The effects of regulatory changes on the
dynamic of power technologies :
the case of gas microturbines.
Sophie MERITET CGEMP
The effects of regulatory changes on the
dynamic of power technologies :
the case of gas microturbines.
1) Innovation and regulated
monopoly
2) Deregulation of the electric
power industry : the generation
activity
1) Innovation and regulated monopoly
• «Natural Monopoly» • Regulatory regime
– no incentive to invest – over engineered
2) Deregulation of the electric power industry : the generation activity
Figure 1 : O ptim al plant size (per M W costs curves 1930-1990).
1930 1950 $/M W 1970 1980 1985 1990
3) Case of gas microturbines
Microturbine Solar cells Wind power
Gas turbine combined cycle power plant
Existing coal power plant Capacity 30-200 kW 1 kW-100 kW 700 kW -5 MW 400 MW 30 MW-40 MW Cost
(installation per kilowatt)
$450-$700 $1000-$6000 $1200-$1500 $350-$400 $900-$1300 Maintenance
(per kilowatt hour) *
0.3¢ -1.0¢ $8-$12 a year $20-$30 a year 0.2¢- 0.4¢ 0.5¢ - 1.0¢ Emissions
(nitrogen oxide, pounds /MW)
0.1-0.5 n.a. n.a. 0.2 4.0-10.0
* Costs do not include price of fuel, which varies depending on source. ¢ = US$ cents
=> Conclusion
