"In the price-based policy, reductions in the electricity sector are about 70 percent even though the national target is a 50 percent reduction, because it is less costly to abate there than in the rest of the economy," the report says.
Under regulations, a rapid expansion of wind and solar power could squeeze out some gas-based electric generation at the start, while reduced coal use opens the door for more gas generation.
"The net impact on gas use in the electric sector depends on the relative pace of implementation of the two regulatory measures," according to the report, "compared to the assumed price-based approach, they have the potential to reduce the use of gas in the sector."
Reprinted from Climatewire with permission from Environment & Energy Publishing, LLC. www.eenews.net, 202-628-6500