Capital sees lower power price, higher output in ’24
By Medicine Hat News on January 18, 2024.
@MedicineHatNews Capital Power expects softer electricity prices in Alberta over the next three years, it stated during an investors day presentation this week. The Edmonton-based power producer forecasts an average price of $83 per megawatt in 2024, dropping to the mid $60 per megawatt range in the province’s energy-only marketplace in 2025 and 2026. That is about half the average price realized in 2023 of $123 per megawatt. The company outlined that it has hedged price contracts higher than that and will be able to absorb lower prices with incremental capacity growth and lower costs. Capital’s forecast market price for natural gas used as fuel is $1.90 per gigajoule. Repowering four units at the the Genesee power facility near Edmonton to run on natural gas opposed to coal will add 200-megawatts of capacity above previous coal-powered output. The changes, due after the spring and late fall, could reduce emissions by 40 per cent and save the company about $200 million per year in provincial carbon levies, Capital Power stated. 8-7
