CERAWEEK 2007 NORTH AMERICAN POWER HIGHLIGHTS
Climate change and expected limits on carbon dioxide emissions represent key challenges for the power industry in the years to come. Combined with tightening power markets and increasing capital costs for new investments, this amounts to a transformation of the power industry that will require major innovations in policy and technology and will call for major investments in all segments of the power business. During CERAWeek 2007's Power Day, CERAWeek delegates heard from industry executives and government officials about their current issues, top concerns, and visions for the future. Top power-industry issues discussed during CERAWeek include
*Climate change. As a topic discussed by almost every speaker at CERAWeek, climate change represents a monumental challenge for the power industry that will influence innovation, technology choice, investments, and policy for decades to come.
*Innovation, technology, and plug-in hybrids. Addressing climate change will require innovative approaches and the use of new technologies. During CERAWeek, industry executives expressed a near-consensus view that a diversified supply and demand portfolio is needed and that nuclear generation will likely be part of the solution.
*Capital costs. Increasing capital costs are a concern that cuts across the entire energy industry and affects companies all over the globe. Cost increases are driven by a number of factors, and strong global economic growth is likely to sustain the upward pressure on capital costs.
*Financing the next round of construction. Although the need for new investments in the power sector is substantial, there is no shortage of willing lenders and investors. Financial institutions participating in CERAWeek indicated that there is ample competition to finance almost any new power plant.
*Investments and industry consolidation. Several industry executives point to a need for further consolidation in the North American power industry to achieve economies of scale and to absorb large and risky projects such as the development of new nuclear facilities.
