E3 Study Shows PJM Region Can Cut Power Generation Emissions 28% With $2.8 Billion in Consumer Cost Savings Compared to Current State Policies
Achieving decarbonization goals requires effective, efficient solutions that do not unduly burden consumers or impede the reliability of our power grid – while allowing for continued competition and innovation.
To inform these solutions, EPSA retained Energy & Environmental Economics (E3) to perform an independent and unbiased analysis of regional market-based pathways to reliably and cost effectively achieve decarbonization goals in the PJM Interconnection (PJM) footprint, which serves 65 million electricity customers in 13 states and the District of Columbia.
While EPSA supports and will continue to advocate for nondiscriminatory market-based strategies that allow all resources to compete to reduce carbon emissions – such as an economy-wide, national price on carbon – as the optimal solution to solve the global problem of climate change, we recognize the challenges that exist today in its implementation. We also recognize and appreciate the differences in state energy policies across the PJM service region.
Acknowledging those limitations, E3’s analysis shows that it will be increasingly important to seek out alternative policy solutions that utilize competition to offer greater efficiencies than the current patchwork quilt of state subsidies and policies. These competitive approaches could deliver substantial benefits for states, consumers, and market participants today, and these benefits will grow substantially in the future as clean energy goals become more aggressive.
Below are key findings from E3’s analysis that help inform a cost-effective, reliable approach to reducing emissions in the PJM region.
Our press release unpacks the highlights here.
Carbon Price, Transparent Open Markets Should Drive Clean Energy Efforts | EPSA | Feb. 26, 2020
Competitive Power Suppliers Welcome FERC Carbon Pricing Guidance | EPSA | Oct. 15, 2020