Supply and Demand Analysis of Electricity Produced by Duke Progress Energy

 

Name:

Paper:

ID number:

Lecturer:

Institution:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supply and Demand Analysis of Duke Progress Energy

The  commodity being reviewed is electricity produced by  Duke  Progress  Energy.  Electricity is a  widely  known  form  of  energy  that  is  used  both  substantially  and  commercially.  Electricity  is  the  flow  of  electric  charge  and  is  used  to  power  technology  such  us  televisions  to  heavy  machinery  in  big  industries.  Since  electricity  is  used  globally  and  produced  by  many  companies,  our  primary  concern  will  be  electricity  produced  by  Duke  Progress  Energy.  “Duke progress energy makes and supplies electricity to approximately 7.4 million customers in Ohio, North and South Carolina, Florida, Kentucky, and Indiana.” (Energy, The Business we are in).

Duke Energy began as Catawba Power Company in the 1900s with Dr.  W.  Gill Wyllie.  Since  there  was  a  heavy  dependence  of  agriculture  in  the  south  of  the  USA,  Buchan  Duke  and  William  State  Lee  envisioned  that  other  industries’  growth  would  be  slowed  down,  so  they  sought  to  start  an  integrated  electric  system  of  generating  stations  powered  by  hydroelectric  systems.  After  the  1979  three-mile  sector,  the  president  of  Duke  Energy  Bill  lee  led  the  Institute  of  Operations  of  Nuclear  power.  “The  institute  led  to  the  strengthening  and  standardization  of  programs  involved  with  safety  and  training.” (Energy, Our History Honouring The pat as we Transform the Future).  The  strengthening  of  this  institution  restored  confidence  in  people,  which  led  to  the  immense  popularity  of  Duke  Power.

 

 

 

 

Discussion

There is growing consumption of electric energy in the USA.  “The  United  States  government  has  estimated  that  electricity  consumption  will  grow  to  7  quadrillion  British  thermal  units  of  power  in  the  seven  states  mentioned  above.” (Saha, 2019).  The  growth  in  electricity  consumption  results  from  the  immense  population  growth  taking  place  and  the  growth  of  major  industries  in  these  states.  Also,  there  has  been  a  major  shift  to  solar  and  wind-sourced  electricity;  thus,  carbon  emissions  are  now  reducing,  giving  people  no  worry  about  increasing  electricity  consumption.  The  prices  of  electricity  are  set  to  grow  with  the  increased  use  of  these  electricity  sources.

“According  to  the  analysis  conducted  by  the  World  Resource  Institute,  the  consumption  of  electricity  from  clean  energy  sources  is  rising,  which  is  likely  to  raise  the  total  consumption  of  electricity  in  a  country  that  is  now  embracing  green  energy.” (Saha, 2019).  “With  the  USA  experiencing  economic  growth  in  recent  electricity,  the  demand  for  electricity  consumption  is  expected  to  rise  with  increased  production.” (Liu, 2015).    According  to  a  Quadrennial  Technology  Review  conducted  by  assessing  energy  technologies  and  research  opportunities  in  the  USA,  energy  consumption  in  the  USA  has  increased  by  1%.  “It  is  expected  to  grow  with  a  rate  of  about  3.2%  due  to  the  recent  developments  in  the  Developing  World.” (Riview, 2015).

 

 

 

 

 

              

  The Supply and Demand Curve of Electricity in South and North Carolina

Analysis

The  Carolinas  are  two  states  that  Duke  Energy  has  dominated  in  the  supply  of  electricity  and  are  being  used  as  a  sample  of  the  other  five  states  that  Duke  Energy  supplies  the  electricity.  Before  the  great  recession  of  2007,  the  supply  of  electricity  was  equal  to  its  demand.  Duke  energy  enjoyed  a  market  equilibrium  from  1990  to  around  2000  because  it  experienced  constant  economic  growth.  The  demand  of  electricity  started  falling  slightly  to  its  supply  as  development  started  slowing  down  before  the  great  recession  2007.  In  2007  the  electricity  demand  experienced  a  great  plummet  with  Duke  Energy,  keeping  its  electricity  constant  according  to  the  seven  states’  demographic  requirements.

After  the  recession,  the  economy  started  recovering,  and  Duke  Energy  experienced  a  market  equilibrium  once  more.  In  2014  the  country’s  economy  started  picking,  and  the  levels  of  production  rose  too.  The Carolinas were not left out on this.  With  an  increase  in  production,  the  demand  for  electricity  took  a  sharp  rise.  Duke  energy  struggled  to  keep  up  with  the  demand  for  electricity  consumption  though  increased  electricity  consumption  that  would  be  catastrophic  to  the  environment  due  to  large  carbon  emissions.  Duke was rampantly adopting clean sources of electricity, wind, and power to keep up with the high demands of electricity without causing environmental pollution.

The supply of electricity has grown with a rate of 1% since then.  In  2019  the  need  for  electricity  decreased  because  the  economy  experienced  some  trouble  resulting  from  the  ongoing  trade  wars.  In  2020  the  electricity  demand  has  experienced  a  heavy  plummet  due  to  a  great  economic  downturn  amid  the  Covid  19  crisis.  With many of the major companies being shut down.  “However,  many  economists  expect  the  economy  to  recover,  but  it  will  not  regain  its  former  trend  as  fast  as  predicted.” (Akers, 2010).  Thus, electricity demand is expected to peak slowly before regaining a market equilibrium later in the future.

Since  Duke  Energy  Supply’s  electricity  in  some  of  the  most  industrialized  states  in  the  USA,  where  electricity  is  the  backbone  of  the  production,  the  production,  and  supply  of  electricity  in  these  states  seem  to  be  a  profitable  venture  since  the  company  has  experienced  steady  growth.  Duke  Progress  Energy  should  focus  on  growing  its  clean  energy  sources  to  embrace  a  green  environment  and  reduce  global  warming.  An  embracement  of  green  energy  will  enable  the  company  to  generate  more  megatons  of  electricity  to  keep  up  with  the  demand,  thus  raising  its  profit  levels.  I  would  recommend  the  company  to  invest  in  clean  sources  since  it’s  the  only  thing  hindering  it  from  currently  keeping  up  with  the  demand.

                                                                          

 

                                                                             References             

Akers, B. (2010, 5 21). The V shapedEconomic Recovery is Now Just a Pipe Dream. Retrieved from E21: https://economics21.org/the-vanish-v-shaped-recovery

Energy, D. (n.d.). Our History Honouring The pat as we Transform the Future. Retrieved from Duke Energy: https://www.duke-energy.com/Our-Company/About-Us/Our-History

Energy, D. (n.d.). The Business we are in. Retrieved from Duke energy: https://www.duke-energy.com/our-company/about-us./business/regulated-utilities

Liu, Z. (2015). Global Energy Development: The Reality and Challlenges. Retrieved from Electricity Consuption: https://sciencedirect.com/topics/engineering/electricity-consuption

Riview, Q. T. (2015). An Assessment of Energy Telchnologies and Reaserch opportunities. Quadrennial Technology Riview, 32.

Saha, D. (2019, 8 15). Good news, Bad News:4 Trendss in US energy Use. Retrieved from World Resource Institute: https://www.wri.org/blog/2019/08/good-news-bad-news-4-trends-us-energy-use