A report shows coal remains a strong source of fuel for plants to provide electricity to the 14 states that comprise the Southwest Power Pool.
A recent report from the SPP indicated coal was used more than wind in the third quarter.
Gas fueled 33.9% of the electricity for Oklahoma and the 13 other states followed by coal at 29.2%. Wind contributed 28.4%, nuclear 4.9% and hydro 3.0%.
While the states are now officially in winter, the SPP believes that based on assessment results, there is a 98.5% probability it will have sufficient resources to meet the projected peak demand for electricity and maintain energy reserves throughout the upcoming winter season.
SPP further anticipates an even greater chance that it can meet region-wide demand with the help of reserves if needed. Read more about SPP’s confidence in meeting energy needs this winter here.
SPP EEA Level 1″ refers to an “Energy Emergency Alert Level 1” declared by the Southwest Power Pool (SPP), signifying that while the grid currently has enough generation to meet demand, conditions exist that could potentially put required operating reserves at risk if they worsen, essentially indicating the first stage of a potential energy shortage; it does not typically require immediate public conservation measures at this level.
SPP has experienced EEA1 events three times prior to August 26, 2024: on August 6, 2019; during Winter Storm Uri in February 2021; and during Winter Storm Elliot in December 2022.
SPP issued a Conservative Operations Advisory for its entire Balancing Authority (BA) on five dates: July 16, August 1, August 2, August 26 and August 27. On August 26, SPP declared an EEA Level 1 for the entire Balancing Authority area from 12:30 p.m. CT to 3:00 p.m. CT. The EEA1 was declared due to high temperatures across much of our 14-state service territory, combined with low region-wide wind output and generation and transmission outages to produce narrow margins in available generating capacity.
Overall average prices between the day-ahead ($26.20/MWh in Q3) and real-time ($24.70/MWh in Q3) markets were closely aligned for Q3 2024. Prices increased due to summer load but remained stable through Q3. The average real-time price of energy in Q3 2024 was up 31% from $18.17/MWh in Q2 and up 11% from $23.24 in Q1 2024, and 33% lower than 2023’s Q3 average of $39.09.