Alberta’s weighted average Power Pool Price for November is currently $189.26/MWh. Relative to last week’s price of $224.64/MWh, this represents a further decrease of $35.38/MWh or 15.7%. Periods of volatility have lessened, alongside more seasonal temperatures, with prices over the past week averaging just $108.17/MWh. Wind generation has been a steady source of generation in the province, with daily averages of over 40% of capacity. As a result, the province has been less reliant on more expensive forms of natural gas generation.
The weighted average Hourly Ontario Energy Price (HOEP) is settling at 3.1¢/kWh so far for the month of November, representing a 0.2¢/kWh or 6.3% increase over last week’s settle. The primary driver of this price hike is the increased use of demand response generators, which are typically expensive natural gas-burning ones. Natural gas-burning supply increased by 7.0% (1463MW) over the course of this past week. Baseload generation, such as nuclear and hydro, both enhanced their week-over-week output to an average of 7672MW (2.6%) and 4509MW (1.5%), respectively. Wind increased output this past week (+8.6%; 2054MW), whereas Solar and Biofuel decreased (-8.5%; -53MW, and -12.3%; -18MW, respectively). With the first Global Adjustment estimated at 4.7¢/kWh, November’s total market price is currently settling at 7.8¢/kWh.
In other news, the Ontario Ministry of Energy has commissioned a Cost-Effective Energy Pathways Study on potential future sustainable energy solutions to support the Electrification and Energy Transition Panel it established in April 2022. Both contribute to regional energy planning and initiatives to speed up the widespread electrification of industries, transportation, and heating. David Collie, who was confirmed as the panel’s chair last spring, will be joined by two new appointees and an advisor. Collie has a wealth of experience in leadership positions in the energy and regulatory industries and, most recently, was Ontario’s Electrical Safety Authority’s President and CEO. The panel’s goal is to offer recommendations on how to encourage investment in the energy industry, support the production of renewable energy, maintain competitive power prices, and promote economic growth.
– Mark Ljuckanov, Energy Advisor / Ryan Cosgrove, Energy Data Analyst