Carbon Pricing Developments; Offshore Wind: Sweeping Down the Coast?

Energy Policy Roundtable in the PJM Footprint #10

Presented by Raab Associates

Panel I: Carbon Pricing Developments [Cap & Trade, Carbon Charges]

With New Jersey rejoining RGGI (which already includes Maryland, Delaware, New York, and New England) and Virginia poised to join RGGI or to adopt a RGGI-compatible set of rules, RGGI’s cap and trade approach to pricing carbon will likely have a larger impact in the PJM region. Meanwhile, New York is seriously considering instituting a carbon charge approach to pricing in its markets, and a 2017 PJM working paper raised the possibility of implementing a carbon price either across the PJM footprint or on a sub-regional basis. These carbon-pricing initiatives could better harmonize electricity markets and state climate and energy policy goals and reduce the need for out of market payments (e.g. RECs and ZECs).

• Angela L. Navarro, Deputy Secretary of Natural Resources in Virginia, will discuss Virginia’s progress in adopting RGGI-compatible rules or joining RGGI outright
• Paul Hibbard, Principal at Analysis Group, will cover the recent tightening of the RGGI cap, and discuss the soon-to-be-released economic impacts study Analysis Group is conducting for the RGGI states
• Samuel Newell, Principal at the Brattle Group, will cover the ground-breaking carbon charge study the firm completed for the New York ISO

Keynote Address: New Jersey’s Evolving Energy and Climate Vision

Kathleen Frangione, Chief Policy Advisor for Governor Murphy

Kathleen Frangione’s keynote address will highlight the energy and climate vision of New Jersey’s new Governor, Phil Murphy. Governor Murphy has already announced major initiatives on energy and climate issues, including a commitment to rejoin the Regional Greenhouse Gas Initiative (RGGI), and the issuing of an offshore wind (OSW) executive order committing to 3,500 MW of OSW with a plan to announce a major OSW RFP soon. Meanwhile, major energy legislation on nuclear (ZECs) and New Jersey’s renewable portfolio standard is under active discussion in the state.

Panel II: Offshore Wind: Sweeping Down the Coast?

With recent announcements of aggressive offshore wind (OSW) targets in Massachusetts (1,600 MW), New York (2,400 MW), and now New Jersey (3,500 MW)—in combination with activity in other East Coast states (MD, DE, VA, NC, RI, & CT)—over 10 Gigawatts of OSW could be developed by 2030. Meanwhile, states and stakeholders are wrestling with important strategic issues related to the best OSW procurement approaches, transmission arrangements, and overall timing. The potential for significant OSW development could also have major ramifications for the energy landscape, with OSW likely to become the next major state-sponsored resource impacting markets within PJM. 

• Kevin Hughes, Chairman of the Maryland Public Service Commission, will discuss Maryland’s overall OSW strategy and its awarding of OREC contracts to two OSW developers
• Steve Pike, CEO of the Massachusetts Clean Energy Center, will discuss Massachusetts’ OSW legislation, the approach and results of its current 400-800 MW RFP, and the strategies the state is using to develop critical offshore wind-related infrastructure
• Peter Olmsted, Assistant Energy Secretary, New York Governor’s Office, will discuss New York’s ambitious 2.4 GW goal, the development of its Offshore Wind Master Plan, and its planned 2018 RFP for 800 MW 
• Liz Burdock, Executive Director of the Business Network for Offshore Wind (whose members include the major wind developers) will discuss their efforts to establish an offshore renewable energy industry cluster in the region

Registration is required***.  Rates are $100 for general registration and $50 for employees of Sponsoring Organizations, government or non-profit employees, students, retirees, & low-income individuals. Registration for Web-Streaming Only: $50 for non-Sponsors and Free for Sponsors.

Networking Reception (wine, beer, and food) following Roundtable.

***The Kleinman Center has a limited number of seats reserved for Penn colleagues and students. If you are a member of the Penn community and interested in attending, please contact Bill Cohen: cohenw@upenn.edu.