Charging power generators a carbon price could help New York meet its goal of 100% emissions-free electricity by 2040, according to a study released Oct. 3.
Introducing a carbon-pricing mechanism into the state’s wholesale electricity market would send a price signal to investors, entrepreneurs, and project developers, spurring more clean energy projects and innovation, according to an Analysis Group report compiled for New York’s grid operator.
The state’s new climate law requiring aggressive decarbonization of the electric sector and the rest of the economy strengthens the case for carbon pricing in the electric market, a new analysis by a Boston-based consulting firm argues.
The Analysis Group’s review of a proposal to add a cost for carbon emissions from generators into the wholesale electricity price was released Thursday morning and is set to be discussed at a New York Independent System Operator committee meeting. The report focuses primarily on the implications of the state’s new goals and how carbon pricing would support them.