A new in-depth story from Dan Gearino at Inside Climate News takes a critical look at the long-term emissions-reduction plans recently issued by utilities across the country. Several plans demonstrate a lack of urgency inconsistent with science-based timelines to address climate change. At the same time, stakeholders are calling for utilities to be more open to competitive bidding to supply power needs. A National Climate Bank can help renewable energy and grid technologies compete with fossil fuels on price, replacing dirty energy and accelerating the transition to clean.

For example, Inside Climate News reports that DTE Energy in Michigan has pledged to reduce emissions 80% by 2040 and achieve net-zero emissions by 2050. At the same time, DTE plans to keep its Monroe coal plant running until 2040, and has a new natural gas facility under construction. DTE has not done a cost analysis of the Monroe plant, and environmental groups have testified that a portfolio of energy efficiency, renewable energy, and battery storage would be more cost-effective if allowed to compete. In modeling, DTE included the plant as part of its “Starting Point” assumptions, meaning it was effectively exempted from the model’s determination of a cost-effective energy mix.

Asked about the plant, a DTE spokesperson emphasized reliability rather than cost, suggesting that the plant is essential to the grid. This is an increasingly common argument made in defense of aging coal facilities unable to compete on price. First Energy in Ohio made similar arguments last year, but the PJM grid operator found that the facilities in question could be safely retired without risk to the grid.

Advocates at the state level are vigilant in calling out these issues with utilities’ proposals and highlighting the availability of cost-effective clean alternatives. Laura Sherman, President of the Michigan Energy Innovation Business Council, has suggested that utilities need to actively engage the private sector, and be open to competitive bidding from independent developers.

This is where Green Banks can play a key role in accelerating the clean energy transition. Green Banks’ involvement enables clean technologies to secure the financing they need to be economically viable, competing on cost in more places. A National Climate Bank would be empowered to provide financing that would reduce costs for grid technologies like efficiency, demand response and energy storage. It could also reduce the costs of fossil-fuel retirements, by securitizing stranded asset costs and reducing the amount passed through to ratepayers.

The urgency of climate change means that we don’t have time to waste. As utilities increasingly are called out on un-competitive and un-economical energy plans, tools like Green Banks are important to making sure that clean alternatives are available as cheaply and quickly as possible.