Q & A With Dan Bakal, Ceres’ Senior Program Director, Climate and Energy

This is the second in a series of Q & As with the Ceres experts who are engaging with companies to decarbonize six of the highest-emitting sectors of the economy. Read the first Q & A here.

Q: Why is the decarbonization of the power sector so important? How can it be achieved? 

After transportation, electric power is the second largest source of emissions, with about a quarter of all U.S. pollution. It is encouraging to see some of the largest electric power companies set goals to reduce emissions and shift away from coal toward renewable energy and energy storage.

But we’re going to need to see a lot more of that kind of action, and a major expansion of the sector’s efforts to help key sectors – like transportation and heating – reduce their emissions. As electric vehicle adoption continues at a torrid pace, electric utilities need to provide the infrastructure and the competitive charging rates to fuel electric vehicles. And electric utilities can help decarbonize heating by promoting heat pumps, which are remarkably effective, even in cold weather climates.

Q: Where do you see the biggest challenges? 

Changing mindsets continues to be a huge challenge. Clean energy technologies continue to advance rapidly and become more cost-effective, but utilities are typically not quick to adapt to a changing external environment. While some caution is appropriate, given that utilities are regulated and are expected to provide reliable service to their customers, they are often resistant to change. It is critical that utility executives fully appreciate risks associated with failing to fully address the climate challenge, and also recognize that there is an enormous business opportunity for them to help solve the challenge in ways that can also address longstanding issues of equity and energy burden.

Q: What are the biggest successes you have seen in recent months to move the sector closer to the goal of limiting warming to 1.5 C? 

Through Climate Action 100+, the world’s largest investor engagement initiative on climate change, we continue to see power companies make new commitments that increase their alignment with limiting warming to 1.5 C. There are now 25 utilities in the U.S. that have committed to reducing emissions by 80% by 2030, an ambitious science-aligned pathway.

The pace of investment in clean energy is also accelerating, with new electric generation dominated by solar and wind. In the first half of 2023, solar, wind, and storage provided 65% of all new capacity connected to the U.S. grid. And as these clean resources come online, they are actually helping address critical reliability needs during extreme weather events.

Q: Are there any upcoming projects and technology that you are most excited to see that will aid in further decarbonization? 

More than any specific technological breakthrough, what makes me excited is the potential utilities have to integrate existing technologies at the scale that will really transform the industry. This includes installing new and upgraded transmission lines so large wind and solar projects can power reach major population hubs, adopting innovative technologies and programs, such as energy storage and demand-response programs for customers that reduce energy use when hot or cold days put stress on the power grid and that make the grid more efficient and reliable overall, and rolling out a sprawling electric vehicle charging infrastructure to match the complex needs of vehicles ranging from cars to buses to delivery trucks.

Q: What drew you to your work in the power sector? 

I remember at a very young age, we were the only home in the neighborhood with hot water heated by renewable energy, which meant that we burned much less oil in our basement. That early experience gave me an appreciation for clean renewable energy. Later, in my 20’s, I learned about climate change and the role that industry had in contributing to it and also the potential that industry – and especially the power sector – could have to help solve this massive problem.

Read more about some of the work being done at Ceres to decarbonize the electric power sector.