Emerging trends in energy-are insurer´s perspective

Rapid and dramatic changes have occurred in the power generation/utility industry in the last decade, since the prospect of deregulation has taken hold. The need for power has resulted in a massive demand on a worldwide basis. Over the next 10 years more than 750 GW of new generating capacity will be installed worldwide, requiring an investment of US $500 billion. The owners and developers of many power projects in the US are no longer the staid investor-owned utilities, but rather entrepreneurial organizations pursuing the prospect of instant profits. At the same time, the electric power industry in the United States is facing a disquieting shortage of qualified power engineering personnel. US Utilities and the designers and builders of these projects began trimming staff by the late-1980s. And, electrical engineering students today are opting for more lucrative careers in microelectronics, information technology systems and “e-business” development. This paper offers an insurance perspective of the transformation in the utility industry, and the changing role for the electrical power engineer