Capacity Markets

IEEFA Research

IEEFA U.S.: Energy transition to renewables likely to accelerate over next two to three years

IEEFA U.S.: Energy transition to renewables likely to accelerate over next two to three years

Coal, gas set to become biggest losers as renewable generation climbs quickly

March 31, 2021 (IEEFA) — The speed and scope of the energy transition to renewables will pick up pace over the next two to three years, according to the Institute for Energy Economics and Financial Analysis’ U.S. Power Sector Outlook 2021. Solar and battery storage adoption is enjoying almost exponential growth, and wind and solar […]

IEEFA U.S.: Wind surpassed coal as No. 1 fuel source in 2020 for Southwest Power Pool

IEEFA U.S.: Wind surpassed coal as No. 1 fuel source in 2020 for Southwest Power Pool

Wind energy growth due to geography, design factors, and new installations

February 11, 2021 (IEEFA) — Wind surpassed coal as the primary power generation source last year for the Southwest Power Pool (SPP), an independent grid operator that provides electricity for a vast territory stretching from the Texas Panhandle to the Canadian border. An analysis by the Institute for Energy Economics and Financial Analysis (IEEFA) found […]

IEEFA: India’s new record-low solar power tariff demonstrates investor confidence despite the pandemic

IEEFA: India’s new record-low solar power tariff demonstrates investor confidence despite the pandemic

What drove the aggressive winning bid of Rs2/kWh ($0.027/kWh) in a recent solar PV auction?

India set a new record low tariff of Rs2/kWh ($0.027/kWh) in the recent Solar Energy Corporation of India (SECI) auction on 23 November 2020. The tariff based bidding was conducted for selection of solar power developers to set up 1,070 megawatts (MW) of grid-connected solar PV projects on a “build-own-operate” (BOO) basis in Rajasthan (Tranche-III). […]

IEEFA: Wind-solar hybrid systems can power India’s next wave of renewables growth

IEEFA: Wind-solar hybrid systems can power India’s next wave of renewables growth

Hybrid generation can produce consistent power at competitive tariffs

8 October 2020 (IEEFA) ‒ India’s total wind-solar hybrid capacity is expected to grow rapidly to reach nearly 11.7 gigawatts (GW) by 2023, according to a new report by IEEFA and JMK Research. “This is a new and fast-growing market in India,” say the report’s authors Vibhuti Garg, energy economist at the Institute for Energy […]

IEEFA U.S.: Investors in gas-fired projects in largest regional power system face substantial risks

IEEFA U.S.: Investors in gas-fired projects in largest regional power system face substantial risks

Eleven PJM projects under development may fail to prove financially viable

October 5, 2020 (IEEFA) — The landscape for developers of natural gas-fired power plants in the nation’s largest regional power system has shifted dramatically over the last decade, according to a joint study by the Applied Economics Clinic and the Institute for Energy Economics and Financial Analysis. The Pennsylvania-New Jersey-Maryland (PJM) system coordinates the flow […]

IEEFA: Pakistan’s new 27-year power plan risks locking in long-term overcapacity, leaving imported coal and LNG plants stranded

IEEFA: Pakistan’s new 27-year power plan risks locking in long-term overcapacity, leaving imported coal and LNG plants stranded

Wind and solar, the country’s cheapest source of new generation, also overlooked

3 September 2020 (IEEFA Pakistan): Pakistan risks locking itself into building more power capacity than it needs as a result of over-optimistic energy demand growth forecasts that do not take into account the impact of COVID-19, according to a new IEEFA report. Pakistan’s state-owned National Transmission and Despatch Company (NTDC) published its latest long-term power […]

IEEFA report: New coal power plants locking Pakistan into too much supply and unsustainable capacity payments

IEEFA report: New coal power plants locking Pakistan into too much supply and unsustainable capacity payments

Sindh province demonstrates Pakistan’s renewable energy potential

26 June 2020 (IEEFA Pakistan) ‒ With electricity demand growth slowing even before COVID-19, Pakistan is faced with the increasing financial burden of power capacity payments and overcapacity risk at a time when renewables are the cheapest source of energy available, finds a new IEEFA report. Two more Chinese-financed coal-fired plants have reached financial close […]

IEEFA Report: A U.K. Electricity Transformation Under Way, But in Need of Better Direction

IEEFA Report: A U.K. Electricity Transformation Under Way, But in Need of Better Direction

Grid Proves Resilient in Face of 60% Drop in Coal Use in 2016; New Renewables and Interconnection Are the Future; Capacity Market Has Failed to Incentivize Modernization; More Targeted Auctions Would Help

The U.K.’s capacity market is the weak link in the country’s ongoing transition toward a resilient, low-carbon grid. That is one of the core findings in a  report—“Electricity-Grid Transition in the U.K.: As Coal-Fired Generation Recedes, Renewables and Reliable Generation Can Fill the Gap —we published today. The report finds that the U.K. grid is coping […]

March 9, 2017 Read More →
IEEFA Update: A Rush to Subsidies as Power Plants in Europe Face an Existential Threat

IEEFA Update: A Rush to Subsidies as Power Plants in Europe Face an Existential Threat

Paying Producers for Electricity They Might Never Generate

  So-called capacity markets are driving what appears to be a major new trend in energy policy across Europe: More public subsidies for electric utilities. Utilities may get—but not necessarily need or deserve—high-level government support for a variety of reasons, including for their role in equity markets, where they supply returns and dividends for pension […]

December 13, 2016 Read More →

More News and Commentary

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IEEFA webinar: U.S. transition to renewables is likely to accelerate over next two to three years

IEEFA analysts explain why solar, wind and battery storage are poised to push fossil generation off the grid

April 2, 2021 (IEEFA) ⎼ The Institute for Energy Economics and Financial Analysis will host a webinar on Thursday, April 8, 2021 to present findings from its recently released U.S. Power Sector Outlook 2021. Authors Dennis Wamsted, Seth Feaster, and David Schlissel will show how lower-cost wind and solar, coupled with battery storage, is rapidly […]

IEEFA U.S.: Energy transition to renewables likely to accelerate over next two to three years
, , and

IEEFA U.S.: Energy transition to renewables likely to accelerate over next two to three years

Coal, gas set to become biggest losers as renewable generation climbs quickly

March 31, 2021 (IEEFA) — The speed and scope of the energy transition to renewables will pick up pace over the next two to three years, according to the Institute for Energy Economics and Financial Analysis’ U.S. Power Sector Outlook 2021. Solar and battery storage adoption is enjoying almost exponential growth, and wind and solar […]

IEEFA U.S.: Wind surpassed coal as No. 1 fuel source in 2020 for Southwest Power Pool
and

IEEFA U.S.: Wind surpassed coal as No. 1 fuel source in 2020 for Southwest Power Pool

Wind energy growth due to geography, design factors, and new installations

February 11, 2021 (IEEFA) — Wind surpassed coal as the primary power generation source last year for the Southwest Power Pool (SPP), an independent grid operator that provides electricity for a vast territory stretching from the Texas Panhandle to the Canadian border. An analysis by the Institute for Energy Economics and Financial Analysis (IEEFA) found […]

IEEFA: India’s new record-low solar power tariff demonstrates investor confidence despite the pandemic
and

IEEFA: India’s new record-low solar power tariff demonstrates investor confidence despite the pandemic

What drove the aggressive winning bid of Rs2/kWh ($0.027/kWh) in a recent solar PV auction?

India set a new record low tariff of Rs2/kWh ($0.027/kWh) in the recent Solar Energy Corporation of India (SECI) auction on 23 November 2020. The tariff based bidding was conducted for selection of solar power developers to set up 1,070 megawatts (MW) of grid-connected solar PV projects on a “build-own-operate” (BOO) basis in Rajasthan (Tranche-III). […]

IEEFA: Solar is the new ruler of the Indian electricity market

IEEFA: Solar is the new ruler of the Indian electricity market

Despite the pandemic, investor interest in India’s renewables market remains robust

The International Energy Agency’s (IEA) World Energy Outlook 2020 forecasts India to lead the recovery of global energy demand out of the COVID-19 pandemic for the coming decade. However, the IEA has downgraded its projection for the global energy demand growth rate to 9% from its pre-COVID forecast of 12% for the period 2019 to […]

November 12, 2020 Read More →
IEEFA: Wind-solar hybrid systems can power India’s next wave of renewables growth
, and

IEEFA: Wind-solar hybrid systems can power India’s next wave of renewables growth

Hybrid generation can produce consistent power at competitive tariffs

8 October 2020 (IEEFA) ‒ India’s total wind-solar hybrid capacity is expected to grow rapidly to reach nearly 11.7 gigawatts (GW) by 2023, according to a new report by IEEFA and JMK Research. “This is a new and fast-growing market in India,” say the report’s authors Vibhuti Garg, energy economist at the Institute for Energy […]

IEEFA U.S.: Investors in gas-fired projects in largest regional power system face substantial risks
, and

IEEFA U.S.: Investors in gas-fired projects in largest regional power system face substantial risks

Eleven PJM projects under development may fail to prove financially viable

October 5, 2020 (IEEFA) — The landscape for developers of natural gas-fired power plants in the nation’s largest regional power system has shifted dramatically over the last decade, according to a joint study by the Applied Economics Clinic and the Institute for Energy Economics and Financial Analysis. The Pennsylvania-New Jersey-Maryland (PJM) system coordinates the flow […]

IEEFA: Pakistan’s new 27-year power plan risks locking in long-term overcapacity, leaving imported coal and LNG plants stranded
and

IEEFA: Pakistan’s new 27-year power plan risks locking in long-term overcapacity, leaving imported coal and LNG plants stranded

Wind and solar, the country’s cheapest source of new generation, also overlooked

3 September 2020 (IEEFA Pakistan): Pakistan risks locking itself into building more power capacity than it needs as a result of over-optimistic energy demand growth forecasts that do not take into account the impact of COVID-19, according to a new IEEFA report. Pakistan’s state-owned National Transmission and Despatch Company (NTDC) published its latest long-term power […]

IEEFA report: New coal power plants locking Pakistan into too much supply and unsustainable capacity payments
and

IEEFA report: New coal power plants locking Pakistan into too much supply and unsustainable capacity payments

Sindh province demonstrates Pakistan’s renewable energy potential

26 June 2020 (IEEFA Pakistan) ‒ With electricity demand growth slowing even before COVID-19, Pakistan is faced with the increasing financial burden of power capacity payments and overcapacity risk at a time when renewables are the cheapest source of energy available, finds a new IEEFA report. Two more Chinese-financed coal-fired plants have reached financial close […]

S&P: Renewables offer better financial return in New England market than merchant gas plants

S&P Global Market Intelligence ($): The expected financial return on new renewable projects in ISO New England exceeds that of merchant natural gas projects, according to recent analysis from S&P Global Market Intelligence. New merchant natural gas projects in ISO-NE are affected by the ISO-NE Forward Capacity Auction. In February, the auction, known as FCA […]

March 9, 2020 Read More →