For the past year, the New York Independent System Operator has been working on a first for a U.S. grid operator: a proposal to put a price on carbon emissions in its wholesale energy markets.
It’s a bold proposal with an uncertain outcome.
But NYISO is also entrusted with enabling New York state’s energy policies, and those policies were kicked into high gear by this summer’s passage of the Climate Leadership and Community Protection Act. The law sets New York on a path toward getting at least 70 percent of its power from renewable energy by 2030, and moving to zero-emissions electricity by 2040.
The CLCPA, then, puts NYISO's carbon pricing plan in a new light.