Eroding Diversity in U.S. Power Grid Will Mean Greater Price Fluctuations, Higher Bills and Negative Impacts to Economy

New York (September 19, 2017) The U.S. power grid is on track to lose cost effective power supply diversity, a trend that will raise the cost and variability of power bills and create negative macroeconomic impacts that would ripple out through the broader U.S. economy, a new study by IHS Markit (Nasdaq: INFO), a world leader in critical information, analytics and solutions says.

The new study, titled Ensuring Resilient and Efficient Electricity Generation: The Value of the Current Diverse U.S. Power Supply Portfolio says that current policy-driven market distortions will precipitate a less efficient diversity portfolio where some U.S. power systems could have no meaningful contributions from coal or nuclear resources and a smaller contribution from hydroelectric resources. They will rely on a tripling of the current 7 percent reliance on wind, solar and other intermittent resources, and on natural gas-fired resources to supply the majority of generation.

To illustrate what is at stake if nothing is done to arrest the erosion in the cost-effectiveness, resilience and reliability of the current U.S. power supply mix, the study compares the actual industry performance of recent years (2014 to 2016) with that of a less efficient diversity portfolio case over the same time period.


28. September 2017 by Terry Headley
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