Constraints on natural gas quanities, carbon taxes and "the need for flexible, dispatchable resources." drive up New England Electricity Prices

by Dan McKay

10 hours ago

ISO-NE reports 2025 electricity costs soar due to political conditions that kept needed natural gas from generation plants, the expanding RGGI carbon dioxide tax and the out of control growth of solar esasperating depleted "flexible, dispatchable resources"

" Higher natural gas prices were the principal driver of increased wholesale costs, rising 105% year over-year to $6.27/MMBtu and elevating energy prices throughout the year. Carbon emissions costs also increased as allowance prices rose and emissions limits tightened, particularly under the Massachusetts Electricity Generator Emissions Limits (EGEL) program. Although fuel prices dominated cost increases in 2025, carbon costs are expected to play a larger role in generator economics as allowance availability tightens and compliance costs rise. Higher energy prices also reflected a shift up the supply stack driven by greater reliance on internal generation. Continuing a multi-year trend, net imports declined further in 2025, reaching their lowest level in more than a decade due to reduced Canadian hydro availability and outages. While the interchange of electricity with neighboring power systems provided critical supply to New England during high-demand periods, lower import levels throughout the year meant that higher-cost resources located inside New England more frequently set the marginal price. At the same time, growth in solar generation continued to reshape load profiles, increasing the magnitude and variability of evening ramps and reinforcing the need for flexible, dispatchable resources. "

  • Willem Post

    Recently, ISO-NE stated flexible CCGTs are needed to stabilize the grid. It means CCGTs can easily be ramped up and down as needed, 24/7/365.

    Where was ISO-NE 25 years ago. Sticking its nose up dark places to curry favor?

    It must have known, a new gas pipeline from Pennsylvania to bring plentiful, domestic, clean, low-cost natural gas to New England would be required to maintain grid sanity.

    But now the pipe is 25 years overdue, due to woke, liberal arts major enviros clutching their pearls about protecting the highly subsidized, awful spread of wind and solar all over New England. That is turning Maine into an energy colony to be exploited by the lucrative, no-risk tax shelters of the out-of-state/foreign elites.

    That is the reason flexible CCGT plants are needed to counteract the ups and downs of wind and solar, especially during no wind no solar conditions, called DUNKELFLAUTE In Germany, which has the highest household rates in Europe.

    CO2 is a weak greenhouse gas that has a negligible impact on temperatures

    CO2 is a highly necessary gas to make green leaves on plants.

    Reducing CO2 ppm is a death sentence for plants. We need more CO2 ppm to make things grow during our short growing season.

    Here is Clausen talking:

    According to John Clauser, 2022 Nobel Physics Price recipient,

     “Atmospheric CO2 and methane have negligible effect on the climate. The policies government have been implementing are totally unnecessary and should be eliminated. The dominant process is “the cloud-sunlight-reflexivity thermostat” mechanism. Clouds are bright white, reflect 90% of the sunlight back into space, are the most crucial aspect of the climate system. Oceans are 70% of the Earth surface. The Pacific Ocean alone is 50%. The average cloud cover for the Earth is 67%; about 50% over land and 75% over oceans.”

    6 hours ago