Generation asset valuation: are we at the nadir for gas-fired power plants?

摘要

New natural gas-fired power plants—those operational in the post-2000 period—will start to show significant recovery in valuations over the next two to three years in most U.S. markets. This recovery will be one of several examples of energy markets returning to more sustainable levels after a period of tremendous turbulence. Merchant transactions of new natural gas power plants in 2003/2004 were completed at low prices. The recent Duke Southeast 5,300 MW gas-fired portfolio sale, for instance, transacted at an average price of $89/kW, possibly reflecting the local minimum in the market. (The portfolio included approximately 55 percent simple cycle combustion turbine capacity and 45 percent combined cycle capacity.)