Wind generation accounted for more than a third of SPP’s energy production during April, according to the latest quarterly market report from the RTO’s Market Monitoring Unit.
The report, which covers March through May, indicates wind generation accounted for 36% of SPP’s output mix in April. It was also the first time wind has outpaced coal generation, which provided 28% of generation.
Spring energy prices rose from the same period a year ago, with the average day-ahead price up 7% to $23.71/MWh and the real-time price up 10% to $22.54/MWh.
The report’s “special issues” section details the results of an MMU study of the sources of day-ahead market congestion in conjunction with associated settlements over the last three transmission congestion right years. The Monitor undertook the study because it had observed “significant” variability in congestion hedging profits and losses, especially among market participants holding transmission service entitlements.
The study concluded that:
- Congestion-hedging profitability has been influenced more by congestion than by congestion-hedging revenues;
- Congestion associated with injection activities “materially exceeded the congestion associated with withdrawal activities”;
- Self-committed generation accounted for the largest portion of the congestion cost; and
- Bilateral settlement schedules, which may be subject to out-of-market compensation, account for significant portions of the congestion cost.
The MMU has scheduled an Aug. 6 webinar to discuss the report.
— Tom Kleckner
