Market Deregulation and Growing Environmental Concerns Providing an Impetus for Restructuring the Gl by GlobalData

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									            Market Deregulation and Growing Environmental Concerns
             Providing an Impetus for Restructuring the Global Power
                                    Industry
        Reference Code: GDPE0043VPT                                                                                                       Publication Date: August 2011


        1         Table of Contents
        1 Table of Contents.................................................................1
         1.1 List of Tables .................................................................1
         1.2 List of Figures ................................................................1
        2 Summary .............................................................................2
        3 Market Deregulation and Growing Environmental Concerns
          Providing an Impetus for Restructuring the Global Power
          Industry ................................................................................2
         3.1 Power Market Deregulation Driven by Government
              Policies Playing a Leading Role in Industry
              Restructuring .................................................................2
         3.2 Efficient and Less Carbon Intensive Technologies
              Replacing the Legacy Power Sector Infrastructure .......3
         3.3 Despite Safety Concerns Nuclear Power has an
              Important Role in Achieving a Cleaner Environment .....4
         3.4 Policy Push for Renewables Leading to an Increased
              Grid Penetration of Distributed Generation Resources .5
         3.5 Enabling Strategies Guiding the Global Restructuring of
              Power Industry to Meet the Increasing Demand............6
         3.6 Smart Grid Integration-Transforming the Grid
              Operations of the Power Industry Globally ....................9
        4 Appendix ............................................................................12
         4.1 Abbreviations...............................................................12
         4.2 Methodology ................................................................12
         4.3 Contact Us...................................................................13
         4.4 Disclaimer....................................................................13



        1.1       List of Tables
        Table 1:       Nuclear Treaties/Organization and their members ...5
        Table 2:       Smart Grid Elements and their Functions ...............10
        Table 3:       Abbreviations ..........................................................12



        1.2       List of Figures
        Figure 1: Coal-Fired Power Plants, Efficiency Improvements
                  Reduce CO2 Emissions (CO2/kWh) .........................4
        Figure 2: Indicative Comparative CO2 Emissions per
                  Megawatt hour (MWh) ..............................................4
        Figure 3: Europe, Annual Energy Generation, Tera Watt-hour
                  (TWh), 2005-2009 ....................................................9
        Figure 4: Europe, Energy Traded by Top Three Utilities, Tera
                  Watt-hour (TWh), 2008-2009 ....................................9




                                                                                                                                                          Market Analysis Alert
Market Deregulation and Growing Environmental Concerns Providing an                                                                                   GDPE0043VPT / AUG 2011
Impetus for Restructuring the Global Power Industry                                                                                                                    Page 1
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                                                                              The power industry also has a significant impact on the
                                                                              environment, as it is a major consumer of natural resources and
        2      Summary                                                        fossil fuels. As a major consumer of fossil fuels the power
        The global power industry has undergone significant                   industry is also a major source of conventional air pollutants,
        restructuring due to deregulation and growing environmental           including sulfur dioxide (SO2), nitrogen oxides (NOx) and
        concerns. Economic deregulation initiated in the US in the            secondary particulates. These emissions form a major source
        1970s hit full stride towards the turn of the 21st century, with an   of the greenhouse gases and toxic air pollutants that are
        increased level of global private sector participation across         responsible for global warming. The emissions from this
        various regions of the world. The process of restructuring has        industry are also an important source of pollutants to land and
        played a significant role in enacting and implementing laws and       water, especially in the form of radioactive waste. Growing
        policies to bring more competition to electric power markets,         environmental concerns have led to the formation of regulations
        accompanied by effective regulations of transmission and              for this industry, providing incentives for the use of various
        distribution which are ensuring reliability of the grid network and   facilities and fuels in electricity generation and significantly
        effectively reducing the greenhouse gas emissions from the            impacting on the resulting discharges to the environment.
        power industry. Governments have started to introduce various         Additionally, they have also resulted in the formation of
        policies and reforms for the vertical disaggregation of the           regulations that directly affect the incentives to comply with
        monopoly structure, creating wholesale and retail power to            environmental regulation.
        increase economic efficiency. Other factors responsible for the       The movement of restructuring the global power industry has
        market deregulation include shortage of capital in rapidly            been largely driven by the changes in the generation
        industrializing nations, recent technological and information         technology and fuel prices. These changes have made the
        management innovations, emerging global competition, and              power generation from the smaller units economical by
        consumer demand for more sophisticated and diversified                integrating the separate utility systems into larger regional
        products and services. The growing competition due to                 networks, thereby increasing the size of the market that could
        deregulation has resulted in the creation of well structured          be served by individual generators. Regulations that are
        electricity markets across different regions. These markets have      applicable for markets of other commodities such as crude oil,
        not only been able to provide effective oversight, but have also      natural gas, gold, orange juice or coffee also became applicable
        been able to deliver economic and environmental benefits.             for electricity generation. These developments have resulted in
                                                                              electricity generation also being considered as a tradable
        3      Market Deregulation and Growing
                                                                              commodity.
               Environmental Concerns Providing an
               Impetus for Restructuring the Global                           The growing competition due to deregulation has resulted in the
               Power Industry                                                 creation of well structured electricity markets across different
                                                                              regions. These markets have not only been able to provid
								
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