EIA Publishes Regional Electricity Supply and Pricing Forecasts Using UPLAN Model

LCG, August 13, 2019--The U.S. Energy Information Administration (EIA) announced that it is revising the presentation and modeling of its forecasts for electricity supply and market hub pricing to better reflect current electricity markets and system operations in the U.S. Beginning with the August 2019 Short-Term Energy Outlook (STEO), the new forecasting approach models electricity markets using the UPLAN production cost optimization software developed by LCG Consulting. EIA uses the solution results provided by this proprietary model to develop the STEO forecasts of monthly electricity generation, fuel consumption, and wholesale prices.

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Dominion Energy Virginia Pursues 500 MW of Renewable Projects

LCG, August 8, 2019--Dominion Energy Virginia announced Monday that it is seeking bids for up to 500 MW of renewable capacity in both 2021 and 2022 to increase its clean energy resources. Dominion Energy stated that it is committed to having 3,000 MW of solar and wind in operation or under development in Virginia by 2022. This near-term step is part of an ultimate company commitment to reduce carbon emissions by 80 percent by 2050 across the 18 states it serves.

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Industry News

UK Threatens Tighter Control over Generators

LCG, July 18, 2001Britain's new Minister of Energy, Brian Wilson, says he will "listen carefully" to requests by Callum McCarthy, head of the government's Office of Gas and Electricity Markets, to reintroduce a "good behavior" clause in the operating licenses for power plant owners.

Wilson spent part of last week in California, the world's fifth-ranked economy, just behind that of the United Kingdom, learning first-hand about out-of-control power prices, power shortages, rolling blackouts, and possibly political rhetoric.

McCarthy has said he is concerned that the so-called "new electricity trading arrangements" introduced in March will not prevent power plant owners from market abuse. His good behavior clause was thrown out by the competition earlier this year after objections by the companies owning generating stations.

Wilson pointed out that six years ago California had a surplus of electricity capacity similar to that currently enjoyed by England and Wales, but it vanished seemingly overnight. He does not see that happening in the UK, but does see a need for a balanced portfolio as natural gas-fueled generation makes inroads into an industry dominated by coal.

Gas fired generation, which has risen from virtually nothing 10 years ago to supply more than 30 per cent of the country's power needs, is still growing rapidly. Alarm bells have been triggered by a doubling of wholesale gas prices since 1999, the Financial Times observed this morning.

The expectation that most nuclear power stations will close in the next 20 years worries the minister. He stresses no decision has been taken on replacing nuclear capacity but says: "It would be lemming-like to allow nuclear to fade away without pointing out that we rely on it for 25 per cent of our power."

Possibly the only member of Britain's ruling Labour Party who favors nuclear power plants, Wilson is yet to be convinced that renewable energy generation could completely replace atomic plants, but acknowledges that Britain needs to do much more to boost green power, the Financial Times said.

"If we are going to make a serious stab at renewables there has to be some give and take from environmentalists," he said.

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