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High gas prices fuel rise in SPP coal-fired power as wind generation flags

22 Jun 2021

Falling wind generation in the Southwest Power Pool is boosting market share for coal in the US Midcontinent this month as dual-fuel generators limit consumption of higher-priced natural gas.
 
In the independent system operator's territory, wind has generated an average 212,900 MWh, and captured about 26% market share in the generation stack this month. In May, the renewable generated an average 260,600 MWh in SPP, more than 40% of the total market, ISO data shows.
 
As wind speeds ebb, generators across the Midcontinent appear to be opting mostly for coal as a backup fuel. In June, coal power has yielded an average 324,100 MWh, representing about 40% of the ISO's generation. That's up from an average 196,200 MWh and 31% market share last month.
 
While slower wind speeds and warmer temperatures this month have also boosted power generation and market share for gas in SPP, the gains are notably smaller compared with those for coal. Higher gas prices are most likely to blame for the growing ascendency of coal as a backup fuel in SPP.
 
 
Source : https://www.spglobal.com/platts