PUBLISHER: Wood Mackenzie - Power & Renewables | PRODUCT CODE: 1124087
PUBLISHER: Wood Mackenzie - Power & Renewables | PRODUCT CODE: 1124087
Following the Midcontinent System Operator's capacity auction results and warnings of upcoming capacity shortfalls, a wave of coal plant retirement delay announcements rolled in this summer in an effort to mitigate market tightness until 2025. MISO just filed with FERC to designate Rush Island (1,195 MW) a SSR, which will guarantee cost recovery after MISO found its retirement would endanger grid reliability. However, it is not the only plant that will be needed to stay online in the following decade, as capacity tightness is projected in the near-term due to supply chain setbacks and long-term despite a high amount of renewables entering the system. Utility clean energy goals, environmental regulation, age and economic reasons will all compete to pressure coal off the system, but the need to retain firm capacity will put a cap on accelerated retirements. The issue is not a lack of reason or motivation, but the reality is that replacement capacity is not easy to come by in MISO.