State of Industry

Changing Utility Business Models And Electricity Investment In Europe

The traditional utility business model of selling electricity from large-scale thermal power plants and expanding grids to meet rising demand historically has supported strong balance sheets. With this financial strength, utility retained earnings served as the primary financing source for the...

The End of the Road for Transmission Incentives

In a significant shift, the Federal Energy Regulatory Commission (FERC) has decided to abandon its transmission incentives policy, particularly the construction work in progress (CWIP) incentives. This decision marks a pivotal change in how transmission projects are financed and regulated,...

How utilities can keep the lights on

Utilities worldwide have been on a roller-coaster ride, and an often painful one, over the past decade. Despite the sharp growth in global demand for electricity, many utilities have lost value or posted below-average returns. A McKinsey analysis of 50 major publicly listed utilities from Asia,...

DOE Grants $2.2B for Transmission and Storage Projects

In a landmark move aimed at accelerating the U.S. transition to a more resilient and sustainable energy grid, the Department of Energy (DOE) has announced a groundbreaking investment of $2.2 billion in innovative transmission and energy storage projects across 18 states. This significant funding...

The Power Of Microgrids

Navigant Research forecasts that the worldwide microgrid market will grow to more than 4,000 megawatts in capacity by 2020. However, policymakers must emphasize standards and create a regulatory environment that supports this growth. Over a year ago in Electricity Today Magazine, I articulated how...

Texas PUC Shelves $1B Grid Credit Mechanism

The Public Utility Commission of Texas (PUCT) has unanimously decided to shelve the proposed $1 billion Performance Credit Mechanism (PCM) for power generators, concluding that it would not deliver the anticipated grid reliability benefits. The PCM was conceived as a means to incentivize power...

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