NYISO Further Explores Carbon Pricing in Wholesale Power Markets RSS Feed

NYISO Further Explores Carbon Pricing in Wholesale Power Markets

The New York Independent System Operator (NYISO) has released an array of options that it plans to explore to respond to changes in the state’s wholesale electricity markets, including slapping a price on carbon emissions to better incentivize more environmentally friendly options, according to its Power Trends 2018 report released earlier this month.

The report notes that grid operations are becoming increasingly complex, as low natural gas prices continue to undercut the competitive edge of coal and nuclear resources, more subsidized renewables are added and customers grow more savvy about the energy they use. Public policy is also necessitating changes. Under Gov. Andrew Cuomo’s Reforming the Energy Vision, 50% of the state’s power would be generated by renewables by 2030.

“New technologies are pushing the boundaries of what consumers expect from the grid, while the growth of renewable and distributed energy resources is changing the dynamics of energy consumption,” NYISO CEO Brad Jones said. “The NYISO sees these challenges clearly and embraces the work and change necessary to meet them. We understand that these new expectations for the grid require an examination of the markets and planning processes that shape it.”

Across the state line, Pennsylvania-based PJM Interconnection, the nation’s largest gird operator, has already filed proposals at FERC to address state subsidies for coal and nuclear facilities that have been affected by low-cost gas. As gas-fired generation proliferates in that system and renewables also continue to gain market share there, PJM also released an analysis of its fuel diversity, system resilience and reliability.

Read full article at Natural Gas Intel