September 21, 2009

It's taken five years. But the Public Service Commission of Wisconsin has given approval to American Transmission Co. to build a new 32-mile high voltage transmission line that will link two towns within the state and which will be complete by 2013. While obscure to most of the nation, the $215 million project may represent a gradual shift in how transmission is owned and permitted.

The demand for energy is expected to keep climbing and contributing value to most power facilities. In states that have restructured their electricity markets, that energy can be sold at market rates, giving well-run facilities the chance to earn superior returns. Transmission systems, however, will continue to be regulated, perhaps making the investments less attractive to certain utilities and more appealing to third party transmission owners.

September 18, 2009

The regulatory and financial maze surrounding the construction of new nuclear plants might be circumvented if some developers are able to commercialize smaller, less controversial reactors. Such efficient units could be built and shipped at a fraction of the time and money than the much bigger base-load facilities.

The focus is now on right-sized reactors that are typically between 100 megawatts and 300 megawatts. They would be mostly marketed to developing nations where the transmission grids cannot handle the larger, 1,000-3,000 megawatt systems. And while the concept may sound appealing, researchers must still prove that idea is doable. Once the projects are shown to be feasible, developers can then take the various components of the smaller facilities and use them to form base-load plants.

September 14, 2009

With the prevailing emphasis on reducing carbon emissions, natural gas producers could become more instrumental in developing national energy policy. But the industry must still demonstrate that it can safely produce and deliver its product.

For starters, natural gas developers have been fighting for increased access to natural gas deposits that have long been off-limits to production. Getting newfound rights remains tough and especially in today's economy, particularly as the nation's natural gas storage limits are getting maxed out and the product is literally getting dumped onto markets at the cheapest prices in a decade.

Beyond that, the coal industry has a ton of political power, as evidenced by the waivers -- and federal dollars -- it received in the recently passed House energy bill. In the area of power plant generation, coal is still king and natural gas must compete with it.

August 26, 2009

If folks thought this recession has been a doozy, they may want to consider the one that could hit in a decade as the demand for oil permanently exceeds production.

The International Energy Agency says in a report that the 800 biggest fields around the world that comprise three-quarters of all reserves have already hit peak. Moreover, the pace of the decline in production is about twice that of what it was in 2007. That means that the so-called peak oil theory whereby global oil demand meets declining production is 10 years away, all according to the agency's chief economist Fatih Birol.

August 21, 2009

When it comes to a smarter grid, utilities have been learning that success is about more than just technology. It's about people -- people inside the utility and people outside.

That is, in order for a project to succeed, it is important to have all of the internal departments on the same page and working together. These include administration, operations, engineering, IT and customer service. Similarly, understanding and cooperation are vital with external entities, such as municipalities, legislatures, regulators and consumer groups.