Coal is expected to be maintained at more than 1 billion tons per year even with a projected closure of 40 GW of coal-fired generation because of proposed regulations, according to the Integrated Energy Outlook for the second quarter of 2011 from ICF International (NASDAQ:ICFI).
The study also finds that increasing demand for renewable energy credits (REC) along with the loss of key federal incentives will cause REC prices in eastern states to rise sharply over the next 15 years. Similarly,
California will fall short of the state¹s interim requirements through 2016, maintaining upward pressure on delivered REC prices.
The Outlook also shows a shift to renewables and natural gas thanks to expected emission controls, which will dramatically affect wholesale power competitive landscape.
The Energy Outlook takes into effect the U.S. Environmental Protection Agency¹s release of the Clean Air Transport Rule, the Air Toxics Rule, coal combustion residuals and cooling water intake structure standards.
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