August 6, 2019
In its electricity forecast, the Energy Information Administration said lower costs for natural gas are driving its expectation that annual average wholesale prices will be lower in 2019 across the US.
Highlighting the new regional forecasts, EIA Administrator Linda Capuano said. from 2018 to 2019, “prices in Texas are forecast to decrease by 28%, compared to a 0.2% decline in the Southwest,” according to S&P Global Platts.
The new regional-level trend analysis adds a generator-level production cost model that simulates hourly generation at individual power plants, improving insights into generation, particularly from fast-growing renewable resources, Capuano said.
“After a windy first half of 2018, the additional granularity and the assumption that wind will return to more normal levels in 2019 results in a forecast that electricity generation from wind power will be 4% lower in 2019 and 7% lower in 2020 than EIA’s prior [STEO] forecast in July,” she said.