Power Industry Construction Starts in 2004 Trending Toward $15 Billion

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). At the beginning of 2004, there were 807 Power Industry projects worth about $91 billion, with scheduled construction kick-offs in 2004. Now, after careful monitoring of these projects throughout the year, there remain 665 projects worth $15.5 billion, which have either begun construction or are scheduled to begin construction before the end of 2004. The 82% reduction in total investment value (TIV) can be attributed to market conditions within the power industry. Many projects have been cancelled or put on hold due to market conditions. Some have been delayed due to permitting, financing, or power sales agreement issues.

Click on the image at right to view a spending summary chart based on project status.

Industrialinfo.com is forecasting that 28 gigawatts will come online in 2004. This is down from a peak of 72 gigawatts in 2002. As this down trend continues we expect to see more cancellation and postponements of power plant capacity additions and new construction.

One of the larger projects to begin construction this year is a $752 million coal-fired power unit addition in Rothschild, Wisconsin being built by Public Service Corporation.

A few of the projects to begin construction in 2004 are grassroot power plants, such as the 525-megawatt gob coal-fired power plant that just started site preparation in Fisty, Kentucky. However, the majority of the projects are taking place at the more than 2,800 existing power plants in the U.S. Most of the projects at existing plants entail unit additions, capital equipment upgrades, coal-fired unit environmental modifications, control system additions, scheduled outages for maintenance repair and overhaul, fuel switching, and unit life extensions.

For more industrial forecasting, trends, and analysis check out Industrialinfo.com's new 2005 Global Industrial Outlook.

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