Ten Factors Driving North American Power Markets

EIA Electric Power Monthly new capacity 1H 2014


  1. Many US markets have excess capacity even with 30 GW of Coal Plant Retirements since 2010
  2. Canadian power markets in AB and ON grow slowly but fuel mix changes, more wind less coal
  3. Aggressive US Renewable Portfolio Standards are not likely to be met in many of the 29 states.
  4. We built the next generation of power plants—in the previous boom cycle.
  5. Gas demand for power generation is expected to be flat to slow growing through 2025
  6. Low gas prices undermine the economics of nuclear energy, new natural gas as well as coal.
  7. Reliability is hurt from loss of baseload generation and increase in intermittent renewables
  8. Growing dependence upon gas fired generation increases probability of price volatility.
  9. Utility business model challenged by distributed energy strategies to meet RPS goals
  10. Real-time pricing threatens to disrupt customers by moving away from average cost pricing.