April 2008
Main
Patsy Wurster
Welcome to the fifth annual issue of Platts Insight—Global Power Markets. As the worldwide focus on environmental protection continues to build, the North American energy industry is clearly taking notice. Based on findings in the recently released Platts/Capgemini Utilities Executive Study, the environment surfaced as one of the industry's most critical issues. Specifically, the effects of global warming, climate change, emissions/carbon requirements and regulation are the top challenges facing the industry today. You will see how Platts Insight and the Global Power Markets conference are addressing these issues head on. The full Executive Summary of the Platts/Capgemini Utilities Executive Study is outlined on page 12 of this issue. Read More
Peter Maloney
The Baseload Gap Read More
Niamh Brooks is associate editor of Platts Global Power Report. She joined Platts in 1999 as a market and news reporter on the European power and natural gas desk, and took her current role in 2001 in the New York office. Prior to working for Platts Niamh held an editorial position on newsletters at Financial Times Energy in London. She holds a bachelor's degree in English from University College London. Niamh is based in Platts' Canary Wharf office in London. Read More
Peter Maloney, Chief Editor, Platts Global Power Report
OVER THE PAST DECADE OR SO WIND POWER enjoyed tremendous success, and efforts are under way to extend that success to solar power. Read More
Ross McCracken, Editor, Platts Energy Economist
Focusing on new energy sources and current power crises often deflects attention from the impact changes in generation have on distribution and transmission. Driven by regulation, electricity grids face choices which have revolutionary implications for their operation and organization. Read More
WITH CONCERNS ABOUT THE ENVIRONMENT, infrastructure, workforce management and increasing regulation denying many of them a peaceful night's rest, top North American energy industry executives are increasingly exploring technology as a remedy for their sleeplessness, a recent study by Platts and Capgemini finds. Read More
Niamh Brooks, Associate Editor, Europe, Platts Global Power Report
PHASE I OF THE EUROPEAN UNION'S emissions trading scheme closed at the end of 2007, with market participants anxious to turn to Phase II (2008 to 2012). Read More
Charles Tooman, Managing Consultant, Global Energy Practice, PA Consulting Group
A VARIETY OF COMPLEX MARKET DYNAMICS —from volatile commodity prices and new price levels, to the presence of new market entrants, to aging infrastructure and increasing operating costs, to evolving regulatory compliance requirements and standards—have placed renewed focus on utility and merchant energy companies' commercial and asset management strategies. Companies must account for these market dynamics, while seeking truly differentiated commercial strategies around current and prospective portfolios of assets (contractual and physical), and also closely considering factors such as the costs of asset maintenance and the timing of retirements and market recovery (among others). Read More
Rick Saines and Marisa Martin, Baker & McKenzie
THERE ARE SIGNIFICANT EFFORTS UNDERWAY in the US to control carbon emissions, with the energy sector directly in the cross hairs. The Lieberman-Warner Climate Security Act (S. 2191)—the leading climate bill in the US—is the focus of intense debate as it would require significant greenhouse gas (GHG) reductions on an economy-wide scale, including reductions from coal-fired power plants. There is also increasing pressure from lawmakers and the public to require new or modified coal-fired power plants to geologically sequester or otherwise control carbon emissions now to limit any further traditional development prior to the implementation of comprehensive climate legislation. This has created a whole new world of risks and choices for the power sector. We briefly discuss the Lieberman-Warner bill and the existing developments relating to permitting of coal-fired plants as two examples of the new paradigm for generators. Read More
Antonio Mexia, CEO, Energias de Portugal
US ANNUAL POWER DEMAND IS PROJECTED to increase by 260 TWh by 2015, according to the Energy Information Administration's Annual Energy Outlook 2008. The EIA forecasts 64 GW of new capacity will be installed to meet this demand. Building these new generation assets will require decisions on what fuels and technologies to employ. These are decisions that will impact the country for several decades. Given this urgency, those involved in the development, regulation and funding of new power assets must address several key strategic challenges. What generation technologies will be profitable going forward? Which can be built in time to supply this energy? What generation technologies allow us to meet this supply need while limiting greenhouse gas emissions and respecting growing public opinion against climate change? How can regulators attract new generating capacity to be built without exposing ratepayers to price risks from fossil fuels, CO2, and uncertain capital costs? Read More
Anne Selting, Director, Corporate & Government Ratings, Standard & Poor's
THE RAPID GROWTH OF RENEWABLE portfolio standards (RPS) has become one of the most interesting trends in the US electric utility sector, and is among the most significant developments in the industry since electric restructuring began nearly a decade ago. RPS are laws or regulatory commission directives that require utilities to acquire a certain percentage of their power supply from renewable sources such as wind or solar. According to the Lawrence Berkeley Laboratories, a US Dept. of Energy (DoE) facility, RPS now apply to roughly 40% of US electric load. Read More
Richard McMahon, Executive Director, Alliance of Energy Suppliers, Edison Electric Institute
AMERICA'S ELECTRIC POWER INDUSTRY IS moving toward a low-carbon future. At the same time, we remain dedicated to fulfilling our primary obligation—delivering a reliable, affordable electricity supply. To achieve both goals, we are turning to a full suite of climate-friendly technologies—energy efficiency, renewables, advanced coal and new nuclear, carbon capture and storage (CCS), and plug-in hybrid electric vehicles (PHEVs). Read More
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