Alberta’s weighted average Power Pool price for August is currently settling at $47.97/MWh, which is a 6% decrease from last week’s settle of $51.25/MWh. This decrease in prices was caused by a 2% fall in electricity demand and minimal coal-fired generator outages. Power Pool prices should remain relatively stable until mid-October when there are plenty of scheduled coal-fired generator outages.
Prices for Alberta electricity forward contracts remain relatively unchanged from last week. Calendar year 2020 prices for 7×24 and 7×16 blocks are trading at approximately $59/MWh and $71/MWh respectively.
The weighted average Hourly Ontario Energy Price (HOEP) for August to-date is currently settling at 1.7¢/kWh. Average supply levels are down 450 MW this week (-2.67%), with demand taking a further hit of 1,075 MW (-6.63%). The result was a slight downswing in usage demand (-2.94%) for the province, requiring less additional energy from natural gas burning power generators. Currently, with the first Global Adjustment estimate of 7.2¢/kWh, August’s total market price is 8.9¢/kWh.
Also noteworthy, the IESO, in conjunction with Alectra Utilities and Natural Resources Canada, announced a plan to launch Ontario’s first ever local electricity market in York Region. This will improve the region’s self-reliance, reduce energy costs, and scrap the need to build expensive transmission infrastructure. Instead of drawing resources from the grid to respond to demand spikes, local renewable resources can compete to provide the necessary energy. Given that York Region’s demand is projected to surpass the system’s generation capabilities, it is an ideal location for this pilot program (expected to launch in Q2 2020).
Josh Lowe, Energy Services Analyst