Dive Brief:
- States could save billions of dollars by cooperating more broadly when complying with the EPA's new carbon rules, according to a new analysis by the Midwest Independent System Operator (MISO).
- The analysis also found that an additional 14 GW of coal generation could be at risk for retirement.
- The analysis was performed to inform MISO members of the potential cost of compliance; the grid operator is not taking a formal stance on any compliance strategy.
Dive Insight:
A MISO analysis on the cost to comply with EPA's new carbon rules finds, in a nutshell, that alternative compliance options outside the EPA's four basic building blocks "could achieve the proposed level of CO2 reduction at a lower cost." The analysis shows MISO states using a most-economical regional approach could reach the same emissions targets at a cost of $38 per ton compared with $60 per ton with a sub-regional strategy.
The grid operator is taking no official position and is not yet sure if it will submit formal comments, Midwest Energy News reported. But its analysis showed regional compliance options save approximately $3 billion annually compared to sub-regional compliance.
The grid operator said it will develop the scope of the work for the next round of analysis based on stakeholder feedback.
