IHS CERA Capital Cost Analysis Forum - North American Power
The North American power sector is at a crossroads, with the impact of the financial recession intersecting with policy imperatives for cleaner energy. These factors raise questions about what type of generation to build and when power demand will recover, uncovering opportunities for some fuel sources and sounding alarm bells for others.
In response to these challenges, the IHS CERA Capital Costs Analysis Forum—North American Power helps utilities and power generators to better monitor, forecast, and manage costs within their portfolio of projects and to discuss costs from a strategic point of view with regulators and investors.
The IHS CERA Capital Costs Analysis Forum – North American Power helps clients in the North American power industry better monitor, forecast and manage project portfolio costs. The Forum's main purpose is to determine North American construction costs for power project portfolios through the application of a Power Capital Cost Index (PCCI). The Forum uses the PCCI to track the purchase price for a representative portfolio of 30 power projects. The PCCI calculates a weighted value for various inputs that caused power plant project costs to skyrocket and then fall in recent years, accounting for such factors as:
- Engineering, procurement and construction labor scarcity
- Number of current power projects
- Raw materials supply
Armed with this knowledge, clients can achieve a clearer picture of how specific inputs affect total portfolio costs. IHS CERA analysts can also use the PCCI to show how certain costs are interrelated and where savings can occur to offset increased fees. Forum members are privy to comprehensive cost data, including an analysis of the key drivers behind costs, regional cost comparisons and long-term forecasts.
IHS CERA hosts interactive workshops to foster dialogue among members, resulting in supporting subsequent versions of the PCCI.
Forum members receive the following services:
- Quarterly and semiannual reports
- Semiannual workshops
- IHS CERA website access
- Telephone and email access to research staff
- Add-on regulator package
- One-time market briefing
Who uses this service How? Electric utilities Benchmark project costs against published index Merchant generators Identify trends in capital costs for project development strategy Power plant developers Monitor costs trends and identify opportunities for plant development
The Forum gives members crucial, timely insights on project costs, movements, and trends and the strategic implications associated with changes in the global and North American cost environment. By developing and monitoring a set of indicators specifically designed to reflect the critical issues in project development, the Forum helps members to answer strategic questions such as :
- How are construction costs changing and is this a continuing trend
- What cost escalation will my project incur
- How do capital costs of different generation technology types compare?