Utility Dive•3 days ago
5 takeaways from Xcel CEO Bob Frenzel’s talk at the Minneapolis Fed
Key Takeaway
Rising supply chain costs and intense competition from hyperscalers for EPC services are increasing project costs and timelines across the utility sector, impacting developers and large power consumers.
AI Summary
- •Supply chain degradation is increasing costs and timelines for utility projects.
- •Utilities face heightened competition from hyperscalers (large data centers) for critical engineering, construction, and procurement (EPC) services.
- •These market dynamics are driving up project costs for utilities, which will likely translate to higher PPA prices for developers and potentially increased power costs for large consumers.
Topics
datacenterfinancinginterconnectoemppatransmission