The Price of Electricity from Private Power Producers

Date Published
10/1993
Publication Type
Report
Authors
LBL Report Number
LBNL-36054
Abstract

The long-term wholesale electricity market is becoming increasingly competitive. Bidding for power contracts has become a dominant form of competition in this sector. The prices which emerge from this process have not been documented and compared in a systematic framework. This paper introduces a method to make such comparisons and illustrates it on a small sample of projects. The results show a wide range of prices for what is essentially the same technology, gas-fired combined cycle generation. The price range seems greater than what could be explained by transmission cost differences between high and low cost regions. For the smaller sample of coal-fired projects, price variation is substantially less. Further data collection and analysis should be able to help isolate more clearly what market or cost factors are responsible for the observed variation.

Year of Publication
1993
Pagination
61
Institution
LBNL
City
Berkeley
Keywords
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Research Areas
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