Michele Kearney's Nuclear Wire

Major Energy and Environmental News and Commentary affecting the Nuclear Industry.

Friday, March 9, 2012

The Booms and Busts of the Electric Power Industry

The Booms and Busts of the Electric Power Industry

The electric power industry is driven by boom and bust cycles as market fundamentals and volatility sends signals to market participants to speed up or slow down their efforts. One of the lessons of that boom and bust experience is that seeds of the next boom are sown in the bust of the last business cycle. By that I mean the enthusiasm of the boom stage of the market always attracts new entrants and leads to excess which increases volatility before the fundamentals of supply and demand swing back toward equilibrium. This phenomenon is shown clearly…Read more...

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