Generation & Markets

We overbuild, run short, then overbuild again. You'd think we'd learn, because when the forecasts aren't accurate, when overcapacity plagues the industry, companies fail. Can we get the forecasts right? Probably not. But we can plan for forecasts that will be wrong. They always are. And they will be until the system is redesigned to let prices clear the market.

Renewable portfolio standards or mandatory renewable quotas have been established in 20 states and formally considered in 6 more. There is currently an energy shortfall of 118,400 GWh between operating non-hydro renewable electric output today and that required in 2020. Many state and local regulatory agencies have begun to work together to overcome many of the historic barriers to renewables development, such as transmission constraints, permitting, tax policy, and trading. It's clear that they will have to if renewable energy technologies are ever to meet state renewable portfolio standards.

It's tempting to chalk up the recent bubble in merchant generation to just another industry cycle, but there's more to consider. Investors have not made a wholesale exit from power finance. It is true that many have taken significant losses. It is also true that some remain wary. Despite all this, investors continue to enter the market and address the needs of the industry today.

An analysis of the timing, location, and mix of new capacity additions that may be needed in the future.

Joint coal-wind development is not a good greenhouse gas reduction strategy. If carbon limits are imposed on the U.S. electric sector at some future date, nuclear power may be the only viable option for satisfying the country's growing appetite for electricity.