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Boom and Bust? Understanding the Power Plant Construction Cycle

Rising energy demand could spur investment in waves, but a fixed capacity charge might flatten the curve.
Fortnightly Magazine - July 15 2000

of the construction loop could lead to periods of under and over supply. To sort out the possible patterns, we turn to computer simulation. (See main text.)

Notes to Appendix

* The California ISO market surveillance unit reports that PX day-ahead prices and ISO real-time prices were similar for most load conditions during the early months of 1998. In a more recent assessment, Borenstein reports that the prices have "gravitated toward one another and have been statistically indistinguishable during most, though not all of 1999."

# The estimate of $28.5 per megawatt-hour is explained by Klein (1997). In a more recent report, the California Energy Commission estimates the fully levelized cost of a CCCT at $31.3 per megawatt-hour (Grix 2000).

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