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Wednesday, December 30, 2009
Notes from the PowerGen Conference
A couple of months ago in this space, I proclaimed that wind, solar and other renewable energy projects, as well as federal mandates to reduce emissions from fossil fuel plants will allow this sector in 2010 to leverage the momentum it built up in 2009. While perhaps not in the same class as Nostradamus, the prediction was confirmed by many energy industry experts at a recent conference I attended in Las Vegas. The PowerGen International Conference focused – as you might expect – on renewable energy sources, the recent Copenhagen Climate Summit and the Waxman-Markey bill that seeks to limit the carbon and other greenhouse gases produced by automobiles, power plants and other industrial and household activities.
President Obama’s federal stimulus plan contains measures that make energy sector construction projects attractive to owners. But some measures being floated by the administration and Congress could make utilities and alternative energy providers loath to invest until and unless they receive acceptable answers to some pressing environmental questions. If those answers are not forthcoming, these issues could throw a monkey wrench into the President’s plans to stimulate the economy through aggressive construction projects.
Environmental engineer Robynn Andrascek said many of the Bush administration’s “logical and clear” Environmental Protection Agency rules on carbon emissions have been rescinded under Obama.“We need clear rules, even if they are strict,” she said. “Right now the industry is usurped by uncertainty.”
Michael Yackira, president and CEO of NV Energy, said because utilities don’t know what carbon limitations the government will impose, “the risks and uncertainties are simply too large” for his company to build more coal-fired generation plants during his tenure.
Still, many utilities still are looking ahead and taking advantage of federal and state incentives to develop renewable energy resources. NV Energy planners have identified likely regulation scenarios and the company’s best strategies for dealing with them. The utility will invest in transmission lines to connect northern Nevada’s vast geothermal resources with Las Vegas’ voracious appetite for power.
A seminar at Nuclear Power International, held in conjunction with PowerGen showed how contractors can tap into the energy construction market. Though focused on nuclear power plants, the seminar revealed important trends applicable to all building in the energy sector. A case in point is increased use of modules constructed off site.
Contractors who can bring this service to their projects present tangible value to owners and a competitive advantage for themselves. Different modules can be built concurrently and installed one after another, saving time over projects that require one system to be completed before the next can begin. This modular approach also reduces an owner’s risk by cutting down on construction duration, labor supply squeezes and exposure to weather-related delays, according to Keyes Niemer, a project manager working on a nuclear plant.
The re-emergence of nuclear power plants and the burgeoning interest in geothermal, solar, wind and other renewable energy sources are additional opportunities for construction’s first movers to gain advantage. Contractors who can adapt to new paradigms and standards, deliver superior safety and quality and find qualified suppliers and subcontractors will profit from this construction sector, noted Charles Hess, director of nuclear technology at Tetra Tech.
While the chance to explore the issues that will drive the energy industries in the future, the PowerGen seminars and discussions gave attendees tremendous opportunities to meet with leaders in the alternative energy industries. This contact is vital for contractors looking to enter this construction sector or expand their expertise or geography. The hints these important players dropped may well lead construction executives to explore avenues that will improve their businesses, open doors to new contracting frontiers and lead to new sources of revenue.
The frontiers of alternative energy and the construction of generation, transmission and distribution infrastructure highlights the changing face of construction as well. Owners increasingly are placing a premium on professionalism and added value over low bids and mere field competence. Confidence in their vendors, suppliers and contractors often is an owner’s deciding factor in hiring situations. Networking savvy, presentation skills, “elevator speeches” and personal relationships are more important than ever in business development. Contractors owe it to themselves to get as much “face time” as possible with the folks who will make contracting decisions – especially in emerging markets and growing sectors such as alternative energy. PowerGen and other conferences are ideal opportunities for builders to explore the possibilities. Another great resource to find alternative energy projects is through Industrial Info Resources. They do a terrific job of tracking these projects from planning through construction.
President Obama’s federal stimulus plan contains measures that make energy sector construction projects attractive to owners. But some measures being floated by the administration and Congress could make utilities and alternative energy providers loath to invest until and unless they receive acceptable answers to some pressing environmental questions. If those answers are not forthcoming, these issues could throw a monkey wrench into the President’s plans to stimulate the economy through aggressive construction projects.
Environmental engineer Robynn Andrascek said many of the Bush administration’s “logical and clear” Environmental Protection Agency rules on carbon emissions have been rescinded under Obama.“We need clear rules, even if they are strict,” she said. “Right now the industry is usurped by uncertainty.”
Michael Yackira, president and CEO of NV Energy, said because utilities don’t know what carbon limitations the government will impose, “the risks and uncertainties are simply too large” for his company to build more coal-fired generation plants during his tenure.
Still, many utilities still are looking ahead and taking advantage of federal and state incentives to develop renewable energy resources. NV Energy planners have identified likely regulation scenarios and the company’s best strategies for dealing with them. The utility will invest in transmission lines to connect northern Nevada’s vast geothermal resources with Las Vegas’ voracious appetite for power.
A seminar at Nuclear Power International, held in conjunction with PowerGen showed how contractors can tap into the energy construction market. Though focused on nuclear power plants, the seminar revealed important trends applicable to all building in the energy sector. A case in point is increased use of modules constructed off site.
Contractors who can bring this service to their projects present tangible value to owners and a competitive advantage for themselves. Different modules can be built concurrently and installed one after another, saving time over projects that require one system to be completed before the next can begin. This modular approach also reduces an owner’s risk by cutting down on construction duration, labor supply squeezes and exposure to weather-related delays, according to Keyes Niemer, a project manager working on a nuclear plant.
The re-emergence of nuclear power plants and the burgeoning interest in geothermal, solar, wind and other renewable energy sources are additional opportunities for construction’s first movers to gain advantage. Contractors who can adapt to new paradigms and standards, deliver superior safety and quality and find qualified suppliers and subcontractors will profit from this construction sector, noted Charles Hess, director of nuclear technology at Tetra Tech.
While the chance to explore the issues that will drive the energy industries in the future, the PowerGen seminars and discussions gave attendees tremendous opportunities to meet with leaders in the alternative energy industries. This contact is vital for contractors looking to enter this construction sector or expand their expertise or geography. The hints these important players dropped may well lead construction executives to explore avenues that will improve their businesses, open doors to new contracting frontiers and lead to new sources of revenue.
The frontiers of alternative energy and the construction of generation, transmission and distribution infrastructure highlights the changing face of construction as well. Owners increasingly are placing a premium on professionalism and added value over low bids and mere field competence. Confidence in their vendors, suppliers and contractors often is an owner’s deciding factor in hiring situations. Networking savvy, presentation skills, “elevator speeches” and personal relationships are more important than ever in business development. Contractors owe it to themselves to get as much “face time” as possible with the folks who will make contracting decisions – especially in emerging markets and growing sectors such as alternative energy. PowerGen and other conferences are ideal opportunities for builders to explore the possibilities. Another great resource to find alternative energy projects is through Industrial Info Resources. They do a terrific job of tracking these projects from planning through construction.
Labels: Commercial, Construction Industry, Industrial
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