The Federal Energy Regulatory Commission refused the proposition that authorizes the renewable energy sector to rival fossil fuels in the energy market. As they argue, this proposition may throw the state-owned energy regulators and parastatals out of the market since consumers will go directly for the renewables.
FERC stated on Friday, which bars NYISO from executing its strategy that puts the wind, solar and other renewables into a direct battle with the fossil fuel power plants. Initially, FERC had rejected the buyer-side mitigation (BSM) regulations, which would allow the state-owned energy parastatals to set high energy prices and rid the market of the other competing energy sources.
NYISO, in its defense, stated that the new strategies would integrate New York’s Climate Leadership and Community Protection Act (CLCPA). This New York plan forces it to transition to renewable energy as its electricity source before the end of the upcoming decade and finally shift to zero-emissions in the next decade.
The CLCPA objectives’ achievement depends on the New York state enforcing the installation of 6 gigawatts of solar plants, 9 gigawatts of wind energy projects, and 3 gigawatts of energy storage. All these installations and projects must be visible in the coming 15 years.
However, the NYISO’s BSM regulations would impede the swift deployment and procession of these projects making New York appear as a state against zero-emissions. The BSM’s directives will deny New York state the revenue and other benefits like jobs for its citizens, which would have resulted from the installation of renewable energy projects. Additionally, the directives will deny the citizens the opportunity of enjoying affordable renewable energy and forcibly depend on fossil fuels to power their electrical systems.
The BSM rules impede the companies which develop generators from entering the cheap contracts with renewable energy firms to lower their operational costs.
FERC’s reason for rejecting the NYISO proposal was that it was sidelining the fossils fuels with low costs and championing clean energy resources to wipe out the fossil fuels without proper justification. In FERC, Richard Glick, the Democratic member, expressed his dissatisfaction with the Republicans for clearly obstructing the shift from pollutive energy sources to clean energy in New York.
Glick added that FERC’s insistence to disallow both NYISO propositions and administratively studied bills for the energy parastatals to transition in the energy industry would instill fear in states transitioning to clean energy, making them defer their objectives for renewables so that they are not considered as independently minded.
Glick explains that FERC’s continued intervention to challenge the NYISO propositions and the state-determined regulations will undermine the climate change goals’ achievement. Finally, the chief of FERC, Neil Chatterjee, has come out to support his agency’s move, saying that these regulations against PJM and NYISO will create a fairground for all energy sources to compete and supply energy to the consumers. He added that the actions they are taking would instead enable the renewables to operate efficiently without causing strife among other energy sources.