Analysts at NRG Expert, the energy market research company, have been following the concerning situation in California
The state of California is facing energy supply problems on several fronts that may result in significant shortages this summer. Abnormally low water levels will limit hydroelectric output, two gas fired plants will be inoperative and the san Onofre nuclear plant has been shut down since January 2012 due to technical problems. [1]
Concerns are mounting as the high-demand summer months approach. It is being reported that supply will be shored up via costlier fossil fuels which will in turn cause increases in the price of electricity. [1] Some commentators are even saying that the effects could be akin to the energy crisis of 2000. [1]
In an attempt to mitigate some of the potential problems, the operators of the Onofre nuclear plant are seeking permission to run one of the reactors at reduced capacity. Federal regulators recently announced that they will allow this, [2] although this choice has been met with criticism and concern from both environmental groups [3] and politicians. [2] However, even with the added energy production of the plant concerns remain as to whether the state will be able to meet demand, and if so at what cost to the consumer. “We aren’t seeing the necessary capacity come online in California and with demand expected to rise across the region, electricity ‘imports’ from other States or even Mexico are unlikely to fill the shortfall” according to analyst Edgar van der Meer at NRG Expert. “Without a significant reduction in consumption, this year could see the first tangible effects of the looming energy shortfall for US consumers.”
[1] http://www.bloomberg.com/news/2013-04-19/california-power-facing-biggest-test-since-enron-energy-markets.html[2] http://abclocal.go.com/kabc/story?section=news/state&id=9061607
[3] http://www.scpr.org/news/2013/04/01/36646/edison-submits-plan-to-feds-to-restart-san-onofre/
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Background information
NRG Expert is a London and Toronto based energy intelligence and market research publisher. NRG Expert provides up–to-date energy data, information and analysis on worldwide energy markets. Energy statistics and analysis is provided on global power plants, power generation capacity, fuel reserves, and all types of energy and energy infrastructure. Visit www.nrgexpert.com.
