January’s cold continue affects electricity era brew in Northeast, Mid-Atlantic

36 views Leave a comment

The explosve storm continue eventuality in early Jan 2018 resulted in record levels of U.S. healthy gas direct and towering indiscriminate healthy gas and appetite prices around a nation as reported in a special EIA analysis. A compelled healthy gas tube network led to a poignant boost in oil-fired and dual-fuel era in New England and New York, and, to a obtuse extent, in a Mid-Atlantic.

Illustration by U.S. Energy Information Administration.

Day-ahead daily normal peak-period appetite prices for Jan 5, 2018, one of a coldest days of a continue event, reached $247 per megawatthour (MWh) in New England and New York and $262/MWh in a Mid-Atlantic, compared with $30MWh–$50/MWh normal prices in a preceding 6 weeks.

Power markets in a Northeast and Mid-Atlantic have turn some-more reliant on healthy gas over a past several years following a retirement of electricity generators that use fuels other than healthy gas. However, a relations mediation in appetite cost spikes during this year’s cold snap—despite aloft healthy gas prices—reflects a horde of marketplace order changes and winter preparedness actions taken by a region’s grid operators to urge winter reliability.

Illustration by U.S. Energy Information Administration.

In New England, retirements of the Vermont Yankee nuclear plant, the Brayton Point coal plant, and the Salem Harbor coal- and oil-fired plant (which is now being converted to healthy gas), as good as expansions of a healthy gas tube network, have led a segment to turn some-more reliant on healthy gas over a past integrate years.

The Independent System Operator of New England’s (ISO-NE) Winter Reliability Program has supposing incentives for generators to gain adequate onsite fuel haven for winter and spurred 1,774 megawatts (MW) of healthy gas-fired generators to supplement dual-fuel capability, that allows them to switch fuels or co-fire mixed fuels simultaneously. More than one-third of New England’s healthy gas ability has dual-fuel capability with oil as their delegate source, while about 40% of oil ability can switch to healthy gas and about 50% of spark ability can switch generally to oil.

Illustration by U.S. Energy Information Administration.

During a 12-day camber from Dec 28, 2017, to Jan 8, 2018, oil and spark done up, on average, 29% and 6%, respectively, of ISO-NE’s era mix. Natural gas forsaken during one indicate to a low of 17%. One of a region’s 3 chief plants, Pilgrim, gifted an astonishing outage for 6 days during that period.

ISO-NE has also made market pattern changes to urge winter reliability, including permitting generators to contention and refurbish supply offers for any hour of a day as against to a singular supply offer for an whole day. Dual-fuel generators can now mention a commission of fuels they devise to use and a costs for any fuel. These changes concede generators to offer their resources into a marketplace with some-more accurate representations of their handling costs.

Illustration by U.S. Energy Information Administration.

During a 12-day duration from Dec 28 to Jan 8, dual-fuel generators blazing oil and healthy gas accounted for, on average, 30% of New York ISO’s (NYISO) era mix, while spark and oil-only generators together averaged 5%. The dermatitis by fuel for dual-fuel generators is not now reported. Nuclear generators accounted for about 30% of sum generation, and dedicated healthy gas and renewables accounted for a remaining 35%.

In New York, healthy gas creates adult some-more than half of a state’s sum generating capacity, and about 70% of healthy gas ability can switch to oil. About 20% of oil ability can switch to healthy gas, and 13% of spark ability can switch to oil or healthy gas.

Illustration by U.S. Energy Information Administration.

NYISO has taken actions similar to those in ISO-NE to urge winter reliability. NYISO augmenting generator fuel surveys and site visits, used generators with higher-priced offers when units committed in a day-ahead marketplace could not run, and grown a streamlined routine with New York state agencies for generators to ask proxy glimmer waivers if indispensable for reliability.

NYISO done several marketplace pattern changes, including augmenting a system’s sum handling haven requirement from 1,965 MW to 2,620 MW and implementing new pricing methodologies that concede appetite and subordinate use prices to arise aloft to some-more accurately simulate costs for progressing reliability, generally during reduced supply periods.

Illustration by U.S. Energy Information Administration.

PJM in a Mid-Atlantic segment is a most incomparable complement that relies on healthy gas to a obtuse border than ISO-NE and NYISO. About 40% of a market’s healthy gas generators can switch generally to oil, while 15% of spark ability can switch to healthy gas or oil, and 4% of oil ability can switch generally to healthy gas. Oil era appearance during 9% of a era brew on Jan 7 and averaged 4% during a 12-day duration from Dec 28 to Jan 8. Coal era averaged 40% during a same time period, compared with about 30% a week before.

Source: EIA

Comment this news or article