The evolution of electricity demand in WECC region
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Stagnant growth rates keep demand low. Little to no sign of a quick turnaround in demand over the long term.
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The evolution of electricity supply in the WECC region
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Regulatory pressure on shale-gas development leads to a slowdown in natural gas exploration. Coal remains on a retirement trajectory. Renewables viewed as viable alternative because of climate change impacts. Renewables now more cost-competitive with conventional resources.
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Innovation in electricity supply technology & distribution systems
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Smart grid technology is widely commercialized as the industry develops an integrated vision, which includes demand-side energy, EE, load management, DR and variable-power generation.
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The course of regional economic growth in the WECC region
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Sustained, lower economic growth rates in North America, Europe, and Japan lead to a belief that structural unemployment will be permanent aspects of these economies.
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Changes in the regulation of electric power systems in the WECC region
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U.S. and Canadian governments willing to fund renewables demonstrations in order to spur innovation.
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Changes in federal regulation affecting electric power industry
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Federal policymakers implement tax increases and eliminate subsidies for the oil industry. The resulting windfall in revenue becomes the catalyst for a sustained increase in federal funding for renewables research, development, and deployment.
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Changes in social values related to energy issues
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Informed energy consumers expect power companies to empower them to manage their individual energy portfolios. Strong emphasis on conservation. Consumers willing to pay higher rates in return for lower overall bills.
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Changes in society’s preferences for environmental & natural resources
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The harmful effects of climate change lead the U.S. to sign onto an international climate change treaty. Serious public concern about the power industry’s impact on water quality.
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Shifts in national & global financial markets
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The long-term effects of the housing bust and the credit crunch ensure that financial markets prefer to fund low-risk projects . Private capital makes limited investments in the power industry.
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Shifts in the availability & prices of commodity fuels used in the electricity sector
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Coal and natural gas considered problematic due to emissions concerns and worries about shale-oil development. Carbon tax increases and higher energy bills enable the transition to renewables.
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