Benchmarks

Deck: 
A hypothetical look at moneymakers across regions.
Fortnightly Magazine - November 1 2003
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Benchmarks

A hypothetical look at moneymakers across regions.

Reuters Events – Energy Transition North America 2022 – #ETNA2022 – Register Now – Houston, Texas; November 9–10


Given the high degree of ongoing electric market uncertainty, it can be challenging to get a reading on the current and future health of power markets. One way to gauge the health of the generation segment of the electric sector is to simulate the financial performance of a new gas-fired, combined-cycle unit. To perform this analysis, we start with the cost and performance characteristics of a new combined-cycle unit. Let us use these characteristics across all regions. We assume a 7,000 Btu/kWh heat rate, a $575/kW total project cost, a fixed operations and maintenance (O&M) cost of $15/kW-yr, and a variable O&M of $2/MWh. To achieve national coverage, we can examine 6 regional price points:

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