ENERGY INDEPENDENCE DRIVES UTILITIES

Energy security impels utilities to invest in power generation
July 26, 2011 (Electric Light & Power)

"Utilities have still not shaken off the investment torpor brought on by the downturn, but that is set to change with the country's alarming dependence on other countries for its escalating energy needs.

"The government is offering several subsidies and incentives such as soft loans, tax benefits and feed-in tariffs to attract investors in its energy industry and ensure energy security…[The electricity] market earned revenues of $1.16 billion in 2010 and estimates this to increase to $2.16 billion in 2015…"

click to enlarge

"The expected growth in power demand has not only catalyzed the market for renewable power generation, but also compelled utilities to invest in new and conventional electrical equipment and technology to improve the efficiency and reliability of the plant's operation…"

[Vignesh Sundaram, Senior Research Analyst, Frost & Sullivan:] "The government is aiming to harness its natural gas, wind and solar energy, thereby reducing dependence on other countries…The increasing investments in new natural gas power plants and renewable fuel sources such as wind and solar power generation will boost the need for electrical equipment."