“Our modeling analyzes region-specific clean electricity trajectories to estimate what a national impact might look like, with a focus on potential changes in the costs of investing and operating power generation resources. new and existing, âsaid the study’s lead author, Pavel Cheri, vice-president of Analysis Group. “The results show clear increases over time, relative to a business-as-usual scenario, in the development and exploitation of clean production and storage resources, with substantial economic benefits for the country in the form of an increase in GDP and new jobs. “
Other takeaways from the study include:
- A CEPP has the potential to stimulate both immediate and ongoing investments in new power generation technologies, as retail providers are incentivized to meet performance targets. Economic benefits arise from the direct investment of dollars to build and operate CEAR-eligible resources, and from the additional economic activity generated as these initial investments spill over into the economy in the form, for example, of an increase in labor income expenditure from new work.
- A CEPP would stimulate the deployment of solar energy, storage and onshore wind, while stimulating demand for newer and innovative technologies such as offshore wind and low or zero emission fuels. By 2031, average annual electricity production from renewables would be around 1.5 times greater than renewable generation in 2020, compared to a business-as-usual scenario, with substantial investments made in all regions of the country .
- A CEPP would reduce energy and economic supply chain risks and provide the opportunity to create energy sector jobs in every region. The growth of CEPP compliant technologies will lead to accelerated development of energy sources and technologies that rely primarily on domestic manufacturing and materials industries. This change would reduce supply chain risks and reliance on concentrated supply sectors and generate economic activity stimulating the supply and use of energy in all regions of the country.
In addition to the economic benefits, CEPP would increase the production and use of electricity without emissions of greenhouse gases or other pollutants, a step in the right direction to improve air quality and achieve climate goals. CEPP’s investments would also facilitate the decarbonization of the country’s electricity systems at a time when they will have to absorb additional demand from the electrification of the transport and construction sectors, and increasingly from the industrial sector.
The study was supported by a team of Consultants from Analysis Group, including Principal Paul Hibbard, M. Darling, and Senior Analyst Luke Daniels. Funding was provided by the Natural Resources Defense Council and Evergreen Collaborative.
To learn more about the capabilities of Analysis Group, visit AnalysisGroup.com
About the Analysis Group:
Analysis Group is one of the largest international economic consulting firms, with more than 1,000 professionals in 14 offices across North America, Europe, and Asia. Since 1981, we have provided expertise in economics, finance, healthcare analysis and strategy to top law firms, Fortune Global 500 companies and government agencies around the world. Our in-house experts, along with our network of affiliated experts from academia, industry and government, provide our clients with an exceptional breadth and depth of expertise.
Eric Seymour, +1 978 273 6049
SOURCE Analysis Group