Potomac Economics, which has 20 years of experience as the Independent Market Monitor .
Although all of the forward energy prices are significantly higher than the prevailing prices in 2020, we find that it is unlikely the market revenues will be sufficient to allow any of the resources to be viable to remain in operation, with the possible exception of very lowest-cost resources,” the report says.
“Often, there are two key aspects of nuclear economic analyses that get overlooked,” NEI Senior Director, Strategy and Policy Development Matt Crozat said.
“However, the Potomac Economics report sets the record straight by basing their analysis on realistic market-based prices,” he said.
Over the past decade, 10 states in the PJM region and the District of Columbia have instituted policies like renewable portfolio standards or zero-emissions credits to cut emissions, Crozat said.
PJM is a regional transmission organisation that coordinates the movement of wholesale electricity in all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia.
Planned closures of units at the Davis-Besse and Perry plants were rescinded in 2019 after the state of Ohio passed a bill providing clean energy credits to zero-emission, but Exelon last year announced its intention to close a total of four units at the Byron and Dresden plants in 2021 because of market conditions.