By Gavin Bade |
There are really two routes for states to take when thinking about implementing the emissions reductions mandated by the Clean Power Plan, according to Asim Haque, vice-chairman of the Public Utilities Commission of Ohio (PUCO). The first option is to cap carbon emissions from each individual power plant. But that route is logistically difficult and could cause reliability issues, Haque said.
The second option is to identify a carbon price for regional electric markets. This wouldn’t be a cap and trade system like the regional greenhouse gas initiative (RGGI), Haque stressed. Rather, generators would have to factor in the price of carbon when they bid into energy markets, making carbon-intensive energy more expensive than low carbon resources.