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Areva's second "new generation" project at Flamanville, France, is also over budget and behind schedule.
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Egyptian Electric Holding Company is currently implementing new generation projects to produce 7000 MW over the next few years.
The energy minister says government backing will be available not only for new generation projects but also for retrofitting existing plants.
State regulators have approved several new generation projects, although many have been stalled by the inability of power companies to attract investments because of the Enron scandal and the weakening economy.
The government says it is pursuing new generation projects to ensure sufficient dispatchable power is available to the grid to ensure power can be delivered reliably around the clock.
And then there was recommendation four, which in essence said the government should offer to underwrite new generation projects by promising to guarantee contracts in their later years at a fixed rate – an idea designed to make it easier for new players to enter a heavily concentrated market.
Taylor has made it clear the Morrison government wants to settle a decision about the mechanisms the government will use to underwrite investment in new generation projects quickly, and have a short list ready to go by early next year, so before the next federal election.
Restoring the credit worthiness of buyers would both reassure investors in existing plants that they will get paid if they supply and reinstate the confidence of investors in the many new generation projects in the construction and permitting pipeline that their investments will pay off in the future.
Hydrostor is not looking to replace new generation projects, but merely to make the existing grid more effective and reliable.
Yet very few new-generation projects are under construction, and many projects are being delayed while our power needs remain at record-high levels.
Stepped-up demand for electricity in a growing economy, coupled with cancelled new-generation projects and plant closings, say Ragas, bode well for energy producers.
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