U.S. Power Industry Growth in 2009

Despite the economic downturn, the U.S. power industry will see some growth in 2009, according to analysts at www.industrialinfo.com.

Much of the growth is attributed to construction of new renewable energy sources, led by wind, biomass and solar.

14,000 MW of renewable energy projects are under construction, and 9,900 MW earmarked for construction before yearend. The drive to build renewable energy sources is being driven by, in part, b y the three-year extension of the Renewable Energy Tax Credit, Investment Tax Credits and the passage of renewable energy portfolio standards by 28 states.

Currently, 22,000 MW of single-cycle and combined cycle natural gas fired generation units are under construction, and 11,000 MW under development, representing an investment of more than $7 billion.

Higher construction costs and uncertainty caused by looming CO2 legislation has derailed the development of new coal-fired projects. Nevertheless, 33 new coal-fired plants, representing 16,000 MW and a $28 billion investment, are under construction.

While the industry experienced a slowdown, it is projected that 15,000-20,000 MW per year will be needed to meet demand and replace older units scheduled for retirement.