Electric power capital expenditures show regional contrasts

Dedham, MA—Capital and operational expenditures worldwide for plants in the electric power industry will likely expand at an almost 4% compound annual growth rate (CAGR) from more than $374 billion in 2003 to more than $453 billion by the end of 2008, according to a new study by the ARC Advisory Group.

By Control Engineering Staff November 1, 2004

Dedham, MA— Capital and operational expenditures worldwide for electric power plants will likely expand at an almost 4% compound annual growth rate (CAGR) from more than $374 billion in 2003 to more than $453 billion by the end of 2008, according to a new study by the ARC Advisory Group .

‘While China strains to grow a reliable power infrastructure to support rapid industrial growth, North America’s spending continues to decline as the recent bulge of generation development, combined with higher natural gas prices, create both a glut of generating capacity and a squeeze on operating margins,’ according to senior analysts, Harry Forbes and Ravi Murthy, authors of ARC’s “Electric Power Industry Plant-Level Expenditures Worldwide Outlook.” “Besdies process improvement, capital budgets are focused on improved asset management as well as better responsiveness to customers.’

In addition, the power plant industry is expected to see steady growth worldwide as electric power continues to be the point of expansion for infrastructure development, especially in Asia’s developing economies. Many electric power companies will likely face new competitors, continued deregulation, and emerging technologies, such as distributed generation, renewable, and ‘clean coal’ primary energy sources.

Control Engineering Daily News Desk
Jim Montague, news editor
jmontague@reedbusiness.com