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Utility Dive28 days ago

ISO New England trims 10-year forecast based on electrification outlook

Key Takeaway

ISO-NE's reduced long-term demand forecast, driven by slower electrification, signals a less aggressive market for new generation and transmission development and potentially more stable prices for large consumers.

AI Summary

  • ISO New England has significantly trimmed its 10-year electricity demand forecast, now projecting only 9% growth by 2035.
  • This downward revision is primarily due to more conservative assumptions regarding the future adoption rates of electric vehicles and heat pumps.
  • For developers, this indicates a potentially less urgent need for new generation and transmission projects in the ISO-NE region, which could impact project viability and PPA opportunities.
  • Large power consumers in ISO-NE may experience less upward pressure on long-term energy and capacity prices due to the slower anticipated demand growth.

Topics

capacity-marketpolicytransmission