Resilient Power Systems Weather Record Demand
The North American power system has reliably weathered the first heat wave of the summer and demonstrated that adequate power supplies were available to meet significant increases in peak demand. CERA continues to be optimistic regarding the power system's ability to meet high demand levels this summer. The recent weather has highlighted several important aspects of the North American power markets:
* Despite record high demand during the heat wave, power prices across the continent reflected the adequate supply-demand balance.
* Several factors, including adequate generating and transmission capacity, few major generation and transmission outages, and lower and stable gas prices, contributed to the relatively stable supply situation this summer.
* Although supply is adequate this summer, CERA analysis indicates that given rising demand levels, some areas are likely to experience supply deficiencies within two to five years unless investments in generation, transmission, and demand response resources are made immediately.
