Apr 1998

While a large number of independent power projects based on fossil fuels have successfully reached financial close, IPPs based on hydropower have been less abundant. There is no inherent reason why this should be so, but hydro schemes do present different challenges that make them difficult to fit into standard project financing models. Once the special risks of hydro have been recognised and appropriately allocated, it may be possible to realize the potential of this clean power source in the developing world. Øyvind Ulfsby

It had to happen eventually. After many fruitless years and development budgets that stretched the patience of even the industry’s most “strategically focused” players, a private power project reached financial close in Central Europe in June, 1997. ECK Generating is by no means a “plain vanilla” IPP – discussion of some of its special features may explain why it was the first to reach the signing table and offer some pointers on what it will take for others to succeed in this region. Denis Clarke

At present there is growing pressure to increase competition and liberalize international trade in electricity, but developed countries have also undertaken national commitments under the Kyoto Protocol to reduce their greenhouse gas emissions. Since demand for and trade in electricity is continuing to grow, commitments to reduce greenhouse gas emissions are likely to have significant repercussions in the power sector. International emissions trading can contribute to resolving this conflict, but there are implications in its use and undetermined issues which have to be addressed. Richard Baron & Jane Ellis

As heads roll and boardroom coups proliferate at the top of Russia’s power supply industries, the growing chaos is now further exacerbated by the replacement of key government ministers in the energy field. For all the trauma resulting from the current changes, there seems to be little prospect of the seats of power in the energy field emerging from purely political motivations into viable commercial business management.

During the last two decades, gas turbine-based power generation has grown to the point where it may eclipse steam-based generation. While the dominant fuel for this technology is natural gas, coal or other fuels can be processed to make gases which can then be used in combined cycles. While fuel-to-electricity efficiency is lower than when using natural gas, there are other advantages which can make gasification an attractive option. Demonstration projects have shown integrated gasification combined cycle (IGCC) systems to be commercially acceptable, and they may now move into the mainstream. David White