ISO-NE 2020 Regional Electricity Outlook

Thursday, March 5, 2020

New England is unquestionably on the path to a clean-energy future, according to a report by the operator of the region's electric grid -- but while "decarbonizing the electricity industry is well underway, the journey to decarbonize the other sectors of the economy has really only just begun." ISO New England Inc.'s 2020 Regional Electricity Outlook notes that the region's power system will need to change significantly to accommodate the electrification of millions of vehicles, homes, and buildings with low-to-no-carbon energy.

Grid operator ISO-NE issues an annual Regional Electricity Outlook report describing its view of trends that could have an impact on the region’s power system. For 2020, these trends include a shift in state goals, away from strictly least-cost planning toward the inclusion of clean energy goals. The report notes that wind projects "currently dominate new resource proposals", while in 2019 coal- and oil-fired resources produced less than 0.5% of the region's electricity, corresponding with the lowest annual average wholesale price on record.

The report also notes the need for state and regional policymakers to consider "which policy instruments will best incentivize New Englanders to decarbonize and change important aspects of their lives—to adopt electric vehicles and convert their homes and businesses to electric heat." According to ISO New England, it expects the power system will look very different in the future, and says the "electrification of everything" will require dialogue about the overall architecture of the regional power system and wholesale marketplace.

The report concludes that the region can achieve states' clean-energy goals while keeping the power system reliable, by harnessing competitive market forces.

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