Power Economics
Supporting your energy investment decisionsTo succeed in today's evolving worldwide energy markets, plant owners, operators, designers and investors need to base their decisions not only on technical considerations, but also on the financial and regulatory drivers of the electricity markets. The Energy Consulting Power Economics team provides customers with analyses that consider these complex issues to evaluate existing energy assets and new opportunities. |
How it works
The Power Economics team analyzes power plant dispatch and forecasts production costs along with energy, capacity and ancillary service revenues for a range of future sensitivities such as fuel price and load growth. These analyses help guide our clients in generation investment decisions that result in $2 Billion (USD) in investments on an annual basis.
Drawing upon our knowledge of power system engineering and operations, our consultants develop analytical models that reflect power system fundamentals to give our clients a better understanding of the power marketplace. These analyses factor in the effects of new regulations that may alter the boundaries of traditional electric utilities, expand power system infrastructures, and increase constraints on fuel and emissions.
Features & Benefits
Our scope includes analysis of power market fundamentals such as supply and demand; energy and capacity prices and spark spread forecasts; resource investment analysis (including new generation and transmission); existing plant purchase opportunities; and power market design and implementation. An essential tool in our market analysis work is GE's proprietary Multi-Area Production Simulation (MAPS*) software, which has become an industry standard in the U.S. for accurately analyzing the complex interaction between generation and transmission.
Recent projects include simulating power plant operation within the total power system network to assess regional supply and demand and applicable market rules and behaviors for clients such as plant owners and investors, project developers, independent system operators, and research groups. These insights into expected operations, operating costs, and the value of power produced can help potential investors understand the impact on overall value. Our "what-if" analyses can also examine the potential effects of new regulations, competitor activity, and changes in fuel price while identifying beneficial actions a plant owner may take.
