The natural gas leak that occurred at the Aliso Canyon gas storage facility (Aliso Canyon) in Southern California earlier this year means Aliso Canyon will probably not be available to meet any peak natural gas needs for the remainder of the year at a minimum. The outage may limit the ability of some gas-fired generators in the Los Angeles basin to operate during up to 16 days this summer.
The California ISO (CAISO) assigns high capacity value to solar generators, and expedited deployment of new solar has been proposed as one way to help mitigate the loss of Aliso Canyon. In this Insight Wood Mackenzie provides our own analysis indicating that solar capacity value is much lower than CAISO assumes. Peak day analysis also shows that additional solar will do little to reduce peak hourly gas demand. However, new solar may help offset the Aliso Canyon outage by reducing gas-fired generation earlier in the day, thus making that gas available when hourly gas-fired generation peaks.
This report includes 1 file(s)
Can solar power save the day in California this summer? PDF - 551.71 KB 7 Pages, 1 Tables, 2 Figures
This Power Markets Insight report highlights the key issues surrounding this topic, and draws out the implications for those involved.
For participants, suppliers and advisors who want to look at the trends, risks and issues within the power industry, this report gives you an expert opinion and analysis to help inform your decision making.
Wood Mackenzie's detailed analysis and reliable market forecasts provide a strong reference, enabling a quick and concise description about the relationship between this event and its implications.
Underpinned by our extensive gas, coal and oil markets research, Wood Mackenzie's detailed analysis and reliable market forecasts provide a reliable foundation for investments and corporate planning. We help you understand key regulatory and economic drivers, and emerging industry tends in the power industry.
Wood Mackenzie's clients include every major player in the global energy, metals and mining industries. We are recognised as a leading authority by international and national energy, metals and mining companies, leading financial institutions, governments and government agencies. We work with a range of diverse teams within our clients, from strategy and policy makers, business developers and market analysts, through to corporate finance, risk teams and investors.
Having Wood Mac analysis is table-stakes. Others are nice to have.
Analyst Metal Mining Producer
Wood Mac has the highest quality data and is demanded by our staff.
Portfolio Manager Integrated Oil Company
Others can provide data but we value the quality of the Wood Mac analysis above other sources.
Wood Mackenzie, a Verisk Analytics business, has been a trusted source of commercial intelligence for the world's natural resources sector for more than 40 years, empowering clients to make better strategic decisions with objective analysis and advice.
We work across every sector of oil, gas, power,renewables,chemicals, metals and mining, covering more than 150 countries. Our proprietary data and models are at the core of everything we do, ensuring our independent asset and company valuations are thoroughly robust and that we offer an accurate forward-looking view of economic indicators such as market supply, demand and price trends.
Our 500+ analysts are based in the regions they cover, cultivating an unrivalled depth of understanding to help clients accurately identify new opportunities, define their strategy and improve business performance.
At every stage, our teams readily collaborate and share their insight to provide an integrated perspective across entire industries. It is this unique and rigorous analytical approach that ensures we are recognised as the industry standard by the world’s most innovative organisations.
Insight | Jun 2016
Can solar power save the day in California this summer?
Have questions?Just let us know how to contact you and we will respond to you as soon as possible.