Future environmental regulations will have a significant effect on future fossil fuel prices and emission allowance values. Prior governmental studies have demonstrated that future carbon control regulation will increase electricity prices, reduce electricity demand growth, influence new utility generation technology selection decisions, and cause shifts in the utility generation mix. These impacts will cumulatively change fossil fuel demand and prices. The extent of these changes will be heavily dependent upon the new environmental program structure, limits and requirements.
EVA’s integrated case studies identify a range of future fossil fuel prices under future carbon regulation and highlight the observed trends, versus those trends from other published studies. Companies can apply projected prices in resource modeling to determine their system’s lowest cost generation supply alternative under future carbon constrained markets.
