Barry Best, Managing Director, recently joined AEG from Sagent Advisors to lead the development of AEG Capital LLC... learn more here
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Larry Adelman, Principal, will moderate a panel on People Management: How to Recruit, Retain and Rebalance Your People at the Turnaround Management Association Senate running from May 14th - 16th in Chicago.
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Seismic Shift in Energy Production Puts Coal-fired Producers at Risk
There has been an epic shift in energy production, a shift so drastic that it could knock coal from its perch as the king of electric energy while catalyzing a move towards energy independence in one fell swoop. Natural gas is making a move, a strong move toward becoming the electric energy source of choice. This move is being catalyzed by a confluence of factors, including a rash of recent domestic natural gas discoveries, slowed domestic energy demand growth and increased EPA regulations. The result is an increased number of mothballed and shuttered coal plants dotting the Central-Eastern US, including the Mid-Atlantic and Ohio-river valley areas. Energy from natural gas plants is replacing coal-fired facilities, as many of these plants are aged and have long out-lived their expected usage.
According to the Energy Information Administration (EIA), the amount of coal-fired energy generation capacity expected to be retired between 2012 and 2016 (see Figure 1) is approximately 27 Gigawatts (GW) and is four times the amount of capacity that has been retired over the previous five-year period (6.5 GW)1. In addition, 2012 was a record year for retirements with approximately 7.9 GW of coal-fired capacity being retired, versus 2.6 GW
in 2011 and an average of 1.0 GW each year between 2006 and 2010. This is likely the largest year on record for coal retirements; however, if expectations hold, 2015 may actually surpass 2012 with almost 10 GW of coal-fired capacity expected to be retired 2. Of the planned and annouonced plant closures, most are located in the Mid-Atlantic and Ohio-basin regions, which reflects where US coal reserves were believed to be primarily located in the 1950's when these plants were constructed. Two recent closures in Chicago, The Fisk and... continue reading
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 | Figure 1 - Expected Coal Plant Retirements. |
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