Power & Renewables

NORTHEAST POWER MARKETS ENERGY WATCH - Q3 2009

Authors: Paul Flemming, José Rotger and Chris Kostas, ESAI; Robert Stoddard, Scott Niemann, Alex Rudkevich; CRA

Here is a sample of information from September 2009 NORTHEAST POWER MARKETS ENERGY WATCH report

SUMMARY: In this quarterly issue of Energy Watch, ESAI assesses the current investment environment in the context of the ongoing recession, possible CO2 legislation, increasing renewables requirements and the tight credit environment. In the regional markets, ESAI looks at forward energy and capacity revenue expectations in order to determine the financial valuation of a combined cycle plant in each of the three Northeast markets.

ESAI examines the diminishing supply role of LNG in the US natural gas markets even in the context of growing global supplies. Estimates of the need for LNG imports in 2030 have dropped from 4.4 Tcf to 0.8 Tcf due to the more optimistic outlook for domestic production, due in large part to unconventional shale gas supplies. Global LNG production is expected to increase from 8,200 Bcf/yr in 2006 to 18,000 Bcf/yr in 2014.

This issue of ESAI's Northeast Energy Watch Quarterly reflects collaboration between ESAI and Charles River Associates (CRA), under which senior CRA analysts have provided targeted contributions, high-value insight and additional input into this ESAI report. This joint effort is designed to deliver additional value to ESAI’s Northeast Power Service clients through the breadth of our combined perspectives. Please note ESAI and CRA remain unique organizations dedicated to their respective client bases.