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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). It seems with each passing day, we hear more announcements of yet another utility or private energy producer laying out its plans for new coal-fired generation. Despite all the new natural gas generation that has been built during this latest boom, all the talk of new wind power or other renewable sources, and big plans for new nuclear capacity, all eyes turn to see what will happen with old reliable coal. For the most part, it is common knowledge that coal will continue to supply the majority of our energy demand. In order for this to happen, it will be necessary for new coal-fired generation to be constructed to help meet future electricity needs and to replace older coal-fired generation. However, the big question in most of our minds is how many of these coal-fired units will ever see the light of day.
Here is the easy part of projecting coals impact: currently Industrialinfo.com is tracking ten coal-fired generating units, representing over 3,000 megawatts (MW) under construction and scheduled to begin commercial operation from 2005 through 2008. From this point forward, the crystal ball becomes a little clouded. There are an additional 185 coal-fired generating units, representing over 68,000 MW, that are in various stages of development. This includes 131 grassroot units, representing 48,962 MW. The balance of the proposed capacity expansions would come from unit additions at existing power plants. If all these units were to be built, the total project investment could exceed $100 billion. This also represents new units that would kick off construction from 2005 through 2010, to begin commercial operation 2009-2015. Common sense tells us that not all of these units will be built during this time frame, and still others may never come to fruition.
Click on the image at right to view a chart showing the breakdown of active pre-commissioned coal-fired units by NERC region.
Popular opinion would have us believe that the majority of new coal-fired units that actually do move forward will be built by the electric utilities. Over the long term, this will probably hold true. However out of the twenty-two coal-fired units in advanced stages of development, seventeen units, representing 6,548 MW are being developed by private energy producers. These are units that are expected to begin construction 2005-2007 and include Thoroughbred Energy Campus, Prairie State Energy Campus, Greene Energy Resource Recovery, and River Hill Power. In contrast, there are five units representing 2,847 MW in the advanced stages of development for the utility sector in advanced development. These units include Elm Road Generating, and units at Cross, Spurlock, and Nebraska City.
Over the long run, utilities are proposing to build sixty-three units, totaling 26,682 MW, through 2014. Private Energy Producers are proposing to add 122 units with 41,373 MW, during the same period. It seems likely that the majority of the units that move beyond development to the construction phases will be those developed by utility companies or those developed by private energy producers and then sold to a utility. This is due in part to the fact that utilities can recoup at least a portion of their costs by increasing rates to the consumers. Developments proposed by private energy producers are subject to the ability to secure power purchase agreements in order to receive financial backing.
It remains to be seen how much coal-fired generating capacity will be added. Many factors are expected to come into play in determining how much capacity will be fueled by coal, including the price of natural gas and coal, how LNG affects the industry, and environmental issues. For the time being, it appears that coal will continue to supply a great deal of our capacity for the foreseeable future.
View Project Report - 23000967 19000131 34000478 23001272 09002860 12003770 16001112 12003552
More information on coal-fired generation and other market trends can be found in Industrialinfo.coms 2005 Power Industry Outlook.
Industrial Information Resources (IIR) is a Marketing Information Service company that has been in business for over 22 years. IIR is respected as a leader in providing comprehensive market information pertaining to the industrial processing, heavy manufacturing and energy related industries throughout the world.
Here is the easy part of projecting coals impact: currently Industrialinfo.com is tracking ten coal-fired generating units, representing over 3,000 megawatts (MW) under construction and scheduled to begin commercial operation from 2005 through 2008. From this point forward, the crystal ball becomes a little clouded. There are an additional 185 coal-fired generating units, representing over 68,000 MW, that are in various stages of development. This includes 131 grassroot units, representing 48,962 MW. The balance of the proposed capacity expansions would come from unit additions at existing power plants. If all these units were to be built, the total project investment could exceed $100 billion. This also represents new units that would kick off construction from 2005 through 2010, to begin commercial operation 2009-2015. Common sense tells us that not all of these units will be built during this time frame, and still others may never come to fruition.
Click on the image at right to view a chart showing the breakdown of active pre-commissioned coal-fired units by NERC region.Popular opinion would have us believe that the majority of new coal-fired units that actually do move forward will be built by the electric utilities. Over the long term, this will probably hold true. However out of the twenty-two coal-fired units in advanced stages of development, seventeen units, representing 6,548 MW are being developed by private energy producers. These are units that are expected to begin construction 2005-2007 and include Thoroughbred Energy Campus, Prairie State Energy Campus, Greene Energy Resource Recovery, and River Hill Power. In contrast, there are five units representing 2,847 MW in the advanced stages of development for the utility sector in advanced development. These units include Elm Road Generating, and units at Cross, Spurlock, and Nebraska City.
Over the long run, utilities are proposing to build sixty-three units, totaling 26,682 MW, through 2014. Private Energy Producers are proposing to add 122 units with 41,373 MW, during the same period. It seems likely that the majority of the units that move beyond development to the construction phases will be those developed by utility companies or those developed by private energy producers and then sold to a utility. This is due in part to the fact that utilities can recoup at least a portion of their costs by increasing rates to the consumers. Developments proposed by private energy producers are subject to the ability to secure power purchase agreements in order to receive financial backing.
It remains to be seen how much coal-fired generating capacity will be added. Many factors are expected to come into play in determining how much capacity will be fueled by coal, including the price of natural gas and coal, how LNG affects the industry, and environmental issues. For the time being, it appears that coal will continue to supply a great deal of our capacity for the foreseeable future.
View Project Report - 23000967 19000131 34000478 23001272 09002860 12003770 16001112 12003552
More information on coal-fired generation and other market trends can be found in Industrialinfo.coms 2005 Power Industry Outlook.
Industrial Information Resources (IIR) is a Marketing Information Service company that has been in business for over 22 years. IIR is respected as a leader in providing comprehensive market information pertaining to the industrial processing, heavy manufacturing and energy related industries throughout the world.
