Repowering Extends Lives of Aging Generating Plants

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Researched by Industrial Info Resources (Sugar Land, Texas)--More power-generation plant owners are choosing to repower plants, rather than close them, to save facilities that have served communities for decades. These owners believe the current low price and abundance of natural gas creates an opportunity to extend the life of their facilities, while significantly lowering the plants' heat rate (efficiency) and increasing output to the grid. Repowering also can help a facility meet new greenhouse emissions standards economically.

Industrial Info is tracking 25 repowering projects in North America valued at $10.4 billion. The U.S. has 22 projects valued at $9.32 billion; Mexico has one project valued at $1 billion; and Canada has two projects with a combined value of $126 million.

Repowering a facility is good for the surrounding community. Repowering saves important local jobs and eases the permitting process, as the infrastructure is already used for its intended purpose.

The in-depth analysis that is needed to determine the feasibility of a power plant's repowering is considerable. Plant owners must determine whether the demand for power warrants continued operation; whether there is an abundant supply of natural gas; and whether the condition and application of the existing infrastructure can support the repowered electrical generating units.

Also, owners must determine whether repowering would require removal of older plant equipment or buildings in order to make room for new generating equipment, whether the project has the support of the local community.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.