PSEG Accelerates Net Zero Goal to 2030

(Credit: PSEG)

At a time when there is an urgent need to step up sustainability efforts, Public Service Enterprise Group (PSEG) - one of the largest utilities in the U.S. - has accelerated its transition to net zero to 2030 from a previously stated 2050 timeline adopted in 2019, making the climate ambition one of the most aggressive in the world.

According to the Smart Electric Power Alliance (SEPA), which has been monitoring utilities’ net zero goals via its Utility Carbon Reduction Tracker illustrated below, 74 utilities across the U.S. - representing 71% of customer accounts in the U.S. - have publicly stated carbon or emission reduction goals, and 51 utilities have goals of carbon-free or net-zero emissions by 2050. 

(Credit: SEPA)

PSEG’s pivot to 100% carbon-free generation aligns with President Joe Biden’s goal of decarbonizing the country’s electric sector by 2035 as well as New Jersey’s climate goals, including obtaining 7,500 MW of offshore wind energy by 2035.

PSEG’s new climate vision has three pillars:

1. Net zero emissions for PSEG operations (scopes 1 and 2).
2. 100% carbon-free power generation.
3. Significant contributions to regional economy-wide decarbonization.

Strategies to achieve the net zero goal include, but are not limited to:

• Selling its non-nuclear fleet, including 6,750 MW of fossil generation, while exploring investments in offshore wind. PSEG has already completed a partnership with Danish energy company Orsted A/S on 25% of the 1,100 MW Ocean Wind offshore wind project in New Jersey.
• Modernizing its existing natural gas and electric transmission and distribution networks. PSE&G’s Gas System Modernization Program supports the current methane goal of a 21.7% reduction of absolute methane emissions by 2023 and will contribute to further reductions by 2030. The company plans to also evaluate alternatives to natural gas.
• Investing in new technologies that support greater electrification and improve energy efficiency.
• Electrifying a large portion of its vehicle fleet over a ten-year period.
• Exploring high-quality carbon offsets for any residual emissions.
• Continuing to advocate for state and federal programs to support the transition to 100% clean energy, including an economy-wide price on carbon and a federal production tax credit for existing merchant nuclear generation.

Over the next several years, PSEG will direct half of its current 2021-to-2025 capital spending program of approximately $14-$16 billion toward decarbonization, emission reduction, methane reduction, clean energy transition and climate and storm adaptation.

“PSEG’s climate vision for 2030 exemplifies the strategy we intend to pursue over the next decade - driving out harmful greenhouse gas emissions where they occur,” PSEG Chairman, President and CEO Ralph Izzo said. “The federal goal of achieving a 100% carbon-free electric supply by 2035 is an ambitious one that will require technology innovation, new policy frameworks, and a commitment by businesses and consumers across the economy.”