FERC to hold technical conference on cost-effectively achieving carbon emissions goals
In September, the Federal Energy Regulatory Commission (FERC) will assemble a technical conference for wholesale power markets, to address how these competitive markets can cost-effectively reach carbon emissions reduction goals through carbon pricing.
That meeting will be open to the public and free of charge. Attendees will discuss various aspects of the issue, from state adoption of mechanisms to pricing carbon dioxide emissions in given regional markets. The Carbon Price Coalition — a group of power generators, trade associations, and think tanks — hailed the announcement, calling it a response to a pivotal moment for the industry.
“Carbon pricing in organized markets could be a powerful and cost-effective tool to drive down emissions and achieve state policy goals while preserving the benefits of competition,” the Coalition said in a statement. “There is overwhelming support for a FERC-led conference on carbon pricing from all corners, including state regulators. We applaud Chairman Chatterjee’s leadership and the support of his fellow commissioners in kick-starting this important discussion exploring the practical and technical implementation issues related to how organized markets can facilitate state policy goals through carbon pricing.”
The Carbon Price Coalition had called on FERC to explore this very issue earlier this year. Currently, it noted, stakeholders seek clarity on markets and state policies related to reducing carbon emissions. The two don’t always mesh, and the Coalition sees this as a time for integration.
Certain markets, like the New York Independent System Operator, are already considering how to incorporate a price on carbon. Some states have also considered more aggressive policies than others to promote cleaner power generation and reduce carbon emissions. The Coalition has been adamant that market-based mechanisms like carbon pricing could be an efficient and cost-effective means of driving down emissions and reaching those goals without sacrificing the economic benefits of wholesale competitive electricity markets.
The Coalition includes members like Advanced Energy Economy, the American Council on Renewable Energy, the American Wind Energy Association, PJM Providers Group, Natural Gas Supply Association, and more.
