Making strides
Inge Fretheim, president of Amoco Power Resources Corp., was speaking to an audience of developers, finance executives and other power industry leader at the Fifth Annual Independent Energy Forum in New York City last October. {open_quotes}A deregulated framework should include market competition, not just private investment that the government defines,{close_quotes} he said. {open_quotes}Governments that only seek to increase the efficiency of power generation itself will not see the full benefits that the IPP industry can bring to the table.{close_quotes} The industry has made significant progress in many markets around the world in the past year, but a number of obstacles are still standing in developers` way. As Fretheim pointed out, in many cases project tender solicitations are too rigid to allow the competitive process to achieve its full potential. When companies are asked to bid on a pre-defined {open_quotes}box,{close_quotes} they are not able to bring their full palette of skills and resources to the canvas. Competitive bidding has during the past year become a favorite means of awarding project contracts in many countries around the world. This trend reflect the increasing state of competitiveness in the global power industry. New financing sources are emerging, but not enough to fill the gap. Numerous examples of the industry`s consolidation--including the Enron/Portland General merger. Southern Energy International`s purchase of Consolidated Electric Power Asia and Tractebel`s acquisition of CRSS Capital and several plants in the United States--point toward an industry of large, trans-border utility companies.
- OSTI ID:
- 518403
- Journal Information:
- Independent Energy, Journal Name: Independent Energy Journal Issue: 1 Vol. 27; ISSN 1043-7320; ISSN IDPEEW
- Country of Publication:
- United States
- Language:
- English
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