As U.S. policymakers consider how to tackle the challenge of greenhouse-gas constraints, the U.K.’s approach to the problem offers instructive examples.
Carbon In Electricity Markets
Price transparency will drive GHG reductions.
small power producers, and other generators that are not subject to rate regulation such as independent power producers. This ownership designation is reported in several government reports including the EIA 860, the NERC ES&D and the EIA 906/923.
4. Navigant Consulting, Inc. estimates based on Ventyx data.
5. See for example, Ellerman, D., Markets for Clean Air: The U.S. Acid Rain Program , New York: Cambridge University Press, 2000.
6. United States of America Federal Energy Regulatory Commission; Conference on Competition in Wholesale Power Markets, Docket No. AD07-7-000; Prepared Remarks of Professor Paul L. Joskow; Feb. 27, 2007.
7. Heat rate is a measure of the efficiency by which a fossil-fired electricity generating unit converts its fuel into electricity. It is measured in terms of the amount of fuel required to generate one kWh of electricity—the lower the heat rate, the more efficient the generating unit.
8. The net capacity factor of a power plant is the ratio of electrical output of the plant over a period of time to its output if it had operated at full nameplate capacity the entire time.
9. Navigant Consulting, Inc. based on Ventyx data.
10. EPSA Forcefully Rebuts APPA Paper on “Nuclear Power Plant Performance: What Does Restructuring Have To Do With It?” Five-page report by EPSA, June 2007.
11. “Potential Effects of Proposed Climate Change Policies on PJM’s Energy Market,” PJM, January 2009.
12. The objective of the Forward Capacity Market is to purchase sufficient capacity for reliable system operation for a future year at competitive prices where all resources, both new and existing, can participate.
13. ISO New England Press Release, “Wholesale Marketplace Helping to Achieve Long-term Power System Reliability Goals,” Feb. 13, 2008, Holyoke, MA.
14. “Potential Effects of Proposed Climate Change Policies on PJM’s Energy Market” PJM, January 2009.
15. The $40/ton price for CO 2 emissions used in this analysis is indicative only, and is not based on an analysis of future CO 2 prices.
16. Midwest ISO Press Release, “MidAmerican Energy Declares Intent to integrate Into Midwest ISO as a Transmission-owning Member,” April 27, 2009.
17. Kirby, B. and Milligan, B. “Facilitating Wind Development: The Importance of Electric Industry Structure,” NREL Technical Report NREL/TP-500-43251, May 2008.
18. “20 Percent Wind Energy by 2030: Increasing Wind Energy’s Contribution to U.S. Electricity Supply;” U.S. Department of Energy Report, May 12, 2008.