Three Charts Show Power Glut Holding Fast in Biggest U.S. Market
- Developers set to add 33 gigawatts of supplies 2015-2019
- Competition from wind power may double under new rules
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A glut of supply in America’s biggest power market may be sticking around for a while.
This May, newly-built or expanded natural gas-fired plants, wind farms and solar installations will compete in an annual auction for electricity supplies in the mid-Atlantic and Midwest. As demand flags, the flood of generation means payouts from the grid manager, PJM Interconnection LLC, may fall to as low as $90 a megawatt-day, the lowest in four years, according to Prajit Ghosh, director of power and renewables research at Wood Mackenzie Ltd. in Houston.