Consumer electricity demand has been slowing due to more efficient appliances. Nuclear power construction will continue to be prohibitive, even before regulatory concerns are considered. Wind power construction will pick up from projects making it under the production tax credit deadline but then once again lose momentum due to financing concerns. In addition, growth in other renewable energy sources is expected to slow as Production Tax Credits expire. What does all of this mean for the future growth potential of the power market?
The forecast is for 3% growth, reaching $86.7 billion in construction put in place for the power industry in 2014. Updating facilities and the decision to change over to more natural gas uses are driving construction activity. The shale gas boom will also continue to elbow out coal-fired plants for new construction. As noted in the 2014 FMI research paper, “Skills Shortages in a Booming Market: The Big Oil and Gas Challenge,” since 2008, the refinement of hydraulic fracturing technology has allowed the United States to go from an increasingly dependent buyer of foreign oil to the second-leading producer of oil in the world.
