Power Industry Debates Fuel Mix of 400 Gigawatts of Planned New Generation Capacity in North America

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Researched by Industrial Info Resources (Sugar Land, Texas)--Two recent Power Industry tradeshows held in the past two weeks in Chicago have shed light on the future of power generation project development in North America. First, at WindPower 2009 held early this month, it was apparent that wind power had won the popularity contest. Attendance at the conference was up 50% and a record number of new and old companies are lining up to do business in this growth sector, which is attracting a slew of federal incentives.

Wind power is one of the fastest growing choices for new power generation capacity worldwide, now accounting for about 25% of the new proposed generation capacity in North America. According to Britt Burt, Vice President for Power of Industrial Info, there are more than 400 gigawatts of new power generation of all fuel types (coal, natural gas, nuclear and renewables) under development in North America, and approximately 100 gigawatts of that are wind projects.

Click on the image at right to view a chart showing the breakdown of power generation under development by fuel type in North America.

The second tradeshow happened last week at Electric Power 2009 where power generating firms and the companies that service them met. The topic at the Electric Power keynote speech and executive round table panel discussion, held May 12, was the state of the industry, which is facing increasing pressure to increase capacity and maintain existing base-load fleet, while at the same time being more efficient and environmentally responsible. That's a concept that's easy to understand but much more difficult to implement, according to power generation company executives, who are finding it difficult to chart a course for growth with an ill-defined national energy policy and uncertainty regarding carbon dioxide emission regulation. Despite the hype and development, wind power has yet to prove itself as a baseload source, leaving coal, natural gas and nuclear as the only viable baseload options.

Included on the panel were leading industry executives from a wide ranging segment of power generation:

• Michael Morris, Chairman, President and CEO of American Electric Power (NYSE:AEP) (Columbus, Ohio)
• Bruce Williamson, Chairman, President and CEO of Dynegy (NYSE:DYN) (Houston, Texas)
• Ron Litzinger, Chairman, President and CEO of the Edison Mission Group
• Christopher M. Crane, President and Chief Operating Officer of Exelon Corporation (NYSE:EXC) (Chicago, Illinois)
• Michael Gallagher, Vice President for Asset Management of Sempra Energy (NYSE:SRE) (San Diego, California)

The panelists agreed that the majority of 400 gigawatts of power generation development will not get built without a clear energy policy, a national standard for carbon emissions, and a realistic view of the role of renewables in our future energy mix. It also remains doubtful whether wind power can be used as base-load power, although a 2007 Stanford University study stated that it is a possibility. According to the report, the interconnection of 10 or more windfarms could allow for an average of 33% of the total energy produced to be used as base-load power, given that minimum criteria are met, including wind speed and turbine height.

Industrial Info's United States Wind Turbine Power Generation Industry - 3rd Edition wall map illustrates opportunities in wind power development. The map provides details on 389 windfarms in operation, representing 27,144 megawatts (MW) of capacity. It also includes more than 99,000 MW in future development represented by 569 windfarms in the early planning and advanced development stages, as well as 46 windfarms under construction.

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy related markets. For more than 26 years, Industrial Info has provided plant and project opportunity databases, market forecasts, high resolution maps, and daily industry news.