Business

"It’s déjà vu all over again," said Yogi Berra. The Hall of Fame catcher could easily have been predicting the coming resurgence of natural gas – fired generation. Yes, a few more coal plants will be completed this year, but don’t expect any new plant announcements. A couple of nuclear plants may actually break ground, but don’t hold your breath. Many more wind turbines will dot the landscape as renewable portfolio standards dictate resource planning, but their peak generation contribution will be small. The dash for gas in the U.S. has begun, again.

There will be no shortage of important issues to keep utility executives and their staffs busy throughout 2010. Few of these will be surprises, although a number will emerge quickly and assume larger-than-life significance. The confluence of the great recession and the sturm und drang of environmental legislation will create the liveliest of the debates, but more subtle trends will drive additional stressors. The results of Black & Veatch’s 2009 fourth annual industry strategic directions survey can offer guidance as to how these issues will affect the industry in the coming year.

The European carbon trading system experience suggests that North American generators should expect severely altered coal-fired power plant operating profiles if cap-and-trade legislation becomes law. In a groundbreaking study, Solomon Associates predicts the reduction in mean run time that North American generators should expect. The trends outlined in this study provide an overview of some of the broad challenges facing generators in moving to a carbon-constrained market environment.

As the economy begins to grow again, the banking industry continues to stabilize, and lawmakers work on finalizing climate change legislation, the decisions made in 2010 will lay the foundation for the power industry for decades to come.

The familiar saying "as goes California, so goes the nation" seems to apply to the many states that have been unable to invest in infrastructure improvements because they are crushed by debt and shrinking revenues. Will California and energy project developers continue to invest in energy infrastructure in 2010 given the limited availability of private capital, shaky state finances, and shifting regulatory climate?

Which country has the smartest grid? Which U.S. state has the most smart meters? What’s Google got to do with the grid? Answers to these questions and more can be found in our web exclusives. Here’s a taste of what you’ll find online.

With the eighth-largest economy in the world, Brazil has a clear need for power, but balancing supply and demand has proven tricky in recent decades. Even in a country where over 80% of generation capacity comes from renewables, planning for future capacity additions isn’t straightforward or easy.

News items of interest to power generation professionals.

After years of decline amid rising prices and fears of scarcity, natural gas as a power-generating fuel is on a rebound in the U.S., driven by new finds in Texas and the Mid-Atlantic states. These news stories highlight the trend.

Natural gas has reemerged as the choice for new electric generation, according to the North American Electric Reliability Corp. Does this raise new reliability issues?

An economist scratches his head in consternation as he looks at the discussion about climate change and energy conservation. Take his quiz to learn why commonly accepted assumptions make poor economic sense.

While the overall economy is down, the effort to add renewable energy resources in the U.S. continues to push project development forward.

While pundits opine that the U.S. economy is in recovery, that doesn’t show up in the world of coal-fired electric power plants (perhaps lagging economic indicators). For proof, see these recent stories.

Social media have emerged as an important force in the workplace, both as new ways of doing business and as challenges to organization management. Among those challenges is defining acceptable employee behavior on and off the job.

What is the smart grid all about? A new book—a dictionary—attempts to define and demystify the jargon and bafflegab surrounding the buzzing smart grid. It’s a somewhat flawed but worthwhile first attempt at unraveling the often bizarre and sometimes baloney-filled smart grid nomenclature.

While industry interests were trying to get on board the smart grid gravy train last fall in Washington, D.C., in rural West Virginia folks were dealing with the force of a political locomotive pushing a high-voltage interstate grid, with property owners opposed and labor in favor.

It’s no longer a 9-to-5 world. Management gurus Peter Stark and Jane Flaherty offer advice on how to manage time in today’s multi-tasking environment.

Natural gas is back, says gas guru Bobby Hefner, and in a big way. New technologies, new discoveries, low prices, and new optimism characterize a natural gas industry that just three years ago was bemoaning its future and looking to foreign LNG imports as the industry’s salvation. Today, the gloom is gone, and the gas folks are clicking their gaseous heels in glee.

In a series of ironies, the U.S. Nuclear Regulatory Commission has voted to reject an early finding that the U.S. can adequately manage nuclear reactor spent fuel, in the wake of the Obama administration’s decision to pull the radioactive plug on Nevada’s Yucca Mountain. The vote by the majority Republicans on the commission effectively puts a temporary ban on new nuclear reactor construction in the U.S.

In an exclusive agreement with the EUCG Nuclear Committee, POWER was provided access to some key, high-level performance and operational data from the group’s nuclear industry benchmarking database. All U.S., and many international, nuclear power plants are members of the committee and have contributed to its database for many years. This month we introduce you to the EUCG Nuclear Committee and share sample nuclear operating costs. Look for future reports on other key performance benchmarking metrics during 2010.

Most of the big utilities, with an eye to ensuring a good mix of future generation resources, have a new nuclear plant in development. Even though federal loan guarantees are slow to materialize and financing these multi-billion-dollar projects has become a bet-the-company investment, the NRC has more than 40 applications from generators that continue to believe in the future of nuclear power.

News items of interest to power generation professionals.

Chile was considered a world leader for reforming and liberalizing its power sector as early as the 1980s. However, 25 years later, Chile is at a crossroads in terms of developing future capacity. With an estimated GDP growth rate of 2% to 3% during the current global financial crisis, a highly competitive economy, an established democracy, and a stable macroeconomic environment, Chile is considered a premium destination for foreign investment.

News items of interest to industry professionals.

The expected renaissance for U.S. coal-fired generation has been more evolutionary than revolutionary: Less than half of the announced plants will likely progress to construction. However, the percentages for coal-fired plants aren’t significantly different from those for combined-cycle plants a decade ago, when dozens were ultimately canceled, leaving developers with warehouses full of unused gas turbines. The difference this time: The threat of carbon control legislation has moved many projects to the “wait and see” category.

A solar thermal demonstration power plant in Jülich, Germany, that was developed by the German Aerospace Center (Deutsches Zentrum für Luft- und Raumfahrt; DLR), was formally handed over to its future operator, the Jülich Department of Works this August.

The Appeals Court in D.C. has struck down a Bush administration 2007 ozone rule, sending the issue back to the Environmental Protection Agency for a mulligan. What will this mean in the future?

The National Academy of Public Administration faults the U.S. Department of Energy on human resource management, contract controls, and financial management.

The economic downturn hits Entergy Corp. and Bruce Power.

The world’s first supercritical circulating fluidized-bed (CFB) steam generator began successful operation at the Lagisza power plant in Poland early this July, according to power equipment and engineering firm Foster Wheeler. The new CFB — believed to be the world’s largest — replaced 1960s-era pulverized coal units at the power plant owned by Polish utility […]