The projected level of heat rate improvement is sensitive to assumptions about natural gas supply that
influence natural gas prices, reflecting competition between available compliance options.
Not exact matches
Scenarios in the model reflect different economic and policy options that would
influence e.g.
natural gas prices, hydropower availability or cost of solar power.
Another notable finding is the
influence of a big switch from coal to
natural gas for electricity generation, as
gas prices fell nearly 50 percent while coal
prices rose 6.8 percent relative to 2008.
The single biggest
influence on carbon
prices is the relative cost of coal and
natural gas.
Low
natural gas market
prices and their impacts on wholesale electricity
prices, along with low energy growth since 2008 and a lack of stability in federal policy (such as the production tax credit), have
influenced wind power deployment.
While there is widespread agreement that the physical market factors of supply and demand are primary contributors to
natural gas prices and volatility, there also is growing interest and concern about the
influence financial market factors, particularly commodity speculation, have on
natural gas prices and volatility.