Business

  • POWER Digest (July 2011)

    Indonesia Sees Surge in Contracts for New Power Plants. Indonesia is Southeast Asia’s largest economy, but because it is stricken by chronic power shortages that limit economic growth, the nation’s government is pushing for massive infrastructure improvements. A consortium of Japan’s Electric Power Development (J-Power), Itochu Corp., and Adaro Energy, an Indonesian coal miner, on […]

  • Texas Competitive Model Spreads to Pennsylvania and Illinois

    A record 400 attendees participated in KEMA’s 22nd annual Executive Forum in San Antonio, Texas, in late April to debate and discuss the “retail resurgence” of competitive electricity sweeping America.

  • New Opportunities Abound for Retail Electric Suppliers

    Following the conclusion of the KEMA conference (see previous story), Mark Axford had the opportunity to talk with Phillip Tonge, recently appointed president of Spark Energy LP. Spark Energy is a retail energy provider (REP) of electricity and natural gas in 16 states that have opened their markets to competition for industrial, commercial, or residential customers.

  • Modernizing the Grid, Modernizing Our Industry

    David K. Owens, executive vice president, Business Operations Group for the Edison Electric Institute, comments on the progress U.S. utilities are making toward a smarter electrical power grid.

  • FERC Surrenders Jurisdiction over Station Power in California

    In a surprising decision, a federal agency surrendered some of its regulatory authority—and parts of the industry don’t approve. The Federal Energy Regulatory Commission declined to defend its jurisdiction over station power in the California power market, potentially giving an economic advantage to utility generators nationwide and putting merchant generators at a disadvantage.

  • Consolidation, Market Distortions Underlie Remarks by Industry Executives

    If you needed additional proof that the power industry is changing, the ELECTRIC POWER keynote and panel discussions over the past few years have provided it—top-of-mind issues have been significantly different each year. For the 2011 keynote speaker and panelists, the challenges of reliability, regulatory compliance, financing, and getting the fuel mix right took center stage. In the wake of Japan’s nuclear crisis, safety also featured prominently.

  • POWER Digest (June 2011)

    Italian Firm Wins Contract to Build Massive African Hydropower Plant. Italian construction firm Salini Costruttori said on March 31 it has signed a €3.35 billion contract with Ethiopia state-owned Ethiopia Electric Power Corp. to build a 5,250-MW hydropower plant on the Blue Nile, a tributary of the Nile River. The project, slated to be completed […]

  • NERC CIP Update

    The North American Electric Reliability Corp. (NERC) Reliability Standards are under constant revision even while new requirements are under active development. Three important regulatory definitions are currently being contested.

  • Spain: A Renewable Kingdom

    Spain has served as both exemplar and scapegoat when it comes to renewable energy policy. Though power policy must necessarily accommodate specific national resources and goals, Spain’s experience as an early and eager adopter of renewable energy technologies and subsidies is a cautionary tale of how the best intentions can have unintended consequences.

  • The Urge to Merge

    Utility mergers and acquisitions are on the upswing again. When faced with flat load growth, pervasive regulatory uncertainty, and the rising cost of doing business, larger companies are better able to afford expensive new plants while maintaining shareholder dividends.

  • Selecting Your Next Combustion Turbine

    With natural gas serving as the fuel de jour, many utilities and merchant generators will be considering the purchase of new combustion turbines in the near future. If you are in the market for a gas turbine, here are some key design features you should discuss with turbine vendors prior to your next purchase.

  • A More Accurate Way to Calculate the Cost of Electricity

    Life-cycle cost of ownership is a common metric used to compare power plant system alternatives. However, the familiar formula for calculating the cost of generating electricity omits factors that are becoming increasingly important to business decisions. A new formula addresses those blind spots by estimating the value of the part-load performance of cycling combined-cycle plants.

  • HAZCOM Is Essential for Avoiding Explosive Situations

    In 1983, OSHA published its Hazard Communication (HAZCOM) Standard, which requires that the hazards of all chemicals used in the workplace be communicated to employees so that responsible protective measures can be taken. Today, HAZCOM remains near the top of the list of most frequently violated OSHA standards that result in a citation. The 1917 Halifax Explosion, one of the world’s largest nonnuclear explosions, testifies to what can happen when you don’t have—or don’t follow—an effective HAZCOM program.

  • Japan, Critical Materials, and Weak Links in Supply Chains

    The devastation in Japan has focused new attention on supply chain issues and the impact of the partial collapse of that country’s manufacturing infrastructure on both Japanese imports and exports.

  • Benchmarking Fossil Plant Performance Measures, Part III: Metrics Used for Compensation

    In Part III of this three-part report, we look at plant- and fleet-level metrics used to determine compensation. As expected from this EUCG-sponsored benchmarking survey, there is broad use of quantifiable metrics to set portions of compensation, but the metrics selected vary substantially across the surveyed utilities. More surprising was the number of utilities that used no performance metrics as part of their employee compensation packages.

  • John Hanger, Pa.’s Former Environmental Chief, Talks About Challenges of Keeping Gas Drilling Safe

    John Hanger, who led Pennsylvania’s Department of Environmental Protection until January, talked with ProPublica earlier this year about the challenges of trying to regulate the expanding drilling industry.

  • Writing an Employee Handbook Your Employees Will Read, and Heed, Part 1

    Not complying with current law can be expensive in today’s legal climate. Employers should review their employee handbooks and employment-related policies to make sure they are up to date. More importantly, employers should draft their handbooks so that employees actually read them and follow their policies.

  • TREND: Markets and Critical Materials

    While China seems determined to exploit its current control over the market for rare earths and other minerals critical to high-tech and green energy technologies, and while governments engage in conventional hand-wringing and head-scratching, markets appear to be reacting in the ways that markets are supposed to react.

  • The Energy Efficiency Conundrum

    For many energy analysts and policy makers, efficiency is the Holy Grail, the universal solvent, the way to effortlessly reconcile supply and demand while simultaneously serving the needs of the environment. Don’t build new power plants, says policy guru Amory Lovins; gather "negawatts" instead. President Obama says that Americans "can save as much as 30% of our current energy usage without changing our quality of life."

  • POWER Digest (May 2011)

    ABB, BHEL to Deliver $1.1B Multi-Terminal UHVDC Line in India. Zurich-based ABB and Indian state-owned company Bharat Heavy Electricals Ltd. (BHEL) said on March 23 that they had been selected by Power Grid Corp. of India Ltd. (PGCIL) to deliver an ultrahigh-voltage direct current (UHVDC) transmission system to convey hydropower from northeastern India to the […]

  • Supreme Court Expands Employee Rights

    U.S. Supreme Court rulings in two recent cases further advance the rights of employees in disputes with employers, continuing a long-term trend in federal law on employment discrimination.

  • KEMA Opens Lab to Test Energy Storage Performance

    Dutch energy consulting firm KEMA in February opened a new laboratory in Chalfont, Pa., to test and verify emerging utility-scale energy storage systems.

  • POWER Digest (April 2011)

    China Inaugurates 660-kV DC Line. The China Power Grid Co. on Feb. 28 began transmitting power through a 660-kV direct current power transmission link that runs from northwest China’s Ningxia Hui Autonomous Region. Part of China’s west-east power transmission program, the 10.4 billion yuan (US$1.58 billion) project runs 1,333 kilometers through five provinces and regions […]

  • Energy Storage Enables Just-in-Time Generation

    One of the main criticisms of renewable energy facilities is that they are unable to dispatch electricity when it’s needed. The great game-changer is low-cost energy storage, which would enable renewable energy production to be stored and rapidly released when needed. Here are seven promising distributed energy storage technologies that could be commercialized in the near future.

  • Benchmarking Fossil Plant Performance Measures, Part II: Fleet-Level Metrics

    Part II of this three-part series moves up the typical utility organization to consider important fleet-level fossil plant operating metrics. This portion of the EUCG-sponsored benchmarking survey found that utilities favor fleet-level metrics that are similar to plant-level metrics but assign them different priority. Utilities generally agreed on what were important metrics in the eight categories examined, although none were favored by a majority of the surveyed utilities.

  • POWER Digest (March 2011)

    GDF SUEZ, RWE, and Iberdrola Pull out of Cernavoda Nuclear Expansion. French power company GDF SUEZ, Germany’s RWE, and Spain’s Iberdrola on Jan. 20 said they would no longer participate in a project to build Units 3 and 4 of the Cernavoda nuclear project in Romania. The companies cited “economic and market uncertainties surrounding the […]

  • Canada’s “Clean” Image Extends to Clean Power

    Canada’s extensive natural resources are the driver of its powerful economy, and energy is Canada’s single most important export. Yet policy makers across the nation are currently dealing with the consequences of a generation of under-investment in the electricity system and deciding what the new grid and supply mix should look like. Several provinces are competing to lead the charge in renewable energy and grid intelligence. Policy makers hope that such efforts will not only provide for Canada’s electricity needs but also create the green economy jobs that will drive the nation’s next generation of economic development.

  • TREND: Uranium Business Heats Up

    The long-struggling uranium business, hoping that demand for nuclear fuel will increase, is slowly stretching its muscles and strengthening exploration and production efforts in the U.S. and elsewhere.

  • Who Needs an Owner’s Engineer?

    In the past, members of a utility’s engineering staff spent their career designing and building new power plants. Today, many utility engineers find that opportunity comes around only once in a career. To fill the experience gap, an “owner’s engineer” company can add to a utility’s team a cadre of highly qualified power engineers who focus on avoiding design errors and keeping the project on schedule.

  • Renewables Face Chills and Thrills in Project Financing

    The winter of 2010-2011 has been a cold one for financing renewable energy projects. That’s the weather report from a recent project financing meeting in New Orleans, a survey of developers and builders done by a large Minnesota construction company, and accounts from those in the financial trenches.