Entries in wholesale prices (36)

Wednesday
Aug302017

Spring 2017 markets report reviews wholesale market outcomes during March, April, and May 2017 

The Spring 2017 Quarterly Markets Report prepared by the Internal Market Monitor (IMM) of ISO New England reviews wholesale energy market outcomes for the three-month period from March 1 through May 31, 2017.

The report notes that the total wholesale cost of electricity (including energy, capacity, and ancillary services) during the three-month period was $1.3 billion, up 26% compared to the market value of $1.0 billion during the spring of 2016. The average day-ahead wholesale energy price was $30.78 per megawatt-hour (MWh), up 32% over the average day-ahead price during spring 2016, while the real-time price was $31.92/MWh, 44% higher than the average real-time price during the previous spring. The year-over-year increase was driven by natural gas prices that were 54% higher, averaging $3.59 per million British thermal units (MMBtu) compared to the $2.33/MMBtu average price during the previous spring. Unseasonably cold temperatures during March 2017 compared with March 2016 drove most of the year-over-year increase in quarterly average prices. In March 2017, natural gas averaged $4.46/MMBtu, a 127% increase over the historically low natural gas prices seen during the previous March.

Wednesday
Aug302017

Wholesale electricity prices and demand in New England, July 2017

July’s average wholesale electricity price dropped year-over-year, tracking a decline in natural gas prices

Natural gas and wholesale electricity prices both dropped almost 10% in July compared to the prices seen during July 2016. The average wholesale power price during July was $26.62 per megawatt-hour (MWh)*, down 9.3% from the July 2016 average of $29.33/MWh, while the average monthly price of natural gas was down 9.4% during July.

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Friday
Jul212017

Monthly wholesale electricity prices and demand in New England, June 2017

June’s average wholesale electricity price was the seventh-lowest monthly average since 2003

Compared to the near record-low prices of June 2016, natural gas and wholesale electricity prices rose slightly in June--but were still among the lowest monthly prices seen since 2003. The average wholesale power price during June was $23.93 per megawatt-hour (MWh)*, the 7th lowest since the region’s current energy markets were launched in 2003. Still, the June price was about 13% higher than the June 2016 price—which was the 3rd lowest since 2003, at $21.24/MWh. The average monthly price of natural gas was the 11th lowest since 2003, compared to the June 2016 average natural gas price, which was the 8th lowest.

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Tuesday
Jun202017

Wholesale electricity prices and demand in New England, May 2017

Rising natural gas prices caused wholesale electricity prices to increase during May

Natural gas prices in May were nearly 44% higher than during the previous May in New England, pushing up the average wholesale power price to $29.44 per megawatt-hour (MWh)*, a 38.2% increase compared to the May 2016 average price of $21.29/MWh. For a month-to-month comparison, the May power price was 6.6% lower than the April average price of $31.51.

While the month of May was not particularly unusual, one day—May 18, the day of the May peak—was interesting for significant price variations resulting from a combination of planned power plant and transmission line outages and unusually high temperatures. The range in five-minute prices—from negative prices in northern areas of New England to prices over $800/MWh in other parts of the region—is illustrative of the operational challenges that can arise during the “shoulder seasons” of spring and fall, when consumer demand for power is typically lighter and power plant and transmission lines are taken offline for maintenance and repairs. Read more about the dynamics at work that day. 

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Friday
Jun092017

Significant price variation on May 18 highlights operational challenges of operating the grid during spring and fall

Real-time prices ranged from a high of $758.88 MWh in the northeastern Massachusetts and Boston pricing zone to a low of -$71.07 MWh price for power from New Brunswick

Thursday, May 18, 2017, was a hot one. If you have an interest in energy, you may have checked the New England locational marginal pricing (LMP) map that day, expecting to see prices rise across the region, responding to the hotter than normal weather. Instead, you saw an unusual, rainbow-like effect on the map, indicating a wide variation in real-time wholesale electricity prices. The real-time price spread was caused by challenging power grid circumstances that can occur mainly during spring and fall (but also any time of year, depending on resource availability): when unseasonable weather drives a spike in demand while major energy infrastructure is offline for maintenance.

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Wednesday
May312017

ISO-NE’s wholesale electricity and capacity markets were competitive in 2016

The 2016 Annual Markets Report, issued by the Internal Market Monitor at ISO New England, concluded that New England’s wholesale power markets were competitive in 2016. The report found that the average price for wholesale electricity was the lowest since 2003, driven by very low natural gas prices and unusually mild weather in the first quarter of 2016. The average wholesale price for electric energy was $28.94 per megawatt-hour, and the total value of the region’s energy market was $4.1 billion. View the report.