Companies in this industry operate electric power generation facilities that convert other forms of energy, such as fossil fuels, nuclear, water, wind, and solar power, into electrical energy. Major companies include American Electric Power, AES, Dominion Resources, Duke Energy, Exelon, and Tennessee Valley Authority (all based in the US), along with China Huaneng Group and Datang Power (both in China), EON (Germany), Inter RAO (Russia), and Tokyo Electric Power Company (Japan).
The global electricity industry generates about 23 trillion kilowatt hours (KWh) of electricity. The leading countries in electricity generation are China, the US, India, Russia, and Japan. About 17% of the world's population does not have access to electricity, resulting in an unmet demand that will fuel industry growth in areas like India and Africa.
The US electric power generation industry consists of about 2,700 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $120 billion.
Companies that generate electricity primarily from fossil fuels, nuclear, solar, or wind are covered in separate industry profiles. Companies that transmit and distribute electricity are covered in the Electric Power Transmission, Distribution & Marketing industry profile.
Demand is driven by commercial, government, and residential needs for electrical power, which depend mainly on economic activity and population growth. Profitability is determined by government regulations and fuel costs. Large companies have an advantage in negotiating fuel contracts and being able to pass the costs of implementing government regulations...