Energy Policies of IEA Countries: The United States 2014 [electronic resource] /
IEA.
Paris : IEA,
2014.
Since the last IEA review of the United States was published in 2008, the country’s energy policy landscape has fundamentally changed. In many aspects there have been significant improvements, and the country is in a strong position to deliver a reliable, affordable and environmentally sustainable energy system. The most obvious change has been the renaissance of oil and gas production: the growth in unconventional gas production, alongside increased output of light tight oil, is making a substantial contribution to economic activity and competitiveness. Conversely, the expansion in energy production is also raising unease on environmental and safety grounds, concerns which must be addressed appropriately. The U.S. natural gas boom has resulted in stable wholesale electricity prices, lower greenhouse gas emissions and greater system flexibility. The electricity system, however, is in need of significant investment if the country is to meet demand growth forecasts and strengthen its resilience to climate change. Renewable energy production is growing but the durability of federal tax incentives remains a persistent uncertainty. At policy level, a number of strategic initiatives have created a new policy framework over the past six years. Among them, the Climate Action Plan has the potential to guide the U.S. economy away from its reliance on fossil fuels and towards a more sustainable energy system. This review analyses the energy policy challenges facing the United States and provides recommendations for further policy improvements. It is intended to help guide the country towards a more secure, sustainable and affordable energy future.
1. Executive Summary and Key Recommendations 9 PART I. POLICY AND SECTOR ANALYSIS 17 2. General Energy Policy 19 -Country overview 19 -Energy supply and demand 20 -Institutions 23 -Energy policy 27 -Energy data 31 -Energy pricing and taxation 32 -Assessment 34 -Recommendations 36 3. Electricity 39 -Overview 39 -Supply and demand 39 -Regulatory oversight 44 -Structure of the power generation sector 47 -Interaction between electricity and natural gas 47 -Resource adequacy/capacity markets 52 -Transmission networks 56 -Focus on selected regions 61 -The regional interface 63 -Demand response 67 -Market power 69 -Infrastructure resilience 71 -Smart grids and metering 72 -Distribution, retail markets and end-use prices 77 -Assessment 84 4. Nuclear Energy&nbsp;95 -Overview 95 -Institutional oversight and regulation 97 -Costs of nuclear power 100 -Nuclear power development strategy&nbsp;102 -Assessment 106 5. Renewable Energy 113 -Supply and demand 113 -Institutions 115 -Policies and measures 116 -Renewable portfolio standards and other state-level mechanisms 119 -Electricity from renewable energy 121 -Grid and system integration 127 -Transport and biofuels 128 -Heating and cooling 130 -Assessment 131 -Recommendations 134 6. Climate Change 137 -Overview 137 -GHG emissions 137 -Energy-related CO2 emissions 138 -Institutional framework 141 -Policies and measures at the federal level 142 -Assessment 150 -Recommendations 152 7. Energy Efficiency 153 -Overview 153 -Institutions 156 -Sectoral developments 157 -Policies and measures 160 -Assessment 167 8. Oil&nbsp;173 -Overview 173 -Supply and demand 173 -Oil exploration and production policies 177 -Infrastructure 179 -Oil emergency response policy and emergency organisation 187 -Distribution and marketing policies 194 -Assessment 196 -Recommendations 198 9. Natural Gas&nbsp;199 -Overview 199 -Supply and demand 199 -Natural gas trade 202 -Regulatory oversight 207 -The shale gas production boom 207 -Natural gas infrastructure 215 -Focus: Natural gas use in road transport 216 -Prices 219 -Assessment 221 10. Coal 227 -Overview 227 -Supply and demand 227 -Coal transportation 232 -Industry stucture 232 -Government policy and environmental regulation 234 -Carbon capture and storage 236 -Clean coal programmes 239 -Assessment 241 -Recommendations 243 11. Energy Technology Research, Development and Demonstration 245 -Overview 245 -Institutional background 245 -Strategies and policies 247 -Basic research 249 -Co-ordination with the Department of Energy 249 -Programmes 250 -Energy Frontier Research Centers 254 -Merit review process 255 -Funding 256 -International co-operation 257 -Assessment 257 -Recommendations 259 PART II ANNEXES. 261 Annex A.&nbsp;Organisation of the review 263 -Review criteria 263 -Review team 263 -Organisations visited 264 Annex B. Energy balances and key statistical data 267 Annex C.&nbsp;International Energy Agency "Shared Goals" 273 Annex D.&nbsp;Glossary and list of abbreviations 275
Since the last IEA review of the United States was published in 2008, the country’s energy policy landscape has fundamentally changed. In many aspects there have been significant improvements, and the country is in a strong position to deliver a reliable, affordable and environmentally sustainable energy system. The most obvious change has been the renaissance of oil and gas production: the growth in unconventional gas production, alongside increased output of light tight oil, is making a substantial contribution to economic activity and competitiveness. Conversely, the expansion in energy production is also raising unease on environmental and safety grounds, concerns which must be addressed appropriately. The U.S. natural gas boom has resulted in stable wholesale electricity prices, lower greenhouse gas emissions and greater system flexibility. The electricity system, however, is in need of significant investment if the country is to meet demand growth forecasts and strengthen its resilience to climate change. Renewable energy production is growing but the durability of federal tax incentives remains a persistent uncertainty. At policy level, a number of strategic initiatives have created a new policy framework over the past six years. Among them, the Climate Action Plan has the potential to guide the U.S. economy away from its reliance on fossil fuels and towards a more sustainable energy system. This review analyses the energy policy challenges facing the United States and provides recommendations for further policy improvements. It is intended to help guide the country towards a more secure, sustainable and affordable energy future.
Energy