The Alberta Wire October 24th, 2017

An eventful week for the Alberta power market! Weekly settles averaged $26.85/MWh, a 21% increase over last week. With over 1,000 MW of thermal generation offline on Friday, settles were $81.16/MWh with one hour peaking at $999 to settle at ~$507/MWh. As record winds swept across our province on Wednesday evening, wind generation was curtailed to prevent damage to wind turbines, further reducing generation capacity.
Gas continues to be a wild card, with the AECO-C spot price settling at $0.61/GJ this week. Daily settles range from $0.15/GJ to $0.95/GJ demonstrating just how variable the commodity is day over day. November is forecasted to be slightly warmer than previous years, so it will be a challenge to continue to store gas until withdrawals are required which are forecasted for the beginning of December.
One of our team members was in California last week where the Board of the Cal-ISO outlined the eight industry trends that are framing the future of electricity by 2030: energy efficiency intensifies, gas fired generation declines, variable renewables pose new realities, demand becomes essential system resource, regional grid coordination, increasingly decentralized grid, transportation and buildings integrated and clean energy economy growth.