Survey urges switch to renewable power sources

Methane Hydrate CO2 Sequestration uses carbon capture and nitrogen injection to swap gases in seafloor hydrates along the Gulf of Mexico, releasing methane for electricity while storing CO2, according to new simulation research.

Key Points

A method injecting CO2 and nitrogen into hydrates to store CO2 while releasing methane for power.

✅ Nitrogen aids CO2-methane swap in hydrate cages, speeding sequestration

✅ Gulf Coast proximity to emitters lowers transport and power costs

✅ Revenue from methane electricity could offset carbon capture

The world is quickly realizing it may need to actively pull carbon dioxide out of the atmosphere to stave off the ill effects of climate change. Scientists and engineers have proposed various carbon capture techniques, but most would be extremely expensive—without generating any revenue. No one wants to foot the bill.

One method explored in the past decade might now be a step closer to becoming practical, as a result of a new computer simulation study. The process would involve pumping airborne CO2 down into methane hydrates—large deposits of icy water and methane right under the seafloor, beneath water 500 to 1,000 feet deep—where the gas would be permanently stored, or sequestered. The incoming CO2 would push out the methane, which would be piped to the surface and burned to generate electricity, whether sold locally or via exporters like Hydro-Que9bec to help defray costs, to power the sequestration operation or to bring in revenue to pay for it.

Many methane hydrate deposits exist along the Gulf of Mexico shore and other coastlines. Large power plants and industrial facilities that emit CO2 also line the Gulf Coast, where EPA power plant rules could shape deployment, so one option would be to capture the gas directly from nearby smokestacks, keeping it out of the atmosphere to begin with. And the plants and industries themselves could provide a ready market for the electricity generated.

A methane hydrate is a deposit of frozen, latticelike water molecules. The loose network has many empty, molecular-size pores, or “cages,” that can trap methane molecules rising through cracks in the rock below. The computer simulation shows that pushing out the methane with CO2 is greatly enhanced if a high concentration of nitrogen is also injected, and that the gas swap is a two-step process. (Nitrogen is readily available anywhere, because it makes up 78 percent of the earth’s atmosphere.) In one step the nitrogen enters the cages; this destabilizes the trapped methane, which escapes the cages. In a separate step, the nitrogen helps CO2 crystallize in the emptied cages. The disturbed system “tries to reach a new equilibrium; the balance goes to more CO2 and less methane,” says Kris Darnell, who led the study, published June 27 in the journal Water Resources Research. Darnell recently joined the petroleum engineering software company Novi Labs as a data scientist, after receiving his Ph.D. in geoscience from the University of Texas, where the study was done.

A group of labs, universities and companies had tested the technique in a limited feasibility trial in 2012 on Alaska’s North Slope, where methane hydrates form in sandstone under deep permafrost. They sent CO2 and nitrogen down a pipe into the hydrate. Some CO2 ended up being stored, and some methane was released up the same pipe. That is as far as the experiment was intended to go. “It’s good that Kris [Darnell] could make headway” from that experience, says Ray Boswell at the U.S. Department of Energy’s National Energy Technology Laboratory, who was one of the Alaska experiment leaders but was not involved in the new study. The new simulation also showed that the swap of CO2 for methane is likely to be much more extensive—and to happen quicker—if CO2 enters at one end of a hydrate deposit and methane is collected at a distant end.

The technique is somewhat similar in concept to one investigated in the early 2010s by Steven Bryant and others at the University of Texas. In addition to numerous methane hydrate deposits, the Gulf Coast has large pools of hot, salty brine in sedimentary rock under the coastline. In this system, pumps would send CO2 down into one end of a deposit, which would force brine into a pipe that is placed at the other end and leads back to the surface. There the hot brine would flow through a heat exchanger, where heat could be extracted and used for industrial processes or to generate electricity, supporting projects such as electrified LNG in some markets. The upwelling brine also contains some methane that could be siphoned off and burned. The CO2 dissolves into the underground brine, becomes dense and sinks further belowground, where it theoretically remains.

Either system faces big practical challenges, and building shared CO2 storage hubs to aggregate captured gas is still evolving. One is creating a concentrated flow of CO2; the gas makes up only .04 percent of air, and roughly 10 percent of the smokestack emission from a typical power plant or industrial facility. If an efficient methane hydrate or brine system requires an input that is 90 percent CO2, for example, concentrating the gas will require an enormous amount of energy—making the process very expensive. “But if you only need a 50 percent concentration, that could be more attractive,” says Bryant, who is now a professor of chemical and petroleum engineering at the University of Calgary. “You have to reduce the [CO2] capture cost.”

Another major challenge for the methane hydrate approach is how to collect the freed methane, which could simply seep out of the deposit through numerous cracks and in all directions. “What kind of well [and pipe] structure would you use to grab it?” Bryant asks.

Given these realities, there is little economic incentive today to use methane hydrates for sequestering CO2. But as concentrations rise in the atmosphere and the planet warms further, and as calls for an electric planet intensify, systems that could capture the gas and also provide energy or revenue to run the process might become more viable than techniques that simply pull CO2 from the air and lock it away, offering nothing in return.

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UK Market Stability Outlook remains febrile as the Bank of England, Treasury, and OBR forecasts shape fiscal policy, interest rates, gilt yields, inflation, energy bills, and pound sterling, with Oct. 31 guidance to reassure investors.

Key Points

A view of investor confidence as BOE policy, fiscal plans, and energy aid shape inflation and interest rates.

✅ Markets await Oct. 31 fiscal statement and OBR projections

✅ Energy support design drives inflation and disposable income

✅ Pound weakness adds imported inflation; rates seen up 75 bps

Bank of England Deputy Governor Dave Ramsden said financial markets are still unsettled about the outlook for the UK and that a Treasury statement due on Oct. 31 may provide some reassurance.

Speaking to the Treasury Committee in Parliament, Ramsden said officials in government and the central bank are dealing with huge economic shocks, notably the surge in energy prices that came with Russia’s attack on Ukraine. Investors are reassessing where interest rates and the fiscal stance are headed.

“Markets remain quite febrile,” Ramsden told members of Parliament in London on Monday. “Things have not settled down yet.”

He described the events following Prime Minister Liz Truss’s ill-fated fiscal statement on Sept. 23, which set out a series of tax cuts funded by borrowing that spooked investors and triggered a rout in UK assets. Ramsden said those events damaged the UK’s credibility among investors, but reversing that program and Truss’s decision to step aside have helped the nation regain confidence.

“Credibility is hard won and easily lost,” Ramsden said. “That credibility is being recovered. That has to be followed through. A return to the kind of stability around policy making and around the framing of fiscal events will be really important.”

He said the issue with the Sept. 23 statement was that “it had one side of the fiscal arithmetic in it” and that the decision to include forecasts from the Office for Budget Responsibility will help underpin the confidence investors have in assessing the UK budget due out next week, including potential moves to end the link between gas and electricity prices for consumers.

“What we are going to get on Oct. 31 will be very important,” Ramsden said, “as it will address measures such as the price cap on household energy bills and other fiscal choices.”

“My sense is that will take account of all the statements on both the revenue and on the spending side.”

The central bank already was getting some information from Chancellor of the Exchequer Jeremy Hunt’s team about the fiscal statement due. Hunt said last week he’d curtail government plans to subsidize household fuel bills in April, when a 16% decrease in energy bills is anticipated, instead of letting it run as long as planned and replace it with a more targeted program. 

“To the extent possible, we will obviously have a little bit of time to take account of that before we make our decisions later next week,” Ramsden said.

With Truss stepping down in the next day and handing power to Rishi Sunak, it isn’t certain the Oct. 31 statement will go ahead as planned. Ramsden’s remarks confirm reports that Hunt is preparing to make the statement, amid a free electricity debate in the industry, even before Sunak names his team.

Any hint about what sort of package Hunt will offer on energy is crucial to the BOE’s forecasts. Without aid for energy, consumers will be exposed to high winter heating and electricity costs and to the full force of whatever happens in natural gas and electricity markets, and that will have a big impact on how much disposable income is available to households.

The energy plan, alongside the energy security bill, “will be a key element, as obviously it will have a bearing on the path for inflation, which is critical, but also how much additional support relative to what we were assuming at the time of the September MPC there will be for households at different points in the income distribution,” Ramsden added.

Investors currently expect the BOE to hike rates by 75 basis points next week.

Ramsden also said the BOE is watching the pound’s decline to assess how that changes the outlook for inflation.

“We have to take account of it,” Ramsden said. “When sterling deprreciaties that feeds through to imported inflation. It’s fallen quite significantly. The overall trend is down.”

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Renewables' Impact on US Wholesale Electricity Prices is clear: DOE analysis shows wind and solar, capacity gains, and natural gas lowering rates, shifting daily patterns, and triggering occasional negative pricing in PJM and ERCOT.

Key Points

DOE data show wind and solar lower wholesale prices, reshape price curves, and cause negative pricing in markets.

✅ Natural gas price declines remain the largest driver of cheaper power

✅ Wind and solar shift seasonal and time-of-day price patterns

✅ Negative wholesale prices appear near high wind and solar output

One of the arguments that's consistently been raised against doing anything about climate change is that it will be expensive. On the more extreme end of the spectrum, there have been dire warnings about plunging standards of living due to skyrocketing electricity prices. The plunging cost of renewables like solar cheaper than gas has largely silenced these warnings, but a new report from the Department of Energy suggests that, even earlier, renewables were actually lowering the price of electricity in the United States.

Plunging prices
The report focuses on wholesale electricity prices in the US. Note that these are distinct from the prices consumers actually pay, which includes taxes, fees, payments to support the grid that delivers the electricity, and so on. It's entirely possible for wholesale electricity prices to drop even as consumers end up paying more, and market reforms determine how those changes are passed through. That said, large changes in the wholesale price should ultimately be passed on to consumers to one degree or another.

The Department of Energy analysis focuses on the decade between 2008 and 2017, and it includes an overall analysis of the US market, as well as large individual grids like PJM and ERCOT and, finally, local prices. The decade saw a couple of important trends: low natural gas prices that fostered a rapid expansion of gas-fired generators and the rapid expansion of renewable generation that occurred concurrently with a tremendous drop in price of wind and solar power.

Much of the electricity generated by renewables in this time period would be more expensive than that generated by wind and solar installed today. Not only have prices for the hardware dropped, but the hardware has improved in ways that provide higher capacity factors, meaning that they generate a greater percentage of the maximum capacity. (These changes include things like larger blades on wind turbines and tracking systems for solar panels.) At the same time, operating wind and solar is essentially free once they're installed, so they can always offer a lower price than competing fossil fuel plants.

With those caveats laid out, what does the analysis show? Almost all of the factors influencing the wholesale electricity price considered in this analysis are essentially neutral. Only three factors have pushed the prices higher: the retirement of some plants, the rising price of coal, and prices put on carbon, which only affect some of the regional grids.

In contrast, the drop in the price of natural gas has had a very large effect on the wholesale power price. Depending on the regional grid, it's driven a drop of anywhere from $7 to $53 per megawatt-hour. It's far and away the largest influence on prices over the past decade.

Regional variation and negative prices
But renewables have had an influence as well. That influence has ranged from roughly neutral to a cost reduction of $2.2 per MWh in California, largely driven by solar. While the impact of renewables was relatively minor, it is the second-largest influence after natural gas prices, and the data shows that wind and solar are reducing prices rather than increasing them.

The reports note that renewables are influencing wholesale prices in other ways, however. The growth of wind and solar caused the pattern of seasonal price changes to shift in areas of high wind and solar, as seen with solar reshaping prices in Northern Europe as daylight hours and wind patterns shift with the seasons. Similarly, renewables have a time-of-day effect for similar reasons, helping explain why the grid isn't 100% renewable today, which also influences the daily timing price changes, something that's not an issue with fossil fuel power.

A map showing the areas where wholesale electricity prices have gone negative, with darker colors indicating increased frequency.
Enlarge / A map showing the areas where wholesale electricity prices have gone negative, with darker colors indicating increased frequency.

US DOE
One striking feature of areas where renewable power is prevalent is that there are occasional cases in which an oversupply of renewable energy produces negative electricity prices in the wholesale market. (In the least-surprising statement in the report, it concludes that "negative prices in high-wind and high-solar regions occurred most frequently in hours with high wind and solar output.") In most areas, these negative prices are rare enough that they don't have a significant influence on the wholesale price.

That's not true everywhere, however. Areas on the Great Plains see fairly frequent negative prices, and they're growing in prevalence in areas like California, the Southwest, and the northern areas of New York and New England, while negative prices in France have been observed in similar conditions. In these areas, negative wholesale prices near solar plants have dropped the overall price by 3%. Near wind plants, that figure is 6%.

None of this is meant to indicate that there are no scenarios where expanded renewable energy could eventually cause wholesale prices to rise. At sufficient levels, the need for storage, backup plants, and grid management could potentially offset their low costs, a dynamic sometimes referred to as clean energy's dirty secret by analysts. But it's clear we have not yet reached that point. And if the prices of renewables continue to drop, then that point could potentially recede fast enough not to matter.

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Nuclear Power for Net-Zero Grids anchors reliable baseload, integrating renewables with grid stability as solar, wind, and battery storage scale. Advanced reactors complement hydropower, curb natural gas reliance, and accelerate deep decarbonization of electricity systems.

Key Points

Uses nuclear baseload and advanced reactors to stabilize power grids and integrate higher shares of variable renewables.

✅ Provides firm, zero-carbon baseload for renewable-heavy grids

✅ Reduces natural gas dependence and peaker emissions

✅ Advanced reactors enhance safety, flexibility, and cost

Declining solar, wind, and battery technology costs are helping to grow the share of renewables in the world’s power mix to the point that governments are pledging net-zero emission electricity generation in two to three decades to fight global warming.

Yet, electricity grids will continue to require stable baseload to incorporate growing shares of renewable energy sources and ensure lights are on even when the sun doesn’t shine, or the wind doesn’t blow. Until battery technology evolves enough—and costs fall far enough—to allow massive storage and deployment of net-zero electricity to the grid, the systems will continue to need power from sources other than solar and wind.

And these will be natural gas and nuclear power, regardless of concerns about emissions from the fossil fuel natural gas and potential disasters at nuclear power facilities such as the ones in Chernobyl or Fukushima.

As natural gas is increasingly considered as just another fossil fuel, nuclear power generation provides carbon-free electricity to the countries that have it, even as debates over nuclear power’s outlook continue worldwide, and could be the key to ensuring a stable power grid capable of taking in growing shares of solar and wind power generation.

The United States, where nuclear energy currently provides more than half of the carbon-free electricity, is supporting the development of advanced nuclear reactors as part of the clean energy strategy.

But Europe, which has set a goal to reach carbon neutrality by 2050, could find itself with growing emissions from the power sector in a decade, as many nuclear reactors are slated for decommissioning and questions remain over whether its aging reactors can bridge the gap. The gap left by lost nuclear power is most easily filled by natural gas-powered electricity generation—and this, if it happens, could undermine the net-zero goals of the European Union (EU) and the bloc’s ambition to be a world leader in the fight against climate change.

U.S. Power Grid Will Need Nuclear For Net-Zero Emissions

A 2020 report from the University of California, Berkeley, said that rapidly declining solar, wind, and storage prices make it entirely feasible for the U.S. to meet 90 percent of its power needs from zero-emission energy sources by 2035 with zero increases in customer costs from today’s levels.

Still, natural gas-fired generation will be needed for 10 percent of America’s power needs. According to the report, in 2035 it would be possible that “during normal periods of generation and demand, wind, solar, and batteries provide 70% of annual generation, while hydropower and nuclear provide 20%.” Even with an exponential rise in renewable power generation, the U.S. grid will need nuclear power and hydropower to be stable with such a large share of solar and wind.

The U.S. Backs Advanced Nuclear Reactor Technology

The U.S. Department of Energy is funding programs of private companies under DOE’s new Advanced Reactor Demonstration Program (ARDP) to showcase next-gen nuclear designs for U.S. deployment.

“Taking leadership in advanced technology is so important to the country’s future because nuclear energy plays such a key role in our clean energy strategy,” U.S. Secretary of Energy Dan Brouillette said at the end of December when DOE announced it was financially backing five teams to develop and demonstrate advanced nuclear reactors in the United States.

“All of these projects will put the U.S. on an accelerated timeline to domestically and globally deploy advanced nuclear reactors that will enhance safety and be affordable to construct and operate,” Secretary Brouillette said.

According to Washington DC-based Nuclear Energy Institute (NEI), a policy organization of the nuclear technologies industry, nuclear energy provides nearly 55 percent of America’s carbon-free electricity. That is more than 2.5 times the amount generated by hydropower, nearly 3 times the amount generated by wind, and more than 12 times the amount generated by solar. Nuclear energy can help the United States to get to the deep carbonization needed to hit climate goals.

Europe Could See Rising Emissions Without Nuclear Power

While the United States is doubling down on efforts to develop advanced and cheaper nuclear reactors, including microreactors and such with new types of technology, Europe could be headed to growing emissions from the electricity sector as nuclear power facilities are scheduled to be decommissioned over the next decade and Europe is losing nuclear power just when it really needs energy, according to a Reuters analysis from last month.

In many cases, it will be natural gas that will come to the rescue to power grids to ensure grid stability and enough capacity during peak demand because solar and wind generation is variable and dependent on the weather.

For example, Germany, the biggest economy in Europe, is boosting its renewables targets, but it is also phasing out nuclear by next year, amid a nuclear option debate over climate strategy, while its deadline to phase out coal-fired generation is 2038—more than a decade later compared to phase-out plans in the UK and Italy, for example, where the deadline is the mid-2020s.

The UK, which left the EU last year, included support for nuclear power generation as one of the ten pillars in ‘The Ten Point Plan for a Green Industrial Revolution’ unveiled in November.

The UK’s National Grid has issued several warnings about tight supply since the fall of 2020, due to low renewable output amid high demand.

“National Grid’s announcement underscores the urgency of investing in new nuclear capacity, to secure reliable, always-on, emissions-free power, alongside other zero-carbon sources. Otherwise, we will continue to burn gas and coal as a fallback and fall short of our net zero ambitions,” Tom Greatrex, Chief Executive of the Nuclear Industry Association, said in response to one of those warnings.

But it’s in the UK that one major nuclear power plant project has notoriously seen a delay of nearly a decade—Hinkley Point C, originally planned in 2007 to help UK households to “cook their 2017 Christmas turkeys”, is now set for start-up in the middle of the 2020s.

Nuclear power development and plant construction is expensive, but it could save the plans for low-carbon emission power generation in many developed economies, including in the United States.

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Air Humidity Energy Harvesting converts thin air into clean electricity using air-gen devices with nanopores, delivering continuous renewable energy from ambient moisture, as demonstrated by UMass Amherst researchers in Advanced Materials.

Key Points

A method using nanoporous air-gen devices to harvest continuous clean electricity from ambient atmospheric moisture.

✅ Nanopores drive charge separation from ambient water molecules

✅ Works across materials: silicon, wood, bacterial films

✅ Predictable, continuous power unlike intermittent solar or wind

Sure, we all complain about the humidity on a sweltering summer day. But it turns out that same humidity could be a source of clean, pollution-free energy, aligning with efforts toward cheap, abundant electricity worldwide, a new study shows.

"Air humidity is a vast, sustainable reservoir of energy that, unlike wind and solar power resources, is continuously available," said the study, which was published recently in the journal Advanced Materials.

While humidity harvesting promises constant output, advances like a new fuel cell could help fix renewable energy storage challenges, researchers suggest.

“This is very exciting,” said Xiaomeng Liu, a graduate student at the University of Massachusetts-Amherst, and the paper’s lead author. “We are opening up a wide door for harvesting clean electricity from thin air.”

In fact, researchers say, nearly any material can be turned into a device that continuously harvests electricity from humidity in the air, a concept echoed by raindrop electricity demonstrations in other contexts.

“The air contains an enormous amount of electricity,” said Jun Yao, assistant professor of electrical and computer engineering at the University of Massachusetts-Amherst and the paper’s senior author. “Think of a cloud, which is nothing more than a mass of water droplets. Each of those droplets contains a charge, and when conditions are right, the cloud can produce a lightning bolt – but we don’t know how to reliably capture electricity from lightning.

"What we’ve done is to create a human-built, small-scale cloud that produces electricity for us predictably and continuously so that we can harvest it.”

The heart of the human-made cloud depends on what Yao and his colleagues refer to as an air-powered generator, or the "air-gen" effect, which relates to other atmospheric power concepts like night-sky electricity studies in the field.

In broader renewable systems, flexible resources such as West African hydropower can support variable wind and solar output, complementing atmospheric harvesting concepts as they mature.

The study builds on research from a study published in 2020. That year, scientists said this new technology "could have significant implications for the future of renewable energy, climate change and in the future of medicine." That study indicated that energy was able to be pulled from humidity by material that came from bacteria; related bio-inspired fuel cell design research explores better electricity generation, the new study finds that almost any material, such as silicon or wood, also could be used.

The device mentioned in the study is the size of a fingernail and thinner than a single hair. It is dotted with tiny holes known as nanopores, it was reported. "The holes have a diameter smaller than 100 nanometers, or less than a thousandth of the width of a strand of human hair."

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Build Back Better Act Energy Savings curb volatile fossil fuel heating bills by accelerating electrification and renewable electricity, insulating households from natural gas, propane, and oil price spikes while cutting emissions and lowering energy costs.

Key Points

BBBA policies expand clean power and electrification to curb volatility, lower bills, and cut emissions.

✅ Tax credits for renewables, EVs, and efficient all-electric homes

✅ Shields households from natural gas, propane, and heating oil spikes

✅ Cuts methane, lowers bills, and improves grid reliability and jobs

Experts are forecasting serious sticker shock from home heating bills this winter. Nearly 60 percent of United States’ households heat their homes with fossil fuels, including natural gas, propane, or heating oil, and these consumers are expected to spend much more this winter because of fuel price increases.

That could greatly burden many families and businesses already operating on thin margins. Yet homes that use electricity for heating and cooking are largely insulated from the pain of volatile fuel markets, and they’re facing dramatically lower price increases as a result.

Projections say cost increases for households could range anywhere from 22% to 94% more, depending on the fuel used for heating and the severity of the winter temperatures. But the added expenditures for the 41% of U.S. households using electricity for heating are much less stark—these consumers will see only a 6% price increase on average. The projected fossil fuel price spikes are largely due to increased demand, limited supply, declining fuel stores, and shifting investment priorities in the face of climate change.

The fossil fuel industry is already seizing this moment to use high prices to persuade policymakers to vote against clean energy policies, particularly the Build Back Better Act (BBBA). Spokespeople with ties to the fossil fuel industry and some consumer groups are trying to pin higher fuel prices on the proposed legislation even before it has passed, even as analyses show the energy crisis is not spurring a green revolution on its own, let alone begun impacting fuel markets. But the claim the BBBA would cost Americans and the economy is false.

The facts tell a different story. Adopting smart climate policies and accelerating the clean energy transition are precisely the solutions to counter this vicious cycle by ending our dependance on volatile fossil fuels. The BBBA will ensure reliable, affordable clean electricity for millions of Americans, in line with a clean electricity standard many experts advocate—a key strategy for avoiding future vulnerability. Unlike fossil fuels subject to the whims of a global marketplace, wind and sunshine are always free. So renewable-generated electricity comes with an ultra-low fixed price decades into the future.

By expanding clean energy and electric vehicle tax credits, creating new incentives for efficient all-electric homes, and dedicating new funding for state and local programs, the BBBA provides practical solutions that build on lessons from Biden's climate law to protect Americans from price shocks, save consumers money, and reduce emissions fueling dangerous climate change.

What’s really causing the gas price spikes?
The U.S. Energy Information Administration’s winter 2021 energy price forecasts project that homes heated with natural gas, fuel oil, and propane will see average price increases of 30%, 43%, and 54%, respectively. Those who heat their homes with electricity, on the other hand, should expect a modest 6% increase. At the pump, drivers are seeing some of the highest gas prices in nearly a decade as the U.S. energy crisis ripples through electricity, gas, and EV markets today. And the U.S. is not alone. Countries around the globe are experiencing similar price jumps, including Britain's high winter energy costs this season.

A closer look confirms the cause of these high prices is not clean energy or climate policies—it’s fossil fuels themselves.  

First, the U.S. (and the world) are just now feeling the effects of the oil and gas industry’s reduced fuel production and spending due to the pandemic. COVID-19 brought the world’s economies to a screeching halt, and most countries have not returned to pre-COVID economic activity. During the past 20 months, the oil and gas industry curtailed its production to avoid oversupply as demand fell to all-time lows. Just as businesses were reopening, stored fuel was needed to meet high demand for cooling during 2021’s hottest summer on record, driving sky-high summer energy bills for many households. February’s Texas Big Freeze also disrupted gas distribution and production.

The world is moving again and demand for goods and services is rebounding to pre-pandemic levels. But even with higher energy demand, OPEC announced it would not inject more oil into the economy. Major oil companies have also held oil and gas spending flat in 2021, with their share of overall upstream spending at 25%, compared with nearly 40% in the mid-2010s. And as climate change threats loom in the financial world, investors are reducing their exposure to the risks of stranded assets, increasingly diversifying and divesting from fossil fuels. 

Second, despite strong and sustained growth for renewable energy, energy storage, and electric vehicles, the relatively slow pace to adopt fossil fuel alternatives at scale has left U.S. households and businesses tethered to an industry well-known for price volatility. Today, some oil drillers are using profits from higher gas prices to pay back debt and reward shareholders as demanded by investors, instead of increasing supply. Rising prices for a limited commodity in high demand is generating huge profits for many of the world’s largest companies at the expense of U.S. households.

Because 48% of homes use fossil gas for heating and another 10% heat with propane and fuel oil, more than half of U.S. households will feel the impact of rising prices on their home energy bills. One in four U.S. households continues to experience a high energy burden (meaning their energy expenses consume an inordinate amount of their income), including risks of pandemic power shut-offs that deepen energy insecurity, and many are still experiencing financial hardships exacerbated by the pandemic. Those with inefficient fossil-fueled appliances, homes, and cars will be hardest hit, and many families with fixed- and lower-incomes could be forced to choose between heat or other necessities.

We have the solutions—the BBBA will unlock their benefits for all households

Short-term band-aids may be enticing, but long-term policies are the only way out of this negative feedback loop. Clean energy and building electrification will prevent more costly disasters in the future, but they’re the very solutions the fossil fuel industry fights at every turn. All-electric homes and vehicles are a natural hedge against the price spikes we’re experiencing today since renewables are inherently devoid of fuel-related price fluctuations.

RMI analysis shows all-electric single-family homes in all regions of the country have lower energy bills than a comparable mixed fuel-homes (i.e., electricity and gas). Electric vehicles also save consumers money. Research from University of California, Berkeley and Energy Innovation found consumers could save a total of $2.7 trillion in 2050—or $1,000 per year, per household for the next 30 years—if we accelerate electric vehicle deployment in the coming decade.

The BBBA would help deliver these consumer savings by expanding and expediting clean energy, while ensuring equitable adoption among lower-income households and underserved communities. Extending and expanding clean energy tax credits; new incentives for electric vehicles (including used electric vehicles); and new incentives for energy efficient homes and all-electric appliances (and electrical upgrades) will reduce up-front costs and spur widespread adoption of all-electric homes, buildings, and cars.

A combination of grants, incentives, and programs will promote private sector investments in a decarbonized economy, while also funding and supporting state and local governments already leading the way. The BBBA also allocates dedicated funding and makes important modifications (such as higher rebate amounts and greater point-of-purchase availability) to ensure these technologies are available to low-income households, underserved urban and rural communities, tribes, frontline communities, and people living in multifamily housing.

Finally, the BBBA proposes to make oil and gas polluters pay for the harm they are causing to people’s health and the climate through a methane fee. This fee would cost companies less than 1% of their revenue, meaning the industry would retain over 99% of its profits. In return return we’d see substantial reductions of a powerful greenhouse gas and a healthier environment in communities living near fossil fuel production. These benefits also come with a stronger economy—Energy Innovation analysis shows the methane fee would create more than 70,000 jobs by 2050 and boost gross domestic product more than $250 billion from 2023 to 2050.

The facts speak for themselves. Gas prices are rising because of reasons totally unrelated to smart climate and clean energy policies, which research shows actually lower costs. For the first time in more than a decade, America has the opportunity to enact a comprehensive energy policy that will yield measurable savings to consumers and free us from oil and gas industry control over our wallets.

The BBBA will help the U.S. get off the fossil fuel rollercoaster and achieve a stable energy future, ensuring that today’s price spikes will be a thing of the past. Proving, once and for all, that the solution to our fossil fuel woes is not more fossil fuels.

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