Gas Market:
Mixed Signals
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Record Gas Usage in Power Sector: Despite bearish indicators, natural gas consumption in the power sector is reaching record highs, likely driven by overall increased electricity demand.
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Higher Gas Burns Compared to Last Year: Our analysis shows significantly higher natural gas burns year-over-year.
Coal Market: Drawdowns and Increased Usage
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Significant Drawdowns in Coal Plant Inventories: Inventory levels at coal plants have dropped considerably, with several plants falling below the 90% mark. This trend, viewable on Vulcan's UI for specific weeks, suggests a substantial increase in coal usage.
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EIA-930 Data Supports Increased Coal Generation: Data from the EIA-930 report corroborates this view, indicating significantly higher coal generation compared to last year.
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Higher Wind Capacity Factors: Vulcan's calculations reveal wind power is performing exceptionally well this year, with capacity factors approaching record levels for this time period. This translates to increased wind energy production compared to last year, even accounting for new wind farm construction.
- Five New Plants Under Construction: Our "Under Construction" product has identified five new power plants that have begun construction.
- Genstack Integration and Online Date Estimation: Vulcan users can incorporate these plants into their generation stacks (genstack) using the update date as a starting point for construction. With your expertise, you can then estimate a more accurate online date for these upcoming facilities.
1) Flat Fork Solar – Land Cleared
Solar, EIA Status – P, Planned Operation – 9/2025, Capacity – 200 MW
Sources: https://www.nexteraenergyresources.com/flat-fork-solar/project-overview.html (Project to begin operations the end of 2025)
6/13/2024 5/29/2024
2) Intermountain Power Project – New Structure in center
Natural Gas, EIA Status – P, Planned Operation – 7/2025, Capacity – 840 MW
Sources: https://www.power-technology.com/data-insights/power-plant-profile-intermountain-power-project-us/?cf-view (6/19/24 Construction likely to commence 2022 and operation expected July 2025)
6/21/2024 5/29/2024
3) MEC North – New Structure
Natural Gas, EIA Status – T, Planned Operation – 6/2025, Capacity – 500 MW
Sources: https://www.constructionjournal.com/projects/details/1569b59b6460420196655dcd51717967.html (Construction expected to begin February 2024)
6/20/2024 5/16/2024
4) Papago Energy Storage – New Structure
Solar, EIA Status – L, Planned Operation – 5/2025, Capacity – 300 MW
Sources: https://www.environmentenergyleader.com/2023/08/recurrent-energy-secures-energy-storage-agreement-with-arizona-public-service/ (8/17/2023 Construction set to begin third quarter 2024)
6/21/2024 5/30/2024
5) Rock House Solar – Land Cleared
Solar, EIA Status – P, Planned Operation – 11/2027, Capacity – 250 MW
Sources: https://www.edf-re.com/project/rock-house-solar/ (Project set to become operational 2026 or 2027)
6/16/2024 5/1/2024
By leveraging Vulcan's comprehensive data and insights, you can navigate the complexities of the energy market and make informed trading decisions.
