Weekly Power Outlet US - 2024 - Week 39

In the past we've mentioned that the electricity to power the 2024 production of chips from Nvidia would be enough to equal the fourth largest city in the US. The Wall Street Journal published an article last weekend talking about some of the AI growth we've been seeing. Below is an interesting chart showing just how much AI is driving power consumption.

Also, in the article, was mentioned that post 2028, AEP has data center load growth in its queue equal to the power needed for three New York Cities. This might include some channel stuffing, but it is no doubt an indication of what is coming and what might already be here.

Sticking with AI and computer chips, this week for the second time this year, Taiwan's state-run electricity utility announced it will raise power prices for the second time this year. This raise is scheduled to start October 16 and the increase for commercial customers, including semi manufacturing, will average 12.5%. This follows an increase of between 15-25% for customers in April. The reason given by the ministry is the high cost of coal and gas which are powering the grid. Taiwan has been trying to transition to offshore wind and other renewables, but has faced challenges of cost and supplies.

Ironically, next spring Taiwan is scheduled to close its final operating nuclear power plant. It would be interesting to know if Microsoft has their number?

Natural gas continued to trade somewhat sideways this week in a fairly narrow range, compared to recent weeks. EIA reported that 55 Bcf was added to storage which was just shy of the 59 Bcf estimates. As seen below, the reversion to the mean continues as we head toward fall.

NOAA WEATHER FORECAST

DAY-AHEAD LMP PRICING & SELECT FUTURES

RTO ATC, PEAK, & OFF-PEAK CALENDAR STRIP

DAILY RTO LOAD PROFILES

COMMODITIES PRICING

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