Polar Vortex Possible
January 18, 2021
Climate change may be serving up another polar vortex. Multiple experts are watching arctic conditions and believe that the second half of this winter could see the cold surge south. A polar vortex can have a wide impact on energy markets, from natural gas force majeures in northern markets to record wholesale power prices in ERCOT. On January 6, 2014 ERCOT average electricity prices were more than $1,300/MWh while on the next day PJM saw a record winter peak of 141,396 megawatts. So far, heating Degree Days (HDDs) across competitive markets are lower this winter, especially in Chicago which is 395 HDDs below normal.