Independent Energy 

About: Independent Energy is an academic journal. The journal publishes majorly in the area(s): Electric power industry & Private sector. It has an ISSN identifier of 1043-7320. Over the lifetime, 25 publications have been published receiving 99 citations.

A dramatic increase

Abstract: Independent Energy recently completed its 5th annual Financial Rankings survey for all of 1994 The results show a dramatic increase in financial activity - especially during the second half of 1994 For all of 1994, developers and financial firms reported activity in project finance debt and equity, in corporate finance, and in revenue bonds totaling about $31 billion This is up from about $17 billion in 1993 Fir the last six months of 1994, financial activity was reported at about $21 billion in these categories This compares to $105 billion during the first half of 1994 The dramatic survey results can be attributed to several factors that reflect continuing industry trends International activity in privitization and public stock offerings strengthened the results Of 110 transactions reported for the second half of 1994, 40% were for deals outside the US This is an increase from about 30% international transactions reported during 1994`s first half Of the remaining transactions, many were for refinancing existing US projects Finally, these rankings demonstrate an increase in the number of firms reporting as the industry expands globally While the international activity in stock offerings and privitization was strong, closings for new power projects worldwide remains slow

The emergence of competition

Abstract: Retail competition for energy services, capable of meeting the on-site needs of industrial and commercial companies, is becoming an attractive market for project development in the 1990s and beyond. This comes from a combination of declining opportunities for wholesale power projects in the domestic market-place, increasing global competition for goods and services, and a new competitive electricity market created by the Energy Policy Act of 1992 (EPAct).

Changing a historical perspective

Abstract: It is well known that risks profiles shape the cost of capital for energy projects. Equity and lending institutions that invest in independent power believe renewable energy projects generally carry greater risks than conventional gas, oil, or coal-fired facilities. Consequently, developers of renewable energy -including wind, geothermal, hydropower, solar, or biomass- often pay premium prices for development capital and face contractual restrictions that developers of the more conventional resources do not encounter. Earlier this year, a focus group was conducted in conjunction with a series of interviews with investors, lenders, and investment bankers which revealed that unfavorable institutional memories and a lack of good information lead to this restricted, higher cost financing.

The single entity option

Abstract: Traditionally, an owner hires an engineer to design a power facility or other project and then circulates the completed plans to several contractors for competitive bidding. Although there are many variations on this theme, there is an alternative method which is growing in popularity--the design-build concept. In this construction method, the same entity designs and constructs the facility. The design builder may be a single firm with both design and construction capacity in-house, or it may be a combination of two or more firms with complementary abilities. If there are multiple firms, they may be structured as a joint venture or with one of the firms prime and the others in a subcontracting role. The critical aspect is that the owner contracts with one entity which has the responsibility for both designing and constructing the facility. According to statistics compiled by the Design-Build Institute of America and F.W. Dodge DATALINE2, a national reporter of construction statistics and information, from April 1995 to April 1996 the number of design-build contracts increased 103 percent over the previous year. Of a total $212 billion construction market, about $37.2 billion--18 percent--was design build. The strongest growth was in the category of industrial--plants, refineries, factoriesmore » and warehouses--in which the concept use was up more than 300 percent from the previous year.« less