Utility Dive | Carbon price could allay ‘astounding’ cost to attain New York’s zero carbon target: report
The cost to comply with New York's landmark carbon legislation is an "astounding number" that was so high that it was left it out of the final analysis for fear it would be a distraction, according to the report's author. Regardless, they say, placing a price on carbon will cut the cost. "If New York doesn't put a price on carbon, it is missing out [on] an opportunity to have its markets really harnessed and pushing for the goal," Sue Tierney, Analysis Group senior advisor and co-author of the ISO's carbon pricing analysis, told Utility Dive.
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.