Article Archive

Cheap Gas Forever?

Submitted by meacott on Wed, 2011-09-28 18:03
Even with recent large natural gas discoveries and strong inventories, the supply of natural gas isn’t elastic enough to handle significant demand increases. Rising gas prices will push coal back into the money despite coal plants’ high costs to comply with EPA regulations.

When NYMEX closed on Tuesday, Sept. 27, Henry Hub natural gas spot prices were $3.92 per MMBtu. 24 months earlier in June 2009, the same spot prices ranged between $3.50 and $4.20 per MMBtu. Other than seasonal spikes due to increased heating demand, there has been a prolonged period of cheap natural gas. Even though natural gas prices have been slowly rising over the past few years, the industry has been wondering whether natural gas prices will ever rebound to the historical levels seen between 2006 and 2008.

Energy Efficiency: 15 percent by 2020?

Submitted by meacott on Wed, 2011-09-28 18:03
A new survey of energy industry experts reveals a surprising consensus on the size of the energy efficiency resource. Overall, energy efficiency is expected to lower electricity consumption by 5 to 15 percent, and natural gas consumption by 5 to 10 percent. These results debunk the notion that conservation is a fad. On the contrary, they herald a new beginning for energy efficiency.

Efficiency pessimists contend that energy efficiency (inclusive of demand response) is unlikely to make much of a dent on energy consumption and peak demand in the year 2020 since all the low-hanging fruit has been harvested. Ergo, the solution to meeting the nation’s future energy needs in a carbon-constrained future is to build more power plants (preferably those that don’t burn coal), transmission lines and distribution systems.

Gas Demand Response

Submitted by meacott on Thu, 2011-08-25 18:03
As more natural gas is used for power generation, more volatility can be expected in gas markets. Demand response might provide a tool for managing that volatility, but is it technically feasible? And will gas customers accept it?

In general, demand response refers to the ability of consumers to respond to a supply shortage by curtailing demand, thereby improving economic efficiency. Since the California energy crisis, demand response has been widely used in electricity markets throughout the United States and Canada.1 Recent developments in the natural gas sector suggest that the time may have come to also introduce demand response in that sector.

OP-ED: Green Security

Submitted by meacott on Thu, 2011-07-21 18:03
For decades, America’s national security has been closely linked with our energy policies. Sustainable energy resources -- especially local, renewable options -- represent a lynchpin in the country’s future security. As such, it’s time to re-think the way we’re financing renewable investments.

Basing energy policy on the tax-equity appetite of large corporate and banking entities doesn’t offer a long-term stable path.

The debate on climate change continues, and the yet the U.S. response has been stuck in a political debate between the Democratic and Republican parties. The prospect for meaningful legislation for cap-and-trade or a national renewable energy standard (RES) seems beyond reach at least until after the 2012 presidential election.

Up in Smoke

Submitted by meacott on Wed, 2011-06-29 18:03
Demand-side resources claim a growing share of the market, bringing lower costs and environmental benefits.

In May, PJM Interconnection conducted its annual auctions to secure electric capacity three years from now. As expected by most analysts, the base residual auction (BRA) for delivery year 2014/15 electric capacity cleared with lower volumes versus the prior year, due to lower demand. Prices were lower in the typically constrained eastern Mid Atlantic Area Council (MAAC) region, and higher in the rest of the regional transmission organization (RTO).