PSEG launches plan to achieve net-zero carbon emissions by 2050

Public Service Enterprise Group (PSEG) has launched a plan to achieve net-zero carbon emissions by 2050.

PSEG’s “Powering Progress” initiative aims to cut carbon emissions from its facilities by 80 percent by 2046 from 2005 levels, and 100 percent by 2050.

PSEG will retire or sell all remaining interests in coal-fired power plants with no plans to build or acquire new fossil-fueled plants to achieve this goal. It will continue to operate its Salem and Hope Creek nuclear plants, which are the source of more than 90 percent of New Jersey’s zero-carbon electricity. The company will also continue to explore opportunities in solar, offshore wind, and emerging technologies. Further, PSEG will continue to promote energy efficiency to its customers.

The New Jersey-based company’s energy efficiency programs are currently saving customers a total of $242 million a year in energy costs. The pollution avoided is equal to removing 37,000 cars from the road for one year. The company plans to invest $2.5 billion in energy efficiency programs that are projected to save customers $5.9 billion while reducing carbon emissions.

Two primary keys to driving this forward are advances in technology and public policy. In terms of innovation, it will be a combination of burgeoning new technologies that have not yet emerged along with improvements upon current technologies to make them more economically viable. Concerning policy, it will depend not just on what happens at the federal level, but at the state level as well. Many states, like New Jersey, have committed significant resources to carbon reduction.

PSEG is among the industry leaders in reducing carbon emissions. According to a study released by M.J. Bradley & Associates, PSEG had the third-lowest carbon emissions rates among the largest U.S. power producers. Since 2005, PSEG has reduced its carbon emissions by more than 40 percent, which it has done by maintaining its nuclear units, investing in gas-fired energy and renewables, and exiting coal-fired assets.

A recent study published in Nature reveals the threat posed by carbon emissions from power plants. It said carbon emissions must approach zero by 2050 to stabilize global mean temperature, but continued expansion of fossil-fuel energy infrastructure puts that goal in jeopardy. If currently proposed, permitted, or under construction fossil-fuel based facilities are built, it could raise the global average temperature by 1.5 degrees Celsius, the study said. The Paris Climate Agreement sets a goal of keeping global warming from rising by 2 degrees Celsius.

“The science of climate change is clear and we believe society must move beyond simply ‘heeding warnings’ to acting on them,” PSEG Chairman, President and CEO Ralph Izzo said. “PSEG has a long history of taking ambitious action to enhance the lives of our customers and communities. As we share our vision to achieve net-zero carbon emissions by 2050, we recognize that there is no one magic bullet that will get us to a 100 percent carbon-free future. The energy industry has always relied on innovation, efficiency, smart policies, and an all-of-the-above strategy to address its greatest challenges. Succeeding in a carbon-constrained future will not be any different.”

PSEG’s emission rate in 2017 was 461 lb/MWh, which is below the average emission rate for the electric sector of 510 lb/MWh, according to the International Energy Agency. After it exits coal by 2021, PSEG’s projected emission rate will be 334 lb/MWh. By then, PSEG will have retired or exited more than 2,400 MW of coal-fired generation. Going forward, PSEG will boost solar and wind asset development.

“We know that climate change and the need to decarbonize our economy mean that this company and others like it must work toward a greener future,” Izzo said. “We believe that members of PSEG’s current workforce will be essential to maintain the safe, reliable and efficient operations that are a hallmark of our fleet – even as priorities shift to cleaner energy sources.”

There has been renewed focus on carbon reduction in Washington as U.S. Rep. Frank Pallone, Jr. (D-NJ), along with members of the House Committee on Energy and Commerce, is working on legislation to put the country on a path to net-zero carbon emissions by 2050. The private sector has been moving in this direction too, as 28 global companies have committed to net-zero carbon emissions by 2050.