Although hydropower’s future in America’s energy strategy is unclear following the election of President Trump, Michael Ferguson, director, US Energy Infrastructure, S&P Global Ratings, believes that U.S. hydro assets will remain resilient.
In a guest commentary for AlphaQ’s February edition, Ferguson explains that, by leveraging hydropower facilities’ advantages – such as longevity, low variable cost structures and flexible generation capabilities – the U.S. can meet demand pattern changes more efficiently.
Ferguson states: “Project longevity provides one crucial advantage to energy ratepayers: insulation against a volatile commodity price – both in terms of power pricing and capacity costs. In this respect, we expect hydro financing to remain robust in the face of any exogenous political or market forces.”
The full article can be found here (page 28-29).