Strategies that guided development throughout the 20th century relied heavily on economic optimality as a chief guiding principle in the design of energy, technology, markets, and policy. A review of the record of performance of this decision-making process is followed by a review of proposals to redefine energy progress on sustainability principles. An emerging 21st sustainability paradigm is described which relies on commons-based economics and long-term ecological viability.
An existing operational expression of the new paradigm-the Sustainable Energy Utility (SEU)-is analyzed as a practical means to arrive at the New Economics and New Policy which might guide the sector. It is compared to the Energy Service Utility and its applications in order to
How to cite this article:WIREs Energy Environ 2016Environ , 5:136-154. doi: 10.1002
INTRODUCTION
Adefining challenge for social and ecological progress in the 21st century is balancing the interplay between our planet's climate and society's energy throughput. On the one hand, nearly one third of humanity is unable to affordably access modern society's energy-driven development process, 1,2 and significant effort is urged to lift the 'bottom billion' 3 out of their 'energy poverty trap '. 4,5 On the other hand, those fortunate enough to live in the modern enclave enjoy services and benefits brought about by increasing levels of 'energy obesity'. Spreading the high-carbon lifestyle as the epitome of what it means to live well is cited by many as a key cause of global unsustainability, straining the world's planetary boundaries. 7,8 In its most recent assessment, the Intergovernmental Panel on Climate Change (IPCC) 9 concludes that unless humanity changes course, ecosystem health is at serious risk. Indeed, the IPCC finds that continued development along the path followed in the 20th century could result in food, economic, and social insecurity on a scale not seen before (Ref 9,.While the provision of electricity and other energy services can be critical to social development and poverty alleviation, 10,11 environmental sustainability threats-not only climate change, but also, among others, widespread deforestation, ocean acidification, biodiversity loss, habitat destruction, and air pollution-underscore the need to provide energy services under a paradigm-shifting development regime which can deliver broad energy access, poverty Review of SEU and Energy Service Utility Concepts and Applications alleviation, and the pursuit of quality of life improvement without further risk of environmental crisis. [12][13][14] Two efforts to reconstruct energy policy consistent with this objective are reviewed: the Energy Service Utility 15,16 and the Sustainable Energy Utility (SEU). 7,17 The theoretical basis for each model replacing optimality thinking with sustainability principles is assessed. Empirical use in several applications in and beyond the U.S. to deliver sustainable energy, materials, and water services is also examined.
OPTIMALITY'S APPROACH TO CLIMATE AND ENE...