Despite high natural gas prices and reports of flat productionthroughout North America over the last five years, gas-firedelectric generation in operation, construction or developmentreached a new all-time record in the month of March, according to anew report by Energy Ventures Analysis Inc (EVA). With the help ofnew projects announced within the last three months, gas-firedgeneration topped 305,000 MW.

As reported in EVA’s report, Tracking the Building Boom of NewPower Plants in the U.S., the new record represents a 13% increaseover gas-fired generation in the fourth quarter of 2000. Some ofthe fastest growing gas-fired electric generation states in 2001include Indiana, Kentucky, New York and California, EVA said.

“Developers of gas-fired capacity have perfected a standardizedtemplate for new projects,” said Stephen L. Thumb, director ofEVA’s natural gas practice. “For example, the lower NOx and SO2emissions of a new combined cycle facility, by comparison, can bekey to overcoming local opposition to a project. This is one reasonwhy higher natural gas prices have yet to quell developers’enthusiasm for these projects.”

According to the Energy Information Administration, EdisonElectric Institute and EVA, gas-fired capacity additions areexpected to more than double in 2001, from 23.9 GW in 2000 to 51.8GW for 2001. The companies have also forecasted that capacityadditions will grow further to 83 GW in 2002 and 88.2 GW in 2003.

EVA said coal-fired generation also seems to be making acomeback with a substantial number of new projects being reportedby developers. Currently, the group is tracking over 20,000 MW ofnew coal-fired projects.

“Higher natural gas prices, higher electricity prices, a powercrisis in the West and a Republican in the White House all bodewell for new coal-fired power plants,” said Seth Schwartz, directorof EVA’s coal practice. An added factor in coal’s favor is therecent improvements that shorten the time it takes to construct acoal-fired power plant, thus decreasing the risk and increasing thereturn to developers, the group said. The interesting part will beto see whether the number of coal projects grows or shrinks in thenear future, EVA said.

For more information regarding the report, contact MichaelSchaal with EVA at 703-276-8900, or visit EVA’s web site.

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