US electricity markets are exploring carbon pricing, an economically simple but politically fraught tool to address the greenhouse gas emissions that drive global warming.
A carbon price would layer the environmental cost of emissions on to the bids of generators, and make fossil fuel power plants — especially coal and older natural gas plants — less competitive than zero carbon power from nuclear and renewables.
On Wednesday, some of the largest US power suppliers and traders are set to discuss carbon pricing at a special conference of the US Federal Energy Regulatory Commission. Speakers include representatives of heavyweight players, including NRG and Vistra, independent power producers; Goldman Sachs, the Wall Street bank; Vitol, the commodities trader; and academics and grid operators.
The discussions come as US states emerge on the forefront of climate…