The global power industry's structure of vertically integrated monopolies with limited competition has historically made it difficult for new entrants to break into existing power markets. In recent years, the United Kingdom, Scandinavia, parts of the United States, South America, and Australia have opened their power markets to competition and will be shortly followed by many countries in Europe and Asia. This change in the power market, coupled with the $2.3 trillion global capital investment (U.S. Department of Energy forecast, 1998) in electric power between 1995 and 2010, will create a situation in which both incumbent organizations and new entrants will require major capital expenditure to implement their strategies for growth in existing and developing power markets. This investment is required not only to satisfy growing demand and regional power shortfalls, but also to stay competitive as more efficient technologies displace older ones.

Regional and global power companies will face many difficult decisions as the industry restructures toward competition and globalization. Expanding capital budgets will be combined with increased financial scrutiny as small and large organizations strive for competitiveness in their chosen part of the fragmenting value-chain. In this highly competitive environment, effective management of capital projects is becoming more vital as the best companies exploit the capital efficiency gap to build a stronger market position. The differences between poor, average, and excellent project management systems are substantial, and an efficient capital project system provides an organization with a competitive advantage in terms of lower capital costs and shorter execution schedules. The best project systems also enjoy higher predictability in these areas along with increased facility operability and improved safety performance. The quality of project management and its effect on capital efficiency will continue to be a key factor in the growth of the strongest players—and in the survival of the weaker players—-as power markets continue their transition.

IPA'S APPROACH TO THE POWER INDUSTRY

Our research in the power industry can help your company succeed in this competitive marketplace. IPA offers products and services tailored to the power industry using specific industry data from a range of power generation, transmission, and electrical infrastructure projects. IPA's expanding Electrical Power Database includes more than 125 electric power-related greenfield, expansion, and revamp/retrofit projects executed by more than 30 companies in Europe, Asia, and the Americas.

The technology used in these projects ranges from fully commercialized plants to cutting-edge innovation, and project sizes range from less than $5 million to more than $700 million.

Each of these projects is characterized by thousands of variables that provide a detailed statistical backdrop and that facilitate accurate and relevant benchmarking of your company's projects and project systems.

IPA sponsored a Power Benchmarking Forum for 2002.

For more information, contact Michael McFadden (+1 703-726-5368).