The recent McGraw Hill Construction Outlook Report shows a 3 percent decline in electric utility construction for 2010 (source: http://construction.ecnext.com/coms2/summary_0249-323417_ITM_analytics?referid=10124). It has been a tough year for many, leading to numerous questions about our energy future. For example, how can power producers compete in a market that’s continually declining? Despite the demand for alternative power sources, there are many obstacles to overcome.
The current level of federal funding is too low to meet our energy goals, but some utilities are having success. By making a conversion to alternative resources, their cost of power production should decline over time. However, the same study also sites an increase in construction-related expenses from energy-efficient conversions. Efficiency leads to conservation or a decline in the aggregate demand for power. Are new power facilities utilizing low-cost energy sources that allow producers to compete in tomorrow’s market?
Decline and Demand
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November 5th, 2010 // By MarisolRodriquez