Electricity Market Design and Carbon Capture Technology: The Opportunities and the Challenges

The State CO2-EOR Deployment Work Group has released a new report that outlines the opportunities and challenges for integrating power plants with carbon capture into the nation’s wholesale electricity markets. The State CO2-EOR Deployment Work Group works to expand carbon capture from power plants and industrial facilities for use in enhanced oil recovery with geologic storage (CO2-EOR).

The report focuses on the role of carbon capture in the power sector and outlines measures needed at the federal, state, and regional grid operator level to allow for robust integration and dispatch of carbon capture in electricity markets. 

The report also describes how carbon capture and other dispatchable low and zero-carbon power generation technologies such as nuclear, combined heat and power, geothermal, and solar thermal provide important economic, grid reliability, and emissions reduction benefits. Yet, these resources face growing challenges to their economic viability in regional wholesale electricity markets.

Download the report to learn more about the Work Group’s recommendations and analysis on ways that federal, regional and state agencies, organizations and policy-makers can help carbon capture and other low and zero-carbon dispatchable energy resources participate cost-effectively in electricity markets.    

Governors Matt Mead (WY) and Steve Bullock (MT) launched the Work Group in 2015, which released a comprehensive set of federal and state incentive policy recommendations for carbon capture in December 2016 – Putting the Puzzle Together:  State & Federal Policy Drivers for Growing America’s Carbon Capture & CO2-EOR Industry – and a white paper outlining pipeline infrastructure options to enhance carbon capture industry buildout. The Great Plains Institute staffs and facilitates the Work Group.