Return to Blog

WIND POWER SETS NEW RECORD FOR ENERGY SHARE IN ERCOT IN NOVEMBER

Wind generation in November blew through a 31-month-old record share of total energy in the Electric Reliability Council of Texas, a new report shows, and an expert said it contributed to ERCOT’s low on-peak power prices that month.

Wind farms supplied 18.4% of the independent system operator’s total load in November, compared with October’s 12.3%, last November’s 15.1%, and the previous record high of 15.2% set in March 2013.

The latest numbers are from ERCOT’s 2015 Demand and Energy Report, released late Thursday.

Jeff Schroeter, managing director of Plano, Texas-based Genova Power Advisors, said Monday that wind generation availability, weather and low natural gas prices converged to create a “perfect storm” for low power prices in ERCOT this November, which accrued to “ratepayer benefit and generator detriment.”

Day-ahead on-peak power at the heavily traded ERCOT North Hub averaged $21.90/MWh in November, down 6.7% from October and down 43.6% from November 2014, according to Platts data.

Asked whether wind generation contributed to November’s low prices, Schroeter said in an email, “Yes — wind generation availability due to weather and capacity additions, bid strategies and the energy-only market converge with ultra-low gas prices.”

Day-ahead natural gas prices at the Houston Ship Channel, which ERCOT uses as a local benchmark for cost estimates, averaged $2.051/MMBtu this November, compared with $2.352/MMBtu in October and $4.006/MMBtu in November 2014, according to Platts data.

In contrast with wind’s increased share, natural gas- and coal-fired generation supplied decreasing percentages of power in November, compared with October. Natural gas’ share fell from 47.9% in October to 44.5% in November, while coal’s share fell from 30.4% to 27.2%.

Overall, demand fell almost 13% from 27.5 TWh in October to about 23.9 TWh in November, and this November’s total demand was down 2.9% from the November 2014 total of 24.7 TWh.

Read the rest at Platts.com

Disclaimer: Although the information contained herein is from sources believed to be reliable, TFS Energy Solutions, LLC and/or any of its members, affiliates, and subsidiaries (collectively “TFS”) makes no warranty or representation that such information is correct and is not responsible for errors, omissions or misstatements of any kind. All information is provided “AS IS” and on an “AS AVAILABLE” basis and TFS disclaims all express and implied warranties related to such information and does not guarantee the accuracy, timeliness, completeness, performance or fitness for a particular purpose of any of the information. The information contained herein, including any pricing, is for informational purposes only, can be changed at any time, should be independently evaluated, and is not a binding offer to provide electricity, natural gas and related services. The parties agree that TFS’s sole function with respect to any transaction is the introduction of the parties and that each party is responsible for evaluating the merits of the transaction and credit worthiness of the other. TFS assumes no responsibility for the performance of any transaction or the financial condition of any party. TFS accepts no liability for any direct, indirect or other consequential loss arising out of any use of the information contained herein or any inaccuracy, error or omission in any of its content. This document is the property of, and is proprietary to, TFS Energy Solutions, LLC and/or any of its members, affiliates, and subsidiaries (collectively “TFS”) and is identified as “Confidential.” Those parties to whom it is distributed shall exercise the same degree of custody and care afforded their own such information. TFS makes no claims concerning the validity of the information provided herein and will not be held liable for any use of this information. The information provided herein may be displayed and printed for your internal use only and may not reproduced, retransmitted, distributed, disseminated, sold, published, broadcast or circulated to anyone without the express written consent of TFS.