New York, NY, Nov. 18 2020 — S&P Global Market Intelligence introduces a new energy transition dataset that incorporates hourly price forecasts for power plant hubs as part of its Power Forecast series. The new dataset enables market participants to analyze and forecast the time of day when a facility can maximize value from energy output, and gain insights regarding how daily price shapes may change in the future.
This new dataset combined with other S&P Global Market Intelligence insights including project mapping, transmission lines routes, Independent System Operator (ISO) market prices, battery storage projects and state level renewable portfolio standards offers a unique fundamental outlook as to how a plant or type of generation may fare over the length of its operational life.
“Understanding how the economics of the grid impact of a power plant is key to decoding the signals that are driving the transition from traditional generation sources to renewable energy,” said Steve Piper, Research Director for Energy at S&P Global Market Intelligence. “Having deep on-the-ground differentiated insights provides a unique view into the broader market trends, such as whether a region is more suited to a particular technology and where the investments will likely flow.”
Utilizing this new dataset, S&P Global Market Intelligence found that wind resources in California have become better positioned to capitalize on intraday peak pricing. The analysis noted that as the sun sets and solar generation stops contributing to the grid, more conventional and potentially expensive resources come online to make up for the nighttime loss of solar. The evening hours are a period when wind farms capture more economic value than solar, therefore becoming a more attractive renewable alternative.
This dataset allows market participants such as electric utilities, merchant generators, gas companies and oil majors to do the following:
- Calculate the economics of how wind and/or solar plant outputs will fluctuate by time of day and provide insight indicating locations that could most benefit from the addition of battery storage;
- Integrate the hourly and daily price prediction insights into their own models and templates;
- Performance spread option valuation to support investment, M&A and market analysis and match renewable energy generation and prices to time of availability.
For more information about S&P Global Market Intelligence’s Power Forecast insights, please visit here.
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