Synapse Energy Economics

Synapse Energy Economics
Name	Synapse Energy Economics
Formation	1996
Type	Nonprofit (501(c)(3))
Headquarters	Cambridge, Massachusetts
Area served	United States
Focus	Energy policy; Electricity market regulation; Environmental law

Synapse Energy Economics is a research and consulting firm focused on electricity sector analysis, renewable energy integration, and climate change mitigation. The organization provides technical studies, regulatory testimony, and advisory services to public utilities commissions, consumer advocates, environmental NGOs, and government agencies. Synapse combines quantitative modeling with policy analysis to inform deliberations before bodies such as the Federal Energy Regulatory Commission, state public utility commissions, and international agencies.

Overview

Synapse produces technical reports that address grid modernization, capacity markets, demand response, energy efficiency, and distributed generation. Its work is frequently submitted as evidence in proceedings involving entities like the Federal Energy Regulatory Commission, North American Electric Reliability Corporation, and state-level regulators such as the California Public Utilities Commission, Massachusetts Department of Public Utilities, and New York Public Service Commission. Synapse’s clients include Natural Resources Defense Council, Sierra Club, Environmental Defense Fund, municipal governments such as City of Boston, and state attorneys general. Analysts at Synapse often present findings to convenings hosted by institutions like National Renewable Energy Laboratory, Lawrence Berkeley National Laboratory, and Rocky Mountain Institute.

History

Founded in 1996, Synapse emerged during a period of restructuring that followed Energy Policy Act of 1992 and regional moves toward competitive wholesale electricity markets. Early projects engaged with regional transmission organizations such as PJM Interconnection, New York Independent System Operator, and ISO New England. Over time, Synapse expanded from regional ratepayer advocacy to national and international consulting, contributing to proceedings involving the European Network of Transmission System Operators for Electricity and policy dialogues at the International Energy Agency. Key historical engagements included analyses related to cap-and-trade debates, state renewable portfolio standards like those in California, and litigation before courts such as the United States Court of Appeals for the D.C. Circuit.

Research and Services

Synapse offers litigation support, regulatory testimony, economic modeling, and integrated resource planning assistance. Typical services are delivered to parties including state attorneys general, public advocates, consumer groups, and environmental organizations. The firm’s topical work spans interactions with agencies and organizations like the U.S. Environmental Protection Agency, Department of Energy (United States), Federal Communications Commission (for grid communications issues), and regional bodies such as New England Governors and Eastern Canadian Premiers forums. Synapse collaborates with academic institutions including Harvard University, Massachusetts Institute of Technology, and Tufts University on methodological development and peer review.

Methodology and Areas of Expertise

Synapse employs modeling tools and economic frameworks used in proceedings before entities like Federal Energy Regulatory Commission and PJM Interconnection. Core competencies include analysis of levelized cost of energy for technologies such as photovoltaics, onshore wind power, battery storage, and combined cycle gas turbine plants. The firm conducts integrated resource planning modeling, capacity expansion studies, and power flow assessments interfacing with software ecosystems referenced by National Renewable Energy Laboratory and Lawrence Berkeley National Laboratory. Expertise extends to valuation of distributed energy resources, net energy metering policy, and emissions accounting aligned with standards from organizations like Intergovernmental Panel on Climate Change and reporting frameworks used by Environmental Protection Agency programs.

Major Reports and Influence

Synapse has authored influential reports on topics including the economics of coal-fired power station retirements, the feasibility of deep decarbonization pathways consistent with Paris Agreement goals, and reforms to capacity market design influenced by debates in regions such as New England, PJM Interconnection, and New York Independent System Operator. Its analyses have been cited by parties in proceedings involving utilities like Eversource Energy, National Grid, and Dominion Energy. Synapse publications have informed state-level legislation and rulemakings in jurisdictions including Massachusetts, California, and New York State, and have been discussed in forums hosted by Congressional Research Service and think tanks such as Resources for the Future.

Funding and Governance

As a nonprofit, Synapse receives funding through contracts and grants from foundations, NGOs, state agencies, and client retainers. Funders have included national philanthropic institutions, regional foundations, and environmental organizations like The Rockefeller Foundation and William and Flora Hewlett Foundation in comparable contexts. Governance is provided by a board of directors and an executive team; the firm adheres to professional standards for expert testimony used in forums such as state public utility commissions and federal agencies. Conflicts of interest policies are applied in engagements analogous to protocols at American Economic Association and National Academy of Sciences advisory committees.

Criticism and Controversies

Synapse’s work has been contested by utilities, industry trade groups such as American Electric Power, Edison Electric Institute, and fossil-fuel interests that challenge assumptions about fuel prices, retirement dates, and reliability. Disputes have arisen in proceedings before entities like Federal Energy Regulatory Commission and state courts over modeling assumptions and cost-benefit analyses, mirroring controversies seen in debates involving capacity markets and renewable portfolio standards. Critics have argued that some Synapse reports understate resource adequacy risks or overstate demand-side potential; supporters point to peer review and methodological transparency in filings to bodies including state public utility commissions and the Energy Information Administration.

Category:Energy policy think tanks