SUST 300: introduction to energy policy

rube Goldberg machine

significance: reflection of the energy system

What is Energy policy?

talking about resources that fuel society

Government

• Adress energy production, distribution, consumption

• includes legislation , international treaties, insenticves to investment

• Guidelines for energy conservation

  • Taxation

  • Political Ideology

Private sector

• corporate policy

• fiduciary responsibility to make money

• Consider ROI and Payback period

  • incentives offered by institution, navigating regulatory framework

Individual sector

They will consider:

• How affordable energy is

• How reliable energy is

• If it aligns with our principles

framework we use to make decisions

DEFINE ENERGY

consider decision making

different levels

energy

• complex system

• affects everyone→ regional vibrancy, affluence etc

• everything is connected with energy

• full of tensions and major issues

a way of moving wealth into one way or another

ability to do work/create heat

• resource that fules and powers society

• renewable + non-renewables

policy

framework used to make decisions about energy in society and in our daily lives

• sources we use

• how we distribute it

• how we consume it

• how to make it affordable

• reliability

Sustainability

meeting needs of today’s generation without compromising needs of future generations

needs to create systems that can run indefinitely

shock resistance

1. environmental

2. economic

3. social

energy transition

shifting from non-renewable (fossil fuel) to renewable (low carbon) system

how we generate, distrubute, and consume across all sectors of economy across the globe

IN THE CONTEXT OF THE ENERGY TRANSITION,

DISCUSS THE DRIVERS OF CHANGE AND THE

DRIVERS OF THE STATUS QUO

push and pull between the drivers create tension

think about opinion.

drivers of change

• climate change

• cost/ affordability

• gov policies

• tech improvements

• Energy security

  • Public Opinion

  • Corporate commitments

  • Financing

Climate chance as a driver

society is demanding action

commitments from diff countries

cost as a driver

• solar and wind costs dropping

• renewables are now cheaper

• storing in batteries is more feasible to store renewables

• Competitive operating costs for renewable facilities once built

gov policy

political commitments and ideologies

renewable energy standards

tax credits and subsidies

alberta change in 2015 when NDP came in carbon pricing change change again in 2019, got rid of carbon tax

tax credits and subsidies - instrument

carbon pricing and emissions regulation make fossil fuels more expensive while making renewable competitive

tech improvements as a driver

Solar and wind efficiency improving

smart grid tech AI

energy storage breakthroughs

energy security as a driver

countries want to reduce vulnerability to price spikes and supply disruptions

renewables cant be weaponized

diversifying: less dependence on volatile fossil fuel markets

Fort chipewyan

public opinion as a driver

• polling+ growing support for renewable energy

• advocacy goals

• younger generations prioritize it

• social media increasing awareness

ex. Data centres

corporate commitments as a driver

green washing and green hushing

companies facing pressure

helps against volatile fossil fuel prices

financing as a driver of change

-10 years ago

central lenders would incentivise people to work on green projects

now, moving bak to supporting fossil fuels

INSURANCE: increased risk due to climate change, increasing support for climate change

Sovereign wealth fund→financing lever for energy transition targets no longer?

drivers maintaining the status quo

• reliability and baseload power→ FF plants can run 24/7

• existing infrastructure→ existing pipelines, power plants etc

• energy density and storage→ FF pack more energy and easier to store long term

• economic disruption→ jobs lost and economic upheaval

• grid stability→ designed around predictable fossil fuel generation, steady flows

• transportation fuels→ aviation, shipping, heavy trucking at scale

• industrial processes→ ex making concrete, requires high sustained temps

• energy security through reserves→ strategic petroleum reserves cannot stock pile renewables?

• cost transition→ enormous upfront capital investment

• technological maturity→ fossil fuels are proven while som ren. are developing