Commodity market report
| |
8 Pages

WECC power markets short-term outlook February 2016

WECC power markets short-term outlook February 2016

Report summary

Demand for power grows slightly in this outlook, as the economy does continue to grow overall. Natural gas generation balances in the current forecast also benefit from a combination of stronger loads and lower gas prices. As a result of the move lower in natural gas prices, power prices moved lower overall. However, the lower coal burn and greater call on natural gas boost heat rates across the Eastern Interconnect, relative to the previous report, offsetting some of the overall price decline.    

What's included?

This report includes 2 file(s)

  • WECC power markets short-term outlook February 2016 PDF - 366.54 KB 8 Pages, 1 Tables, 5 Figures
  • NAPS STO STV WECC 2 29 2016.xls XLS - 26.66 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
  • Fundamentals
    • Natural gas prices limp into the Spring period
      • Coal stockpiles will still limit the amount of market share for gas in the power market
      • Q3 and Q4 2016 price support comes as oil continues to help tighten markets
  • Generation balances and prices
    • Eastern power prices continue to remain under pressure from both supply and demand risks
      • Some near term growth in power demand despite current headwinds
      • Identified Capacity changes abated in February
      • Nuclear Uprate Adjustments
      • Generation balances continue to fluctuate
      • Coal to gas switching
    • Prices move down on lower gas prices but improved heat rates
      • Conditions may suppress volatility
    • WECC: coal losing market share
  • Scenario Overview

In this report there are 6 tables or charts, including:

  • Executive summary
  • Fundamentals
  • Generation balances and prices
    • Figure 1: Changes in Eastern power market fundamentals (Relative to January 2016 STO)
    • Figure 2: Changes in 2016-17 Nuclear generation (Relative to January 2016 STO)
    • Figure 3: Relative changes in Eastern markets’ power price metrics (Relative to January 2016 STO)
    • Figure 4: Changes in WECC power market fundamentals (Relative to January 2016 STO)
    • Figure 5: Relative changes in WECC markets’ power price metrics (Relative to January 2016 STO)
  • Scenario Overview
    • Figure 6: North American power generation balances and fuel prices
Requester's name : .............
Department : .............
Authoriser's Name : .............
Authoriser's signature : .............
Date : .............
Cost Centre : .............

Questions about this report?

Frequently Asked Questions
  • Europe: +44 131 243 4699
  • Americas: +1 713 470 1900
  • Asia Pacific: +61 2 8224 8898
contact us

Why Wood Mackenzie?

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.