The U.S. Department of Energy released its long-awaited grid reliability study late Aug. 23, concluding that the "biggest contributor to coal and nuclear plant retirements has been the advantaged economics of natural gas-fired generation."
Below is a compilation of coverage by S&P Global Market Intelligence addressing the study's projected impacts on coal, nuclear, natural gas, regulatory agencies and more.
Baseload plant retirements driven by market and policy forces, DOE says
Both market and policy forces have helped to speed up the retirements of traditional baseload power plants in the U.S., which could damage the grid's reliability and resilience, according to a summary of key findings from the controversial DOE grid study.
DOE: Low natural gas prices main reason baseload plants are closing
A combination of factors, including low natural gas prices, wholesale competition, minimal customer demand growth, cost increases prompted by regulation and the addition of large amounts of variable renewable energy generation, have led to increased baseload power plant retirements, according to the DOE.
Coal sector says DOE study met expectations, plans steps to preserve coal fleet
The DOE grid study backed up a major talking point of the coal sector — changing generation portfolios have challenged electricity markets and those markets need to "evolve to better address resilience." While the report acknowledged that low natural gas prices and other market factors have accelerated the closure of baseload power plants, it also noted that policy forces have played a role.
Perry sticks to his guns as DOE grid study largely absolves environmental rules
Despite the conclusions of his agency's grid reliability study, Energy Secretary Rick Perry said it "is apparent that in today's competitive markets certain regulations and subsidies are having a large impact on the functioning of markets, and thereby challenging our power generation mix."
DOE grid study casts a spotlight on reform for EPA's new source review program
Environmental regulation was not named by DOE staff as the main reason behind baseload generation retirements, but the agency's study offered a pointed critique of the new source review program's treatment of existing power plants.
Gas' role in grid requires fresh take on reliability, DOE study says
With natural gas gaining ground as a baseload power fuel, regulators need to think carefully about policies and market structures that bolster power producers' access to the fuels they need and reward reliability, according to the grid study.
DOE study spurs calls for action by nuclear industry, but others more cautious
Economically challenged nuclear plant operators want quick policy action following the release of the DOE's study on long-term grid reliability.
Clean-energy activists: DOE trying to 'shoehorn' old plants into changing grid
Although the DOE's report is not the political cudgel the renewable energy industry feared it would be, it paid scant attention to a suite of technologies that in some cases already are bolstering the power system for less than the cost of fossil-energy resources, according to renewable energy advocates.
DOE grid study leaves FERC with several tasks, some of which are not new
In its grid study report, the DOE gave the Federal Energy Regulatory Commission a wish-list of policy changes to reform energy markets that have been challenged as the grid evolves.
Market reforms pushed by DOE in grid study could boost IPPs
Morgan Stanley predicted that the biggest beneficiaries of the power market reforms called for in the DOE's grid study would be NRG Energy Inc., Dynegy Inc., Exelon Corp. and Public Service Enterprise Group Inc.
