Capturing strategic opportunity
One reality of the new competitive marketplace is that utilities are deferring plans to build new central stations this decade in favor of lower cost supply options such as power purchases from non-utility generators (NUGs), power marketers and other utilities. As well, they are choosing conservation and demand side management plans. As a result, traditional utility capital improvement programs are declining. Repowering aging capacity is a strategic tool for enhancing utility performance in the competitive bulk power market. Non-utility generators will also benefit by working with utilities to develop successful project opportunities. Also, it is a way to provide least-cost service for ratepayers while creating an opportunity to eaten a higher return for shareholders. Taking advantage of the benefits available from repowering requires an understanding of the underlying structural, contracting and financing issues involved and the ability to integrate these issues into a successful business strategy.
- OSTI ID:
- 50606
- Journal Information:
- Independent Energy, Journal Name: Independent Energy Journal Issue: 9 Vol. 24; ISSN 1043-7320; ISSN IDPEEW
- Country of Publication:
- United States
- Language:
- English
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Repowering: Capturing the strategic opportunity
Structural and financing issues for repowering