The effects of regulatory changes on the dynamic of

The effects of regulatory changes on the dynamic of power technologies : the case of gas microturbines.

Sophie MERITET CGEMP Université Paris - Dauphine

The effects of regulatory changes on the dynamic of power technologies : the case of gas microturbines.

1) Innovation and regulated monopoly 2) Deregulation of the electric power industry : the generation activity 3) Case of gas microturbines

Sophie MERITET- Université Paris Dauphine

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1) Innovation and regulated monopoly

• «Natural Monopoly» • Regulatory regime – no incentive to invest – over engineered • Technological progress’ dynamic

Sophie MERITET- Université Paris Dauphine

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2) Deregulation of the electric power industry : the generation activity Figure 1 : O ptim al plant size (per M W costs curves 1930-1990).

1930 1950 $/M W 1970 1980

1985

1990 MW 0

50

200

600

1000

1500

Source : B ayless C . (1994).

Sophie MERITET- Université Paris Dauphine

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3) Case of gas microturbines

Gas turbine combined Existing coal

Capacity Cost

Microturbine

Solar cells

Wind power

cycle power plant

power plant

30-200

1 kW-

700 kW -

400 MW

30 MW-

kW

100 kW

5 MW

$450-$700

$1000-$6000 $1200-$1500

40 MW $350-$400

$900-$1300

0.2¢- 0.4¢

0.5¢ - 1.0¢

0.2

4.0-10.0

(installation per kilowatt) Maintenance

0.3¢ -1.0¢

(per kilowatt hour) *

Emissions

0.1-0.5

$8-$12

$20-$30

a year

a year

n.a.

n.a.

(nitrogen oxide, pounds /MW) * Costs do not include price of fuel, which varies depending on source. ¢ = US$ cents

Source : Electric Power Research Institute (1997).

Sophie MERITET- Université Paris Dauphine

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=> Conclusion

• Distributed generation •Power utilities have to evolve in order to survive...

Sophie MERITET- Université Paris Dauphine

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