North America power markets short-term outlook January 2015
Current prices for natural gas have flipped the coal and combined cycle contributions to regional supply stacks. Although falling natural gas prices have put downward pressure on wholesale power prices, a shift of coal to marginal operator provides some limit to this drop. With these operating differences, not all generators will see similar impacts to returns across markets in 2015. Coal loses market share and value while the least efficient gas combined cycles pick up the most value.