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Electricity Efficiency and Deregulation Issues
(Released December 2001)



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  1. Reducing greenhouse gas emissions through electricity industry reform: A market-oriented emissions reduction scheme

    Mills, D

    World Resource Review [World Resour. Rev.], vol. 12, no. 1, pp. 58-76, Mar 2000

    The electricity industry is a major source of greenhouse gas emissions and, consequently, the paradigm shift of market-based reforms currently revolutionizing electricity industries throughout the world will have a substantial impact upon efforts to reduce greenhouse gas emissions. Where electricity industries have been or are being restructured, this has been promoted on the grounds of increased economic efficiency. The promise of lower electricity prices, with consequent economic benefits for all, has been offered as a carrot to induce support for these reforms. However, environmentalists have expressed concern that the direction being taken in electricity industry reform will make the task of reducing greenhouse gas emissions more difficult. This paper presents a brief overview of market-based electricity industry reform. Strategies for incorporating public policy concerns in market-based electricity industries are examined and a proposal is presented for integrating greenhouse gas emissions reductions within the framework of market-based electricity industry reform. This paper describes a proposal for a Market-Oriented Emissions Reduction Scheme (MOERS). The MOERS is a flexible approach towards the reduction of greenhouse gas emissions which relies upon the use of market forces to disclose the most economically efficient means of simultaneously reducing both greenhouse gas emissions and energy costs.

  2. Effect on the environment of electricity privatization

    Lidgate, David

    Engineering Science and Education Journal [Eng Sci Educ J], vol. 9, no. 2, pp. 93-95, 2000

    The UK's electricity supply industry (ESI) was privatized in 1989 with, it was thought at the time, little, if any, thought being given to its effect on the environment. This paper examines the effect of the Electricity Act on the fuels used in power stations, the gaseous emissions from these stations and the growth of renewable energy sources for electricity generation. It finds that, because of the increase in gas-fired generation, sulphur and carbon dioxide emissions have reduced, as has the quantity of solid wastes produced. The effect of the non-fossil fuel obligation has been to increase and diversify the use of renewable sources for electricity generation.

  3. Controlling pollution using economic instruments in competitive electricity markets: The challenges of multilevel governance

    Crosisca, J; Kellow, A

    Energy & Environment [Energy Environ.], vol. 11, no. 6, pp. 681-696, 2000

    In Australia, as in many other developed countries, reforms are taking place which aim at liberalising electricity markets and opening them up to more competition. The hope has been that this will achieve a market for electricity which is more efficient, provide more cost reflective prices and achieve better environmental outcomes. The relationship between market-based structures for electricity industries and improved environmental outcomes is problematic, however. The environmental sensitivity of Australian utilities has not been helped by their public ownership and frequent use by state governments as agents of economic development, so that while putting them on a more commercial footing might remedy past problems, it is by no mans clear that the full range of externalities associated with electricity generation will necessarily be addressed without putting in place policy mechanisms which will create incentives for improved environmental performance. Federal systems such as Australia permit a degree of diversity in how states address such questions, but the existence of distinct sub-national political units can also create problems relating to competitiveness between utilities operating in different jurisdictions but trading in a single market. This paper demonstrates these problems by exploring issues which have arisen as the result of different policy settings being adopted by states for pollution control by electric utilities, and notes that the national government in Australia has been reluctant to exercise jurisdiction to address these problems.

  4. Greening the electricity industry: the dynamic logic of the Green-e certification program

    Wiser, Ryan H

    Porporate Environ Strategy, vol. 6, no. 1, pp. 24-26, 1999

    With the advent of retail competition in the supply of electricity to end-use customers, individuals and businesses will be given the opportunity to purchase electricity from 'green power' sources. Some customers are clearly willing to pay a premium for environmentally preferable sources of electricity supply. Yet, there have been concerns that customer confusion, vague marketing claims, and 'apples and oranges' comparisons will limit the potential market penetration of green power products. Environmental certification programs are increasingly seen as important tools for achieving environmental objectives and are intended to alleviate some of the concerns listed above, as well as to increase product and marketer credibility. The Green-e Renewable Electricity Branding Program is the first U.S.-based effort to certify green power products that meet certain environmental standards. The voluntary Green-e program also helps create consumer confidence in these certified products through a marketer code of conduct, disclosure provisions, and a public education campaign. This article details the development, design and results of the Green-e program to date.

  5. Opening up the electric utility industry: A vision of progress, opportunities & risks

    Mookerjee, Goray

    Proceedings of the American Power Conference [Proc Am Power Conf], vol. 61 (I), pp. 398-403, 1999

    An analytical framework of the competitive environment to which the electric utility industry is exposed to is discussed. An understanding of this framework is important for addressing many questions in order to ensure the benefits of a free and open wholesale market for electric power, while simultaneously enhancing the economic growth of the market place. It is also important to figure out the most optimized method of producing electricity economically, and yet preserving the nature, its ecosystem, and public health of the community.

  6. Electricity restructuring, innovation, and efficiency

    Gorte, Julie Fox; Kaarsberg, Tina M; Laitner, John A

    Proc Aceee Summer Study Energy Effic Ind, pp. 385-396, 1999

    The United States is now taking significant steps to encourage the restructuring of the electric utility industry. That industry's dominant installed technology, the steam turbine, is no more efficient today than it was in the early 1960s. Much of the motivation behind the restructuring effort is to permit competition from more energy-efficient technologies, particularly gas turbines. For example, the new generation of economically competitive electric supply technologies can lower greenhouse gas emissions by 40-80 percent as a result of their more efficient operation. Technological improvements in the production of electricity are essential to reducing energy costs, air pollution, and carbon dioxide emissions. At the same time, monopoly regulation appears to have stifled productivity and long-term innovation in the U.S. electric utility sector. Other factors also played a part in dampening the incentive to innovate, including overcapacity and the grandfathering of older plants by the Clean Air Act. Experience in the deregulation of other industries suggests that the capacity for sustained innovation may not be supported by the restructuring process alone. For example, the current electric utility restructuring proposals may produce less than one-third of the savings that are economically available in the generation and use of electricity. Other steps may be needed to encourage innovation within the industry.

  7. Regional Impacts of Electricity Restructuring on Emissions of NOx and CO2

    Burtaw, Dallas; Palmer, Karen; Paul, Anthony

    The American electric power industry is undergoing dramatic changes in the way it is structured and regulated. Maryland is among the states preparing to introduce competition for electric supply service. This report provides insights into the potential environmental effects of electricity restructuring in the very near term. As a result of capital turnover and other changes in the industry not explicity modeled here, the longer term effects of restructuring could be very different from those likely to occur over the next five years, the time horizon for this study. Therefore, the results of this study can not be unambiguously extrapolated to the longer run. However, this focus on the short-run does not diminish the relevance of this analysis. Air quality and compliance with emission and air quality regulations are important issues over this near term horizon and this study provides some important insights into how electricity restructuring could affect these issues.

  8. Power generation and greenhouse gas abatement: the effects of generation efficiency, fuel type and renewables

    Millar, G; Hessami, M-A

    Dev Chem Eng Min Process, vol. 7, no. 5, pp. 551-561, 1999

    Power generation in Australia is responsible for about 25% of the country's greenhouse gas emissions. Due to the abundance of coal, most power stations use this fuel as the primary source of energy. The high carbon content of coal combined with the relatively poor power generation efficiency of these facilities, explain the contributions which power generation make to Australia's greenhouse gas emissions. In this paper, the effects of these two parameters, ie, fuel type and generation efficiency, on greenhouse gas abatement is studied. It is shown that by controlling these two factors, there is a significant potential to reduce greenhouse gas emissions in Australia. An analysis of the electricity market showed that renewable energy projects and natural gas fired power stations cannot compete on price with coal fired power stations. Carbon taxes and green energy programs are seen as the most likely ways to make renewable energy and natural gas competitive with coal, and thus reduce greenhouse gas emissions caused by power generation.

  9. Emissions of greenhouse gases from the use of transportation fuels and electricity


    This volume contains the appendices to the report on Emission of Greenhouse Gases from the Use of Transportation Fuels and Electricity. Emissions of methane, nitrous oxide, carbon monoxide, and other greenhouse gases are discussed. Sources of emission including vehicles, natural gas operations, oil production, coal mines, and power plants are covered. The various energy industries are examined in terms of greenhouse gas production and emissions. Those industries include electricity generation, transport of goods via trains, trucks, ships and pipelines, coal, natural gas and natural gas liquids, petroleum, nuclear energy, and biofuels. (DOE)

  10. Environmental protection using social costing

    LEE, R

    Emissions and other residual wastes come from industrial production, commercial and household activities, and transportation. These wastes damage the environment, including human health. As economies grow, so does concern about balancing that growth with the desire for environmental protection. At issue is how much environmental protection we should have. We address this issue using the concept of social costing. The issue is discussed in the context of electric power generation. There is particular concern about the use of fossil fuels such as petroleum, the major fuel used in the Republic of China, and coal which is the most common fuel used in the U.S. Electric power generation is a major source of airborne pollutants such as SO2, NO(x) particulate matter, volatile organic compounds, CO, and CO2. It also results in liquid and solid wastes, and other effects such as changes in land use. To generate electric power, fuel (such as petroleum, coal or enriched uranium) or some other resource (e.g., wind or geothermal) is needed. A fuel cycle consists of a sequence of activities and processes involved in generating electric power. These activities include the following: fuel extraction, treatment, and processing; fuel conversion into electricity; transmission; waste disposal; and transportation of fuel and wastes between the different stages of the fuel cycle. Each stage results in emissions or other residuals. Several recent studies have been about the environmental costs of electricity. (DOE)

  11. Potential environmental effects of energy conservation measures in northwest industries


    The Bonneville Power Administration (Bonneville) has identified 101 plants in the Pacific Northwest that account for 80 percent of the region's industrial electricity consumption. These plants offer a precise target for a conservation program. PNL determined that most of these 101 plants were represented by 11 major industries. We then reviewed 36 major conservation technologies used in these 11 industrial settings to determine their potential environmental impacts. Energy efficiency technologies designed for industrial use may result in direct or indirect environmental impacts. Effects may result from the production of the conservation measure technology, changes in the working environment due to different energy and material requirements, or changes to waste streams. Industry type, work-place conditions, worker training, and environmental conditions inside and outside the plant are all key variables that may affect environmental outcomes. To address these issues this report has three objectives: to describe potential conservation measures that Bonneville may employ in industrial programs and discuss potential primary impacts; to characterize industrial systems and processes where the measure may be employed and describe general environmental issues associated with each industry type; and to review environmental permitting, licensing, and other regulatory actions required for industries and summarize the type of information available from these sources for further analysis. (DOE)

  12. Costing and pricing of electrocity distribution services

    Williams, P; Strbac, G

    Power Engineering Journal [Power Eng J], vol. 15, no. 3, pp. 125-136, Jun 2001

    Costing and pricing of the network service is an important aspect of owning and operating a distribution 'wires' system in the deregulated England and Wales electricity supply industry. At a time of relative stability in the five-year regulatory price control cycle and with the structure of electricity distribution charges attracting regulatory interest, now may be an appropriate time to examine current practices and to consider the increasingly important relationship between distribution costs, performance and price.

  13. Discovering price-load relationships in California's electricity market

    Vucetic, S; Tomsovic, K; Obradovic, Z

    IEEE Transactions on Power Systems [IEEE Trans Power Syst], vol. 16, no. 2, pp. 280-286, May 2001

    This paper reports on characterizing recent price behavior in the California electricity market. Market participants, that is, producers, consumers and traders, are highly motivated by the potential for profits to develop strategies to explore, and exploit, the limits of system operation. These strategies should be reflected in the market as different price to load relationships. We show that a number of regimes, i.e., characteristic behaviors, exist in the price time series, and provide a brief analysis of each regime. Knowledge of the number of regimes, their characteristics and switching dynamics allows insight into the market and power system performance.

  14. Pricing and operation in deregulated electricity market by noncooperative game

    Geerli, L; Chen, L; Yokoyama, R

    Electric Power Systems Research [Electr Power Syst Res], vol. 57, no. 2, pp. 133-139, 5 Mar 2001

    Pricing structure is becoming considerably important for both electric utility industries and their customers. This paper derives an operation rule for a market model with an electric utility and independent power producers (IPPs) as players of the noncooperative game. The derived operation rules reflecting the competition can be viewed as an extension of the conventional equalizing incremental cost method for the deregulated power systems. As indicated in this paper, the prices of electricity for purchases and sales are equal to the incremental costs of the generators of IPPs but are generally cheaper than the incremental cost of the generators belonging to the utility. To examine the proposed approach, several systems are used as the demonstrated examples in this paper. copyright 2001 Elsevier Science B.V.

  15. Electric sector deregulation and restructuring in Latin America: Lessons to be learnt and possible ways forward

    Rudnick, H; Zolezzi, J

    IEE Proceedings Generation, Transmission and Distribution [IEE Proc Gener Transm Distrib], vol. 148, no. 2, pp. 180-184, Mar 2001

    The pioneering restructuring and deregulation process of the electricity industry, which started in Latin America as early as 1982, is assessed. Chile and Argentina, among others, have been at the forefront of innovation in the creation of electricity markets. The experience gained and the principal difficulties encountered in these 18 years are reviewed, highlighting the weaknesses and successes of the deregulation processes. A review is made of the challenges and prospects for development of the electrical sector in the region, where energy integration across countries flourishes and world energy players have started acquiring regional utilities. Regulations and market structures are being evaluated, and countries are introducing changes, the danger being that the remedies being considered may be worse than the disease.

  16. Volatility in the California power market: Source, methodology and recommendations

    Dahlgren, RW; Liu, C-C; Lawarree, J

    IEE Proceedings Generation, Transmission and Distribution [IEE Proc Gener Transm Distrib], vol. 148, no. 2, pp. 189-193, Mar 2001

    Extreme short-term price volatility in competitive electricity markets creates the need for price risk management for electric utilities. Recent methods in California provide examples of lessons that can be applied to other markets worldwide. Value-at-Risk (VAR), a method for quantifying risk exposure in the financial industry, is introduced as a technique that is applicable to quantifying price risk exposure in power systems. The methodology for applying VAR using changes in prices from corresponding hours on previous days is presented. Prices for electricity for the summer of 2000 are examined against previous periods to understand how the hourly VAR entity is exposed when the power system is obligated to serve a load and does not have a contract for supply. The VAR methodology introduced is then applied to a sample company in California that is serving a 100MW load. Proposed remedies for the problems observed in the competitive California electric power industry are introduced.

  17. Project valuation and power portfolio management in a competitive market

    Siddiqi, Shams N

    IEEE Transactions on Power Systems [IEEE Trans Power Syst], vol. 15, no. 1, pp. 116-121, Feb 2000

    Deregulation in the US electric utility industry has lead to the entry of many new market participants, particularly power marketers, which in turn has lead to a much more active and fluid electricity market. With the advent of new market instruments that can be used to hedge one's exposure to market risks, power portfolio management takes on new meaning and new tools and techniques can be used to manage risk. This paper concentrates on long-term project valuation and power portfolio management issues in a competitive environment. It describes a method of valuing risky projects based on Options Pricing Theory and Decision Analysis and its implementation to long-term power portfolio management or integrated resource planning for an electric utility in Texas. The author believes that the methodology described in this paper has wide application in the deregulated competitive electricity market from integrated resource planning for utilities facing competition and valuing a power plant investment by an independent power producer to pricing electricity options.

  18. Managing customer and distribution utility costs

    Slavickas, RA; Alden, RTH; El-Kady, MA

    IEEE Transactions on Power Delivery [IEEE TRANS POWER DELIVERY], vol. 14, no. 1, pp. 205-210, Jan 1999

    A realistic approach to managing customer and utility costs is addressed in the present era of market competitiveness, unbundling of the power industry, and complex electricity pricing structures. The paper incorporates the commodity cost, viewed as the price of electricity, to both the utility and customers in terms of dominant technical, financial, and social factors which include customer perception and quality of service. A novel and unified approach is presented regarding the management of electricity supply options and quality of service to customers. Advanced software has been developed to enable utility management to assess various cost components and their time-trend impacts.

  19. Security-based rescheduling of transactions in a deregulated power system

    David, AK; Fang, RS

    IEE Proceedings Generation, Transmission and Distribution [IEE Proc Gener Transm Distrib], vol. 146, no. 1, pp. 13-18, 1999

    The paper studies security-driven rescheduling in the context of electricity supply industry restructuring. Given that price-based operation is encouraged in an open-market system and that bilateral and pool contracts may coexist within this system, a mathematical methodology to reschedule these transactions, when required for security-related reasons, is developed. The post-contingency corrective capability of each transaction is considered and an attempt is made to achieve optimal rescheduling both for preventive and for post-contingency control. The computational results are helpful for providing an insight into the security challenges faced by an independent system operator in the emerging market structures.

  20. Asset management in the electricity supply industry

    Morton, Kevin

    Power Engineering Journal [Power Eng J], vol. 13, no. 5, pp. 233-240, 1999

    Asset management is given a wide variety of interpretations throughout industry and even within the electricity supply industry. Even within a single company the interpretation may change with time - particularly as the company learns from its mistakes! This is especially true when the relationship between the asset management and service provider groups breaks down or becomes `adversarial'.

  21. Multi-utilities - the way forward

    Roberts, John

    Power Engineering Journal [POWER ENG J], vol. 12, no. 2, pp. 59-70, Apr 1998

    Multi-utilities - the provision of a number of utility services under a single ownership structure - are not new. They have been long established, for example, in the USA, where the concept of the combined gas and electricity utility is well known. However, in the UK, following the privatization of the utility industries, multi-utilities created by takeovers are a new phenomenon. This article examines the benefits and challenges of forming and managing multi-utilities in today's competitive utility marketplace. It discusses the practicalities of operating a business that combines electricity with water (and gas). A number of issues are addressed, including Regulator relations, and management of common services and combined operations.

  22. Total system planning by optimising customer actions in a deregulated power market

    Livik, Klaus; Groenli, Helle; Fretheim, Stig


    In order to create a win-win situation for all market participants it is of great importance to make total system planning based on completely new integrated principles. The paper will describe how a win-win situation can be encouraged in order to obtain an efficient and well-functioned market. The benefits will be quantified for network owner in particular, but the benefits of customers' integrated market participation will be described for system operator, market operator and customer as well. The work of this paper is a part of the Norwegian research project MARCUS with the Norwegian Federation, The Norwegian Research Council and industry companies as main participants.

  23. Deregulation can play savior or spoiler for clean coal progress

    DeMoss, Timothy B

    Power Engineering (Barrington, Illinois) [POWER ENG BARRINGTON ILL], vol. 101, no. 1, pp. 17-23, 1997

    The deregulation of the power industry is affecting technology commercialization in interesting and sometimes unexpected ways. Both the changing industry and recent progress are opening markets for advanced coal technologies. However, evaluation of some of the current projects showed that developers are more uneasy at taking the risk.

  24. Who says you can't store electricity

    Zink, John C

    Power Engineering (Barrington, Illinois) [POWER ENG BARRINGTON ILL], vol. 101, no. 3, pp. 21-25, 1997

    The use of large-scale energy storage facilities by the electric utility industry to address both the volatility and capacity factor issues by shifting sales to peak times and shifting purchases and generation to off-peak times is reported. Electricity futures trading may play an interesting role in the unfolding electricity storage scenario. To properly apply energy storage devices, companies must look for the technology that provides them with the right combination of storage capacity and deliverability. Efforts of the United States Electrical Power Research Institute to develop analytical tools for determining the dynamic benefits of energy storage are described.

  25. Utility customers go for the green

    Lamarre, Leslie

    EPRI Journal [EPRI J], vol. 22, no. 2, pp. 6-15, 1997

    Green pricing programs are being offered by a dozen electric utilities in the US to give customers the option of paying more for their electricity to help fund the installation of environmentally friendly power generation. Photovoltaic panels have been installed on school roofs, new wind turbines are being erected in windy passes, and biomass and hydropower plants are running closer to capacity. This trend is being supported by increasing public enthusiasm for environmentalism and for renewable energy generation technologies. Moreover, the deregulation of the electric industry motivates utilities to seek strategies to attract specific segments of their customer base rather than merely mass produce everything.

  26. The manufacturing institute's energy efficiency toolkit

    Canis, B

    Pollution Prevention Review [Pollut. Prevent. Rev.], vol. 11, no. 2, pp. 47-52, 2001

    Strategies for energy efficiency are more important than ever to today's manufacturers. Harbingers of energy supply problems are increasingly evident in the United States. Last summer, electricity supply problems hit the Midwest and Northeast; gasoline shortages cropped up in the upper Midwest; California's electric energy problems began in the summer and have become more severe in recent months. Tight supplies of natural gas and transportation fuels, along with U.S. Energy Department predictions of potentially higher oil prices, are warning signs that the need for adequate energy supplies has been neglected for too long. An effective national energy policy is needed to alleviate these supply concerns. In the meantime, manufacturers are relying on energy efficiency programs to offset rising fuel costs and dwindling fuel supplies. Simple measures that reduce energy use by 10 percent can shave as much as $18 billion off national energy consumption costs.

  27. Framework for the incorporation of demand-side in a competitive electricity market

    Strbac, G; Farmer, ED; Cory, BJ

    IEE Proceedings Generation, Transmission and Distribution [IEE PROC GENER TRANSM DISTRIB], vol. 143, no. 3, pp. 232-237, 1996

    The paper discusses the importance of simultaneous plant production and demand reduction scheduling which is required for the establishment of a full electricity market where demand-side has opportunity to compete with generators, as is the case with the England & Wales Pool's demand-side bidding (DSB) scheme. It also emphasises that demand cannot be generally treated as negative generation because of the ability of demand to redistribute itself in response to price based load management activities. In that sense, an adequate scheduling methodology of available resources (from supply and demand-sides) is needed to facilitate the new market. However, traditional formulations of the plant scheduling problem are not valid when load reduction is available, as gross demand is not known in advance. For that purpose a composite model for optimal generation and demand reduction scheduling is presented in the paper. It is shown that this model can be used for a comprehensive evaluation of possible scenarios for the implementation of demand-side bidding into the electricity market and the assessment of the influence of DSB on total production costs, system marginal price (SMP) profile, capacity element payments and benefit allocation between producers and consumers.

  28. Reality-based marketing and the competitive electric market

    Jackson, Jerry

    Electrical World [ELECTR WORLD], vol. 210, no. 7, 2p, 1996

    Barring a philosophical sea change among state regulators and Federal Energy Regulatory Commission (FERC) officials, over the next two to six years, all US electric utilities will be freed/forced to compete for customers. Many utilities are now devising business strategies for both this transition period and the competitive era beyond. All of these strategies will not be successful, because no one can envision the day-to-day realities of electric power market competition with complete clarity. The recent history of the airline industry illustrates how difficult it is for regulated companies to anticipate and adapt to open competition. A realistic view of the coming competition in the US electricity market will be just as important for utilities making the transition to competition. By applying basic economic principles and the experiences of other industries to the electric-utility business, it becomes evident which marketing issues will be key for power companies. This article discusses these issues.

  29. Electric Utilities Must Adapt to Shock of Changing Times.

    Pope, C

    RENEWABLE ENERGY NEWS., vol. 4, no. 11 Sec 2, p. 29, 1982

    Electricity is the seed and lifeblood of the modern industrial state. Power producers, analysts warn, exist today in a collective state of shock. The reasons have been well documented: jolting fuel price hikes, historically low electrical rates and new plant construction costs in the past decade have played havoc with what was once a bedrock of American security. These take on added weight when combined with a less known but damaging trend that until 1970 was missed by energy forecasters, namely a dramatic flattening of electricity demand due in large part to growing national awareness of efficiency and conservation.

  30. Decentralised Processing in the Control of Electricity Distribution Networks

    Burton-Smith, MK

    IN "POWER SYS. MONITOR. & CONTR.", IEE, LONDON AND N.Y., 1980, pp. 35-39

    The control system requirements of the electricity industry have increased considerably with the increased size and complexity of the electricity distribution networks. The system has to ensure continuity of supply under varying load conditions and be able to achieve rapid reconnection after fault occurrence. The paper discusses the design requirements of such a system and goes on to describe how the problems have been solved.

  31. Electricity market deregulation and its impact on the nuclear industry

    Jung, YE; Alfors, G

    Nuclear Plant Journal [Nucl Plant J], vol. 19, no. 2, pp. 18+20+40-41, 2001

    The effects of deregulation in the electricity market on the future of nuclear power programs was discussed. In such competitive electricity markets, decommissioning and waste management liabilities are supposed to become important economic risks. The structure of the nuclear power industry is expected to be affected by competition. Other expected trends include restructuring of the nuclear fuel industry; and deline in government funding for research activities for nuclear power.

  32. Electricity market competition and nuclear power

    Varley, C; Paffenbarger, J

    Nuclear Energy [Nucl Energy], vol. 38, no. 3, pp. 167-183, 1999

    Throughout the world, the Organization for Economic Cooperation and Development (OECD) member countries' governments are promoting competitive electricity markets. In particular, there is a move away from administrative price-setting by government institutions to market price-setting through the introduction of competition. Today this is often focused on competition in generation. However, competition among final electricity suppliers and distributors to provide effective consumer choice is a further step that governments are likely to pursue as experience with market reform grows. This competitive environment will undoubtedly impact upon the nuclear generation industry. Competition will provide an opportunity to reinvigorate nuclear power; it will improve the transparency of energy policy-making and the policy framework for nuclear power; it will spur innovation in existing plants and help prospects for new plant build; and provide a strong impetus for cost reduction and innovation. This paper discusses these issues in detail. It looks at the potential benefits and challenges to the nuclear generation industry arising from an increasingly competitive market.

  33. Power delivery in the 21st century

    Douglas, John

    EPRI Journal [EPRI J], vol. 24, no. 2, pp. 18-25, 1999

    EPRI's Electricity Technology Roadmap Initiative seeks to develop a comprehensive vision of opportunities for electricity-related innovation through the mid-twenty-first century. The power delivery function is changing and growing more complex with the exacting requirements of the digital economy, the onset of open power markets, the introduction of modern distributed generation and self-generation, and the saturation of existing transmission and distribution grids. Advanced technologies of dealing with these issues are now under development, and a vision of a more robust, flexible, and precise power delivery infrastructure is emerging.

  34. Getting ready for the open market

    Choudhry, Zafar I

    Proceedings of the American Power Conference [Proc Am Power Conf], vol. 61 (I), pp. 404-410, 1999

    In the open market scenario, every part of electric industry would become wide open to all market participants for competition. The increased competition would push electricity prices down and even out price discrepancies. The customers will have the option to choose their energy provider. The economic opportunities, monopolized by electric utilities by virtue of their location, would become available to all the competing companies in the open market setup. The well-prepared companies would be able to grab these opportunities while the less-prepared companies may not outlive the complexities of this competition. An account of the measures of how power companies can adopt and to successfully face the challenges of the upcoming open market is presented.

  35. Risk and promise in energy market liberalization: Consumer choice in buying electricity

    Barton, Barry

    Applied Energy [Appl Energy], vol. 64, no. 1, pp. 275-288, 1999

    In many countries, where the electricity industry is being exposed to market liberalization, it is found that the hardest part of the market to reform is retail supply to small business and domestic consumers. There are two main alternatives for promoting consumer choice, metering and load profiling. Notable developments are occurring in the United Kingdom, the United States, Scandinavia and New Zealand. Significant legal difficulties are encountered with such reforms. Among them are contract law, energy-sector regulation, competition law, privacy and individual rights, and consumer protection. The disaggregation of the industry, especially at the retail end, imposes special demands on contract and industry self-regulation.

  36. Taking advantage of real-time pricing

    Hoffman, Steve; Renner, Rita

    EPRI Journal [EPRI J], vol. 22, no. 2, pp. 16-23, 1997

    Electric utilities in the US and abroad are discovering the effectiveness of real-time pricing (RTP) in reducing energy costs for a broad range of commercial and industrial customers. Utilities in turn benefit from RTP by retaining their key customers. The Electric Power Research Institute (EPRI) is leading efforts to make RTP even more attractive to power suppliers and consumers alike by linking automated energy management systems in customers' commercial buildings and industrial facilities to hourly price signals from the utility. RTP will probably be adapted by more power providers, service providers, regulators, and end users as the industry gets deregulated and energy service companies change the way electricity is offered to customers.

  37. Electric deregulation: its impact on the cost of air conditioning

    Dolan, William H; Holtberg, Paul D

    STRATEGIC PLANN ENERGY ENVIRON, vol. 15, no. 1, pp. 23-29, 1995

    The potential impacts of electric utility industry deregulation and realignment of electricity prices are key considerations when selecting between gas or electricity for the replacement chiller. This paper determines that, on average, the price of electricity is projected to fall relative to gas, except for cooling applications. The deregulation of the electric power industry is seen to cause the price of electricity in on-peak service to rise dramatically, possibly by an order of magnitude when compared with the price of electricity for off-peak/off-season service. Meanwhile, evolving changes within the gas industry will continue the downward trend of gas prices coincident with air-conditioning loads. It is concluded that gas chillers and 'hybrid' gas/electric plants make more sense in a deregulated energy market.

  38. Environmental impacts of electricity generation. Fuel cells.

    Fry, MR

    IEE PROC PART A SCI MEAS TECHNOL., vol. 140, no. 1, pp. 40-46, 1993

    The power generation industry is facing one of its greatest challenges. As the demand for energy is increasing, so is the environmental damage caused by the combustion of fossil fuels to generate electricity. The industry is now recognising the need for new, or adapted, generation technologies that limit harmful emissions of greenhouse gases. One such technology is the fuel cell, which offers the prospect of a new, silent, modular technology with few or no problems of emissions. The paper describes the principles of operation of fuel cells. Four types of fuel cell are covered: solid polymer electrolyte, phosphoric acid, molten carbonate and solid oxide. The perceived advantages of fuel cells and international and UK fuel cell development programmes are discussed.

  39. Environmental impacts of electricity generation. Some public policy dimensions.

    Chesshire, J

    IEE PROC PART A SCI MEAS TECHNOL., vol. 140, no. 1, pp. 47-52, 1993

    Given the increased political salience of environmental constraints on the energy sector at large, and on power generation in particular, some of the principal policy issues which impinge upon the electricity supply industry (ESI) are examined. Particular emphasis is placed on the two most prominent issues: acid rain and global warming. More emphasis is given to supply-side issues rather than demand-side responses (such as least cost planning). The paper then examines the major characteristics of the UK's stock of generating plant and some of the means available for the ESI to adjust this stock in the light of both specific environmental and wider political pressures.

  40. Towards higher efficiency in water and power utilities

    Al-Alawi, Jamil SK

    Desalination, vol. 123, no. 2-3, pp. 135-142, 10 Oct 1999

    The Gulf Cooperation Council (GCC) states are facing an increasingly high demand in water and electricity supply to meet higher standard of living and developments in various economic sectors. The GCC governments have been able in the past to satisfy most of the demand with a high subsidy, which was affordable. Oil income has decreased considerably in the last few years, which makes it impossible for the governments to continue with the same trend. Most governments are considering various alternatives to meet the continuous demand. This paper presents some of the major issues and suggests various approaches such as restructuring and other cost-effective measures in order to achieve higher efficiencies in water and power sectors in the GCC states. The following list the title of the topics discussed in this paper: (1) privatization and independent authority approach to water and power utilities, (2) water and electricity system integration, (3) interconnection of the GCC states systems, including electrical and natural gas systems interconnection, (4) demand side management including tariffs and conservation, (5) technology and (6) training. The results of these measures, if implemented, will be to relieve the government budget and reduce the high subsidy cost.