S&P Global Market Intelligence Launches Hourly Price Profiles to Support Energy Transition from Traditional Power Generation to Renewable Energy

Rhea-AI Summary

S&P Global Market Intelligence has launched a new energy transition dataset that includes hourly price forecasts for power plant hubs. This dataset is part of the Power Forecast series, assisting market participants in analyzing optimal energy output times and future price changes. It combines insights on project mapping, transmission line routes, and renewable portfolio standards. Notably, California's wind resources are now positioned to benefit from peak pricing during evening hours, offering an alternative to solar energy as it wanes.

Positive

• Introduces a dataset that incorporates hourly price forecasts, enhancing energy market analysis.
• Enables market participants to maximize energy output value at specific times.
• Identifies California's wind resources as benefitting from intraday peak pricing.

Negative

• None.

NEW YORK, Nov. 18, 2020 /PRNewswire/ -- S&P Global Market Intelligence introduces a new energy transition dataset that incorporates hourly price forecasts for power plant hubs as part of its Power Forecast series. The new dataset enables market participants to analyze and forecast the time of day when a facility can maximize value from energy output, and gain insights regarding how daily price shapes may change in the future.

This new dataset combined with other S&P Global Market Intelligence insights including project mapping, transmission lines routes, Independent System Operator (ISO) market prices, battery storage projects and state level renewable portfolio standards offers a unique fundamental outlook as to how a plant or type of generation may fare over the length of its operational life.

"Understanding how the economics of the grid impact of a power plant is key to decoding the signals that are driving the transition from traditional generation sources to renewable energy," said Steve Piper, Research Director for Energy at S&P Global Market Intelligence. "Having deep on-the-ground differentiated insights provides a unique view into the broader market trends, such as whether a region is more suited to a particular technology and where the investments will likely flow."

Utilizing this new dataset, S&P Global Market Intelligence found that wind resources in California have become better positioned to capitalize on intraday peak pricing. The analysis noted that as the sun sets and solar generation stops contributing to the grid, more conventional and potentially expensive resources come online to make up for the nighttime loss of solar. The evening hours are a period when wind farms capture more economic value than solar, therefore becoming a more attractive renewable alternative.

This dataset allows market participants such as electric utilities, merchant generators, gas companies and oil majors to do the following:

• Calculate the economics of how wind and/or solar plant outputs will fluctuate by time of day and provide insight indicating locations that could most benefit from the addition of battery storage;
• Integrate the hourly and daily price prediction insights into their own models and templates;
• Performance spread option valuation to support investment, M&A and market analysis and match renewable energy generation and prices to time of availability.

For more information about S&P Global Market Intelligence's Power Forecast insights, please visit here.

About S&P Global Market Intelligence
At S&P Global Market Intelligence, we understand the importance of accurate, deep and insightful information. We integrate financial and industry data, research and news into tools that help track performance, generate alpha, identify investment ideas, perform valuations and assess credit risk. Investment professionals, government agencies, corporations and universities around the world use this essential intelligence to make business and financial decisions with conviction.

S&P Global Market Intelligence is a division of S&P Global (NYSE: SPGI), the world's foremost provider of credit ratings, benchmarks and analytics in the global capital and commodity markets, offering ESG solutions, deep data and insights on critical business factors. S&P Global has been providing essential intelligence that unlocks opportunity, fosters growth and accelerates progress for more than 160 years. For more information, visit www.spglobal.com/marketintelligence.

Media Contact
Amanda Oey
S&P Global Market Intelligence
+1 212-438-1904
amanda.oey@spglobal.com 

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SOURCE S&P Global Market Intelligence

FAQ

What is the new dataset introduced by S&P Global Market Intelligence?

The new dataset provides hourly price forecasts for power plant hubs, helping analyze optimal energy output times.

How does the new dataset impact California's wind resources?

It positions California's wind resources to capitalize on peak pricing during evening hours when solar energy contributions decrease.

What types of market participants can benefit from this dataset?

Electric utilities, merchant generators, gas companies, and oil majors can utilize the dataset for enhanced market analysis.

When was the new energy transition dataset launched?

The dataset was launched on November 18, 2020.

What is S&P Global's stock symbol?

The stock symbol for S&P Global is SPGI.