Dive Brief:
- High temperatures of 91 degrees Fahrenheit in New York City pushed demand for power up to 9,473 MW in the middle of Monday, a full 3.2% higher than forecast, while demand in New England and the PJM Interconnection also went above predicted levels.
- Electricity prices in PJM's western region were three times higher than they were on July 4 in the middle of Monday, while prices in New York City were up by about 90% at $40.88 per megawatt-hour from $21.55 per megawatt-hour on July 4.
- Even Texas, where hot weather is a normal occurrence, had higher-than-average power prices during the peak on Monday at $52.50 per megawatt-hour, up 43% from the same time on July 4.
Dive Insight:
The hotter-than-predicted weather across the U.S., a suspected consequence of climate change, may not bode well for meeting increasingly high summer peak demand in the different grid regions. The good news is that U.S. grid operators were all well above the minimum reserve capacity required to meet demand in the event of an emergency.
The effect of the hot weather in Texas belies another factor: Wind generation, which accounts for a significant percentage of the state's electricity generation, went below predicted levels as temperatures rose.
