In the highly capital-intensive electricity supply industry, it is essential that both engineers and managers understand the methodologies of project evaluation in order to comprehend and analyse investment proposals and decisions. This updated and expanded edition of Economic Evaluation of Projects in the Electricity Supply Industry takes a broad introductory approach, covering planning and investment, financial analysis and evaluation, risk management, electricity trading, and strategies, technologies, national requirements and global agreements for electricity generation in a carbon-constrained world.
Developments covered by this new edition include the changing mix of fuels in the power generation sector, greater involvement of the private sector in power generation investments through independent power producers, the important role of regulations, the growing interest in clean electricity generation, the economics of investing in renewables, the introduction of smart grids and intelligent meters and networks, and cyber security.
Economic Evaluation of Projects in the Electricity Supply Industry, 3rd Edition is essential reading for academic and industrial engineers and economists concerned with energy supply, students of energy economics and planning, industry planners and project managers, and government and regulatory officials.
In the highly capital-intensive electricity supply industry, it is essential that both engineers and managers understand the methodologies of project evaluation in order to comprehend and analyse investment proposals and decisions. This fully revised and updated edition of Economic Evaluation of Projects in the Electricity Supply Industry (1996) takes a broad introductory approach, covering market and environmental issues, financial analysis and evaluation, and clean environmental technologies and costs. New topics include electricity trading and risk management, evolving electricity utilities and new and future generation technologies in a carbon-constrained world.
Written primarily for engineers to assist them in evaluating economics of power projects and their environmental implications, the book will also be of value to economists and financial analysts needing an understanding of the area.
No symbol of progress in our century is more galvanizing than electricity—electric power and the technology it has spawned. The "invisible world" of electric energy that was emerging at the turn of the century is one we take for granted, but its influence on the growth and quality of city life was, and remains, profound. Using Chicago as a test case, Harold L. Platt investigates the emergence of an urban-based, energy-intensive society over the course of half a century in this first book-length history of energy use in the city.
The electricity market has experienced enormous setbacks in delivering on the promise of deregulation. In theory, deregulating the electricity market would increase the efficiency of the industry by producing electricity at lower costs and passing those cost savings on to customers. As Electricity Deregulation shows, successful deregulation is possible, although it is by no means a hands-off process—in fact, it requires a substantial amount of design and regulatory oversight.
This collection brings together leading experts from academia, government, and big business to discuss the lessons learned from experiences such as California's market meltdown as well as the ill-conceived policy choices that contributed to those failures. More importantly, the essays that comprise Electricity Deregulation offer a number of innovative prescriptions for the successful design of deregulated electricity markets. Written with economists and professionals associated with each of the network industries in mind, this comprehensive volume provides a timely and astute deliberation on the many risks and rewards of electricity deregulation.
This book is unique in gathering under one over all the elements of electricity economics and planning, both for the traditional approach and for the new developments of the 1990s, e.g. privatisation, competition, deregulation and more efficient markets and pricing. All the fundamental institutional aspects of electricity in the 1990s are also discussed, particularly relevant at a time when the utilities of the developed world are being restructured, those of the ex-centrally planned economies are being profoundly reorganised and those of developing countries have enormous debt problems. The book describes how these challenges of the 1990s are to be understood and met.
Planning as Persuasive Storytelling is a revealing look at the world of political conflict surrounding the Commonwealth Edison Company's ambitious nuclear power plant construction program in northern Illinois during the 1980s. Examining the clash between the utility, consumer groups, community-based groups, the Illinois Commerce Commission, and the City of Chicago, Throgmorton argues that planning can best be thought of as a form of persuasive storytelling. A planner's task is to write future-oriented texts that employ language and figures of speech designed to persuade their constituencies of the validity of their vision. Juxtaposing stories about efforts to construct Chicago's electric future, Planning as Persuasive Storytelling suggests a shift in how we think about planning. In order to account for the fragmented and conflicted nature of contemporary American life and politics, that shift would be away from "science" and the "experts" and toward rhetoric and storytelling.
Today’s electric power companies compete to provide cleaner electricity. That’s a good thing, but progress has come with costs, especially for communities reliant on the coal industry. Thomas McGarity examines the changes of recent decades and offers ideas for building a more sustainable grid while easing the economic downsides of coal’s demise.
In the late 1990s, while Enron was flying high, a smaller power company flew under the radar. AES was founded in 1981 according to a different set of principles—fiscally conservative investment strategies paired with the belief that business can be both fun and socially responsible.
When Roger Sant arrived in Washington, D.C., in 1974, industry and government were focused on securing ever more oil, gas, coal, and nuclear energy, not on efficiency. Sant, who left a teaching position at Stanford’s business school to become assistant administrator of the Federal Energy Administration, was committed to changing the focus. With his colleague Dennis Bakke and a handful of investors, Sant founded AES, an upstart energy service company that would ultimately help transform the industry. The company was built on Sant and Bakke’s ideals: a healthy work environment, a healthy natural environment, and efficient electricity generation and delivery at an affordable price. AES seized the opportunities created by deregulation of the electricity industry, breaking free of an energy infrastructure dating back to Thomas Edison’s day. While Enron and many others stumbled, AES proved itself able to survive and often to thrive. Rapid growth would become the company’s greatest challenge, yet through exhilarating highs and disappointing lows, AES has maintained its founders’ original vision of electricity generation that sustains workers, consumers, and the environment.
Power to People is the story of electricity privatization, expanding global markets, and the transformation of an industry. It is also proof of the electrifying combination of innovation and good citizenship.
From the solitary windmill standing sentry over a rural homestead to the sleek machinery of a modern wind farm, windmills are a powerful symbol of self-reliance and human ingenuity. Once the province of backyard tinkerers and eccentric inventors, they have over the past two decades entered the mainstream to be embraced by environmentalists, venture capitalists, and policymakers alike. But reaching that point wasn't easy.In Reaping the Wind, journalist Peter Asmus tells the fascinating and convoluted history of commercial wind power in the United States. He introduces readers to maverick scientists and technologists who labored in obscurity, to entrepreneurs and visionary capitalists who believed that a centuries-old idea could be made feasible in the modern world, and to enterprising financial advisers and investors who sought to exploit the last great tax shelter in federal history. Beginning with the early pioneers, from William Heronemus, a former U.S. Navy captain who dreamt of huge floating wind farms off the coast of New England, to the $40 million success story of Jim Dehlsen of Zond, he offers an animated narrative that profiles the colorful cast of characters involved with the development of the American wind power industry.Reaping the Wind is both engaging and instructive, with information about the technologies and policies that drive the industry and give it promise interwoven with the human story of the struggle to develop -- against great odds -- reliable, clean energy from a source as unpredictable and seemingly uncontrollable as the wind. Anyone interested in renewable energy or the human and political drama behind the development of new technologies will find the book an engrossing and enlightening read.
Traditionally protected as monopolies, electric utilities are now being caught in the fervor for deregulation that is sweeping the country. Nearly forty states have enacted or are considering laws and regulations that will profoundly alter the way the electric utility industry is governed. Concerned citizens are beginning to ponder the environmental implications of such a change, and while many fear that the pressure of competition will exacerbate environmental problems, others argue that deregulation provides a tremendous opportunity for citizens to work toward promoting cleaner energy and a more sustainable way of life.In Reinventing Electric Utilities, Ed Smeloff and Peter Asmus consider the challenges for citizens and the utility industry in this new era of competition. Through an in-depth case study of the Sacramento Municipal Utility District (SMUD), a once-troubled utility that is now widely regarded as a model for energy efficiency and renewable energy development, they explore the changes that have occurred in the utility industry, and the implications of those changes for the future. The SMUD portrait is complemented by regional case studies of Portland General Electric and the Washington Public Power Supply System, the New England Electric Service, Northern States Power, the Electricity Reliability Council of Texas, and others that highlight the efforts of citizen groups and utilities to eliminate unproductive and environmentally damaging sources of power and to promote the use of new, cleaner energy technologies.The authors present and explain some of the fundamental principles that govern restructuring, while acknowledging that solutions will depend upon the unique resource needs, culture, and utility structure of each particular region. Smeloff and Asmus argue that any politically sustainable restructuring of the electric services industry must address the industry's high capital cost commitments and environmental burdens.Throughout, they make the case that with creative leadership, open and competitive markets, and the active participation of citizens, this upheaval offers a unique opportunity for electric utilities to lessen the burden of electricity production on the environment and reduce the cost of electric services through the use of more competitive, cleaner power sources.While neither technological innovation nor the magic of the market will in and of itself reinvent the electric utility industry, the influence of those dynamic forces must be understood. Reinventing Electric Utilities is an important work for policymakers, energy professionals, and anyone concerned about the future of the electric services industry.
This book pursues the fundamental idea of using renewable energies in a rational and economic way in order to develop a climate-friendly electricity supply. As the most cost efficient solution, an electricity network for the whole of Europe and parts of Africa and Asia must be found. The sources of renewable and partly decentralised electricity generation could be connected in a comprehensive power supply to meet the electricity needs of an entire region.
Czisch examines different scenarios for a CO2 neutral electricity system under different political, technological and economic conditions for Europe and its closer surroundings. The aim is to find in each variation the economically optimal solution, whereby the supply area embraces approximately 1.1 billion inhabitants and an electricity consumption of roughly 4000 terrawatt-hours per annum (TWh/a).
We remember Thomas Edison as the inventor of the incandescent light bulb, but he deserves credit for something much larger, an even more singular invention that profoundly changed the way the world works: the modern electric utility industry. Edison’s light bulb was the first to work within a system where a utility generated electricity and distributed it to customers for lighting. The story of how electric utilities went within one generation from prototype to an indispensable part of most Americans’ lives is a story about the relationships between political and technological change.
John L. Neufeld offers a comprehensive historical treatment of the economics that shaped electric utilities. Compared with most industries, the organization of the electric utility industry is not—and cannot be—economically efficient. Most industries are kept by law in a state of fair competition, but the capital necessary to start an electric company—generators, transmission and distribution systems, and land and buildings—is so substantial that few companies can enter the market and compete. Therefore, the natural state of the electric utility industry since its inception has been a monopoly subject to government oversight. These characteristics of electric utilities—and electricity’s importance—have created over time sharp political controversies, and changing public policies have dramatically changed the industry’s structure to an extent matched by few other industries. Neufeld outlines the struggles that shaped the industry’s development, and shows how the experience of electric utilities provides insight into the design of economic institutions, including today’s new large-scale markets.
Few industries in the U.S. are as stuck in the past as our utilities are. In the face of growing challenges from climate change and the need for energy security, a system and a business model that each took more than a century to evolve must now be extensively retooled in the span of a few decades. Despite the need, many of the technologies and institutions needed are still being designed or tested. It is like rebuilding our entire airplane fleet, along with our runways and air traffic control system, while the planes are all up in the air filled with passengers.
In this accessible and insightful book, Peter Fox-Penner considers how utilities interact with customers and how the Smart Grid could revolutionize their relationship. Turning to the supply side, he considers the costs of, and tradeoffs between, large-scale power sources such as coal plants and small-scale power sources close to customers. Finally, he looks at how utilities can respond to all of these challenges and remain viable, while financing hundreds of billions of dollars of investment without much of an increase in sales.
Upon publication, Smart Power was praised as an instant classic on the future of energy utilities. This Anniversary Edition includes up-to-date assessments of the industry by such leading energy experts as Daniel Estes and Jim Rogers, as well as a new afterword from the author. Anyone who is interested in our energy future will appreciate the clear explanations and the in-depth analysis it offers.
A new national policy on climate change is under debate in the United States and is likely to result in a cap on greenhouse gas emissions for utilities. This and other developments will prompt utilities to undergo the largest changes in their history. Smart Power examines the many facets of this unprecedented transformation.
This enlightening book begins with a look back on the deregulatory efforts of the 1990s and their gradual replacement by concerns over climate change, promoting new technologies, and developing stable prices and supplies. In thorough but non-technical terms it explains the revolutionary changes that the Smart Grid is bringing to utility operations. It also examines the options for low-carbon emissions along with the real-world challenges the industry and its regulators must face as the industry retools and finances its new sources and systems.
Throughout the book, Peter Fox-Penner provides insights into the policy choices and regulatory reform needed to face these challenges. He not only weighs the costs and benefits of every option, but presents interviews with informed experts, including economists, utility CEOs, and engineers. He gives a brief history of the development of the current utility business model and examines possible new business models that are focused on energy efficiency. Smart Power explains every aspect of the coming energy revolution for utilities in lively prose that will captivate even the most techno-phobic readers.
Edited by Jerry A. Hausman and David A. Wise University of Chicago Press, 1985 Library of Congress H62.S6735 1985 | Dewey Decimal 361.6072
Since 1970 the United States government has spent over half a billion dollars on social experiments intended to assess the effect of potential tax policies, health insurance plans, housing subsidies, and other programs. Was it worth it? Was anything learned from these experiments that could not have been learned by other, and cheaper, means? Could the experiments have been better designed or analyzed? These are some of the questions addressed by the contributors to this volume, the result of a conference on social experimentation sponsored in 1981 by the National Bureau of Economic Research.
The first section of the book looks at four types of experiments and what each accomplished. Frank P. Stafford examines the negative income tax experiments, Dennis J. Aigner considers the experiments with electricity pricing based on time of use, Harvey S. Rosen evaluates housing allowance experiments, and Jeffrey E. Harris reports on health experiments. In the second section, addressing experimental design and analysis, Jerry A. Hausman and David A. Wise highlight the absence of random selection of participants in social experiments, Frederick Mosteller and Milton C. Weinstein look specifically at the design of medical experiments, and Ernst W. Stromsdorfer examines the effects of experiments on policy. Each chapter is followed by the commentary of one or more distinguished economists.
Ties That Bind
Charles Jacobson University of Pittsburgh Press, 2001 Library of Congress HD2766.J33 2000 | Dewey Decimal 363.60973
In the early days of utility development, municipalities sought to shape the new systems in a variety of ways even as private firms struggled to retain control and fend off competition. In scope and consequence, some of the battles dwarfed the contemporary one between local jurisdictions and cable companies over broadband access to the Internet.
In this comparative historical study, Jacobson draws upon economic theory to shed light on relationships between technology, market forces, and problems of governance that have arisen in connection with different utility networks over the past two hundred years. He focuses on water, electric, and cable television utility networks and on experiences in four major American cities—Boston, Seattle, San Francisco, and Pittsburgh, arguing that information and transactions costs have played decisive roles in determining how different ownership and regulatory arrangements have functioned in different situations.
Using primary sources and bold conceptualizations, Jacobson begins his study by examining the creation of centralized water systems in the first half of the nineteenth century, moves to the building of electric utilities from the 1880s to the 1980s, and concludes with an analysis of cable television franchising from the 1960s to the 1980s. Ties That Bind addresses highly practical questions of how to make ownership, regulatory, and contracting arrangements work better and also explores broader concerns about private monopoly and the role of government in society.
When They Hid the Fire examines the American social perceptions of electricity as an energy technology that were adopted between the mid-nineteenth and early decades of the twentieth centuries. Arguing that both technical and cultural factors played a role, Daniel French shows how electricity became an invisible and abstract form of energy in American society. As technological advancements allowed for an increasing physical distance between power generation and power consumption, the commodity of electricity became consciously detached from the environmentally destructive fire and coal that produced it. This development, along with cultural forces, led the public to define electricity as mysterious, utopian, and an alternative to nearby fire-based energy sources. With its adoption occurring simultaneously with Progressivism and consumerism, electricity use was encouraged and seen as an integral part of improvement and modernity, leading Americans to culturally construct electricity as unlimited and environmentally inconsequential—a newfound “basic right” of life in the United States.