FINWIRES · TerminalLIVE
FINWIRES

Market Chatter: California Grid Constraints Push Renewable Power Curtailments Higher

By

California continues to curtail more renewable electricity as solar and wind additions outpace transmission upgrades, with the problem most pronounced during spring when solar output is high, Reuters reported Tuesday, citing interviews conducted by Reuters Events.

Solar and wind curtailments reached 4.5 million megawatt-hours in the first half of 2026, already exceeding the 3.77 million MWh curtailed during all of 2025, according to Grid Flexibility data cited in the report.

California Independent System Operator Chief Operating Officer Mark Rothleder said battery storage, regional power trading and grid modernization should improve renewable energy use over time, although transmission constraints will continue to require periodic curtailments.

AES Senior Director of Regulatory Affairs Rahul Kalaskar said grid volatility is likely to persist during the spring and fall shoulder seasons as initiatives to improve flexibility and reduce renewable curtailments take time to deliver results.

EDF Renewables North America executive Eusebio Arballo said curtailments leave clean energy unused and reduce project revenue, adding that delays in transmission upgrades ultimately increase congestion costs for electricity consumers.

Rothleder said transmission expansion, demand-side flexibility and broader regional markets should ease congestion over time. Even so, he expects renewable curtailments to remain an important tool as California adds more solar generation.

CAISO, AES and EDF Renewables did not immediately reply to' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumors and speculation. Accuracy is not guaranteed.)

Related Articles

Commodities

New Jersey Resources Q3 Natural Gas Throughput Declines, Advances Solar Growth Plans

New Jersey Resources (NJR) reported fiscal Q3 earnings Monday, showing total natural gas throughput of 51 billion cubic feet, compared with 52.9 Bcf in the year-ago quarter.Core customer throughput declined to 14.6 Bcf for the quarter ended June 30, down from 19.2 Bcf a year earlier.Off-system and capacity management throughput fell to 10.7 Bcf for the quarter, down from 15.1 Bcf for the same quarter last year, according to the company.Energy Services fuel management and wholesale sales increased to 25.7 Bcf during the quarter from 18.6 Bcf a year earlier, NJR said.The company placed eight commercial solar projects totaling 58 megawatts into service during the first nine months of fiscal 2026, increasing its operating commercial solar portfolio to about 537 MW.The company expects that portfolio to grow by more than 50% by fiscal 2027 and has identified a 1.1 GW pipeline of solar investment opportunities through 2030.New Jersey Natural Gas served about 595,000 customers as of June 30, compared with about 589,000 customers at the end of fiscal 2025.NJR plans to invest $4.8 billion to $5.2 billion through 2030, with over 60% of planned capital allocated to its utility business.

$NJR
Commodities

US Natural Gas Update: Futures Edge Up Amid Steady Fundamentals

Natural gas futures edged higher in after-hours trading on Monday as traders weighed shifting US weather forecasts against largely steady supply-and-demand fundamentals.The front-month Henry Hub contract and the continuous contract each rose 0.98% to $2.774 per million British thermal units.Natural gas futures were slowly recovering from a low of $2.666 hit last Wednesday as a stretch of below-normal US temperatures reduced air-conditioning demand, allowing inventories to rebuild, Barchart said.Monday's price gains were limited after forecasts again turned cooler, potentially curbing demand from power generators for air conditioning. The Commodity Weather Group said Monday that forecasts had shifted cooler, with near-normal seasonal weather expected across the eastern US through Aug. 17.However, NatGasWeather.com said its data continued to point to a much warmer outlook. "The weather data remains quite hot for the 3-15 day forecast period for strong to very strong national demand," the forecaster said. It added that the National Oceanic and Atmospheric Administration's 8-14-day outlook showed above-normal temperatures across most of the US, with the exception of areas near the Canadian border.Fundamentals remained relatively stable on Monday. US lower-48 dry gas production was quite a strong 112.5 billion cubic feet per day, down 0.2 Bcf/d from Friday but up 2.6% from a year earlier, Barchart said, citing BNEF data.Lower-48 gas demand totaled 78.7 Bcf/d, down 1.4 Bcf/d from Friday but 14.7% higher than a year ago. Celsius Energy estimated power-sector gas burn at 45.0 Bcf on Aug. 1, down 1.6 Bcf from the previous day but 0.2 Bcf higher than on the same day last year. Average power burn for the week ended Aug. 1 was 46.9 Bcf/d, down 2.4 Bcf/d from the corresponding week a year earlier.Estimated net flows to US LNG export terminals were 18.0 Bcf/d on Monday, up 0.1 Bcf/d from Friday but down 0.8% from Friday. LNG feedgas was flowing below capacity due to maintenance at Freeport LNG, which was expected to keep demand reduced until the end of the month.The latest weekly government storage data showed natural gas inventories were at a very comfortable 6.4% above the five-year average but remained 1.2% below year-earlier levels.

Commodities

Gulfport Q2 Production Declines as Company Expands Utica Inventory

Gulfport Energy (GPOR) reported Q2 earnings Monday, showing total production of 962.8 million cubic feet equivalent per day, down from 1,006.3 MMcfe/d a year earlier.Natural gas production declined to 878.4 million cubic feet per day for the quarter ended June 30, down from 891.4 MMcf/d earlier, the company said.Oil and condensate production fell to 4,203 barrels per day for the quarter, down from 7,843 b/d in the year-ago quarter, Gulfport added.Natural gas liquids production decreased to 9,862 b/d for Q2, down from 11,313 b/d for the same quarter last year, according to Gulfport.Production averaged 800 MMcfe/d in the Utica and Marcellus and 162.8 MMcfe/d in the SCOOP, the company said.The production mix comprised about 91% natural gas, 6% natural gas liquids and 3% oil and condensate, according to the company.During the quarter, Gulfport spudded seven gross wells and 6.7 net wells in the Utica and Marcellus. The company drilled 10 gross wells and 9.8 net wells, then completed 12 gross wells and 11.9 net wells. Gulfport also turned eight gross wells and 7.9 net wells to sales in the basin.For the SCOOP, Gulfport completed two gross wells and 1.6 net wells, while also turning two gross wells and 1.6 net wells to sales during the quarter.Gulfport expects average daily production of 1.030 Bcfe/d to 1.055 Bcfe/d in 2026, along with 18,000 b/d to 21,000 b/d of liquids production. Natural gas is expected to represent about 89% of total output, according to the company.Gulfport lowered its full-year base capital expenditure guidance to about $430 million.Gulfport expanded its core Utica inventory through its previously announced Ohio state land acquisition, adding 4,700 net undeveloped acres and about 16 net wet gas locations based on 15,000-foot laterals. The company expects operations to begin in 2027.

$GPOR