Dive Brief:
- June power prices in the Southwest Power Pool were flat year-over-year, and showed a small rise from May, Platts reports.
- A assessment presented to the RTOs board of directors showed locational marginal prices averaged $24.38/MWh last month—a nickel higher than in June 2016, but a bigger step up from $21.44/MWh in May.
- Low gas prices and increased wind generation have helped grow SPP's market. Installed wind generation on the Southwest grid grew by 30% last year, rising from 12 GW to more than 16 GW.
Dive Insight:
Monthly average power prices in SPP's integrated marketplace "are some of the lowest monthly and annual average electricity prices since the start of SPP's first market," according to a report to the SPP board and members committee meeting presented this week, Platts reported.
On the Panhandle Eastern Pipeline, spot gas averaged $2.60/MMBtu in June, up a quarter from June 2016.
Earlier this year, SPP announced it had set a new record for wind penetration, serving 52.1% of its load with the renewable generation. The rapid growth of renewables on the system has helped create a well-functioning market on the back of large transmission projects.
As recently as the early 2000s, SPP's generating fleet included less than 400 MW of wind. But the RTO has approved the construction of more than $10 billion in high-voltage transmission infrastructure over the last decade, helping bring wind power from projects in the Midwest.
And more transmission projects may be in the works. The grid operator is accepting applications through August, to create a pool of industry experts that could be chosen to serve on an independent panel to review competitive transmission construction proposals in 2018.
