Power Industry Project Activity to Restart in 2010, Driven by Spending on Wind, Gas, Expansion and Maintenance

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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Global electricity demand and power plant development activity both dipped slightly last year, but are expected to increase this year, according to a new Power Industry outlook from Industrial Info Resources.

In its just-released 2010 Power Industry Outlook, Industrial Info is projecting that construction of renewable energy sources and natural-gas-fired generating units will be the leading sectors for new-build electric generation in the U.S. this year.

"The U.S. has an aging generation infrastructure. More than 200,000 megawatts of fossil-fuel capacity has been operating for 30 years or more," said Britt Burt, who directs Power Industry research for Industrial Info. "More than half of the nation's nuclear power plants are nearing the end of their operating licenses. We project that this aging infrastructure will lead to an increase in maintenance, repowerings, expansions, and other life-extension activities, creating sizable business opportunities for companies active in those areas."

Overall, Industrial Info is tracking 1,300 capital and maintenance projects with a scheduled 2010 kickoff date for the electric power generation industry in North America. These projects have a total investment value (TIV) of $140 billion. By contrast, last year saw 871 projects with a TIV of $37.5 billion kick off in North America.

"In the U.S., 2009 was a 'wait-and-see' year for many power plant owners and developers," said Burt. "New-build coal-fired power didn't move forward because of uncertainty about climate-change legislation. Enthusiasm for new-build nuclear plants flagged as multi-billion-dollar price tags showed that building a new nuclear power plant remained a 'bet-the-company' proposition." Power plant environmental remediation projects also were deferred as the industry waited for the U.S. Environmental Protection Agency (EPA) to redraft its Clean Air Mercury Rule (CAMR) and Clean Air Interstate Rule (CAIR).

In 2010, continued economic and environmental uncertainty will benefit renewable energy projects and natural-gas-fired generation. "The 'dash to gas' has driven power industry spending for several years, and we don't see that changing in 2010," Burt said.

Like all of Industrial Info's 2010 industry outlooks, the projection for the Power Industry's capital and maintenance spending project activity is driven by the company's rigorous quality-assurance procedures, which ensure that capital and maintenance project spending data is reported, confirmed and frequently updated. Industrial Info's quality-assurance principle, which it trademarked as the Living Forward Reporting Principle™, ensures that clients are provided with the most accurate and current market intelligence on industrial project spending around the world, including capital projects, maintenance spending, analytics, and market forecasting.

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 spending opportunity databases, market forecasts, high resolution maps, and daily industry news.