During the past month of August 2024, rising congestion costs in SPP, specifically at the South hub, have captured significant attention, as we saw various impacts on the SPP’s grid. In the past, our reports have focused on congestion impacts in markets like CAISO, the spotlight now shifts to SPP, where this summer has brought distinct challenges. This summer, the grid’s congestion has been different in SPP compared to last year. The year of 2022 had its own congestion challenges, including high cost of energy but things have changed this past August as illustrated in this report. Firstly, let’s delve into the current supply and demand dynamics, examining the 12-month by 24-hour profiles with net load components and day-ahead heat rates. Demand has been strong this August, higher than the levels recorded in August 2022, but similar to August 2023 load. Also, the increased generation from wind turbines this month has led to a lower net load compared to the past two years.

Figure 1 | SPP 12x24 Supply & Demand Profile