GenerationHub Highlights ScottMadden’s Latest Energy Industry Update

ATLANTA - Feb. 5, 2014 - PRLog -- Wayne Barber, chief analyst for GenerationHub, recently highlighted ScottMadden’s Energy Industry Update (http://www.scottmadden.com/insight/675/The-ScottMadden-Energy-Industry-Update.html). This semi-annual publication features ScottMadden’s view of recent events and emerging trends in the industry and is received by more than 10,000 industry leaders. To access the article, “ScottMadden Updates Changing Face of Power Industry,” please click here (http://generationhub.com/pages/article_pdf.php?aid=2014/02/03/scottmadden-updates-changing-face-of-power-industr).

“A number of factors ranging from flat demand growth to energy efficiency and ‘surprisingly rapid’ growth in rooftop solar and other renewable power are challenging the traditional volume-based utility revenue model,” said Mr. Barber. “This is the thrust of a recently released power industry update from ScottMadden Management Consultants. Atlanta-based ScottMadden issues its energy industry update every six months.”

“The update, released January 27, reports distributed solar capacity increased 83% from 2011 to Q2 2013; nearly 75% of total capacity exists in California, New Jersey, Arizona, Massachusetts, and Hawaii,” continued Mr. Barber. “The recent spike in distributed generation raises operational, business, and ratemaking challenges for utilities.”

“However, for solar companies, there will be opportunities to partner with utilities as this market continues to grow,” the firm notes in the update.

“Depending upon incentive structure, renewable capacity can be added perhaps more quickly than expected. Germany added 7.6 GWs of solar generation in 2012 alone,” said Mr. Barber.

“On the domestic power front, it appears that the merger pace could be picking up. Utility mergers and acquisitions could be aided by continued historically low interest rates. Ongoing interest in diversifying risk, especially geographically, could be a factor as well,” ScottMadden said in the report.

Mr. Barber continued, “The ScottMadden report also suggests that coal plant retirements could bring some regions close to ‘the edge’ on peak energy shortfalls. One recent report suggested that coal retirements could increase PJM East peak energy prices by $9 to $11 per MWh during peak hours (about half that during off-peak hours). Meanwhile, generators also complain that market structures and prices are not enough to spark building of new power plants.”

“The North American Electric Reliability Corp. (NERC)’s latest forecast shows some possibly acute power generation capacity shortfalls in a few regions as early as 2016, but a surplus in most regions for the balance of the decade,” ScottMadden said.

“While natural gas prices remain modest, things could shift upward in the 2015–2018 period with the commissioning of much new gas-fired generation together with an increase in liquefied natural gas (LNG) exports,” noted Mr. Barber.

About the Author
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career he has visited nuclear reactors and coal mines as well as coal and natural gas power plants.

About ScottMadden’s Energy Practice
Since 1983, we have been energy consultants. We have served more than 300 clients, including 20 of the top 20 energy utilities. We have performed more than 2,400 projects across every energy utility business unit and every function. We have helped our clients develop strategies, improve operations, reorganize companies, and implement initiatives. Our broad and deep energy utility expertise is not theoretical—it is experience based.

About ScottMadden, Inc.
ScottMadden is the management consulting firm that does what it takes to get it done right. Our practice areas include Energy, Clean Tech & Sustainability, and Corporate & Shared Services. We deliver a broad array of consulting services ranging from strategic planning through implementation across many industries, business units, and functions. To learn more, visit www.scottmadden.com | Twitter (https://twitter.com/#!/SM_Energy) | Facebook (http://www.facebook.com/#!/ScottMaddenInc) | LinkedIn (http://www.linkedin.com/company/37992)

Media Contact:
Mary Tew
marytew@scottmadden.com (mailto:maryhall@scottmadden.com)
919-714-7628