G7 POWER SYSTEMS SCORECARD
COUNTRY PROFILE: US1
May 2024

Synopsis
OVERALL COUNTRY SCORE: 216/400

Under the Biden administration, the United States has seen a dramatic shift
towards meeting international climate obligations and building its renewableenergy capacity as it works to attain a carbon-free electricity sector by 2035. The
Bipartisan Infrastructure Bill, the Inflation Reduction Act, and numerous
executive actions have endowed the Department of Energy (DOE) and theFederal Energy Regulatory Commission (FERC) with new funds and certain new
authorities respectively to accelerate the development of green energy
technologies and their integration into America’s existing electrical grids.
The US is already championing some areas key to power systems
decarbonisation. Among them are policies facilitating long-term storage rampup, and the Environmental Protection Agency’s (EPA) recently adopted
regulations might prove to be among the first within the G7 towards facilitating aphase-out of both unabated coal and gas fired generation. However, the US is
working from a very low renewables base and needs to address the poorly
connected and ageing grids systems. The scope and speed of change needed
within the next decade is so far not reflected in either the country’s renewableproject pipeline or federal policy implementation on the state level in manystates.
Country context
Analysing the US’s progress towards G7 goals is challenging due to the country’s
decentralised energy infrastructure. Most programs that the DOE oversees
involve awarding grants and incentivising investment for renewable energy
projects to be carried out by other actors, such as utility companies and local
governments. FERC can enforce federal regulations, but it does not give thefederal government primacy over the states in terms of actually building
renewable energy infrastructure. The Biden administration can be as ambitious
as it wants, but the states and utility companies themselves will have to match
1 To see the whole Scorecard, including the scoring methodology, visit https://www.e3g.org/g7-power-systems-scorecard

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G7 POWER SYSTEMS SCORECARD – COUNTRY PROFILE: USthat ambition if the US is to one day achieve a net zero power sector. The
behaviour of large states with substantial energy infrastructure in particular,such as California and Texas, will have significant impacts on the US’s ability tomeet its goals. That being said, the last few years have seen a robust push forAmerican climate leadership on the global stage, with the federal government
scaling up its climate mitigation finance and participating in numerous
international energy transition partnerships.
Headline message – Benchmarks 1–2 (Section 1: Infrastructure/Energy mix)
SCORE: 31/120

Despite the steady decline in coal generation over the past years, the US
electricity mix is dominated by coal and gas generation, with only two-fifths ofthe total electricity produced from low-carbon electricity sources. The declining
coal generation has been largely replaced by gas fired power, with the share ofgas generation growing by 2.5 times in the last two decades. Today, the US is
responsible for 20% of global gas demand, operates the largest gas fleet in theworld and has the largest pipeline of new gas powerplants in planning or
construction. Renewable capacity has ramped up in the last couple of years, but
the scale is as yet insufficient to deliver on the country’s net zero electricity
target. Further progress is impeded by time-consuming permitting procedures
and lack of grid interconnection.
Headline message – Benchmarks 3–5 (Section 2: Policies/Targets)
SCORE: 185/280

The Inflation Reduction Act (IRA) and the Bipartisan Infrastructure Law (BIL) haveput significant incentives for faster transformation of power systems in placeacross the board – from enabling faster energy storage deployment and boosting
grid flexibility to more affordable retrofits of the existing buildings stock. EPA’slatest regulations on existing coal and new gas power plant emissions also
provide the first important milestones towards phasing out unabated fossil fuelgeneration.
However, the US is lagging on national target setting, be it on fossil fuelgeneration phase-out, electrification, or efficiency. Additionally, thoughincentives provided by IRA and BIL facilitate consumer action, the frameworks
mandating state action are missing, and the overall compliance with federal
standards is lacking. Internationally, the US must step up its game as the world’s
largest economy and do more to support power systems decarbonisation indeveloping countries.

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G7 POWER SYSTEMS SCORECARD – COUNTRY PROFILE: US

Benchmark 1: Reducing fossil fuel reliance
SCORE: 13/60

About 60% of electricity in the US is generated by fossil fuel power plants, withgas playing the dominant role in country’s electricity mix. Though the US has
managed to more than halve its coal generation over the past two decades, it
has largely done so by replacing it with gas generation. It now operates thebiggest gas power fleet in the world, taking up 20% of global gas demand. The US
nuclear power fleet is among the oldest in the world and its share is likely tofurther decline in the coming years.
1.1 New unabated coal and gas power plants in planning or construction
SCORE: 0/15

There are no new coal power plants in construction in the US and the existingcoal fleet has been gradually retired over the last decade. Operating coalcapacity shrank by 102 GW between 2015 and 2023. However, as of 2023,
0.8 GW of announced coal projects are still in the pipeline.2
Despite gas contributing a relatively small share of new capacity additions,compared to solar, wind and energy storage,3 the US still has 37.8 GW of gas inpower projects either in construction, approved or announced, and ranks fourth
globally in terms of the size of its gas power plant pipeline after China, Brazil andVietnam.4
1.2 Share in electricity generation: fossil fuels
SCORE: 2/15

In 2023, 59.1% of electricity in the United States was generated from fossil fuels.
Gas is the largest source of electricity with 42.4% of total generation, followed bycoal (15.9% of total generation). Petroleum and other fossil gases account for the
rest of fossil fuel-based generation (0.8%).5
The total share of fossil fuel-based generation slightly declined year-on-year(from 59.8% in 2022), while the share of gas fired generation grew by 3%. In

2 Global Energy Monitor, updated January 2024, Global Coal Plant Tracker
3 World Resources Institute, February 2024, State of the US clean energy transition: Recent progress, andwhat comes next
4 Global Energy Monitor, February 2024, Global Oil and Gas Plant Tracker
5 Ember, updated April 2024, Yearly Electricity Data

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G7 POWER SYSTEMS SCORECARD – COUNTRY PROFILE: USabsolute terms, the US showed the fastest gas-in-power growth globally and now
accounts for 25% of global gas generation.6
1.3 Share in electricity generation: non-renewable low-carbon tech
SCORE: 5/15

18.2% of electricity in the United States is generated by nuclear power stations.
The share of nuclear generation has declined slightly (about 1.5%) over the past
two decades. The average age of US commercial nuclear power reactors was
about 42 years as of 2023, most of them already running on an extended
operating license.7 While some of these power plants will retire over the coming
years, the pipeline of new large-scale nuclear projects already in construction
amounts to around 1% of today’s total capacity.8 Further decline in nuclear
capacity over the coming years is thus to be expected.
1.4 Carbon intensity of power index
SCORE: 6/15

Carbon intensity of electricity in the United States was 385.9 gCO2/kWh in 2022,9
making it the country with the third highest emissions intensity level in the G7
after Japan and Germany.10

Benchmark 2: Ramping up renewables
SCORE: 18/60

Deployment of solar and wind power, as well as of storage capacity, has taken
off in the past years, spurred by the incentives provided through the IRA. The
current speed of renewables ramp-up is however insufficient to put the country
on track to net zero electricity by 2035, given the low share of renewables intoday’s country mix. Renewables are being further held up by lack of available
interconnection to the grid, with ca. 2600 GW of solar, wind, and storage
projects queuing up for interconnection.

6 Ember, May 2024, Global Electricity Review
7 U.S. Energy Information Administration, How old are U.S. nuclear power plants, and when was thenewest one built? (webpage, accessed May 2024)
8 Global Energy Monitor, October 2023, Global Nuclear Power Tracker
9 Ember, Electricity Data Explorer
10 U.S. Energy Information Administration, November 2023, U.S. Energy-Related Carbon Dioxide Emissions,

2022

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G7 POWER SYSTEMS SCORECARD – COUNTRY PROFILE: US2.1 Share of variable RES in electricity generation
SCORE: 5/15

Solar and wind account for 15.6% of the electricity generation mix, with 5.6%
and 10% respectively.
Together with non-variable renewables and nuclear generation, variable
renewables make up 40% of the total generation mix. Despite the steadily
declining share of coal-based generation, this is insufficient to put the country on
track towards net zero power within the next ten years.
Worth noting, however, is the fast growth of variable renewable capacity, solar
in particular, in 2023.11
2.2 Share of other RES in electricity generation
SCORE: 2/15

Non-variable renewables account for 7% of total electricity generation, withbioenergy contributing 1.1%, hydropower 5.5%, and other renewables 0.4% to
the generation mix.12
2.3 Variable RES pipeline capacity vs country’s announced target
SCORE: 5/15

No national renewable target has been announced for 2030, aside from theoffshore wind target of 30 GW. An analysis conducted by NREL,13 however,suggest that the incentives adopted within the IRA and BIL enable renewables’
growth to 938 GW capacity by 2030.
The current solar and wind project pipeline will allow the United States to growvariable RES capacity by ca. 253 GW by 2030, with ca. 136 GW solar14 and
117 GW wind projects15 announced, undergoing approval procedures (preconstruction) or in construction. The future of ca. 18% of solar and 36% of windprojects in this pipeline is uncertain, as they have been only announced so far
11 Solar Energy Industries Association, December 2023, Solar Market Insight Report Q4 2023
12 Ember, Electricity Data Explorer
13 NREL, March 2023, Evaluating impacts of the Inflation Reduction Act and bipartisan infrastructure law

on the U.S. power system
14 Global Energy Monitor, December 2023, Global Solar Power Tracker – Solar Farm Capacity by Country(MW)
15 Global Energy Monitor, December 2023, Global Wind Power Tracker – Wind Farm Capacity by Country

(MW)

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G7 POWER SYSTEMS SCORECARD – COUNTRY PROFILE: USand are yet to secure financing and go through the required permitting
procedures before they are approved.
This pipeline will less than double the currently installed capacity (141.7 GW
wind and 114.4 GW solar16) and, given the low share of renewables in thecurrent power mix, is highly insufficient to reach the announced target of 80%
clean energy by 2030.
2.4 Average permitting time for VRE
SCORE: 6/15

Lead times for renewable projects and key enabling infrastructure are long in the
US. They are driven by supply chain bottlenecks,17 permitting delays, and thelong queue for grid interconnections, highlighting the urgent necessity to ramp
up grid deployment. As of 2023, the average timeline for an electricity project(wind, solar, storage, hydrogen) to obtain the necessary National Environmental
Policy Act (NEPA) review was 4.5 years; for transmission projects this timeline
was 6.5 years.18
The Biden administration has put in place several programmes aimed atshortening the permitting period for renewable projects and transmission
infrastructure, the central one being the Permitting Action Plan to quicken
federal permitting procedures. However, the scope of the Act is limited as it
doesn’t apply to state level. The total capacity active in the queues is growing
year-over-year, with 2600 GW of projects (over 1,570 GW of generation and an
estimated 1,030 GW of storage capacity) seeking transmission access. Over 95%
of these projects are either renewable generation capacity (1086 GW solar,
366 GW wind) or storage.19
The typical duration from connection request to commercial operation increased
from <2 years for projects built in 2000–2007 to over 4 years for those built in
2018–2023, with a median of 5 years for projects built in 2023.

16 Ember, Electricity Data Explorer
17 Solar Energy Industries Association, December 2023, Solar Market Insight Report Q4 2023
18 American Clean Power, April 2023, U.S. permitting delays hold back economy, cost jobs
19 Berkeley Lab, April 2024, Queued up: Characteristics of power plants seeking transmissioninterconnection

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G7 POWER SYSTEMS SCORECARD – COUNTRY PROFILE: US

Benchmark 3: Adapting the power systems to highRES share
SCORE: 85/120

The IRA and the BIL have put significant incentives for faster transformation of
power systems in place, particularly in the areas of energy storage and grids
flexibility. Yet more is needed to incentivise faster grid deployment andconnectivity across power systems, as well as enabling end use flexibility,
digitalisation of the power system and power market adjustments to provide alevel playing field for renewable generation.
3.1 Policies to limit curtailment to a minimum that ensures optimal RES
capacity utilisation
SCORE: 5/15

The United States currently does not have any curtailment reduction goals inplace at the federal level20 Curtailment is rising as grid deployment is not keeping
up with the speed of renewables ramp-up. Average national onshore wind power
curtailment in 2022 was 5.3%.21
There are some policies to facilitate grid flexibility and optimal integration ofrenewable capacity into the system, though the overall scope of policies toaddress curtailment is limited.
The BIL provided the funding for the DOE’s Grid Resilience and Innovation
Partnerships (GRIP), which will administer up to $10.5 billion in grants for
projects that improve grid flexibility and reliability as infrastructure is updated,
and that bolster grid resilience in the face of worsening extreme weather
events.22
A subunit of GRIP that is of particular interest is the Smart Grids Grants. This
program provides $3 billion to increase the capacity of American gridtransmission systems, accounting for the increasing integration of renewableenergy and better enabling grids to adjust to fluctuations in demand anddisruptions.23
20 NREL, July 2022, Reframing curtailment: Why too much of a good thing is still a good thing
21 U.S. Department of Energy, August 2023, Land-Based Wind Market Report: 2023 Edition
22 Grid Deployment Office, Grid Resilience and Innovation Partnerships (GRIP) program (webpage,accessed May 2024)
23 Grid Deployment Office, Smart Grid Grants (webpage, accessed May 2024)

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G7 POWER SYSTEMS SCORECARD – COUNTRY PROFILE: US

States

In 2022, California’s Independent System Operator (CAISO) – the state’s primarygrid operator – curtailed 2.4 TWh of utility-scale wind and solar output. 2.3 TWh
had already been curtailed by October 2023, largely due to grid congestion issues
and the fact that solar generation has been outpacing upgrades in transmission
capacity.24 Solar accounts for the bulk of energy curtailed. CAISO says it isexploring solutions to reduce curtailment in renewable power including
increasing energy storage, improving regional market coordination, andenhancing demand response. However, California’s government has no specificcurtailment reduction goals beyond bringing grid operation in line with its
broader renewable energy goals.
According to the Electric Reliability Council of Texas (ERCOT), the state’s primarygrid operator, Texas curtailed 5% of its total available wind generation and 9% of
its total available solar generation in 2022.25 These curtailments were due toresources outpacing low system electricity demand and limited transmission line
capacity. Texas’s government also has not set any explicit curtailment reduction
goals, although in December 2022 ERCOT established a voluntary curtailment
program that allows larger, more flexible energy customers to reduce theirpower during periods of higher power demand.26
3.2 Active steps by the national grid operator to plan for short spells of 100%
RE power
SCORE: 11/15

Several programs and grants have been set up at the federal level that should
accelerate grid development towards a system able to sustain 100% clean
electricity by 2035, in line with the Biden administration’s target. However, there
are no policies targeting services currently provided by fossil fuel generators (e.g.
inertia and black start), or a pronounced system operability strategy on federal
or state levels.
In January 2022, the DOE launched its Building a Better Grid Initiative, a program
designed to promote the nationwide development of high-capacity electrictransmission lines as well as invest in more flexible and resilient distribution
24 U.S. Energy Information Administration, October 2023, Solar and wind power curtailments are rising in

California
25 U.S. Energy Information Administration, July 2023, As Texas wind and solar capacity increase, energy

curtailments are also likely to rise
26 Enerknol Pulse, 8 December 2022, Texas grid operator establishes voluntary curtailment program to

manage peak demand. (Webpage, accessed May 2024)

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G7 POWER SYSTEMS SCORECARD – COUNTRY PROFILE: USsystems for electrical grids.27 Enabled by the BIL, it is specifically involved withpreparing the US electricity grid to meet the Biden administration’s 2035 goal of
100% clean electricity.
This initiative administers:> The $2.5 billion Transmission Facilitation Program to develop transmission
lines and improve access to clean energy sources.
> $2.3 billion in grants over five years to be distributed to states, territories,
and tribes to modernise grids and help them better withstand extreme
weather events and natural disasters.
> The $10.5 billion Grid Resilience and Innovation Partnerships program which
finances improvements to grid flexibility and distribution infrastructure.
> The $760 million Transmission Siting and Economic Development Grants
program which issues grants for both the production of particular highvoltage interstate or offshore electricity transmission lines and the economic
development of communities that might be impacted by the construction ofsuch projects.
This initiative also oversees the National Transmission Planning Study which will
identify the regional and interregional planning processes needed to further
modernise the grid in line with national goals.
StatesOn 8 May 2022, California briefly ran completely on 100% renewable energy
when the state broke its own previous generation records and produced enoughrenewable electricity to meet 103% of consumer demand.28 CAISO is continuing
to build on this accomplishment and preparing California’s grid for less relianceon fossil fuels.
Regional independent system operators such as Independent System Operator
New England (ISO-NE) are planning for higher rates of clean energy toaccommodate state targets that specify 100% renewable energy transmission.29

27 Grid Deployment Office, Building a Better Grid Initiative (webpage, accessed May 2024)
28 NPR, May 2022, California just ran on 100% renewable energy, but fossil fuels aren’t fading away yet
29 ISO New England, July 2022, On the Horizon – 2022 Regional Electricity Outlook

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G7 POWER SYSTEMS SCORECARD – COUNTRY PROFILE: USOther regional system operators such as Midcontinent ISO have reliability
imperatives to identify the challenges associated with a rapidly changing grid
infrastructure.30
3.3 Effective policies to ramp up electricity storage
SCORE: 15/15

The US is starting from a relatively low base: according to the American Clean
Power Association, the US has so far only built 3% of the total energy storage
needed by 2030 to meet its climate goals.31 But the IRA and several otherprograms have brought the much-needed change of pace, including on longduration energy storage (LDES).
> The IRA contains a new Investment Tax Credit (ITC) for energy storage.32
Previously, energy storage projects were only eligible for the United States’
ITC if the batteries involved were connected to a solar project. The IRA now
allows for standalone energy storage projects, which can provide both
backup power to critical load centres and enhance grid flexibility andreliability, to be eligible for the ITC as well. The change is expected to allow
significantly more investment in the energy storage industry.
> The Biden administration’s Long Duration Storage Shot initiative establishedthe goal of reducing the cost of grid-scale energy storage by 90% for systems
that deliver over ten hours of duration within the decade.33 In September
2023, the DOE announced $325 million in funding for 15 projects across 17
states and one tribal nation developing LDES technologies.34> The DOE has also been following the Energy Storage Grand Challenge
Roadmap published in December 2020. It’s the Department’s firstcomprehensive energy storage strategy and it addresses technology
development, manufacturing and supply chains, technology transition, policy
valuation, and workforce development.35

30 Midcontinent ISO, February 2024, MISO’s latest reliability imperative report
31 Tang, A., October 2022, The Inflation Reduction Act will turbocharge energy storage, Utility Dive
32 Tang, A., October 2022, The Inflation Reduction Act will turbocharge energy storage, Utility Dive
33 Office of Energy Efficiency & Renewable Energy, Long Duration Storage Shot (webpage, accessed May

2024)
34 Department of Energy, September 2023, Biden–Harris administration announces $325 million for long-

duration energy storage projects to increase grid resilience and protect America’s communities
35 U.S. Department of Energy, December 2020, Energy Storage Grand Challenge Roadmap 2020

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G7 POWER SYSTEMS SCORECARD – COUNTRY PROFILE: US

States

At least eight states have energy storage targets and policies: Maine,
Connecticut, Vermont, New York, Virginia, Illinois, Nevada, and California. 36
California was the first state to implement an energy storage goal in 2013,setting a procurement target of 1,325 megawatts by 2020.37 As of 2024,
California has installed over 8,000 MW of battery storage capacity, although thestate projects that 52,000 MW will be needed by 2045 to meet the state’s
carbon-neutral energy goal.38
Texas does not have an explicitly set procurement target or delivery target forenergy storage. However, with the renewable energy boom currently sweeping
the state, Texas is projected to add more battery capacity to its power grid thanany other state in 2024 and could surpass California in battery grid employment
by 2025.39
3.4 Effective policies to increase end use flexibility
SCORE: 11/15

There are policies to enable demand side response in the US but barriers still
remain, and more is needed to unlock the full DSR potential, particularly on theretail market.
EPA’s Energy Policy Act of 2005 mandates FERC to conduct an annual assessmentof demand response performance and progress, the 2023 report being theeighteenth since the launch of the initiative. Several regulations have been
issued by the FERC to improve demand response measures and enable DRM’sparticipation in the electricity markets.
In 2021, the United States registered 29 GW of peak demand savings potential
across all its demand response programmes. Over 10 million residential,commercial, and industrial customers were enrolled (about 6.2% of all
customers40), resulting in total energy savings of 1,154 GWh in 2022.41

36 Utility Dive, February 2022, As states ramp up storage targets, policy maneuvering becomes key
37 California Public Utilities Commission, Energy Storage (webpage, accessed May 2024)
38 California Energy Commission, latest update April 2024, California Energy Storage System Survey
39 Canary Media, February 2024, Texas will add more grid batteries than any other state in 2024
40 Statista, October 2023, Number of ultimate customers served by the electric industry in the UnitedStates
41 IEA, last updated July 2023, Demand response

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G7 POWER SYSTEMS SCORECARD – COUNTRY PROFILE: US

There are several alliances at the sub-national level driving this work including
the Association for Demand Response and Smart Grid (ADS), Peak LoadManagement Alliance (PLMA), and New England Demand Response Initiative(NEDRI).42
The BIL provided the funding for the DOE’s GRIP, which will administer up to$10.5 billion in grants for projects that improve grid flexibility and reliability as
infrastructure is updated and that bolster grid resilience in the face of worsening
extreme weather events.43
A subunit of GRIP that is of particular interest is the Smart Grids Grants. This
program provides $3 billion to increase the capacity of American gridtransmission systems, accounting for the increasing integration of renewableenergy and better enabling grids to adjust to fluctuations in demand anddisruptions.44
StatesIn 2022, California’s Public Utilities Commission (CPUC) introduced new demand
flexibility standards that require the state’s large electricity providers to offer
voluntary rates based on real-time electricity costs.45 The goal is to improveaccess to real-time energy costs and better encourage the use of renewableenergy, while also making RE more capable of meeting energy needs at differinglevels of demand.
3.5 Effective policies to accelerate grid development
SCORE: 10/15

Ageing grid infrastructure and the slow pace of grid deployment andmodernisation have long been the main bottlenecks to deploying and connecting
renewable capacity to the system. Several studies have been launched to inform
transmission planning process, and some programs deployed to help fundtransmission projects. A recent decision by Congress has given the federal
government new authority to override objections from state regulators tofacilitate long-distance transmission line permitting. But more needs to be done

42 Office of Electricity, Demand Response (webpage, accessed May 2024)
43 Grid Deployment Office, Grid Resilience and Innovation Partnerships (GRIP) Program (webpage,accessed May 2024)
44 Grid Deployment Office, Smart Grid Grants (webpage, accessed May 2024)
45 California Public Utilities Commission, n.d., Demand flexibility management white paper & rulemaking

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G7 POWER SYSTEMS SCORECARD – COUNTRY PROFILE: USto facilitate connectivity between the US’s three grid systems and coordinate thelocal efforts by utilities.
The need for grid development and deployment have been highlighted at the US
federal level. The DOE’s Grid Deployment Office (GDO) was launched in August2022 specifically to invest in renewable generation facilities and integrate themfor improved and expanded transmission and distribution systems. It oversees
over $26 billion in funding available for several programs designed to drive
investment in and develop grid resilience in the United States.46 The GDO’s
Transmission Division oversees the National Transmission Planning Study as wellas the National Transmission Needs Study.
The Planning Study is ongoing and will “inform regional and interregionaltransmission planning processes” and “identify strategies to accelerate
decarbonization while maintaining system reliability”.47 The Needs Study
assessed issues associated with current and projected future needs in America’s
power sector so that industry and public actors can suggest solutions to thoseissues.48 While these studies provide some planning framework for griddevelopment, neither constitute proper delivery strategies. The Needs Study has
warned that America’s transmission network may need to expand by two-thirds
or more by 2035 to meet the administration’s clean electricity target.
The Infrastructure Investment and Jobs Act (IIJA) provides funding for new
transmission lines, including a total of $65 billion for grid infrastructure.49 The
IIJA also gives the FERC the authority to override state objections to nationaltransmission corridors designated by the DOE.50 This is a departure from existing
legal precedent which allowed state-level regulators to reject power lines
planned by DOE.
The BIL provided the funding for the DOE’s GRIP which will administer up to$10.5 billion in grants for projects that improve grid flexibility and reliability as
infrastructure is updated and that bolster grid resilience in the face of worsening
extreme weather events.51
46 Grid Deployment Office, n.d., Creating a clean, reliable, resilient electric grid
47 Grid Deployment Office, National Transmission Planning Study (webpage, accessed May 2024)
48 U.S. Department of Energy, October 2023, National Transmission Needs Study
49 The White House, August 2021, Updated fact sheet: Bipartisan Infrastructure Investment and Jobs Act
50 E&E News, September 2021, Power lines are infrastructure bill’s big climate win
51 Grid Deployment Office, Grid Resilience and Innovation Partnerships (GRIP) Program (webpage,accessed May 2024)

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G7 POWER SYSTEMS SCORECARD – COUNTRY PROFILE: US

States

California’s Clean Energy Transition Plan includes a section specifically on
modernising the grid and updating the transmission system to accommodate theanticipated growth of clean energy resources.52 CAISO, CPUC, and the California
Energy Commission (CEC) also coordinated to create a 20-Year Transmission
Outlook to provide long-term planning and forecasting in the effort to meet thestate’s goal of a carbon-free supply of electricity by 2045.53 The Transmission
Outlook estimates the approximate cost of necessary transmission developmentat $30.5 billion.
In response to the 2021 Arctic blast that caused causalities and massive power
outages, ERCOT developed a Roadmap to Improving Grid Reliability which
included several steps for addressing resiliency and transmission issues in the
Texan energy grid. Pertinent examples of actions include eliminating barriers to
distributed generation, energy storage, and demand/response flexibility andintegrating solar forecasts into planning models as renewables expand in thestate.
3.6 Effective policies to enable the required digitalisation of power systems
SCORE: 10/15

There is no overarching energy system digitalisation strategy or policy frameworkin the US. However, some policies have been brought forward, especially thoseenabling the rollout of smart meters, with about two-thirds of US electricity
customers equipped with smart meters,54 and elements of smart grids.
At the federal level, the US has been innovating the use of mart grids in energy
infrastructure since 2007.55 Some components of their deployment include
relays and feeder switches that automatically adjust and reroute power amid
problems with substations. The DOE’s Grid Modernization Initiative has been
serving as the framework for integrating smart grids and other technologies into
America’s energy infrastructure since 2015.56 It is coordinated through the Grid
Modernization Lab Consortium partnership through which the DOE and national

52 Governor Gavin Newsom, May 2023, Building the electricity grid of the future: California’s Clean Energy

Transition Plan
53 CAISO, May 2022, 20-Year Transmission Outlook
54 Federal Energy Regulatory Commission, December 2023, 2023 Assessment of demand response andadvanced metering
55 Office of Electricity, May 2022, 2020 Smart grid system report
56 U.S. Department of Energy, November 2015, Grid modernization multi-year program plan

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G7 POWER SYSTEMS SCORECARD – COUNTRY PROFILE: USresearch laboratories can pool resources and collaborate on modernisation
efforts.
A subunit of GRIP (see indicator 3.5), the Smart Grids Grants program, provides$3 billion to increase the capacity of American grid transmission systems,
accounting for the increasing integration of renewable energy and better
enabling grids to adjust to fluctuations in demand and disruptions.57
There are programs to facilitate digitalisation at the utility level, among them theDigitizing Utilities Prize Round58, launched last year.
StatesCalifornia’s Public Utilities Commission instituted rulemaking in 2008 to respondto both federal and state-level legislation requiring consideration of integrating
Smart Grid technology.59 This catalysed a process through which the state’s threemain utilities (Pacific Gas and Electric Company, Southern California Edison
Company, and San Diego Gas and Electric Company) each developed andimplemented Smart Grid deployment plans.
3.7 Effective mechanisms or frameworks to prevent preferential treatment forfossil fuel-based generation over RES on the market
SCORE: 9/15

There are both vertically integrated and liberalised power markets in the UnitedStates, which makes the overall picture less homogenous. There are several
mechanisms to enable a level playing field between renewable and fossil fuelassets in the vertically integrated markets, including Renewable Energy
Certificates (RECs) and carbon offsets. In the liberalised markets, gas tends tohave the upper hand due to the very low domestic cost, leading to a coal-to-gas
switch.
Most if not all of the recent DOE programs referenced throughout this scorecard
prioritise the development of renewable energy both through funding projects
directly and encouraging action on the part of individuals, companies, and local
governments through tax credits and financial incentives. These types of policies

57 Grid Deployment Office, Smart Grid Grants (webpage, accessed May 2024)
58 Office of Electricity, October 2023, U.S. Department of Energy launches Digitizing Utilities Prize for gridreliability and resilience solutions
59 Public Utilities Commission of the State of California, December 2008, Rulemaking 08-12-009

15

G7 POWER SYSTEMS SCORECARD – COUNTRY PROFILE: UShave expanded dramatically under the Biden administration but have been
implemented in the United States since the 1970s.60
Renewable Energy Certificates are offered for purchase to consumers, allowing
companies to support renewable electricity use claims, expand consumers’
electricity service choices, and support renewable electricity development.61
Most states have implemented their own Renewable Portfolio Standards,
designed to increase the use of renewables-based generation as they require orencourage electricity suppliers to provide their customers with a statedminimum of electricity from eligible renewable sources. As of November 2022,
36 states and the District of Columbia had established a Renewable Portfolio
Standard (RPS) or a renewable energy goal. In 12 of those states (and the Districtof Colombia), the requirement is for 100% clean electricity by 2050 or earlier.62
In 2022 the U.S. Department of State together with the Bezos Earth Fund and theRockefeller Foundation launched the Energy Transition Accelerator (ETA),63 a
program to generate private finance to help developing countries transition toclean energy. The ETA is in essence a program that should incentivise companies
in the US to purchase carbon offsets to offset their Scope 1, 2, or 3 emissions, asa net adjustment. The government is preparing a guideline for the use of carbon
offsets aimed to ensure credits reflect real emission cuts.64
Certain states, such as Massachusetts, are developing Forward Clean Energy
Markets to reward clean energy in deregulated power markets.65

60 Congressional Research Service, February 2023, Renewable energy and energy efficiency incentives: A

summary of federal programs
61 Environmental Protection Agency, Market instruments (webpage, accessed May 2024)
62 U.S. Energy Information Administration, updated November 2022, Renewable energy explained
63 Energy Transition Accelerator, https://www.etaccelerator.org/ (webpage, accessed May 2024)
64 Reuters, 19 April 2024, US to launch carbon offset guidelines to boost integrity
65 Massachusetts Department of Energy Resources, January 2023, New England Forward Clean Energy

Market – Proposed market rules, version 1

16

G7 POWER SYSTEMS SCORECARD – COUNTRY PROFILE: US3.8 Electrification rate target and roadmap to support delivery
SCORE: 14/15

As of May 2024, there is no federal electrification target, though a separate
target has been set for the transport sector.
The Biden administration has set a goal to electrify all new light-duty vehicles by
2027, and to make all federal vehicle acquisitions electric by 2035. The Inflation
Reduction Act and the Bipartisan Infrastructure Law included multiple policies
and programs to promote the US manufacturing and supply chain of these clean
vehicles. Policies in the Bipartisan Infrastructure Law include $6.135 billion forbattery material processing, manufacturing, and recycling grants.66
No target exists for electrifying heat, although, IRA includes several provisions
that are designed to help offset the costs of electric heat pumps in homeresidences and commercial buildings.
StatesIn February 2024, nine states signed a memorandum of understanding (MOU)
setting a 2030 target for heat pumps to make up 65% of residential heating,cooling, and water heating equipment sales. By 2040, the goal is for heat pumps
to account for 90% of the HVAC and water heating market.67

Benchmark 4: Governance / International leadership
SCORE: 50/80

While the newest EPA regulations on emissions reduction in existing coal andnew gas powerplants introduce a set of important milestones towards moving
away from fossil fuel-based generation, they are not sufficient to put the country
on track for a net zero power system by 2035. Both unabated coal and gas
phase-out dates are missing so far. Globally, the US has shown leadership on coalphase-out by joining PPCA last year. However, being the world’s largest
economy, it is expected to and needs to deliver more on supporting powersystems decarbonisation in developing countries within the Just Energy
Transition Partnerships (JETPs), its climate finance commitments and otherinitiatives.

66 Electrification Coalition, Federal EV policy (webpage, accessed May 2024)
67 The Verge, 7 February 2024, Nine states, including California and New York, sign heat pump agreement

to clean up air pollution

17

G7 POWER SYSTEMS SCORECARD – COUNTRY PROFILE: US4.1 2035 carbon neutral power system commitment adopted in national
legislation
SCORE: 10/10

At the federal level, the Biden administration’s executive order on tackling theclimate crisis at home and abroad includes a commitment to a 100% carbon
pollution-free electricity sector by 2035.68 The executive order has spurredvarious policy changes but hasn’t itself been translated into a form of federallaw, and can be relatively easily overruled by the next administration.
At the subnational level, 23 states along with the District of Columbia (DC) and
Puerto Rico have 100% clean electricity or clean energy targets.69 Of these,
however, only DC, New Jersey, Michigan, and Rhode Island have targets set for2035 or sooner.
A note on Texas, which is highly relevant as the energy capital of the UnitedStates. It leads the US states in overall energy production, provides more than aquarter of domestically-produced US energy, the largest wind capacity in the
country and overtook California on utility-scale solar capacity in 2023.70 Texas
got a head start on renewables in 1999 when the state deregulated its electricity
market, introduced financial credits to diversify the energy portfolio, and set
initially modest renewable energy wattage goals.71 The result over the last two
and a half decades has been a market-driven RE windfall. Even thoughpolicymakers at the state level are significantly more hostile to renewable energy
policies today, the development of the energy portfolio makes Texas impossible
to ignore in any study of American energy transition.
4.2 Global leadership on supporting power systems decarbonisation indeveloping countries
SCORE: 7/10

As the world’s largest economy, the US plays an important role in accelerating
power systems decarbonisation in developing economies. However, it isunderperforming on several fronts, given the size of its economy and the fair

68 The White House, January 2021, Executive order on tacking the climate crisis at home and abroad
69 Clean Energy States Alliance, Table of 100% clean energy states (webpage, accessed May 2024)
70 Public Citizen, March 2024, Why Texas least California in wind, but not solar
71 The Texas Tribune, 25 May 2023, Texas power struggle: How the nation’s top wind power state turned

against renewable energy

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G7 POWER SYSTEMS SCORECARD – COUNTRY PROFILE: USshare of climate finance it needs to provide.72 There are gaps in enabling thecommitted finance flows to the JETPs, overall climate finance, and making sureinternational public finance flows in fossil fuels are efficiently re-routed tofacilitate clean energy deployment in third countries.
President Biden pledged in 2021 to scale up US international public climate
finance to $11 billion annually by 2024. Projects suggest climate financeexceeded $9.5 billion in 2023, putting the US well on track to meet the
President’s goal. These totals do not include the additional funds the US
contributes to multilateral development banks that also support climate
finance.73
The United States participates in JETPs with Indonesia,74 South Africa,75 andVietnam.76 However, the US government needs to do more to make sure thepromised finance is going where it’s needed.
The United States, alongside Germany, finances a project coordinated by theEuropean Bank for Reconstruction and Development to support the constructionof renewable energy infrastructure in Egypt (including wind, solar, and electricvehicles) and reduce methane emissions from its oil and gas sector.77
The Net Zero World Initiative provides technical assistance, expertise, andfinance to partners to assist their construction of secure clean energy systems.78
The following countries are currently partnered with the US in the Initiative:
Argentina, Chile, Egypt, Indonesia, Nigeria, Singapore, Thailand, and Ukraine.
The Department of Energy participates in 25 unique bilateral and multilateral
partnerships for international energy policy coordination,79 ten of which

72 ODI, June 2022, A fair share of climate finance? An appraisal of past performance, future pledges andprospective contributors
73 U.S. Department of State, December 2023, Progress report on President Biden’s Climate Finance Pledge
74 U.S. Department of the Treasury, February 2023, Government of Indonesia and international partners

launch Just Energy Transition Partnership secretariat to drive Indonesia’s energy transformation
75 U.S. Department of the Treasury, November 2022, U.S. Departments of the Treasury and State, andSouth African President Cyril Ramaphosa announce endorsement of the South Africa Just Energy
Transition Partnership investment plan
76 U.S. Embassy & Consulate in Vietnam, December 2022, International agreement to support Vietnam’s

ambitious climate and energy goals
77 U.S. Embassy in Egypt, November 2022, Accelerating Egypt’s clean energy transition
78 NREL, Net Zero World Initiative (webpage, accessed May 2024)
79 Office of International Affairs, International Affairs Initiatives (webpage, accessed May 2024)

19

G7 POWER SYSTEMS SCORECARD – COUNTRY PROFILE: USexplicitly involve cooperation pertaining to renewable energy: the Clean Energy
Ministerial (CEM), the US–EU Energy Council; the G7/G20 Ministers Meeting; The
Partnership for Transatlantic Energy and Climate Cooperation; The Energy andClimate Partnerships of the Americas; the US–India Energy Partnerships; The US–
Kazakhstan Energy Partnership; the US–Japan Strategic Energy Partnership; The
US–Korea Energy Policy Dialogue; and the US–Indonesia Energy Policy Dialogue.
The Agency for International Development operates multiple energy-based
programs:80 USAID–National Renewable Energy Lab Partnership; Energy
Efficiency for Development; Scaling Up Renewable Energy; Energy Utility
Partnership Program, Power Africa.
4.3 International commitments on power systems decarbonisation throughalliances or networks such as the PPCA, Glasgow Coal to Clean Power Initiative
etc.
SCORE: 8/10

COP28 saw the US make substantial strides in international climate
commitments. It joined Australia, Canada, and the European Commission tolaunch the Clean Energy Ministerial Battery Storage Initiative, a partnership
aimed at advancing the development of battery technology, its deployment, andreducing its cost through robust supply chain management.81
The United States is not party to the Paris Declaration on Carbon Pricing in theAmericas,82 though Washington State and California are.
Also at the COP28, the US became a signatory to the Powering Past Coal
Alliance.83 It also joined the Green Public Procurement Pledge84 and the UN 24/7
Carbon-Free Energy Compact.85 However, the US is not party to the Glasgow Coalto Clean Power Transition Initiative.

80 USAID, Renewable energy (webpage, accessed May 2024)
81 Clean Energy Ministerial, Supercharging battery storage (webpage, accessed May 2024)
82 Government of Canada, December 2017, Paris Declaration on carbon pricing in the Americas
83 AP News, 2 December 2023, US joins in other nations in swearing off coal power to clean the climate
84 Industrial Decarbonization Accelerator, December 2023, COP28: Governments with huge global buying

power double down on their commitment to buy green steel, cement and concrete
85 Sustainable Energy for All, December 2023, United States government joins UN 24/7 carbon-free energy

compact

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G7 POWER SYSTEMS SCORECARD – COUNTRY PROFILE: US

The following states and territories participate as subnational members of thePowering Past Coal Alliance: California, Connecticut, Hawaii, Minnesota, New
Jersey, New Mexico, New York, Oregon, Puerto Rico, Washington, Colorado.
The following states participate as subnational members of the Glasgow Coal to
Clean Power Transition Initiative: Hawaii and Oregon.
4.4 Net zero power system roadmap to drive delivery of 2035 commitment
SCORE: 5/10

There is no action plan or roadmap to deliver on the 2035 net zero powersystems commitment. However, at the federal level, the National Renewable
Energy Lab released a study on achieving clean electricity by 2035.86 This study
used NREL’s Regional Energy Deployment System to map out scenarios that
represented different ways to achieve a net zero power grid by 2035. All
scenarios required rapid scaling up and deployment of renewable energy
technology, with wind and solar needing to provide 60% to 80% of overall energy
generation.
23 states, as well as the District of Columbia and Puerto Rico, have adopted
100% clean energy goals.87 Only three aim for reaching net zero power systems
by 2035 or earlier: New Jersey (2035), District of Columbia (2032) and Rhode
Island (2033). In addition, Maine and Minnesota aim to reach 80% RES-based andclean electricity, respectively, by 2030 which broadly puts these two states on
track for net zero electricity by 2035. While these plans are not the kind of
deployment roadmaps that utility companies themselves would prepare, they
are foundational policy documents produced by the state governments thatprovide the framework through which they, municipal governments, and privateorganisations will work to meet each state’s respective carbon neutrality goal.
4.5 Critical role of renewables, interconnection, and demand side measuresreflected in country’s energy security framework
SCORE: 8/10

The role of renewables, energy demand reduction, energy efficiency, andimproving grid flexibility have been elements of US thinking about energy
security for almost two decades. The foundations were laid with the US Energy
Independence and Security Act (2007). The Act, however, hasn’t been updated
86 NREL, 2022, Examining supply-side options to achieve 100% clean electricity by 2035
87 Clean Energy States Alliance, Table of 100% clean energy states (webpage, accessed May 2024)

21

G7 POWER SYSTEMS SCORECARD – COUNTRY PROFILE: USsince then and doesn’t reflect the rise of wind and solar as key renewables
solutions over the past decades, the focus being on biomass and geothermal.
Despite the absence of an up-to-date overarching framework, some key
elements have been taken forward, among them the rollout of heat pump
manufacturing in follow-up to the Biden administration’s Defence Production
Act.88 The DOE outlines renewables deployment, improving efficiency ofbuildings, vehicles, appliances and electronics, increasing storage capacity, andmodernising the grid as key elements of energy independence and security.89
The US Energy Independence and Security Act (EISA), signed in 2007 by President
Bush, directly aims to increase the share of domestically generated renewableelectricity, boost efficiency of energy intensive appliances, buildings and vehicles,
and reinforce energy reduction goals for federal agencies. The EISA guides
government action in this area today; for example, the Smart Grid Investment
Matching Grant Program, the predecessor of the Smart Grids Grants Program,
was established directly under EISA.
In November 2023, DOE announced a $169 million support program for nineprojects to accelerate electric heat pump manufacturing across the country. Thisis a direct follow-up to the Defense Production Act (DPA), which aims to increase
domestic production of five key clean energy technologies including heatpumps.90
In March 2023, the United States partnered with Canada to launch the one-year
Joint Energy Transformation Task Force to promote collective energy security,
reinforce supply chains for critical minerals and other materials necessary forrenewable energy, and promote grid integration and resilience.91 The Taskforce
has been renewed in May 2024 for an additional year to further promote areasof common priority including through the Partnership for Global Infrastructure
Investment and Canada’s upcoming role as host of the G7 in 2025.92

88 Department of Energy, November 2023, Biden–Harris administration announces $169 million toaccelerate electric heat pump manufacturing as part of investing in America agenda
89 Office of Energy Efficiency & Renewable Energy, Energy independence and security (webpage, accessed

May 2024)
90 Department of Energy, November 2023, Biden–Harris administration announces $169 million toaccelerate electric heat pump manufacturing as part of investing in America agenda
91 The White House, 24 March 2023, Joint statement by President Biden and Prime Minister Trudeau
92 U.S. Embassy & Consulates in Canada, May 2024, U.S.–Canada joint statement on the extension of the

Bilateral Energy Transformation Task Force

22

G7 POWER SYSTEMS SCORECARD – COUNTRY PROFILE: US4.6 Unabated coal phase-out date and roadmap to support delivery
SCORE: 5/10

A phase-out date is implied by the 2035 net zero power commitment, yet nonesuch has been adopted. There is also no roadmap to implement coal phase-out.
EPA’s newly adopted suite of standards aiming to reduce pollution from fossil
fuel fired power plants mandates the existing coal plants to address their carbon
emissions in the coming year. Coal plants that expect to operate beyond 2039
will have to reduce their carbon emissions by 90% by 2032, two years later thaninitially proposed in the draft rule released in May 2023. Coal plants closing by
2039 will have to reduce their emissions 16% by 2030 (based on what’s
achievable using 40% gas co-firing, though plants can use any technology theywant to achieve the necessary reductions). Those plants scheduled to retire
before 2032 are exempt from reducing emissions but do have reporting
requirements.93
If fully implemented, these rules could lead to the closure of most of thecountry’s coal plants before 2040.94 However, EPA is likely to be challenged incourt on these rules: West Virginia Attorney General Patrick Morrissey and US
Senator Shelley Moore Capito of West Virginia have already stated this intent,
and more lawsuits are likely to be expected from republican-led states andindustry groups.95
4.7 Unabated gas phase-out date and roadmap to support delivery
SCORE: 1/10

No such date has been announced. However, EPA’s newly adopted suite ofstandards96 aiming to reduce pollution from fossil fuel fired power plants
regulates emissions for new gas power plants. The regulations essentiallyexclude any new baseload gas power from coming online unless abated. The
three categories of new gas power plants are covered, based on their hours ofoperation over the course of a year:

93 World Resources Institute, May 2024, 4 things to know about US EPA’s new power plant rules
94 Environmental Protection Agency, April 2024, Regulatory impact analysis for the new source

performance standards for greenhouse gas emissions from new, modified, and reconstructed fossil fuelfired electric generating units; emission guidelines for greenhouse gas emissions from existing fossil fuelfired electric generating units; and repeal of the Affordable Clean Energy Rule
95 Reuters, 25 April 2024, Explainer: New EPA power sector rules set up likely legal clashes
96 EPA, April 2024, Biden–Harris administration finalizes suite of standards to reduce pollution from fossil

fuel-fired power plants

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G7 POWER SYSTEMS SCORECARD – COUNTRY PROFILE: US

> “Baseload” plants, which operate more than 40% of the time: reductions
required equivalent to 90% carbon capture and sequestration by 2032.
> “Intermediate” natural gas plants, which operate 20%–40% of the time:required to meet a performance threshold of an efficient simple cycle plant,
or 1,150 pounds of carbon dioxide per megawatt hour (CO2/MWh).
> Peaker plants, which operate less than 20% of the time: required to use
lower-emitting fuels such as natural gas, which is already common practice,rather than diesel or high-emitting alternatives.97
EPA is planning to release a similar set of rules for existing gas fired power plants
towards the end of 2024.
4.8 2030 target for share of total RES in electricity generation
SCORE: 6/10

DOE has estimated that the IRA and BIL enable clean energy in the US to reach
80% total share of generation by 2030.98 However, no explicit target for
renewable generation has been set for this timeframe and the existing targets onwind and solar are not sufficient to reach 80% clean electricity:> In 2023, the DOE released its Offshore Wind Energy Strategy aimed atenabling the deployment of 30 GW of offshore wind capacity by 2030, andset the nation on the pathway to 110 GW or more by 2030.
> There is no national solar power target, with the DOE’s Solar Energy
Technology Office mainly focusing on cost reduction and re-shoring ofproduction and value chains. However, the Solar Energy Industries
Association has announced a new target for solar to reach 30% of US
electricity generation by 2030. Even with this rather ambitious target by theindustry association (which implies growing the current share of solar
generation in the power mix by a factor of six in the next six years), the US is
not going to achieve 80% of clean electricity by 2030 unless it formulates
clear and ambitious deployment targets for onshore wind as well,underpinned by a delivery roadmap.

97 World Resources Institute, May 2024, 4 things to know about US EPA’s new power plant rules
98 Office of Policy, August 2023, Investing in American energy: Significant impacts of the Inflation

Reduction Act and Bipartisan Infrastructure Law on the U.S. energy economy and emissions reductions

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G7 POWER SYSTEMS SCORECARD – COUNTRY PROFILE: US

Benchmark 5: Reducing energy waste
SCORE: 50/80

The energy efficiency programme spending has been substantially increased with
the IRA and puts country broadly on track for 4% annual energy efficiency
improvements, though real progress depends on the implementation and state
action. Key elements enabling efficient power systems decarbonisation are still
missing including a national power savings target, ambitious standards for somekey appliances including lighting and space heating, and federal and state-level
policies addressing faster retrofits of the existing buildings stock.
5.1 Efficient policies to retrofit / renovate buildings
SCORE: 12/20

To retrofit 80% of the existing US building stock by 2050, annual retrofit rates
must increase about 15-fold for residences and twofold for commercial
buildings.99 Building energy policies in the US have traditionally emphasised new
construction over existing buildings, with building energy codes being the
primary tool to mandate minimum acceptable levels of energy efficiency – forboth new residential and commercial building construction, and majoralterations and additions. The adoption of these codes at state level is however
patchy, with only a handful of states complying with the federal framework.
The IRA created multiple programs and tax incentives to improve the energy
efficiency of both new and existing buildings – targeting consumers rather thanstates. These financial incentives are designed to encourage individuals andbusinesses to retrofit their homes and facilities with renewable and more energy
efficient appliances and infrastructure. The tax credits are available for a decadefrom 1 January 2023.100
In August 2023, the DOE announced $46 million in funding for 29 projects across
15 states to develop advanced building technologies and retrofit practices thattarget energy waste. These funds comprise the Buildings Energy Frontiers andInnovation Technologies (BENEFIT) program.101 The innovations that BENEFIT
funds will help modernise buildings to reduce their GHG emissions and cut down
99 Nadel and Hinge, June 2020, Mandatory building Performance Standards: A key policy for achieving

climate goals. ACEEE White Paper
100 RMI, August 2022, The Inflation Reduction Act could transform the US buildings sector
101 Department of Energy, August 2023, DOE announces $46 million to boost energy efficiency and slashemissions in residential and commercial buildings

25

G7 POWER SYSTEMS SCORECARD – COUNTRY PROFILE: USwasteful energy consumption, with several projects emphasising improvements
to space conditioning and water heating. Residential and commercial buildings
are currently the largest energy consuming sector of the US economy.
The High-efficiency Electric Home Rebate Program, adopted in 2022, offers
support for low- and moderate-income households. Qualifying participants canreceive up to $8000 for an ENERGY STAR® certified heat pump, $4000 for anelectrical panel upgrade, and additional incentives for wiring, air sealing andinsulation.
The IRA has unlocked various credits for building owners aiming to boost theirbuildings’ efficiency. Among them are the Energy-Efficient Home Improvement
Credit, allowing homeowners to offset up to 30% of the cost of the highest tierqualifying heat pumps (with a maximum of $2000); the Residential Clean Energy
Credit, encouraging early adoption of geothermal heat pumps and offsetting 30%of the cost before 1 January 2033, 26% before 1 January 2034, and 22% before 1
January 2035; and the Commercial Investment Credit, which increases theenergy tax credits available for businesses from 10% to 30% on qualifying
geothermal heat pump system installation costs.
Under the Energy-efficient Commercial Buildings Tax Deduction, the IRA further
offers business owners tax benefits for retrofits to heating, cooling, ventilationand hot water systems.
In addition, the IRA has appropriated $500m in funds to support the
manufacturing of heat pumps through the Defense Production Act.102
Despite these significant incentives to private and commercial buildings owners,
a comprehensive framework to address buildings renovation at federal and statelevels is so far missing. Only 15 states have adopted frameworks addressing theexisting buildings stock, most of them incomplete/ineffective.

102 Copeland E360 Blog, January 2023, How U.S. climate legislation is driving adoption of sustainable heatpump solutions

26

G7 POWER SYSTEMS SCORECARD – COUNTRY PROFILE: US5.2 National energy/power savings target
SCORE: 8/20

As an IEA member, the US has committed to achieve 4% energy efficiency
improvements per year by 2030, and has reached this rate in 2023 already with$86 billion allocated to the goal under the Inflation Reduction Act.103
While the IRA incentives target individual and industrial consumers, there is noenergy efficiency target at the federal level. Setting such standards for utility
companies has historically been managed at the state level due to the variationof energy portfolios across the country, though there is legally nothing
preventing Congress from passing legislation creating national EERS targets. The
DOE is currently reviewing the National Action Plan for Energy Efficiency “Vision
for 2025: A Framework for Change” that should facilitate the development andimplementation of more ambitious state-level energy savings programs.
29 states and the District of Columbia have so far adopted energy efficiency
resource standards (EERS) ranging between 0.6% and 2.5% of annual electricity
sales. A couple of states have adopted cumulative savings targets over several
years (e.g. North Carolina – 12.5% by 2021, New Hampshire – 3.1% between
2018 and 2020). 20 states have also adopted gas savings targets, often within thesame EERS regulating energy efficiency savings. The savings metrics are
sometimes different (e.g. percentage of peak demand, instead of annual electricsales), and some of the states apply mandatory EERS, while in some (e.g.
Delaware, Missouri), the savings targets are mandatory.
Overall, given the number of states without an efficiency target and the on
average low savings targets of those states that have adopted some, more action
is required both on federal and state level to boost the overall efficiency of
power systems in the US.104
5.3 Sufficient spending on energy efficiency programmes
SCORE: 18/20

The IRA has substantially increased energy efficiency programme spending, with$86 billion for energy efficiency provisions. This puts the country broadly on
track for 4% annual energy efficiency improvements, though real progress
depends on the implementation.
103 Reuters, 5 December 2023, Energy efficiency could offer major climate wins. But what is it?
104 American Council for an Energy-Efficient Economy, State and Local Policy Database (accessed May 2024)

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G7 POWER SYSTEMS SCORECARD – COUNTRY PROFILE: US

The IRA provides grants, loans and tax rebates for low-carbon vehicles. It also
targets efficiency in the residential sector with measures including tax credits,
rebates, and support grants for low-income households and disadvantaged
communities.
US electric utilities reported spending approximately $3.4 billion on energy
efficiency customer incentives in 2022 according to the DOE’s own annual report
on electric power.105 The totals featured in this report compile financial datafrom all of the US’s public and private utility entities across the 50 states andterritories. Splitting them into public and private totals would require significant
additional data analysis.
5.4 High-quality appliance and equipment standards and labelling
SCORE: 12/20

The EPA administers the voluntary ENERGY STAR labelling program forappliances. Founded in 1992, ENERGY STAR is a public–private partnership thatenjoys participation from thousands of organisations. It has led to the labelling ofenergy efficient products such as heating and cooling systems, larger household
appliances, water heaters, lighting mechanisms, personal electronics, andbuilding materials.106
The DOE establishes energy efficiency standards for a broad range of appliancesand equipment covering more than 60 different products. These include
consumer products such as washing machines, commercial and industrial
products such as electric motors, lighting products such as traffic signals andpedestrian modules, and all manner of plumbing products.107 Authority toregulate the standards of these products is granted by Congress and compliancewith them is required by law.
While the labelling is extensive, the performance targets for some key
appliances, in particular lighting and space heating, are falling behind other G7
countries.

105 U.S. Energy Information Administration, October 2023, Electric Power Annual, Table 10.1
106 Energy Star, https://www.energystar.gov/ (webpage, accessed May 2024)
107 Office of Energy Efficiency & Renewable Energy, Standards and test procedures (webpage, accessed May

2024)

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G7 POWER SYSTEMS SCORECARD – COUNTRY PROFILE: USAbout E3G
E3G is an independent climate change think tank with a global outlook. We workon the frontier of the climate landscape, tackling the barriers and advancing thesolutions to a safe climate. Our goal is to translate climate politics, economics
and policies into action.
E3G builds broad-based coalitions to deliver a safe climate, working closely withlike-minded partners in government, politics, civil society, science, the media,
public interest foundations and elsewhere to leverage change.
More information is available at www.e3g.org
Copyright
This work is licensed under the Creative Commons Attribution-NonCommercialShareAlike 4.0 License. © E3G 2024

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G7 POWER SYSTEMS SCORECARD – COUNTRY PROFILE: US