The Biden administration has issued final regulations through the EPA aimed at reducing power plant greenhouse gas emissions and pollutants. These regulations may force coal and natural gas power plants to invest in carbon capture and storage technology or face removal from the grid by 2032, potentially raising concerns about grid reliability. This comes at a time when new demands on the grid are significantly increasing, with the pace expected to accelerate in the coming years.
However, there are doubts about whether carbon capture and storage (CCS) technology is the right solution. The requirement for power plants to use CCS to reduce emissions may not be adequately demonstrated, as there are no commercial-scale gas-fired power plants in the US or globally using this technology. The success of CCS in coal plants has also been limited, with only one power plant using carbon capture at scale in Canada.
Moreover, powering a carbon capture operation could use up to 25% of the electricity generated by the power plant, potentially reducing grid reliability. The EPA claims that these new rules will avoid billions of metric tons of carbon pollution and provide significant health and environmental benefits. However, there are concerns that estimates and assumptions may not accurately reflect the impact of these regulations on the grid and the economy.
The push to retire more coal-fired power plants could further strain the grid’s reliability, with concerns about potential power shortages in high-demand situations. Already, grid managers in Texas have issued warnings about inadequate generation capacity to meet peak demands. The Biden administration’s regulations could accelerate coal retirements, posing a threat to electricity supply and the economy.
Overall, the regulations aimed at reducing greenhouse gas emissions and pollutants from power plants raise questions about grid reliability and the impact on the economy. There are doubts about the feasibility of implementing carbon capture technology at a large scale and concerns about potential power shortages in the face of increasing demand. The administration’s focus on achieving climate goals through these regulations may come at the expense of grid stability and reliability.
