Competitive positioning of power generation plants in a deregulated market
As industrialized countries deregulate their electric power industries, there is a fundamental shift from guaranteed cost recovery to open market competition on a deregulated grid. Utilities generally competitively bid into a power exchange where the lowest cost power providers are dispatched first. Therefore, the competitiveness of utilities determines their profitability. This commercial structure compels power generators to seek out ways of improving their equipment and plant performance. The inevitability of this trend is demonstrated by a look at the installed base in the US where the move toward deregulation is gaining momentum. More than half of the generating plants in the US are over 20 years old. The average thermal efficiency nation-wide is 33%. In contrast, contemporary coal-and gas-fired plants can operate at efficiency levels up to 45 percent and 55 to 60%, respectfully. With new facilities coming on-line, existing plants will need to make improvements to be dispatched. When deregulation fully envelopes the US market, utilities will not all fit into one pattern; their strategies and actions will depend on a multiple set of factors. Their success will be based on their ability to change landscapes from guaranteed cost recovery to competitive bidding. This paper discussers technical and commercial options available to power producers to improve their competitive positions in a deregulated market as well as software for determining the competitiveness of specific power plants and the location-based market prices of electricity. Examples of the application of alternatives will be cited along with expected payback and impact on cents per kilowatt-hour production costs.
- Research Organization:
- GE Power Systems (US)
- OSTI ID:
- 20050584
- Report Number(s):
- CONF-971214-; TRN: US0002479
- Resource Relation:
- Conference: 10th International Conference and Exhibition for the Power Generating Industries, Dallas, TX (US), 12/09/1997--12/11/1997; Other Information: PBD: [1998]; Related Information: In: Power-Gen '97 International, [2000] pages.
- Country of Publication:
- United States
- Language:
- English
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