The waiting game. [Development of independent power projects in North America]

Journal Article · Tue Mar 01 04:00:00 EST 1994 · Independent Energy; (United States)

OSTI ID:7187275

Burr, M T ^[1]

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1. Indepndent Energy Magazine, St. Cloud, MN (United States)

Independent power companies are facing numerous changes in power markets across North America. While changes bring uncertainty, they also hold promise for future competitive power opportunities. In Mexico, developers are awaiting the final versions of laws concerning outside ownership of the country's power capacity. The slow process of formalizing these regulations, combined with recent social unrest in southern Mexico, is causing companies to take a cautious approach to developing power capacity in the country. Nevertheless, developers are optimistic about the future potential of the Mexican market. In Canada, the two major markets for power capacity are Ontario and Quebec. Neither offer large opportunities for new development of power plants, at least not in the short term. Hydro Quebec, having recently signed a number of power purchase contracts with third-party power suppliers, does not project additional capacity will be needed through the rest of the decade. In the United States, a number of factors are combining to cause a sluggish market for new power capacity. Slow demand growth, stemming from the economic recession of the early 1990s, has resulted in capacity needs that are lower than had been expected and in some cases surplus capacity. This has caused numerous cancellations of utility requests for proposals (RFPs). In addition, a number of utilities are responding to market conditions by attempting to curtail existing power purchases. Some new power activity is taking place in the Northwest, Southeast, and Midwest, and independent power developers are pursuing inside-the-fence cogeneration opportunities. But most of the action in the United States centers on new regulatory structures being developed at the state and federal levels. Regulators, utilities, non-utility generators, and retail and wholesale power customers are struggling with issues pertaining to transmission access, retail wheeling, stranded investment and competitiveness.

• OSTI ID: 7187275
• Journal Information: Independent Energy; (United States), Journal Name: Independent Energy; (United States) Vol. 24:3; ISSN 1043-7320; ISSN IDPEEW
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
296000* -- Energy Planning & Policy-- Electric Power
CONSTRUCTION
ENERGY SOURCE DEVELOPMENT
NORTH AMERICA
POWER PLANTS