PUBLISHER'S LETTER

“Our National Challenge” is to continue building new generation and transmission while implementing energy efficiency programs. The Brattle Group estimates $1.5 trillion in investments to meet energy demands to 2030. The EEI-EPRI joint study sees a 7 to 11 percent saving by developing and deploying end-to-end solutions across the entire power system from codes and standards for electronic loads to smart grids. Both presented at a two-day meeting at the Union League Club in New York and World-Gen covered it for page 1.

World-Gen was a media sponsor, exhibitor, and delegate to the WINDPOWER 2008 convention in Houston, June 1-4. With over 13,000 delegates, 700 exhibitors and national press coverage, wind is now a mainstream option for electricity generation. To achieve 20 percent wind energy by 2030, DOE and six turbine OEMs signed a two year collaboration agreement to share research and technology. DOE is also partnering with Siemens at the National Wind Technology Center in Colorado, funding a turbine blade facility in Texas on a 22 acre site donated by BP and building a similar blade facility in Massachusetts. AWEA’s Robert Gramlich writes on the ability of the US electric system to absorb high levels of wind penetration going from 17 gws today to 300 gws by 2030. Also on page 1.

Lyn Corum reports California’s RPS of 20 percent renewables by 2010 will make the Mojave Desert a sea of mirrors. 34 solar thermal plants could be built on 300,000 acres. She lists the projects on page 14 and comments on the current wave of utility scale plants reminding her of the early stages of the independent power development days, post PURPA.

CAPEX is projected to reach $75 billion in 2008-09, Richard McMahon writes on page 15. America’s utilities are building a portfolio of technologies including smart grids; renewable energy which accounted for 6,000 mws in 2007; investing in transmission of $37 billion by 2010, and taking steps to new nuclear and advanced coal technologies.

Virginia Tech researched the water efficiency of 11 types of energy sources. The researchers found gas and syn-gas the most efficient and ethanol and biodiesel the least. In terms of generation, nuclear uses the most amount of water. Rainwater harvesting is being carried out as an alternative to using water from the public system for non-potable use and the impact of rainwater on energy conservation and storm water management is being examined on page 16.

In “ACSI Scores Utilities”, Claes Fornell in partnership with the UM Ross School of Business ranks 30 utilities for customer satisfaction. The development of renewables is paying off. One utility jumped 12% by offering wind generation. See how your utility scored on page 18.

The distinction between deductible repair expenses and capital improvements has been a longtime source of controversy with the IRS, Kathy Lewis writes from KPMG. The IRS was about to make a ruling on power generation plants in 2006 but instead issued general guidelines, which created even more controversy and criticism. She spells out asset differences on page 19.

Dr. Zervos reviews the manufacturing costs and potential fields of application for the thin-film solar cell and the silicon based solar cell. He charts the market share by technology and cost of modules. DOE is funding the development of commercial products on page 20.

Dan Potash returns with his analysis of renewable investing with venture capital and/or project finance. Venture capital is at a record high in energy. Venture capital for renewables is increasing substantially. Project Finance is 20 times greater than venture capital, he writes on page 21.

Energy insurance rates are lower as claim activity has softened in 2006-07. 12 to 16 named national storms between June 1 and November 30 could reverse that trend. Ronn Mullins uses the old insurance adage, “the market goes as the wind blows”, on page 22.

Energy Secretary Samuel Bodman submitted the U.S. Department of Energy’s license application to the Nuclear Regulatory Commission (NRC) for authorization to construct a geological repository for disposal of commercial and government-owned spent nuclear fuel and high-level waste, including spent nuclear fuel and high-level waste stored in Idaho. Currently, the waste is stored at 121 locations in 39 states. Idaho National Lab has been designing and testing an autonomous and remote system that will weld, inspect, and permanently seal spent fuel in highly specialized waste disposal packages. INL also developed standardized, versatile spent fuel storage and shipping canisters capable of securely shipping 250 types of DOE spent fuel. These sealed canisters range in size from 6 to 7 feet in diameter and up to 19 feet in length.

World-Gen visited Yucca Mountain and it was recounted by Ted Feigenbaum, President of Bechtel SAIC, in a feature entitled “Challenges at Yucca” for the Dec. 2006 issue.

World-Gen also visited AREVA’S La Hague plant in France, which appeared in the May 2005 issue. Both can be read on www.world-gen.com under “Featured Articles”.

OUR NEXT ISSUE
World-Gen’s next issue celebrates our 20th Anniversary. Class of 2000-08 alums will be sharing their insights--past, present, and future--in this special commemorative issue. Please see http://www.world-gen.com/media for media kit details.

World-Gen welcomes Letters-to-the-Editor. Please send your comments to flanagan@world-gen.com.

See you at Coal-Gen, CANWEA, and GTC08!

Richard T. Flanagan

May/June 2008

Our National Challenge
by Dick Flanagan, pg. 1

Wind Integration in the USA
by Robert Gramlich, AWEA, pg. 1

3000 Solar Megawatts By 2010
by Lyn Corum, Class of 2004, pg. 14

Building For The Future
by Richard McMahon, Class of 2001, pg. 15

H20 Use In Energy Production
by Tamim Younos, Virginia Tech, pg. 16

ACSI Scores Utilities
by Claes Fornell, pg.18

Tax Impacting Utilities
by Cathy Lewis, KPMG, pg. 19

Thin Film Efficiencies
by Dr. Harry Zervos, Idtechex, pg. 20

Energy Financing 2008
by Daniel Potash, Class of 2001, pg. 21

Insurance Rates Soft
by Ronn Mullins, Class of 2008, pg. 22

Yucca Mountain’s Renaissance
by Samuel Bodman, Class of 2007, pg. 23

DEPARTMENTS

Publisher’s Letter, pg. 4

Industry News, pp. 5-10

International News. pg. 11

Newsmakers, pg. 12

California News, pg. 14

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