Research

A new report by Cambridge Energy Research Associates (CERA)identifies three plausible future paths for the power industry andin particular the transmission sector, which has been plagued bygridlock because of a tangle of infrastructure problems andregulatory uncertainty.

A new report by Cambridge Energy Research Associates (CERA)identifies three plausible future paths for the power industry andin particular the transmission sector, which has been plagued bygridlock because of a tangle of infrastructure problems andregulatory uncertainty.

Cambridge Energy Research Associates (CERA) issued a report lastweek outlining the possible avenues retail marketing will take asit matures. The report, ‘Customer Choice in the Information Age:North American Retail Energy Scenarios to 2015’, forecasts thedifferent situations that would develop based on how fast regulatedutilities exit retail markets.

Chicago-based GRI and GE Zenith Controls have signed a researchcontract to develop an Advanced Grid Interconnected SwitchgearSystem for the distributed generation (DG) market. The new product— expected in the marketplace by late 2001 — will build onexisting GE Zenith technology to allow for low-cost, rapidinterconnection (plug-and-play) of distributed systems within theelectric grid. DG is the integrated or stand-alone use of small,modular electric generation close to the point of consumption. Itis installed for the benefit of the specific customer, the electricsystem or both. Three independent trends — utility industryrestructuring, increasing system capacity needs, and technologyadvancements — are concurrently laying the groundwork for thepossible widespread introduction of DG. “We expect the jointproduct development effort will offer the advantage of a quantumleap in technology that will kick-start the proliferation of DG,”said David Leslie, GE Zenith Controls paralleling switchgearproduct manager. “This product will significantly lower the initialcost of interconnection equipment, and will be simple to install,commission, operate and maintain — providing a major boost todistributed generation markets.

The Electric Power Research Institute (EPRI ) said yesterday ithas created a new program that focuses on Internet security issuesas they impact the energy industry in response to a series ofrecent hacker incidents, which brought e-business to a halt onseveral high profile websites. There is a growing concern thatsimilar intrusions could interrupt the critical interdependentsystems that support the global energy infrastructure. “Ourimmediate focus is on the vulnerabilities of the electronic systemsthat monitor and operate our business systems and provide criticalcommunications within and outside the energy business,” saidCharlie Siebenthal, manager of EPRI’s Enterprise InfrastructureSecurity (EIS) program. “In the long term, the EIS program willshift its emphasis to the design and management of electronicsecurity activities that will augment a company’s existing physicalsecurity programs.” The program will consist of a series ofworkshops covering broad program issues, in-depth electronicsecurity technical issues, and legal issues. Participation is opento any company actively engaged in the production, transportation,distribution, or sale of energy. The first EIS workshop will beheld April 26-28, 2000 in Orlando, FL. Details are posted on theprogram website, http://eis.epri.com/. For additional informationon the EIS program please contact Susan Marsland (650/855-2946) orat smarslan@epri.com.

Today’s conference was brought to you by the letter E. Indeed,the fifth letter of the alphabet loomed large on the first day ofthe Cambridge Energy Research 19th annual Executive Conference inHouston yesterday.

Recent reports from the Gas Research Institute (GRI), ElectricPower Supply Association (EPSA), and INGAA on new merchant powerplant generation indicate gas demand is on the verge of a majorboom. The EPSA said the potential generating capacity fromannounced merchant power plants has doubled since October of lastyear. In conjunction with this growth, GRI said half of the sizablegas demand increase expected over the next 15 years would come fromelectricity generation usage. INGAA’s study indicated thatgas-fired generation is in a “prime” position to succeed in afederally deregulated electric market, even with the inclusion of arenewable portfolio standard in the federal legislation. Thereports were published separately earlier this week.

In its latest study, the Gas Research Institute (GRI) predictednatural gas will dominate the market share among competing fuelsfor industrial energy demand over the next 15 years. Currently,industrial demand accounts for 45% of all gas consumption. Thestudy, released last week, was prepared by the GRI and Energy andEnvironmental Analysis Inc.

In its latest study, the Gas Research Institute (GRI) predictednatural gas will dominate the market share among competing fuelsfor industrial energy demand over the next 15 years. Currently,industrial demand accounts for 45% of all gas consumption. Thestudy, released yesterday, was prepared by the GRI and Energy andEnvironmental Analysis Inc.