Benchmarks

Fortnightly Magazine - July 15 2000
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DC PSC RFP Technical Consultant for Formal Case (FC) No. 1156



Some analysts argue that the limited supply of combustion turbines poses the greatest impediment to new construction of power plants. They point out that a customer placing an order for a gas-fired turbine today will have to wait until 2004 to take delivery. Because of this shortage of turbines, so the argument goes, capacity additions will not keep up with demand: A supply crisis is imminent.

All evidence RDI could garner contradicts the assertion that turbine availability will lead to power supply shortages. First, areas such as New England and Texas already have more new power plants than the market needs. In other areas, it appears that once a developer has obtained regulatory or environmental permits, it can partner with companies that have ample turbine supply to develop the project.

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