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Tag Archives: electric power

Solar PV growth slows as sector transitions to new phase

Dramatic cost reductions are now seeing solar PV becoming increasingly competitive,  but capacity additions remain subdued so far this year across major markets, following a prior year of stalled growth, according to S&P Global Platts Analytics’ latest Global Solar PV Outlook. Although additions in Germany have been rebounding and Japan has seen a return to growth, the pace of installations remains weak in the US and has disappointed in China, the largest market in terms of annual...

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US Northeast power markets are unwell. What’s next?

If the electricity markets of the North Eastern US were patients in a hospital, their condition would not be improving, and some might even describe it as critical. New England’s redesigned capacity market, which ran in February under new rules for the first time, closed at a clearing price that was the lowest in six years. The second stage of the auction, designed to accommodate subsidized resources, cleared just 54 MW at $0/kW-m. PJM Interconnection’s energy and capacity markets are both...

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Japan’s nuclear power generation ramps up in 2019 but hurdles lie ahead

Dynamics in the Japanese power market have been a major bearish force acting on the global LNG market this year. Weak power demand, increasing renewable generation, notably solar, and higher nuclear output have depressed fossil fuel needs, and LNG in particular, as S&P Global Platts Analytics highlighted in a recent report. Ahead of the Platts Analytics Client Seminar in Singapore, Bruno Brunetti and Andre Lambine explore key aspects of the Japanese power market. Japan’s nuclear...

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Middle East solar dream in danger of early burn out

With abundant sunshine, the Middle East and North Africa should be global leaders in solar power. But slowing electricity demand growth and an uncertain economic outlook across the region may hold back investment, experts warn. Arab Petroleum Investments Corporation lowered by 20% its estimate of spending on power generation over the next five years in the region, in a report last month, citing reduced economic and population growth forecasts and higher electricity prices. Egypt – the...

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As demand for “green” power soars, utilities turn to Guarantees of Origin

Businesses and consumers are becoming more picky about the origin of their electricity supply, motivated by a growing sense of urgency to act on climate change. European utilities have noted a strong rise in demand for green electricity – that is, electricity from renewable sources. An important part of the response has been the use of Guarantees of Origin (GOs) – tradable tags that certify the provenance of power supply, down to quite specific details of the generation technology involved...

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US battery installs to accelerate strongly beyond 2020, but new risks emerge

Almost 10 GW of utility-scale and grid-connected battery storage will be operating in the U.S. by 2023, S&P Global Platts Analytics forecast in its latest U.S. Power Storage Outlook. A combination of dropping costs and diversification of use cases points to accelerating storage uptake, with annual storage investments set to increase tenfold from under $0.3 billion in 2019 to around $3 billion in 2023. However, new policy and technology risks are emerging. Click here for full-size chart...

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Energy and commodities highlights: US gas prices, OPEC meeting, Chinese LNG investment

Moving into high summer, US energy markets were taking stock of trends in power generation amid low gas prices. The US Henry Hub gas benchmark recently traded at historic lows, and with forward prices suggesting little upside, the fuel is likely to see increased demand from power plants this summer. According to S&P Global Platts Analytics, even average seasonal temperatures in July and August could lift demand for power burn as much as 2-3 Bcf/d over last summer, assuming gas prices...

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As Texas temperatures rise, will ERCOT electricity prices boil over?

When record-setting heat swept across Texas in mid-July 2018, ERCOT only narrowly avoided a blowout in power prices with the help of unusually low outages and the fortuitous arrival of a weekend. This summer may be unlikely to get as hot as last year, but shrinking reserve margins continue to emphasize the possibility of surging summer prices. Taking into account increasingly tight reserve margins, upside under ERCOT’s recently revised shortage pricing formula, and higher dependence on wind...

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Exchange’s IT malfunction sends jitters through European spot power markets

One week ago, European spot power exchange EPEX Spot was hit with an issue any financial platform would want to avoid. Technical problems led to a series of server crashes, forcing the exchange to launch back-up auction procedures. This resulted in Belgian power prices spiking to over Eur2,000/MWh. During EPEX Spot’s preliminary auction at mid-day London time on June 7, the Belgian day-ahead baseload power contract reached EUR2,233.39/MWh. The auction was then cancelled due to the technical...

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Forward spark spreads suggest rising profitability of US renewables as sector matures

Ahead of the S&P Global Platts Global Power Markets conference in Las Vegas, April 8-10, 2019, The Barrel presents a series of articles on the global and US electricity sectors. In this last post of the series, Steve Piper analyzes S&P Global Market Intelligence data to show that renewables are increasingly able to compete with conventional generation. Wind and solar photovoltaic (PV) electric facilities only account for an estimated 11% of US generation, but they are fast closing...

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