The Enernova Insights

El Niño continues to strengthen rapidly, and the probabilities are becoming difficult to ignore.

Battery storage is moving from a relatively small grid resource to a meaningful force in U.S. electricity markets, and the pace of growth is accelerating.

PJM’s 2028/2029 capacity auction cleared at the FERC approved cap of $325.00 per MW day while again failing to procure enough capacity to meet its reliability requirement.

The recent launch of the Skylar Electricity Futures ETF is an important development for power markets because it could introduce a new source of financial buying into an already thin and historically illiquid market.

PJM’s latest capacity market developments point to a power market that is becoming more expensive, more volatile, and more dependent on policy intervention.

When a commercial or industrial buyer asks for an electricity price, the supplier quotes off the offer side of the wholesale market and adds a risk premium to hold that price for the remainder of the day. The buyer pays for the supplier’s uncertainty and signs.

Twenty percent of global LNG supply moves through that strait. It is now closed, and it is uncertain when it will reopen. Meanwhile, oil and gas fields in the region are under attack.

The Gulf conflict poses significant risks to global natural gas markets, with Qatar at the center of the storm.

On January 16th, 2026, heading into the MLK long weekend, the tone was that winter was basically done. Then the weather models flipped hard over the holiday. When everyone came back, traders and energy buyers had to reprice risk all at once.