Energy policy refers to laws and regulations pertaining to energy usage. This may include programs and policies intended to minimize climate impacts while helping communities adapt to the economic ramifications associated with its production.
Energy policies affect every aspect of our society, from financial incentives (tax credits) to controlling pollutants in air, water and soil.
Renewable energy
Renewable energy is a critical element of United States energy policy, providing an affordable source of power that reduces greenhouse gas emissions while contributing to economic development and job creation. A comprehensive energy strategy must be put in place in order to ensure the transition to a more sustainable economy is seamless and successful.
To achieve its goal, the nation must invest in renewable energy technology and increase supply, while improving its electricity transmission system and creating incentives to promote renewables. Furthermore, long-term market stability should also be ensured so as to promote investment in such technologies.
Institutional criteria evaluates a state’s role in supporting and advancing an inclusive renewable energy policy, including funding, monitoring and enforcement procedures. Alaska provides incentives such as Property Assessed Clean Energy (PACE) to encourage consumers to invest in clean energy technologies; as well as webinars, board meetings and strategic planning workshops designed to engage diverse stakeholders in its energy strategy development process.
Energy efficiency
Energy efficiency is one of the most cost-effective, climate-friendly, and equitable ways of meeting energy demand. Through improving energy efficiency in products, buildings, factories, we can avoid emissions of greenhouse gases and other pollutants while decreasing primary energy consumption and improving business and household economic performance.
State governments can implement energy efficiency policies through executive action, benchmarking programs and incentives. Washington requires that all commercial buildings be benchmarked while offering energy-efficiency incentive programs to promote retrofits – other states are following suit with similar initiatives.
These measures can also assist utilities with reaching their cost reduction goals. Many utilities have implemented energy efficiency resource standards that require utilities to reduce customers’ electricity and natural gas consumption by specific amounts on an agreed-upon schedule, decoupling profits from sales volumes to create an incentive to pursue energy efficiency. Another policy option available to utilities is load flexibility which encourages customers to shift energy use away from peak periods in order to ease strain on the grid.
Energy security
Since the 1973 oil embargo, energy security has been an ever-present geopolitical priority of presidents of both parties. While energy security may seem like an intangible concept, there are numerous practical measures available to improve it such as diversifying energy supplies, decreasing dependence on one single source and investing in renewable and alternative technologies that are more resilient against supply disruptions.
Energy transitions offer new opportunities to strengthen energy security, but they also present unique vulnerabilities and challenges. For instance, declining coal and oil consumption in industrial economies increases dependence on natural gas imports while renewables and low carbon technologies increase exposure to volatile prices for critical materials.
A key way of mitigating these risks is through strengthening US energy policy tools. A National Energy Strategy under congressional oversight and bipartisan collaboration would provide the United States with a means of successfully meeting its energy goals while meeting challenges that come its way. Such a framework would direct American technical assistance and financing tools towards projects which both improve energy security while furthering national economic interests.
Energy policy in the United States
The United States faces an historic opportunity to make itself more energy efficient and reduce its reliance on fossil fuels, benefiting its economy, national security and environment all at the same time.
Future energy policies should take into account that today’s global markets are interdependent and require collaboration instead of seclusion. They must take account of climate change’s urgency by including it into policies affecting all forms of energy sources.
To meet the challenges of this new world, Canada needs a more diverse, flexible, and resilient energy portfolio. New policies must also be introduced to minimize environmental costs associated with energy development – this may involve striking a better balance between expanded production of new and expanded production of existing sources as well as protections of iconic landscapes; as well as greater emphasis placed on clean renewable sources that reduce carbon emissions from existing infrastructure; finally its ability to respond swiftly to price volatility through short-cycle shale deposits or increased refinery capacity rather than stockpiles of crude stockpiles.