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A Clean Energy Pathway for Southwestern Pennsylvania

By Joe Goodenbery, Eliasid Animas, and Jennifer Gorman - Ohio River Valley Institute, December 12, 2022

This report describes the development and analysis of a clean energy pathway for a 10-county region in southwestern Pennsylvania. Due to its abundance of fossil fuel resources, the region has a long history of substantial energy production, often at the expense of local environmental quality and economic diversity. A transition to clean energy provides a compelling opportunity to transform the local energy profile, while ending the region’s overreliance on fossil fuels, to reduce emissions and pursue a path of sustainable growth.

To date, the prevailing narrative for decarbonizing this region has centered around the perpetuation of the natural gas industry and costly investments in carbon capture and storage (CCS) technologies and infrastructure. Strategen’s analysis provides an alternative focused primarily on zero emissions resources, energy efficiency, increased electrification, and leveraging clean energy imports from outside the region, while minimizing the local need for fossil fuels.

Key Takeaways from this study:

  • A renewables-based pathway, including energy efficiency and clean energy imports from the PJM market, is more cost-effective than continued reliance on fossil fuels. A strategy focused on natural gas and carbon capture will be 13% more costly than the clean energy pathway, which avoids expensive investments in CCS technologies to reduce emissions, while limiting the region’s exposure to fuel price volatility and mitigating the risk of stranded fossil fuel assets.
  • In the developed decarbonization pathway, all coal plants and a significant portion of natural gas plants in the region will retire or reduce output by 2035, drastically reducing emissions going forward. A limited portion of natural gas plants may be kept online as capacity or peaking resources and to ensure reliability, though clean dispatchable resources could potentially serve this role in the future, as technology progresses.
  • The clean energy pathway results in a 97% reduction in CO₂ emissions from the power sector by 2050, leading to environmental benefits of nearly $2.7 billion annually. These benefits are greater than those associated with strategies built around natural gas and CCS, furthering the case for the clean energy pathway as a least cost option for energy transition.
  • Deep electrification of the transportation and buildings sectors can directly lower regional CO₂ emissions from these sectors by 95%. The total annual value of environmental and health benefits associated with combined reductions from the power, buildings, and transportation sectors reaches $4.2 billion in 2050, through avoided social costs.
  • Through reduced reliance on natural gas for power generation and in buildings, Strategen’s decarbonization pathway will decrease natural gas consumption by 96% and 98%, respectively, for two these sectors by 2050. Lower consumption provides an opportunity to reduce emissions associated with natural gas extraction. The value of these avoided emissions would surpass $1 billion in 2050 alone.
  • Energy efficiency is projected to increase over time, reducing regional electricity load by an average of 2.6% each year of the study period. Combined with electrification, the clean energy pathway results in overall load growth of 33% by 2050.
  • Efficiency measures not only reduce load, emissions, and the need for additional generation, but also lead to local job creation and savings for consumers. Expenditures on efficiency and resulting residential bill savings support 12,416 total jobs in 2035, and 15,353 total jobs by 2050. Compared to both power generation and fossil fuel extraction, energy efficiency has a greater potential for local economic development, leading to more, higher-paying jobs served by workers and suppliers within the region.

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Disclaimer: The views expressed here are not the official position of the IWW (or even the IWW’s EUC) and do not necessarily represent the views of anyone but the author.

The Fine Print I:

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