U.S. Electric Power Industry 2006 ~ 2012 Beyond

Only a few years ago, many industry observers, including the U.S. government' s own forecasters, assumed there would be an excessive supply of electricity.

However, the current situation now assumes the possibility of future demand increases while a power crisis approaches.

American electricity demand is at an already high level, and although an economic slowdown or recession would cut the demand forecast, it is predicted that demand overall will continue to increase in the next 5 years and beyond.

Generation of 350,000 megawatts (MW) of new electricity is necessary to satisfy electricity demand in the U.S.A. in 2030, according to forecasts and predictions of the government.

Along the way, a generation increase of 80,000 MW to 90,000 MW will be necessary from 2006 to 2012.

The industry is in agreement that new power stations are needed in the U.S.A. The country must increase investment in transmission systems, while securing new baseload electricity capacity, to meet demand.

However, there is little build-out of new transmission systems, and the American power supply reserve is falling in those areas of the country where electricity regulation is relaxed.

Several factors, including the high capital cost of constructing a new baseload power station, the cost of complying with CO2 regulation, and an opaque feeling about fuel prices, have become disincentives for building new capacity.

The Bush administration encourages investment in all renewable energy, including nuclear power generation, in order to reduce U.S. dependence on imports of crude oil. The administration provides incentives on the taxation side for that purpose.

In addition, rising concerns about a global environment problem and climate change are pushing renewable energy to the forefront as the most important problem for the electric power industry, and politicians, to address.

This research report looks at the changes in the economic structure of the U.S. electric power industry and the situation of power generation /transmission /supply, using a high estimate that the electricity industry will need to generate 1,420,000 MW of electricity in 2030, up from 1,070,000 MW of generation in 2006. The report also covers electricity marketing, growth predictions for the electricity market, growth predictions for the renewable energy market, and the outlook for U.S. energy strategy from the perspective of potential future laws and regulations.