Three of the main challenges in achieving rapid decarbonization
of the electric power sector in the near term are getting to net-zero
while maintaining grid reliability and minimizing cost. In this policy
analysis, we evaluate the performance of a variety of generation strategies
using this “triple objective” including nuclear, renewables
with different energy storage options, and carbon-emitting generation
with carbon capture and storage (CCS) and direct air capture and storage
(DACS) technologies. Given the current U.S. tax credits for carbon
sequestration under Section 45Q of the Internal Revenue Code, we find
that two options: (1) cofiring bioenergy in existing coal-fired assets
equipped with CCS, and (2) coupling existing natural gas combined-cycle
plants equipped with CCS and DACS, robustly dominate other generation
strategies across many assumptions and uncertainties. As a result,
capacity-expansion modelers, planners, and policymakers should consider
such combinations of carbon-constrained fossil-fuel and negative emissions
technologies, together with modifications of the current national
incentives, when designing the pathways to a carbon-free economy.