3) Additional policies may be needed, such as an extension of the tax credits for wind and solar energy.
4) No one knows what mix of renewables will result from the plan: the states decide how to meet the targets set.
5) This plan, while good, is far from perfect: other tools such as carbon pricing legislation could have gone further, but were out of political reach in the US. (CFR).
“Opponents have denounced the new rule limiting carbon pollution as unconstitutional, but many in the electric power industry will gain more with the rule in place than if the courts strike it down,” Jody Freeman notes (“A climate plan business can like” -The New York Times-).
Many power companies have worked with the administration to get the best possible deal, and with states to discuss compliance strategies.
The plan sends a clear signal that low-carbon energy will be pro – table. Powerful investor-owned utilities such as MidAmerican, Southern Company and Exelon have made big investments in wind, solar or nuclear power and now want a clear federal plan that will help them profit from these investments.
Power companies will have incentives for investing in new projects, knowing that they are being supported (NYT).