Stratification of Gas Combined-cycle Power Plants

Vintage matters when it comes to gas-on-gas competition.  The progression of efficiency improvements among NGCC power plants is resulting in a stratification of gas-fired generators whereby existing plants have limited upside and become increasingly dependent upon alternate sources of revenue such as scarcity pricing and capacity markets.  This produces a wide dispersion of future asset values as the deficiency of energy market revenues becomes increasingly skewed against older vintages.