铭远-广核Electricity Basics 06-3-8.pptVIP

Electricity Basics 2006.3.8 Policy Trilemma Energy Intensity Can Be Reduced Through Electrification What 10,000 GW of Global Generating Capacity Means Tripling current world powerplant capacity Adding 200,000 MW/yr Investing $100-150 billion/yr It’s equivalent to: 5 years of current world automobile engine production Less than 0.3% of world GDP Less than the world spends on cigarettes, etc. It can and must be done! The Role of Distributed Resources Power marketing improves electricity market efficiency and offers products and services to hedge electricity price risk. The transition from regulation to competition is fundamentally changing how your company will create value. Most utilities now have a portfolio of four profoundly different businesses --and employees, systems and cultures tuned to create value in a world that is rapidly disappearing. Competitive transformation requires the ability to understand the value potential and risk of corporate and business strategies under a range of future scenarios. North American Reliability Regions U.S. Capacity Margins are Decreasing Restructuring Activity in the U.S. Market Structure - Current Independent System Operator (ISO)/Regional Transmission Organization (RTO) Network PJM Market - Electric Infrastructure Summary U.S. PPA Sales Restructuring Salient Transactions Have Defined a Range of Values in the U.S. The Market for Generation Assets The Market for Generation Assets The source of volatility in the spot market price of electricity results from the interaction of supply and demand. In a competitive commodity market, the spot price is the market clearing price (MCP), which is the opportunity cost to serve additional unit of demand. The spot price volatility may come from uncertainty with demand or supply. If electricity could be stored effectively, its price at one period in time is more relevant to the price at the subsequent time period. An electricity price model (e.g., IMPACT) captures regional physical el