Internal Market Monitor releases Summer 2024 quarterly report

The summer of 2024 saw higher year-over-year costs for both energy and capacity, according to the latest quarterly report from ISO New England’s Internal Market Monitor (IMM). 

The Summer 2024 Quarterly Markets Report, which covers the period from June 1 to August 31, presents an assessment of each of the region’s wholesale electricity markets, based on market data, performance criteria, and independent studies. 

Key findings include: 

• The total estimated wholesale market cost of electricity for summer 2024 was $1.94 billion, up 21% compared to summer 2023. 

• Real-time energy prices averaged $37.45 per megawatt hour (MWh), up 14% from summer 2023. Day-ahead energy prices were up 9% year over year, averaging $39.03/MWh.  

• Overall, energy costs totaled $1.56 billion, up 26% (or $320 million) from summer 2023 costs. The decrease was driven in part by increased electricity demand, which was 5% higher than in the same period last year. Meanwhile, the average cost of Regional Greenhouse Gas Initiative allowances increased 80% from summer 2023. These factors offset the effects of lower natural gas prices, which were down 21% from last summer. Natural gas, the region’s predominant energy fuel, has been declining in price since early 2023. 

• Capacity costs totaled $337 million, up 31% from the previous summer. The increase was attributed to higher clearing prices in the 15th Forward Capacity Auction (FCA 14) compared to FCA 14. A higher Net Installed Capacity Requirement and decrease in surplus related to generator retirements drove the increase. The payment rate for new and existing resources in summer 2024 was $2.61 per kilowatt-month, compared to $2.00 per kilowatt-month in summer 2023.