NCEW), September 26-30! NCEW celebrates the policies, industries, and innovations that power our daily lives while reducing emissions. Ready to join the national clean energy conversation? REGISTER for the VIRTUAL Policy Makers Symposium on September 27-29! Join us to hear from legislators, industry leaders, and clean energy advocates alike! Thanks to NCEW sponsors, registration is 100% FREE for all attendees! Register for FREE here.   Power Centers Playa Salinas flooded after Hurricane Fiona tore through Puerto Rico. | Alejandro Granadillo/AP Photo Island of Enchantment goes dark The Category 1 hurricane that knocked out Puerto Rico's power is raising questions about the role climate change played and why the island's grid remains so vulnerable, write Thomas Frank, Benjamin Storrow and Chelsea Harvey. Puerto Rico's power system never fully recovered from the damage wreaked five years ago by Hurricane Maria, and every one of the island's 1.5 million utility customers lost electricity even before Fiona pummeled the territory, writes Gloria Gonzalez. CO2 tech boom is coming Companies that produce technologies to remove or reduce carbon emissions are gearing up for a massive upswing, with an expected 8.8 percent growth rate over the next five years, writes Corbin Hiar. Notable companies include those working to reduce planet-warming emissions during construction and over the lifetimes of buildings. Now worth $459 billion, those companies' value is expected to hit $650 billion in five years. Putin's energy war with Europe Spanish Prime Minister Pedro Sánchez told POLITICO that Russian President Vladimir Putin is "using energy as a war tool" because he is threatened by the EU's values, writes Ryan Heath. While Putin has succeeded in driving up the price of energy in Europe, forcing massive market interventions to reduce the financial pain, Sánchez insisted Moscow is actually pushing the EU closer together. In Other News Volunteers help distribute bottled water to Jackson, Miss., residents. | Steve Helber/AP Photo Environmental (in)justice: Jackson's water crisis is spurring calls to bring the federal hammer down on Mississippi. City impacts: Climate change is threatening the health and survival of urban trees. Question Corner The science, policy and politics driving the energy transition can feel miles away. But we're all affected on an individual and communal level — from hotter days and higher gas prices to home insurance rates and food supply. Want to know more? Send me your questions and I'll get you answers.   A message from National Clean Energy Week:   Subscriber Zone A showcase of some of our best subscriber content. One pump jack operates as another one stands in California. | Mario Tama/Getty Images A new fossil fuel tracker shows the U.S. holds enough fossil fuels in reserves to burn through the world's remaining carbon budget, toppling international climate targets. A judge largely rejected Shell's bid to dismiss a lawsuit accusing it of failing to prepare for climate change at a site in Connecticut. Senators are pushing to expand sanctions on Russian oil imports, saying it will hobble Moscow's ability to pay for its war against Ukraine. That's it for today, folks! Thanks for reading.   A message from National Clean Energy Week: Are you ready to join the national clean energy conversation? Save the date for the 6th annual National Clean Energy Week (NCEW), September 26-30 and REGISTER for the VIRTUAL Policy Makers Symposium on September 27-29! Tune in to hear from legislators, industry leaders, and clean energy advocates like YOU— thanks to NCEW sponsors, registration is 100% completely FREE for all attendees! NCEW is a weeklong celebration of the policies, industries, and innovations that power our daily lives while reducing emissions. Join us to recognize what an all-of-the-above clean energy future can bring: American energy independence, economic prosperity, & a healthier climate. Register for FREE here.     Follow us on Twitter Arianna Skibell @ariannaskibell   Follow us

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