Competitive power markets are a path to accelerate clean energy growth while maintaining a strong economy and keeping energy prices low. Clean energy has become increasingly cost competitive, with natural gas and renewable resources among the cheapest fuels on the market today. Power generators have followed price signals to retire thousands of megawatts of coal to switch to natural gas and renewables—resulting in tremendous emissions reductions without relying on expensive subsidies, rate passthroughs, or mandates.
Regional wholesale markets such as those overseen by PJM Interconnection, the New York Independent System Operator (NYISO), and ISO-New England provide significant benefits for customers and reliability. The markets have also resulted in emissions reductions as signals incentivized greater efficiency and coal plant retirements. In the PJM region alone, emissions have declined 34% since 2005, with annual cost savings of $3.2-4 billion. In New York, emissions have dropped 51% with a 23% decrease in costs since NYISO’s inception.