Platts: Cheap gas, nuclear energy depress NYISO prices
Energy prices fell slightly in May, as New York’s nuclear generation rose and fuel prices remained moderate. Looking ahead, the grid operator expects to have adequate supplies—though it will face a spike in demand this year.
New York ISO says peak demand this summer will reach 33,178 MW, about 3% above the 10-year average.
To meet that demand, New York has 37,609 MW of generating capacity from in-state power plants, 1,191 MW of demand response resources and 2,213 MW of net purchases and sales from neighboring regions. “Based on historical performance, the net resources assumed available to serve during the summer peak total 36,184 MW,” the ISO said.
An increase in nuclear generation helped moderate prices last month. Outages declined significantly from April to May; last month, capacity offline averaged less than 400 MW/day—down from about 1,500 MW/day in April.
This year, New York ISO is operating with a reserve requirement of 2,620 MW. The combination of the peak demand forecast and operating reserve results in a total capacity requirement of 35,798 MW, according to the ISO.