Study of Decarbonization Efforts in Massachusetts Authored by Analysis Group Consultants Shows a Path Forward for Other States

BOSTON, July 23, 2019 /PRNewswire/ -- Analysis Group, one of the largest international economics consulting firms, released a new report detailing the fuel and emissions portfolio of municipal light plants (MLPs) throughout Massachusetts, in the context of the commonwealth's efforts to reduce greenhouse gas (GHG) emissions. The analysis reveals that the MLPs' GHG emission profile is 60% lower than that of the state's investor-owned utilities (IOUs), and 40% lower than that of the New England region.

The study, "Fuel Mix and Greenhouse Gas Emissions of Municipal Electric Light Plants in Massachusetts," is a performance audit relative to Massachusetts' aggressive pathway to achieving decarbonization of its energy sectors, a plan that would reduce GHG emissions by at least 80% by 2050. The study points out that energy and environmental policies affecting the electric sector are increasingly aiming to reduce the carbon intensity of electricity generation. In Massachusetts, such programs include caps on carbon dioxide emissions from power plants, support for investments in energy efficiency, and the promotion of growth in renewable and other low-carbon generation through policies including net metering and long-term contracts.

"Our analysis shows that the MLPs are well ahead of the New England region when it comes to the transition to a lower-emitting resource mix, with a lower-carbon emission portfolio and proactive investment in advanced energy technologies," said Paul Hibbard, Analysis Group Principal and a coauthor of the report. "As Massachusetts seeks to reduce GHG emissions in the coming decades, it is clear that MLPs have been and will continue to be an active partner in decarbonization efforts."

Data and analysis from the study point to the key drivers of MLPs' progress with respect to fuel mix and emissions:

    --  MLPs' Business Structure Supports Financing for Renewable Resource
        Development. As local, nonprofit, and vertically integrated utilities,
        MLPs can plan for power system growth on an integrated basis, have
        direct access to local permitting and zoning processes, and can quickly
        invest at a lower cost of capital. These traits enable MLPs to pursue
        resource investment and operational decisions with an eye toward both
        local customer expectations and state policies, and can make the
        financial commitments leading to "steel in the ground" renewable
        projects.
    --  MLP Resource Commitments are Dominated by Low- and Zero-Carbon
        Resources. The most important indicator of the role MLPs play in helping
        transition to a lower-emission resource mix is reflected in the
        resources that the MLPs own or have under contract. A blended
        owned/contracted portfolio of wind, solar, hydro, and nuclear assets
        leads to an MLP resource portfolio of 94% non-emitting generation
        infrastructure. Even blending in shorter-term wholesale market
        transactions (where the resource mix is out of the MLPs' direct control)
        yields a 75% non-emitting resource mix, compared to 47% for the
        commonwealth's IOUs.
    --  MLP Structure and "Home Rule" Foster Early Adoption of Advanced Energy
        Technologies. Massachusetts MLPs have implemented significant energy
        efficiency programs, and have been early investors in renewable,
        storage, and electric vehicle technologies due to their attention to
        local customer and state interests, and driven by their integrated
        planning, financing, and decision-making advantages. Policies affecting
        this long-standing model could be counterproductive to both local
        interest/autonomy and statewide decarbonization efforts.

The report was funded by the Municipal Electric Association of Massachusetts (MEAM), which represents 40 MLPs throughout the commonwealth. It can be accessed here.

To learn more about Analysis Group's capabilities, visit www.analysisgroup.com.

About Analysis Group
Analysis Group is one of the largest international economics consulting firms, with more than 950 professionals across 14 offices in North America, Europe, and Asia. Since 1981, we have provided expertise in economics, finance, health care analytics, and strategy to top law firms, Fortune Global 500 companies, and government agencies worldwide. Our internal experts, together with our network of affiliated experts from academia, industry, and government, offer our clients exceptional breadth and depth of expertise.

Contact:
Analysis Group
Eric Seymour, 617-425-8103
eric.seymour@analysisgroup.com

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SOURCE Analysis Group