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US coal retirements put natural gas to the test
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
Economic gas-to-coal displacement has historically provided a powerful balancing mechanism during the summer injection seasons for North American gas markets. Higher gas prices would normally result in utilities switching generation from gas to coal units. However, as Henry Hub prices rallied higher in summer, the economic displacement stalled with fewer coal units dispatching. As the US power market continues to transform with increased penetration of renewable generation, the capability of the gas market to support power demand throughout the year will be tested by mounting coal unit retirements.
Table of contents
- Where’s the ceiling?
- Gas-to-coal switching stalled
- Changes in store for seasonal dispatch
Tables and charts
This report includes the following images and tables:
- Henry Hub gas price in the short term goes off the rails as it searches for a new ceiling
- US gas production response to higher prices more muted than in the past
- Price elasticity of gas power burns disappears at higher prices
- US gas demand seasonality (bcfd)
What's included
This report contains:
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