Re-powering and site recycling in a competitive environment
Re-powering and site recycling are strategies designed to expand electric generating capacity by using depreciated assets. The resource base for the these strategies is large. By 1995, over 170,000 MW of fossil-fired capacity will be in excess of thirty years old, and approaching the end of its conventional economic lifetime. This paper explores how these assets might be developed using competitive market forces. While some re-powering is being pursued under traditional ratebase regulation, there are four other generic alternatives. These are: (1) utility investment at fixed prices with regulatory pre-approval, (2) utility investment under competitive bidding, (3) utility leasing for private producer development, and (4) utility sale of sites for private producer development. Issues associated with each alternative are explored and illustrated with examples. State regulatory policy will be the critical determinant of whether a market develops for depreciated power plants. Financial incentives will stimulate utilities to re-deploy depreciated assets. This means some form of profit-sharing between customers and shareholders of the grains from asset sales. Different approaches to profit sharing are reviewed. These developments are still in an experimental state, however, and no single approach appears to have emerged as a dominant trend. 36 refs., 1 tab.
- Research Organization:
- Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States)
- Sponsoring Organization:
- USDOE; USDOE, Washington, DC (United States)
- DOE Contract Number:
- AC03-76SF00098
- OSTI ID:
- 5103982
- Report Number(s):
- LBL-30108; ON: DE92000726
- Country of Publication:
- United States
- Language:
- English
Similar Records
The creation of a global electricity market
Financial Analysis of Incentive Mechanisms to Promote Energy Efficiency: Case Study of a Prototypical Southwest Utility
Related Subjects
POLICY AND ECONOMY
20 FOSSIL-FUELED POWER PLANTS
ELECTRIC UTILITIES
EQUIPMENT
LEASING
DEPRECIATION
STATE GOVERNMENT
PRICING REGULATIONS
CAPACITY
COMPETITION
ECONOMICS
FOSSIL-FUEL POWER PLANTS
INVESTMENT
SERVICE LIFE
POWER PLANTS
PUBLIC UTILITIES
REGULATIONS
THERMAL POWER PLANTS
290200* - Energy Planning & Policy- Economics & Sociology
200600 - Fossil-Fueled Power Plants- Economic
Industrial
& Business Aspects- (1990-)
200700 - Fossil-Fueled Power Plants- Legislation & Regulations- (1990-)
293000 - Energy Planning & Policy- Policy
Legislation
& Regulation