U.S. natural gas storage capacity has remained flat over the past eight years
Both measures of storage capacity, design capacity and demonstrated peak capacity, have remained unchanged for the past few years. Design capacity increased 0.1% since 2019, but demonstrated peak capacity decreased by about 0.2% - mainly due to the large decrease in the Pacific region.
Electric power sector CO2 emissions drop as generation mix shifts from coal to natural gas
In 2019, the electric sector produced 1,724 MMmt of CO2, which is 32% less than in 2005. However, this trend could change due to high natural gas pricing. The Henry Hub natural gas spot price is forecasted to average $3.07/MMBtu due to increases in consumption and exports that outpace expected growth in production and imports.
U.S. natural gas exports and non-power sector demand to drive higher prices through 2022
The Henry Hub natural gas spot price is forecasted to average $2.93/MMBtu in 2022 as a result of supply outpacing US demand in the near future.
Nuclear capacity increases by 4.5 GW in long-delayed 'MOPRed' PJM auction, coal loses 8 GW
Nuclear generation cleared the most additional capacity compared to the previous capacity auction, at an additional 4,460 MW. Gas generation increased by 3,414 MW and solar and wind increased by 942 MW and 312 MW, respectively. Meanwhile, coal-fired generation cleared 8,175 fewer MW than the last auction. In addition to lower load forecasted by PJM, transmission capability improved in some areas, contributing to the dramatic price drop of $50/MW-day on average throughout the ISO, compared to $140/MW-day in 2018.
New England states push for governance changes in ISO-NE, ahead of anticipated MOPR reform
Almost every state in the ISO New England (ISO-NE) footprint has an ambitious clean energy goal. But efforts by ISO-NE to prevent price suppression in the region resulted in tensions between the regional operator and state officials. Parallel to the issues in the PJM market, the states in New England are battling with the grid operator, stating unfair rulings in the current capacity auctions are interfering with laws binding them to provide clean energy. The uncertainty of the future of capacity translates to greater financial risk.