Wednesday, June 14, 2017

Nuclear Power Closes Output Gap

Electricity output from nuclear power plants fell below 2016 levels in mid March, and the gap has averaged more than 1 BCF of natural gas equivalent since then.  But the extraordinary maintenance and repair season is finally wrapping up, and as of today output is back above 2016 levels.  This represents an important loss of incremental demand for natural gas at a time when it is struggling in the power sector against low aggregate demand, mild weather, renewables, and cost competition against coal.