Despite an abundance of cleaner burning natural gas, Congress is overlooking this important domestic energy resource and placing far greater emphasis on coal and renewables in pending legislation, according to The New York Times. The Times cited a recently released report from the Brattle Group, which says cap-and-trade mechanisms and policies in climate bills will squeeze out natural gas-fired electricity.
“Despite the environmental advantages of natural gas and cost advantages of gas-fired generation, a boom in gas demand is far from certain,” the report says. “The implication of such a scenario is that U.S. consumers will be paying a lot for CO2 emission reductions since natural gas does not emit as much CO2 as coal, and gas can often displace CO2 from coal at a much lower cost per ton than some renewables,” the report adds.
The promise of natural gas is being overlooked because current legislation stresses relatively low emission caps, the availability of emission offsets, and possible CO2 price ceilings, the report states.
“Perhaps the biggest factor impacting natural gas demand in the coming decade is the sustainability of coal-fired power plants as part of the U.S. electricity generation mix,” the report says.
In the opinion of the report’s authors, climate policies should be re-examined, especially with regard to higher carbon prices accelerating the retirement of inefficient coal plants, facilitating the entry of new energy technologies, and providing a more competitive market for renewable energy.
Read the Times article HERE.
Read the Brattle Group report HERE.