Energy and Environmental Economics, Inc.

Join our newsletter to receive a note every month or so with our latest clean energy analyses, explained. You can expect to read about topics like resource adequacy, electricity market design, AI and load growth, the future of gas, and green hydrogen. You are always welcome to respond and keep the conversation going. We expect these emails will be most relevant for utilities, governments, research groups, nonprofits, developers, investors, and operators, but we welcome anyone interested in clean energy. Sign up here: https://lnkd.in/g733iC9y

Join us *tomorrow,* March 26, for a webinar on permitting large-scale renewable energy projects, hosted by the California Governor's Office of Business and Economic Development (GO-Biz). ? This webinar is part of GO-Biz’s broader effort to develop a renewable energy permitting playbook and toolkit for local jurisdictions across the state. E3 and GHD are supporting GO-Biz by identifying opportunities to streamline the permitting process for wind, solar, and Battery Energy Storage Systems (BESS). ? The webinar will feature perspectives from the California Public Utilities Commission, California Natural Resources Agency , California Department of Forestry and Fire Protection (CAL FIRE), local permitting officials, and industry. We’ll explore what’s happening across California today, with discussion on best practices and safety concerns. ? Planners, permitting authorities, developers, safety officials, and others involved in energy project development are encouraged to attend. Register here: https://lnkd.in/gS4hYTdT

Overcoming barriers in permitting is a key lever to accelerating clean energy development in states across the country. Energy and Environmental Economics, Inc. and GHD are supporting the California Governor's Office of Business and Economic Development (GO-Biz) in developing a toolkit of permitting resources for local jurisdictions. Join us next Wednesday (March 26th) for a webinar on permitting battery storage in California - we'll have experts from the CPUC, local permitting agencies, and industry providing perspectives on battery safety and best practices related to permitting battery storage. Details and registration link below!

My slides and a recording is posted on the NARUC website from my presentation on "Integrated System Planning: Opportunities and Challenges for Optimized Planning Across Planning Domains". Check it out here: https://lnkd.in/gV3n5UY9

We're excited to host an event for SF Climate Week next month: a panel discussion on energy in the age of AI, followed by a networking reception. ?? Monday, April 21st, 5PM ?? E3 Headquarters, Downtown San Francisco The rapid advancement of AI is driving unprecedented energy demand, raising critical questions about its impact on the future of the energy sector. Will AI enhance efficiency, accelerate electrification, and spur investment in the clean energy transition? Or will the surge in large-scale computing loads increase reliance on fossil fuels and drive up electricity costs? The panel will be moderated by?Amber Mahone, Managing Partner at E3, and will feature industry experts at the intersection of AI and energy. In-person attendance is limited, and we will do our best to accommodate all requests. To request a spot, please fill out this form: https://lu.ma/7lob1rtm. The discussion will also be recorded and livestreamed for remote attendees.

We're pleased to welcome Robert Zavadil to E3 as a Senior Director! Bob has spent more than 45 years in the electric power industry, from his early work in transmission planning and operations at Nebraska Public Power District in the 1980s, to pioneering renewable energy interconnection studies in the 1990s with Electrotek Concepts. In the 2000s, he co-founded EnerNex, which led the early efforts in both renewable interconnection and integration and smart grid development and grid modernization. As E3’s first distribution engineer, Bob brings a deeply technical perspective on transmission and distribution planning, interconnection, and power system operations. "Bob's expertise will strengthen E3's approach to transmission and distribution planning," said E3's Managing Partner, Amber Mahone. "I first worked with E3 on a project almost 30 years ago," Bob said. "I've followed its trajectory as a company and am impressed by what they've done. I look forward to the opportunity to enhance that with my personal experience and technical background." We’re excited to have Bob on board — please join us in welcoming him to the team: https://lnkd.in/g984MnNx

As Massachusetts makes progress toward its electrification goals and broader climate objectives, load flexibility will become an increasingly important tool to manage electric system costs. In December, E3 published the MA Near-Term Rate Design Study, and last week, we released the Long-Term Study, focused on the interplay among time-varying rates, flexible customer technologies, and other expected changes to New England’s electric system. The Long-Term Study considers retail rates that could be implemented in the 2030s after the widespread deployment of advanced metering infrastructure (AMI) and when the New England power system is likely to become winter-peaking. The combination of AMI-enabled time-varying rates and flexible consumer technologies, such as smart water heaters and smart thermostats, could unlock significant value from load flexibility. However, rates designed for load flexibility may come into conflict with electrification goals. Time-varying rates that reflect incremental system costs are likely to be highest during cold winter hours. This is good for encouraging customers to adopt efficient technologies and manage heating demands on the grid, but may lead to higher winter heating costs for electric heating customers. Our report identifies a range of options to address these challenges. The grid is evolving rapidly; rates must evolve too. The E3 team appreciates the leadership of the MA Interagency Rates Working Group, which has worked to proactively think through the evolution of electric rates needed to align with the long-term transformation of the energy system. ? Find both the Near- and Long-Term recommendations in full here: https://lnkd.in/gNAW9und

For nearly a decade, E3 has worked with NYSERDA to develop and refine the Value Stack Calculator, a public tool that helps DER developers estimate project revenues under New York’s Value Stack tariff. The tool helps developers estimate project revenue under New York’s Value Stack methodology, a nuanced tariff structure that values and compensates DERs based on both when and where they inject energy into the grid — key factors in determining project viability. E3 recently completed the 2025 update, marking another step in our ongoing effort to improve and maintain this critical resource. Used by developers, utilities, and policymakers, the calculator provides revenue estimates for distributed energy resources (DERs), helping to shape investment decisions in solar and storage. This year’s update refines historical energy, capacity, and locational system relief values, as well as the existing library of standby and buyback rates. Additional revisions improve clarity for users — particularly standalone storage operators navigating payment timing complexities. As DER adoption grows and project economics become more intricate, we remain committed to ensuring this tool reflects the latest market conditions, making valuation more transparent and accessible for the industry. Access the latest version here: https://lnkd.in/gw4GUFgw

To our federal colleagues looking for their next role, we’re actively recruiting across all offices and practice areas. If you have 4–10 years of experience and are passionate about solving complex energy challenges, we’d love to connect. ? We’re especially looking for experts in: ?? Electricity resource planning and modeling ??? Transmission analysis and policy ?? Distribution planning ?? Electric/gas rate design and cost allocation? ? E3 works with clients across the entire power industry: state governments and other regulators, utilities, energy developers and investors, large energy service users, nonprofits and research organizations, and others. It gives us a really interesting understanding into the sector, going both in-depth on projects (like integrated system plans, climate action plans, rate design, resource adequacy, and market forecasting) while also maintaining a broad view of macro-level challenges. Our staff is made up of experts in their fields who enjoy collaborating on the most complex questions in the energy transition. ? Find our open roles here: https://lnkd.in/gBVb2ne

Post-election policy shifts and macroeconomic changes are reshaping the energy landscape. To reflect these evolving conditions, E3 has updated our Resource Cost (RECOST) model, a discounted cash flow tool that calculates the levelized cost of different energy resources through 2050, differentiated for every state in the U.S. and every province in Canada. RECOST has been used in public planning processes for WECC, the California Public Utilities Commission, and other major stakeholders to assess energy costs under changing market conditions. Key insights from our Q1 2025 update: –New gas plant costs are rising, increasing 30% in part due to supply chain and labor constraints. Combined cycle overnight capital costs are now $1700 per kW in E3’s Mid case and $1900 per kW in our updated High case. –Solar tariffs remain a key factor, with near-term costs projected to rise at least 8%. –IRA tax incentives may phase out sooner than expected, with our updated assumption moving the phase-out trigger from 2045 to 2032 — raising the levelized cost of new wind, solar, and storage projects significantly. These shifts highlight the importance of flexible cost modeling in a dynamic policy environment. RECOST is designed to adapt, allowing users to explore different financing, capital cost, and policy assumptions to better inform energy planning and investment decisions. Find the full insights here: https://lnkd.in/g2c7H6TT