The McKinsey Quarterly

2008

• July 2008 

  Using energy more efficiently: An interview with the Rocky Mountain Institute’s Amory Lovins

  Amory Lovins argues that market forces, not regulation, will play the key role in promoting more efficient energy consumption.

• June 2008 

  Next-generation regulation for European electric power

  The Performance-Based Rate model has helped both distributors and users of electricity, but for it to remain beneficial, significant changes must be made.

• June 2008 

  The economics of solar power

  Don’t be fooled by technological uncertainty and the continued importance of regulation; solar will become more economically attractive.

  Includes:

2007

• February 2007 

  A cost curve for greenhouse gas reduction

  A global study of the size and cost of measures to reduce greenhouse gas emissions yields important insights for businesses and policy makers.

• February 2007 

  Leading change: An interview with TXU's CEO

  C. John Wilder describes how economic thinking helped him lead TXU out of a regulated mind-set and toward competitive success.

2004

• August 2004 

  Rethinking US energy policy

  Massive investment is needed to avert power shortages. That calls for a sound national strategy.

2003

• December 2003 

  Turkey’s quest for stable growth

  Turkey has come a long way, but the informal economy, macroeconomic and political instability, and state ownership continue to hold it back.

• August 2003 

  What power consumers want

  Most customers are satisfied with the reliability of their electric service. So why are power distributors still making huge infrastructure investments?

• February 2003 

  Climate change for Europe's utilities

  Power producers should pay close attention to a European Commission proposal to curb greenhouse gas emissions. It could have paradoxical effects.

2002

• February 2002 

  Branding electrons

  The retailing of electricity is often considered a business trading solely on price, but a study of consumers in three European countries shows that more profitable offerings have an audience.

• February 2002 

  Power by the minute

  US electricity utilities risk another California-style crisis unless regulators link prices in the wholesale and retail markets.

• February 2002 

  Why electricity markets go haywire

  Generators, retailers, customers, and regulators alike must get used to the idea that electricity is a special kind of commodity.

2001

• November 2001 

  Finding the balance of power

  Deregulation has given rise to a new breed of highly profitable US power generators and electricity traders, but the industry faces a shakeout as supply catches up with demand.

• November 2001 

  Unbundling the unbundled

  A second wave of disaggregation is transforming—yet again—the way asset-intensive companies work.

• August 2001 

  Paying a green premium

  Consumers may distrust their utilities’ green credentials, but effective branding—through alliances with green brands like Greenpeace and the Worldwide Fund for Nature—may help overcome their skepticism.

• August 2001 

  The deregulation that wasn’t

  California’s energy crisis has been stoked by the excessive revision of rules—in a supposedly deregulated market.

• August 2001 

  The M&A trap for utilities

  European utilities are off on a buying spree—and sometimes pay more than 100 percent of the value of the assets they acquire. Understanding how asset prices move in a newly deregulated market should help them make smarter purchases.

• August 2001 

  The race to the bottom

  When industries deregulate, their managers face unfamiliar challenges. Price wars are often the unfortunate—and unnecessary—result.

  Includes:

• February 2001 

  Sizing power

  The power companies’ urge to merge probably makes them weaker, not stronger.

2000

• June 2000 

  A shopper’s guide to electricity assets in Europe

  Three distinct kinds of markets have emerged since Europe’s electricity industry was deregulated. Each sends a different message to asset hunters.

• June 2000 

  Diversify with care

  In following a penchant to diversify, European utilities risk biting off more than they can chew. Eventually, they will probably find themselves paring down their asset base as quickly as they are now enlarging it.

1999

• May 1999 

  The new electric industry: Reflections and refinements

  In a follow-up to “The new electric industry: What’s at stake?” one of the authors revisits that topic and argues that, in general, the changes that he and his fellow authors expected have come to pass. But here he refines three of their predictions.

• February 1999 

  European power: Managing through deregulation

  The need for restructuring is clear. For managers, this will require a keen sense of which advantages to protect and which to abandon. Preparing for change, and yet limiting its pace.

• February 1999 

  Regulating utilities: Have we got the formula right?

  Although much copied, Britain’s RPI-X approach may not be the best way to drive better service and efficiency in the long run. A formula based on the use of rolling historical benchmarks could provide better incentives.

• February 1999 

  World Power & light

  The forces driving globalization are strong, but they will take time to play out. Already, meter reading is becoming a stand-alone business. Huge opportunities arise from huge productivity gaps: the best utilities lose 7 percent of the electricity they transmit, the worst 17 percent.

1996

• August 1996 

  The new electric industry: What’s at stake?

  Three new and different businesses will emerge. Many traditional industry players will have to close or sell large portions of their current business. No one has yet discovered the electric equivalent of call waiting, but they will.

• May 1996 

  Why power projects get stalled

  There are now 200 would-be power producers in China, India, and Indonesia. Almost all need to change the way they conceive and deliver projects. Time to recognize the diseconomies of scale?

1994

• August 1994 

  Electric power—the next generation

  Traditional electric utilities are a dying breed. Competition, privatization, and deregulation are shaping a new power industry.