As power markets plan for ever-increasing shares of renewable capacity, questions arise about the most efficient ways of adapting total generation mixes to accommodate that capacity and the impact of that adaptation on system costs. Tradeoffs often exist in power systems between the two objectives of reducing carbon emissions and reducing costs, but the severity of those tradeoffs varies substantially depending on what complementary generation technologies are employed, what resource costs apply, and what levels of renewable penetration are achieved. This session will consider IHS Markit research identifying an “efficient frontier” of carbon-cost tradeoffs in different power markets. It will explore the implications of such efficient frontiers for power planning and policy and for the future of gas generation, nuclear generation, power storage, and renewables themselves.
Who is financing what and why it matters: Public and private investment models?
The electric power industry is being challenged to adapt to new technologies, new policy mandates, and new market structures. As the array of market players and market roles becomes more complex, opportunities to create economic value are shifting and risks are rising. How do these unsettled conditions affect the cost of capital today for power investments? What are the mid-term prospects for project financing? How are markets valuing the industry’s existing asset inventory?