Market price referent (MPR) is the value/price of replacing a natural gas power plant.

1. What price for CO₂ (in $/metric ton of CO₂e) would be required to bring PV to grid parity with average electricity costs in California in 2020? The cost of electricity at peak is based on the MPR.
2. What price for CO₂ (in $/metric tons CO₂e) would be required to bring PV to grid parity with costs of electricity at peak demand in 2020? Use the MRP here.
3. What price for CO₂ (in $/metric tons CO₂e) would be required to bring PV to grid parity with natural gas burned in a combined cycle power plant in 2020?

Market price referent (MPR) in California (2020) = $0.12/kWh

LCOE electricity from PV in California (2020) = $0.18/kWh

Average LCOE electricity from grid in California (2020) = $0.14

Combined Cycle natural gas-fired electricity (US, wholesale in 2020) = $0.07/kWh

Assume: MPR energy has marginal emissions factor of 0.944 lbs/kWh (compared with the average PG&E factor of 0.412 lbs/kWh)

Emissions factors

PG&E marginal (peak) emissions factor of 0.9 lbs CO₂e/kWh

PG&E average PG&E factor of 0.4 lbs CO₂e/kWh.

Natural gas combined cycle natural gas power plant emission factor of 0.5 lbs CO₂e/kWh

There are 2,204.6 lbs in a metric ton.