Exploring the synergies between carbon capture, energy technologies, and policy frameworks

• Highlights the increasing attention to carbon capture and storage (CCS) • Investigated the effects of the new US EPS rules in May 2024 on capacity expansion. • Demonstrates that CCS technology may lead to inefficiencies. • Offers the value of CCS in the effort to decarbonize the economy. Recent policy shifts increasingly promote carbon capture and storage (CCS) to decarbonize fossil fuel-based power generation, rather than mandating outright plant retirements. However, limited research has examined the operational and investment implications of integrating CCS under overlapping policy regimes. This paper addresses that gap by evaluating how emerging CCS-supportive regulations—exemplified by the U.S. EPA’s May 2024 rules—affect power system expansion and operations. Using a Generation Expansion Planning (GEP) model and the IEEE-118 bus system, we simulate capacity investments and dispatch decisions for coal and gas plants through 2032, under the EPA’s 90 % carbon reduction mandate. Results reveal that CCS integration may introduce system inefficiencies, particularly when layered with other climate policies. This study provides critical insights into the trade-offs and unintended consequences of CCS-centered decarbonization strategies, informing more coherent and effective policy design.