Generation Sector Update   
May, 2007
GENERATION PLANNING: ECONOMICS AND FUELS ISSUE AREA

Understanding Power and Fuel Markets and Generation Response (Program 67)

Generator Operations, Investment and Revenue Analysis: Portfolio Impacts of Environmental Controls, Technical Update 1012253, was issued in March 2007.

From the beginning of 2000 to the end of 2010, about 160 GW of selective catalytic reduction (SCR) installations and 25 GW of flue gas desulfurization (FGD) installations will have been added. This report—based on a series of simulations by LCG Consulting and written by Jeremy Platt (jplatt@epri.com)—describes market-based simulations of how a company’s coal unit operations and revenues could be affected by widespread installations of environmental controls. Although reduced operating flexibility was assumed, changes in dispatch were most impacted by changes in emissions where, in some cases, the cleanest units lost ground to newly scrubbed units.