Decarbonizing the Generation StackAligning Wholesale Electricity Markets with Environmental Policy
Harvard Electricity Policy GroupOctober 1, 2019
W. Mason EmnettVice President, Competitive Market Policy
What problem are we trying to solve?
1
Sufficiency of Supply
Environmental Impacts
Diversity of Supply
The carbon challenge
2
Source: Fourth National Climate Assessment, U.S. Global Change Research Program (2018).
Decarbonization tools
3
Electrification
Emissions-Free Generation
EfficiencyPTC ITC
CarbonPricing
RPSCES
The New England example
4
White out
Source: Promoting Competitive Power Markets and Growing Zero-Emission Resources in New England, A. Joseph Cavicchi (Nov. 7, 2018)
Source: Achieving 80% GHG Reduction in New England by 2050, Jürgen Weiss and J. Michael Hagerty (Sept. 2019).
The California example
5
Source: Annual Report on Market Issues and Performance, CAISO Department of Market Monitoring (May 2019).
Source: Long-Run Resource Adequacy under Deep Decarbonization Pathways for California, E3 (June 2019).
(Re)Aligning responsibilities
6
Regional commitmentand dispatch
Operationalrequirements
(e.g., ramping needs)
Backstop procurements (e.g., local reliability, resource adequacy)
GenerationMix
RevenueSufficiency
RTO/ISOState(s)