Commodity market report
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16 Pages

Southeast power markets short-term outlook January 2015

Southeast power markets short-term outlook January 2015

Report summary

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.

What's included?

This report includes 2 file(s)

  • Southeast power markets short-term outlook January 2015 PDF - 417.66 KB 16 Pages, 1 Tables, 13 Figures
  • NAPS STO Southeast 1 31 2015.xls XLS - 25.52 MB


The power sector is rapidly transitioning to a cleaner generation mix supported by technological and regulatory changes. Regional markets and structures are adjusting to these new realities with implications on fuel demand, commodity pricing and asset values.

This Power Markets Short Term Outlook report provides a detailed analysis of supply, demand and price fundamentals, as well as the regulatory and market issues affecting regional power markets.

Use this report to examine key issues driving regulatory and economic trends and identify future growth opportunities in regional power markets.

Wood Mackenzie's detailed analysis and reliable market forecasts give you a strong foundation for your investment decisions and corporate planning. Our experienced power research analysts use high-quality proprietary gas, coal and oil markets research to help you unlock power market fundamentals and identify future growth opportunities.

  • Executive summary
  • Supply
    • Tightening fundamentals point to natural gas pricing upside for the balance of winter
    • Natural gas pricing
      • Winter natural gas withdrawal rates to rise as weather driven demand should outpace a mild December
      • Winter 2015-'16 and 2016
      • Oil price declines and US E&P response
    • Coal pricing
      • Falling oil prices putting downward pressure on delivered coal costs
    • Coal plant retirements
    • Nuclear supply
      • Figure 1: US nuclear refuelling schedule
    • Renewable supply
      • Renewable build-out could see some headwinds in 2015 beyond phase out of the federal PTC
    • Fossil fired power generation balances
      • Changing roles: lower gas prices push coal to the margin as natural gas shifts to baseload in some markets
      • Lower gas prices also induce gas on gas competition in addition to coal to gas switching
      • Coal utilization constraints alter inter-zonal market competitiveness
      • Impact on utilization and values
      • Figure 4: Change in operations and value for regional operating plants by technology
  • Prices
    • ERCOT
    • Northeast
    • Midwest
    • Southeast
    • WECC
  • Scenario Overview

In this report there are 14 tables or charts, including:

  • Executive summary
  • Supply
    • Supply: Image 1
    • Supply: Image 2
    • Supply: Image 3
    • Supply: Image 4
    • Supply: Image 5
    • Supply: Image 6
  • Prices
    • Figure 5: ERCOT historical and forecast all-in energy price outlook
    • Figure 6: New York historical and forecast all-in energy price outlook
    • Figure 7: New England historical and forecast all-in energy price outlook
    • Figure 8: PJM historical and forecast all-in energy price outlook
    • Figure 9: MISO historical and forecast all-in energy price outlook
    • Figure 10: Southeast historical and forecast all-in energy price outlook
    • Figure 11: WECC historical and forecast all-in energy price outlook
  • Scenario Overview
    • Scenario Overview: Table 1
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