Energy policy provides the framework for managing our energy resources to promote economic development, social wellbeing and environmental sustainability.
Reliable and affordable energy supports expansion in industry, modern agriculture, trade and transportation. It protects from price shocks or embargoes while helping people escape poverty.
Lawmakers at all levels – local, state and federal – must implement efficient energy policies at both local and federal levels. These should support alternative energies while encouraging energy efficiency through policies.
Fossil Fuels
Fossil fuels are the world’s predominant energy source, accounting for 82% of total global consumption1. They power our lights, heat our homes, power cars and make essential products such as furniture.
Coal, petroleum and natural gas are carbon-based fossil fuels composed of the remains of plants and animals that once lived on Earth’s geologic past. When burned, they emit CO2 into the atmosphere along with other greenhouse gases resulting in climate change.
Policies related to fossil fuel extraction, transportation and use affect their extraction, transportation and use in various ways, including laws, taxes, subsidies, regulations and incentives. These policies can have both direct public health and environmental ramifications from activities like fracking or coal mining as well as indirect ones like inefficient government spending and investment resulting in lower economic productivity for lower income households and harm to lower-income households.
Reducing subsidies and introducing a carbon tax would help create an even playing field for renewables, efficiency and other low-emission technologies. RFF’s Federal Climate Policy Toolkit details how this can be accomplished.
Wind and Solar
Renewable energy continues to expand its market presence. To fully replace fossil fuels in our energy grid, solar and wind must become cheaper and more reliable while researchers must figure out ways to store energy when the sun or wind don’t shine or blow.
Renewables have recently seen great gains as their costs decrease, and homeowners can install solar and wind systems connected to the electric grid through net metering – paying only for what they use while earning credit towards selling back energy produced back to their utility provider.
Renewables may be difficult to sell in rural areas where many groups oppose these projects, according to Mills. She states that misinformation has resulted in overly stringent setback regulations which prevent the construction of renewable projects.
Nuclear
Nuclear is one of the main sources of clean energy in the US, providing over half of emissions-free electricity as well as contributing to non-electric uses. The Department of Energy’s Nuclear Energy Office works closely with industry to enhance plant reliability and performance as well as support advanced current-generation reactor technologies for research purposes and diversify product offerings through water desalination and hydrogen production technologies.
Studies show nuclear’s safety case remains strong, as evidenced by studies that demonstrate it causes fewer deaths per terawatt-hour than coal or gas plants. This explains why countries like Germany and Belgium have extended the life of their reactors while Japan scaled back plans to close them down. In the US, production tax credits (PTCs) were extended until 2021 as retirements of existing plants are expected and move us closer towards our Net Zero Scenario goal; furthermore, DOE continues its support of international research and development of smaller reactor designs and other advanced technological innovations.
Energy Security
Energy security is a top priority and responsibility for governments of all kinds. Mechanisms and strategies designed to bolster energy security typically focus on mitigating disruptions to hydrocarbon supplies at acceptable prices; although renewable technologies have altered these risks over time.
Energy security encompasses operational reliability for all aspects of energy systems – from grids and pipelines, manufacturing facilities and delivery systems, energy grids. Although this aspect has often been undervalued in energy policy debate, its importance was highlighted during the COVID-19 Pandemic and Russian Invasion of Ukraine 2022.
Many countries strive to increase energy security by decreasing import dependency through domestic production of fossil fuels and nuclear power, which offers relatively lower and predictable generation costs due to reliable uranium resources. Yet increasing domestic production can create additional insecurity issues; drought in Brazil caused reduced capacity and had serious social repercussions.