Energy Policy and Regulations
Expert-defined terms from the Certificate Programme in Energy Supply Chain Management course at London School of Planning and Management. Free to read, free to share, paired with a globally recognised certification pathway.
**Acid Rain #
** Refers to a type of precipitation with high levels of sulfuric and nitric acids, primarily caused by the burning of fossil fuels. It can have significant environmental and health impacts, including damage to forests, lakes, and buildings, and can contribute to the corrosion of power transmission equipment.
**Advanced Metering Infrastructure (AMI) #
** A system that measures, collects, and analyzes energy usage data in real-time or near-real-time through smart meters. AMI enables utilities to monitor and manage energy demand, improve system reliability, and offer customers more control over their energy usage.
**American Recovery and Reinvestment Act (ARRA) #
** A 2009 economic stimulus bill in the United States that included provisions for clean energy and energy efficiency projects, such as the Smart Grid Investment Grant program and State Energy Program.
**Baseload Power #
** Refers to the minimum level of electrical power that must be continuously supplied to meet the minimum demand of a power system. Baseload power is typically provided by reliable and steady power sources such as coal, natural gas, and nuclear power plants.
**Benefit #
Cost Analysis (BCA):** A method of evaluating the potential costs and benefits of a project or policy, typically used in the context of energy regulations and investments. BCA helps decision-makers compare the overall value of different alternatives and make informed decisions based on the results.
**Carbon Capture and Storage (CCS) #
** A technology that captures carbon dioxide emissions from power plants and other industrial sources and stores them underground, often in rock formations, to prevent their release into the atmosphere. CCS is seen as a key strategy in reducing greenhouse gas emissions and mitigating climate change.
**Clean Air Act #
** A US federal law passed in 1963 and amended multiple times since, which regulates air emissions from stationary and mobile sources. The Clean Air Act sets national standards for air quality and authorizes the Environmental Protection Agency to enforce regulations to meet those standards.
**Demand Response (DR) #
** A program that encourages customers to reduce their energy usage during peak demand periods, typically in response to financial incentives or other incentives. DR can help utilities manage energy demand, improve system reliability, and reduce the need for expensive peak power plants.
**Distributed Energy Resources (DER) #
** Small-scale power generation and storage systems located close to the end-use customer, such as rooftop solar panels, energy storage systems, and combined heat and power systems. DER can provide a more resilient and flexible power system, reduce energy costs, and reduce greenhouse gas emissions.
**Electric Vehicle (EV) #
** A vehicle powered by electricity, typically stored in a battery, instead of gasoline or diesel. EVs can reduce greenhouse gas emissions, improve air quality, and reduce dependence on fossil fuels.
**Energy Independence #
** Refers to a country's ability to produce enough energy to meet its own needs without relying on imports. Energy independence is often seen as a strategic goal for national security and economic reasons.
**Energy Policy Act (EPAct) #
** A US federal law passed in 1992 that aimed to promote energy efficiency, renewable energy, and competition in the electricity market. EPAct included provisions for tax credits for renewable energy projects, research and development programs, and energy efficiency standards for appliances and buildings.
**Energy Storage #
** The capture and storage of energy for later use, typically through batteries, pumped hydro storage, or other technologies. Energy storage can provide a more flexible and reliable power system, reduce energy costs, and integrate renewable energy sources into the grid.
**Energy Supply Chain #
** Refers to the series of activities involved in the production, transportation, and distribution of energy resources, from extraction to end-use. Energy supply chain management involves optimizing these activities to reduce costs, improve efficiency, and minimize environmental impacts.
**Environmental Impact Assessment (EIA) #
** A process of evaluating the potential environmental impacts of a project or policy, typically required by regulations before a permit is granted. EIA helps decision-makers understand the potential environmental risks and benefits of a project and make informed decisions based on those risks.
**Federal Energy Regulatory Commission (FERC) #
** A US independent agency responsible for regulating the interstate transmission of electricity, natural gas, and oil. FERC sets rates for transmission and wholesale sales, approves the construction of interstate transmission facilities, and enforces regulations to ensure reliability and fair competition in the energy market.
**Feed #
in Tariff (FIT):** A policy that requires utilities to purchase renewable energy from independent power producers at a fixed price, often set above the market rate, to encourage the development of renewable energy projects. FIT has been successful in promoting renewable energy development in countries such as Germany and Spain.
**Fossil Fuels #
** Fuels derived from the remains of ancient plants and animals, such as coal, oil, and natural gas. Fossil fuels are the primary source of energy for transportation, heating, and electricity generation, but their use contributes to greenhouse gas emissions and air pollution.
**Greenhouse Gas (GHG) #
** A gas that traps heat in the atmosphere, contributing to global warming and climate change. The main greenhouse gases are carbon dioxide, methane, and nitrous oxide.
**Grid Modernization #
** The process of upgrading the electrical grid to make it more reliable, flexible, and efficient. Grid modernization includes the deployment of smart grid technologies, energy storage, and advanced metering infrastructure.
**Integrated Resource Planning (IRP) #
** A process used by utilities to plan for their future energy needs by considering a range of resources, including energy efficiency, demand response, and renewable energy. IRP helps utilities make informed decisions about the most cost-effective and sustainable way to meet their customers' energy needs.
**Intergovernmental Panel on Climate Change (IPCC) #
** A scientific body established by the United Nations to provide policymakers with regular assessments of the scientific, technical, and socio-economic information relevant to understanding climate change.
**Kyoto Protocol #
** An international treaty signed in 1997 that committed countries to reducing their greenhouse gas emissions. The protocol set binding targets for industrialized countries and established mechanisms for trading emissions credits.
**Life #
cycle Analysis (LCA):** A method of evaluating the environmental impacts of a product or service over its entire life cycle, from raw material extraction to disposal. LCA helps decision-makers understand the potential environmental impacts of a product or service and make informed decisions based on those impacts.
**Load Management #
** The process of managing electricity demand through various strategies, such as demand response, energy efficiency, and time-of-use pricing. Load management helps utilities reduce peak demand, improve system reliability, and reduce energy costs.
**Microgrid #
** A small-scale power system that can operate independently from the main power grid, typically serving a single building or community. Microgrids can provide a more reliable and resilient power system, reduce energy costs, and integrate renewable energy sources into the grid.
**Net Metering #
** A policy that allows customers with rooftop solar panels or other renewable energy systems to sell excess electricity back to the grid, typically at the retail rate. Net metering helps promote the adoption of renewable energy and reduce energy costs for customers.
**Non #
Renewable Energy:** Energy resources that cannot be replenished within a human timeframe, such as coal, oil, and natural gas. Non-renewable energy resources are the primary source of energy for transportation, heating, and electricity generation, but their use contributes to greenhouse gas emissions and air pollution.
**Peak Demand #
** The maximum level of electricity demand in a given time period, typically during peak hours of the day. Peak demand can be managed through various strategies, such as demand response, energy storage, and time-of-use pricing.
**Power Purchase Agreement (PPA) #
** A contract between a utility or other energy buyer and a renewable energy developer, under which the developer agrees to build and operate a renewable energy project and sell the electricity to the buyer at a fixed price over a long-term period. PPAs help promote the development of renewable energy projects and reduce energy costs for customers.
**Renewable Energy #
** Energy resources that can be replenished naturally over time, such as solar, wind, hydro, and geothermal. Renewable energy resources are becoming increasingly cost-competitive with traditional fossil fuel sources and can help reduce greenhouse gas emissions and air pollution.
**Renewable Portfolio Standard (RPS) #
** A policy that requires utilities to generate a certain percentage of their electricity from renewable energy sources. RPS helps promote the development of renewable energy projects and reduce greenhouse gas emissions.
**Smart Grid #
** An electrical grid that uses advanced technologies, such as smart meters, sensors, and communication networks, to improve reliability, efficiency, and flexibility. Smart grids can help integrate renewable