To address the crossroads between climate change policy and wholesale electricity markets, the NYISO is in the process of implementing carbon pricing, the cost of emitting carbon, into the Day-Ahead and Real-Time energy price calculation. Similar to the Regional Greenhouse Gas Initiative (RGGI) adopted across the Northeast, the policy’s aim is to economically account for the price of emitting carbon. The region is already challenged by a disproportionate amount of renewable generation stemming from Upstate New York, and carbon pricing accentuates this generation disparity.
During this webinar, we unpacked the carbon pricing consequences and the implications as to how the policy changes bidding behavior, and ultimately power flows, in New York State. We shared insight into the supply stack changes and potential price movements.