Climate Policy Driving Natural Gas
If current trends continue, natural gas is projected to account for nearly two-thirds of electricity generation in the United States by 2050. At the Eastern Interconnection States Planning Council (EISPC) Winter Seminar, Janine Migden-Ostrander warned of the dangers of an over-reliance on natural gas as a strategy for complying with the U.S. Environmental Protection Agency’s (EPA) Clean Power Plan (CPP). She urged regulators to view natural gas as a “bridge fuel” in the move toward a low-carbon environment and cautioned against creating impediments to developing the most effective, least-cost compliance options such as energy efficiency and renewable energy. Ms. Migden-Ostrander encouraged regulators to consider how regulation can motivate the best decisions, what performance incentives need to be established, as well as what market rules need to be in place for a low-carbon grid in 2020 and beyond. Investment in renewable energy sources and demand-side management enables states to take advantage of declining renewable energy prices and serve increasingly larger percentages of electricity demand with clean resources at least-cost.