New England Grid Operator Releases 2024 Market Report Detailing Cost and Supply Shifts

ISO New England Internal Market Monitor (IMM) reported that the region’s wholesale electricity markets remained competitive and efficient in 2024, despite a notable increase in prices driven by carbon emissions costs and a sharp decline in energy imports. The findings, published in the ISO’s 2024 Annual Markets Report, released on May 29, offer a detailed overview of market performance and include recommendations for potential market improvements.

According to the IMM, the average Day-Ahead Energy Market price rose 13 percent from the previous year, reaching $41.47 per megawatt-hour (MWh), while Real-Time Market prices increased 11 percent to $39.50/MWh. A key factor behind the higher prices was the increased cost of carbon dioxide emissions, which added roughly $910 million to the region’s energy costs. These costs stemmed from state and regional emissions reduction programs, impacting fossil fuel-based electricity generation.

The total wholesale cost of electricity in 2024 reached $10.2 billion, equating to $87/MWh of load served, a rise of 11 percent compared to $9.2 billion in 2023. Meanwhile, New England’s net energy imports fell to their lowest level since 2011, primarily due to reduced hydroelectric output from Québec.

Natural gas remained the dominant power source, supplying half of the region’s electricity, more than double the share of nuclear power, the second-largest contributor at 22 percent. Average hourly demand grew modestly by 2 percent, reaching 13,924 megawatts. Natural gas prices held steady, averaging $3.06 per million British thermal units (MMBtu), comparable to 2023 levels.

The report, issued annually each spring, serves as a key resource for understanding market dynamics and guiding regulatory and policy decisions. It highlights the growing influence of environmental policies on regional electricity prices and underscores the importance of reliable import capacity in maintaining price stability.