Designing powerplants for today's competitive environment

Deregulation continues to unfold. Certainty about what the impact will be is as scarce as new US powerplant development opportunities. But one thing industry observers seem clear on is that the priorities for powerplant design will shift as competitive forces are rolled out. Powerplants will have to be developed, designed, and operated as a bottom-line business, not as part of a regulated industry. Thus, the design must enable the facility to accomplish this goal. In the emerging fully competitive environment, that bottom line applies to both the kilowatt and the kilowatt-hour. The entrepreneurial and business skills and talents of the independent power producer (IPP) have mostly been brought to bear on capital costs and project development thus far, with electricity sold under long-term power-purchase agreements. If retail wheeling takes hold, future plants must also be designed to merchandise power to a variety of customers scattered around the grid. This article provides insight into how powerplant design will accommodate new priorities