Colorado could be a national leader in clean energy

Xcel Energy is one of the largest investor-owned utilities in the United States, with operations spanning eight states. So, Xcel’s commitment last Tuesday to achieve 100 percent carbon-free electricity by 2050—Platte River Power Authority’s commitment by 2030 just two days later—is a strong signal that the tide has turned. What was initial resistance to new energy sources has yielded to the facts: Renewables-based power grids are technically feasible and cost-effective.

This signal is essential to another shift in the making: Total decarbonization of the economy is both feasible and inexpensive. It does not require any further breakthrough technologies.

Its realization will require coordination among businesses, consumers and government. And Colorado can exercise its energy leadership by defining and executing a plan to get there by 2050, and likely earlier.

This claim is substantiated by a recent report entitled Mission Possible, which describes how net-zero carbon emissions by mid-century are technically feasible at a cost of less than 0.5 percent of global GDP. This report was issued by the Energy Transitions Commission, an international coalition of business, finance and civil society leaders of which we are both members.

Fortunately, it means that Gov.-elect Jared Polis can be much more aggressive in his energy policy, going beyond his campaign’s electricity commitment to include all energy demand. Careful planning and design of incentives and mandates can ensure this decarbonization generates new well-paying jobs and maintains the economic growth the state has enjoyed.

The full transition will require coordinated action in at least three areas.

First, Colorado can take a lead in reducing demand for commodities through improved urban and building design, and more efficient industrial processes. Mandating the recycling of materials, from plastic bottles to steel beams, can dramatically reduce the energy required for their fabrication. State policy that cuts across sectors to improve recycling and reuse, and business models that replace products with services (i.e. car sharing rather than car ownership) can help to reduce industrial emissions by more than 30 percent.

Second, Colorado’s government must work with local utilities and communities to plan for rapid increases in electricity demand. One such planning measure is to dramatically improve the efficiency of building electricity use today to enable electric vehicle charging without straining the grid. New sources of demand like EVs will arrive sooner than we think due to rapidly falling electricity storage costs. Alongside low-cost renewables this will justify the electrification of transportation, light industry, and buildings energy use.

Third, Colorado must drive dramatic reductions in methane leakage from natural gas extraction and transportation. This leakage can neutralize any carbon reduction benefit of using natural gas, threatening the industry’s right to operate – quite the threat indeed for Colorado, which has the nation’s sixth largest gas reserves.

There is private sector support and precedent for this: gas industry leaders have signed on to the Methane Guiding Principles Initiative, and Shell has committed to limiting its emissions to 0.5 percent of production—about 20 percent of the U.S. average.

The good news is that Coloradans have proactively explored these opportunities. In August, Xcel and EVRAZ announced plans for a 240 MW solar array—considered the largest “on-site” project in the world—to power Pueblo’s steel mill. The City of Boulder has recognized the opportunity for local resilience and cost savings offered by modular renewable energy. And the state’s electric vehicle subsidy has brought thousands of EVs to local streets, helping sustain their big cost declines.

Still, it will not be easy. It will require work from all sectors. It will require new policies and ambitious carbon targets from local and state government, leadership from businesses, and engagement from all of us to reduce the demand for carbonintensive products and look for zero-emissions materials and mobility solutions.

But the conclusion is as clear as it is inspiring: it is possible to meet the climate challenge. Our success depends on our capacity for collective action. We have good reason to act: meeting the climate challenge will not only limit the harmful effects of climate change, but will also drive prosperity, create jobs, and build a more resilient future for us all.