Transportation Electrification: Required Energy System Investment Needs

Abstract

Public and regulatory policies, coupled with government support through legislation and financial incentives including tax breaks, provide the impetus for transforming the energy industry in the United States. The transition from an industrial era closed‐loop one‐way power flow system to a flexible multipronged open system is going to require time and money. The flexible multipronged system is characterized as one in which communications and energy flows are two‐way, with multiple buyers and sellers competing in markets unconstrained by geography. Contracts for differences (in the form of energy credits, e.g., zero‐energy credits for nuclear power, renewable energy credits, carbon allowances, etc.) play a large role in defining the market.